GLG Life Tech Corporation Reports 2024 Annual & Fourth Quarter Financial Results

Rhea-AI Summary

GLG Life Tech, a global leader in natural sweeteners, reported mixed financial results for Q4 and full-year 2024. While Q4 revenues decreased 8% to $4.0 million compared to 2023, annual revenues increased 41% to $14.6 million.

The company's gross profit margin improved to 15% in Q4 2024 and 17% for the full year. However, GLG faced significant challenges, reporting a net loss of $16.6 million for 2024, up from $7.2 million in 2023. The company successfully reduced SG&A expenses to $1.4 million, down $0.4 million from 2023.

Key corporate developments include the transfer of its Runde production facility to Xiaogang, delisting from TSX, and listing on NEX exchange. The company faces ongoing challenges including competitive price pressures in the stevia market, increased raw material costs, and regulatory hurdles including a cease trade order. Despite these challenges, management projects 2024 revenues to meaningfully exceed 2023 levels.

Positive

• Annual revenue increased 41% to $14.6M in 2024 vs 2023
• Annual gross profit margin improved to 17% from 15% in 2023
• SG&A expenses reduced by $0.4M to $1.4M in 2024
• Q4 2024 gross profit margin improved to 15% from 7% in 2023
• Significant debt reduction through Runde facility transfer and Runyang bankruptcy liquidation

Negative

• Q4 2024 revenue decreased 8% to $4.0M vs Q4 2023
• Net loss increased to $16.6M in 2024 from $7.2M in 2023
• Loss per share increased to $0.43 in 2024 from $0.19 in 2023
• Delisted from TSX due to financial condition and market cap issues
• Cease trade order in effect due to delayed financial filings
• Cash flow issues threatening company's ability to continue as going concern
• Facing strong competitive price pressure in stevia market
• Increased raw material costs impacting product margins

VANCOUVER, BC / ACCESS Newswire / April 30, 2025 / GLG Life Tech Corporation (TSX:GLG) ("GLG" or the "Company"), a global leader in the agricultural and commercial development of high-quality zero-calorie natural sweeteners, announces financial results for the three and twelve months ended December 31, 2024. The complete set of financial statements and management discussion and analysis are available on SEDAR and on the Company's website at www.glglifetech.com.

FINANCIAL SUMMARY

The Company reported revenues of $4.0 million in the fourth quarter of 2024, a decrease of 8% compared with $4.4 million in revenues for the fourth quarter of 2023. The Company reported gross profit for continuing operations of $0.6 million for the three months ended December 31, 2024, compared to $0.3 million in gross profit for the same period last year. The gross profit margin was 15% for the three months ended December 31, 2024, compared to 7% for the same period in 2023, or an increase of eight percentage points.

The Company reported revenues of $14.6 million for the year 2023, an increase of 41% compared to the year 2023 ($10.3 million). The Company reported gross profit for continuing operations of $2.5 million for the twelve months ended December 31, 2024, compared to $1.5 million in gross profit for the prior year. The gross profit margin was 17% for the twelve months ended December 31, 2024, compared to 15% for 2023, or an increase of two percentage points.

For the twelve months ended December 31, 2024, SG&A expenses were reduced to $1.4 million, a decrease of $0.4 million compared to 2023 ($1.8 million).

For the three months ended December 31, 2024, the Company had net loss attributable to the Company from continuing operations of $5.1 million compared to $nil net income attributable to the Company from continuing operations for the same period in 2023.

For the twelve months ended December 31, 2024, the Company had net loss attributable to the Company from continuing operations of $16.6 million, an increase of $9.4 million over the comparable period in 2023 (net loss attributable to the Company from continuing operations of $7.2 million).

The Company reported net loss per share from continuing operations of $0.13 for the fourth quarter 2024, a $0.13 decrease relative to the fourth quarter 2023 ($nil income from continuing operations per share). The Company reported net loss per share from continuing operations of $0.43 for the year 2024, a $0.24 increase relative to the year 2023 (net loss from continuing operations of $0.19 per share).

CORPORATE DEVELOPMENTS

Runde Subsidiary Transfer Agreement and Special Shareholder Meeting

On February 20, 2024, the Company announced that it had signed an agreement, which, once fully approved, would result in the transfer of its Qingdao Runde Biotechnology Company, Ltd. ("Runde") production facility to Fengyang Xiaogang Hongzhang Health Industrial Park Co. Ltd ("Xiaogang"). This transfer, at the time contingent on necessary shareholder approval, and still contingent on regulatory approval, would eliminate significant bank debt from GLG's balance sheet.

Under the terms of the agreement, for the sale price of one Chinese RMB, one hundred percent of the equity in Runde, currently held by the Company's Anhui Runhai Biotechnology Joint Stock Company, Ltd. ("Runhai") subsidiary, will be transferred to Xiaogang. Xiaogang will thereafter own Runde's tangible assets and will have sole liability for Runde's debts including bank debt. The Company will retain its intellectual property rights, including its proprietary technology and know-how in agriculture and natural sweetener production.

Under supplemental agreements then expected to be signed by Runhai and Xiaogang in the coming weeks (and subsequently signed), Xiaogang will utilize Runde for the benefit of GLG and GLG's customers. Xiaogang will partner with Qingdao Honghongyuan Health Industry Technology Co., Ltd. ("HHY") - the operating entity previously formed to manage Runde's production operations - such that Runde's production continues unchanged under HHY's processes and management. Xiaogang, via HHY, will produce goods at Runde exclusively for GLG, except for domestic China sales. In this manner, GLG's customers will be able to rely on the same production expertise, processes, and highest quality standards remaining in place after this asset transfer becomes fully effective.

The agreement concerning Runde provides that the equity transfer will only become effective upon completion of any regulatory obligations, including putting the agreement forth to the Company's shareholders for a shareholder vote and additional securities-/exchange-related obligations. This agreement was put to shareholder vote at a special shareholder meeting and approved by the shareholders with over 99% of votes cast in favor of the transaction on May 16, 2024.

On August 13, 2024, Management completed its regulatory review regarding the transfer agreement. Management has determined that no further regulatory review or approvals were required to consummate the transfer, having already obtained the approval of over 99% of the shareholders casting votes at the Company's Special Shareholder Meeting held on May 16, 2024. Management has reflected the transfer of Runde, including Runde's assets and debts, in its third quarter interim financial filings.

As noted below, the Company has entered into a similar contingent agreement for the sale of its Runhai stevia and monk fruit manufacturing facility, located in Anhui province. The Company currently centers its stevia and monk fruit production operations at the Runde facility and plans to continue doing so, via Xiaogang and HHY.

Runhai Subsidiary Transfer Agreement and Annual General and Special Meeting

The Company has filed notice of its Annual General and Special Meeting to be held on May 22, 2025, at its corporate headquarters; shareholders of record as of April 17, 2025, will be eligible to vote at the meeting. The Special Meeting portion will attend to the proposed consummation of an agreement that would, akin to the transfer of Runde, transfer the debts and tangible assets of Runhai to the same third party to which Runde has been transferred. Runhai has been idled since September 2023, and its transfer will further improve the Company's balance sheet and improve its working capital position, as well as reduce the Company's exposure to general risks in China, which the Company views as increasing in light of the Chinese government's financial situation.

Shareholders are directed to the Company's meeting materials available on its website for further details of the proposed transaction.

Delisting Review / Delisting from the TSX

On April 3, 2024, the Company announced that the Toronto Stock Exchange ("TSX") had commenced a delisting review, effective April 2, 2024. The TSX provided the Company a 120-day window in which to remedy several long-standing deficiencies, including the Company's financial condition and/or operating results and the Company's share price and market capitalization.

At the time of the announcement, the Company stated that it could not provide any assurance that it would be able to remedy the deficiencies identified by the TSX within the 120-day window or thereafter, particularly as there was no guarantee that the Company's share price, trading activity, or market capitalization would improve sufficiently to avoid continued TSX concern in those areas. The Company also confirmed that it had been in contact with the TSX Venture Exchange ("TSX-V") regarding an application for a listing on the TSX-V to maintain trading continuity in the event that the Company is delisted from the TSX.

Since that announcement, the Company was notified by the TSX that it would be delisted effective close of business on September 3, 2024. While the Company was not able to list on the TSX-V due to a Cease Trade Order in effect, the Company has been able to list on the NEX exchange, and the Company's NEX listing became effective on September 4, 2004.

Delay in Filing Financials and Cease Trade Order

As a result of the Company's failure to file its 2023 financials (consisting of annual financial statements, its management discussion and analysis relating to its annual financial statements, and its Annual Information Form and CEO and CFO certifications, all in respect of its year ended December 31, 2023) by March 31, 2024, the British Columbia Securities Commission ("BCSC") issued a failure-to-file cease trade order ("FFCTO"). The failure to file timely resulted from the late-coming court orders regarding Runyang's bankruptcy proceedings and the additional financial and audit work necessitated by those orders.

The delayed 2023 financial filings, which have since been filed on June 27, 2024, also led to a delay in the filing of the Company's first quarter 2024 interim financials, which have since been filed on July 23, 2024. With the Company now current in its filings, Management is pursuing a revocation of the FFCTO. Management cannot at this time provide an expected date for a revocation of the FFCTO nor any assurance that the revocation will be granted.

Final Disposition of Runyang Operations

In the course of the bankruptcy proceedings concerning Runyang, the Chinese court ultimately declared Runyang bankrupt, having liquidated all of its assets. In the fourth quarter of 2023, with Runyang's obligations thereby terminated, the Company realized a significant reduction in its liabilities, substantially outweighing the book value of the liquidated assets.

2024 AGM Voting Results

The Company held its Annual General Meeting on June 28, 2024. The shareholders voted in all four nominated directors, with favorable votes for each exceeding 99%. Dr. Luke Zhang continues as Chairman of the Board and Chief Executive Officer and Mr. Brian Palmieri continues as Vice Chairman of the Board. Madame Liu Yingchun and Mr. Simon Springett continue as directors of the Company.

Addition of New Director

The Board of Directors, in the wake of former Director Madame Sophia Leung's election to not stand for re-election, determined that it would be beneficial to increase the number of directors from four to five and identified a well-qualified candidate to join the Board. The Board approved Mr. David Bishop, who served as Vice President of Operations with the Company from 2006 to 2008 in China during its largest expansion phase, as a fifth Director; Mr. Bishop will be standing for re-election at the Company's upcoming Annual General and Special Meeting. Mr. Bishop is an independent director (thereby providing the Board with a majority of independent directors) and brings a wealth of international experience and specific knowledge of Chinese stevia operations.

Company Outlook

In recent quarters, management has placed, and continues to place, particular focus on mitigating the losses that the Company has suffered over the last several years and to ameliorate the Company's financial position. As a result of those sustained losses, the Company lacks the cash necessary to fully fund the business operations and its strategic product initiatives. The Company continues to manage its cash flows carefully to mitigate risk of insolvency. As a result of these efforts, management has been successful in improving the Company's cash flows. Nevertheless, without an infusion of cash in the months ahead, the Company may not be able to realize its strategic plans and could eventually cease to be a going concern.

To address that cash need, management previously negotiated revolving loan facilities with a third party for working capital purposes. In 2020, management also realized the sale of one of its two idle assets; the sale of the "Runhao" facility resulted in significant debt reduction. In 2023, the Company also realized significant debt reduction through the bankruptcy liquidation of its other long-idled asset, "Runyang". In 2024, as of August 13, the Company has finalized the transfer of its "Runde" facility, including Runde's debts and assets (to be reflected in the Company's third quarter interim financial filings), which will bring substantial improvements to its balance sheet, while indirectly maintaining production operations (not under the Company's own name but via HHY) at Runde. The Company has entered into a similar agreement to transfer its "Runhai" facility, given the strength of the Company's long-term exclusive agreement with its contract manufacturer, HHY; consummation of the agreement is pending the approval of shareholders. Collectively, these efforts to overhaul the Company's balance sheet better position the Company to avail itself of capital resources to support future growth.

The Company's focus on maintaining positive cash flow led the Company to take decisive steps in 2021, 2022 and 2023 to reduce its SG&A costs as well as its production costs. Both its North American operations and Chinese operations significantly reduced SG&A costs. For many years, the Company's production capacity had been far greater than its projected order levels, as it had then sought rapid increases in orders, particularly for Reb A products. The Company's aim transitioned to "right-sizing" its Chinese operations - i.e., to optimize its staffing and production planning to meet the Company's projected production requirements while retaining the ability to accommodate growth in future order volumes - and management made significant progress in this area.

A factor that continues to contribute to the Company's financial situation is the competitive price pressure in the stevia market over the last few years that has reduced mainstream "Reb A" products (such as Reb A 80 and Reb A 97) to the lowest price levels in years. Monk fruit prices have also become highly competitive in the marketplace. To maintain margins at sustainable levels, the Company previously focused on improving production efficiencies, and having made significant progress in that area (prior to transferring Runde's operations to HHY), the Company continues to strive for a mix of products that is weighted more heavily on higher margin, specialty products, and has focused more on higher margin direct sales. These right-sizing and efficiency efforts have enabled the Company to sell its goods at more competitive and/or more profitable prices, although the competitive price pressures remain strong and the most recent stevia leaf harvest has brought increased raw materials costs in tension with the Company's focus on product margins.

Revenue trends have been and remain encouraging, as Management's efforts to increase sales have brought increased revenues in the last three quarters (Q2 and Q1 2024 and Q4 2023) relative to the several prior quarters. Management currently foresees 2024 full-year revenues as meaningfully exceeding full-year 2023 revenues. This revenue growth is important to the Company's goals of maintaining positive cash flow and positive EBITDA.

Against this backdrop of sales growth, the Company faces significant regulatory hurdles. It is currently cease-traded, as a result of its delay in filing its 2023 full-year financials (since filed, on June 28, 2024), pursuant to a British Columbia Securities Commission order (the failure-to-file cease trade order or "FFCTO"). As a result of that filing delay, the Company was also delayed in filing its interim first quarter financials for 2024 (filed on July 23, 2024). Further, the Company was under a delisting review initiated by the TSX, on the basis of the Company's share price and market capitalization remaining lower than the TSX's requirements, as well as the Company's sustained losses over the years and negative working capital situation, that as noted above, culminated in a decision by the TSX to delist the Company's shares effective close of business September 3, 2024. The Company has since transferred its listing to the NEX exchange, where it is currently listed (as of September 4, 2024), but the FFCTO remains in effect.

As has been previously announced by the Company, the financial filing delays resulted from late-coming court orders in China related to proceedings concerning the Runyang; the court proceedings resulted in the disposal of the Runyang business, including elimination of significant debts previously carried by the Company, such debt elimination far greater than the carried value of the disposed assets. Management has since brought the Company current in its financial reporting requirements. Accordingly, Management is presently working to have the FFCTO rescinded, but cannot at present provide a timeline or any measure of certainty in having the FFCTO rescinded in the near future.

Although the regulatory hurdles are substantial, Management continues to have a positive outlook, at least in the near term, on the Company's revenues, particularly compared to 2023, as sales volumes remain elevated approaching the end of 2024 and entering 2025. As Management seeks to have the Company's stock trading again, Management continues to focus on maintaining and increasing revenues, notwithstanding pricing pressures, as well as on maintaining and improving margins and increase cash flows. Management also continues to work on improving the Company's negative working capital situation, and in particular, on options to restructure or otherwise resolve some or all of the remainder of the Company's long-standing bank debt.

SELECTED FINANCIALS

As noted above, the complete set of financial statements and management discussion and analysis for the year ended December 31, 2024, are available on SEDAR and on the Company's website at www.glglifetech.com.

Results from Operations

The following results from operations have been derived from and should be read in conjunction with the Company's annual consolidated financial statements for 2024 and 2023.

In thousands Canadian $, except per share amounts		3 Months Ended December 31								% Change				12 Months Ended December 31								% Change
		2024				2023								2024				2023
Results from Continuing Operations
Revenue		$	4,041			$	4,399				(8	%)		$	14,555			$	10,321				41	%
Cost of Sales		$	(3,426	)		$	(4,096	)			16	%)		$	(12,010	)		$	(8,812	)			(36	%)
% of Revenue			(85	%)			(93	%)			8	%			(83	%)			(85	%)			3	%)
Gross Profit		$	614			$	303				103	%		$	2,545			$	1,508				69	%
% of Revenue			15	%			7	%			8	%			17	%			15	%			3	%)
Expenses		$	16			$	373				96	%)		$	(1,371	)		$	(1,780	)			(23	%)
% of Revenue			0	%			8	%			(8	%)			(9	%)			(17	%)			8	%
Income/(Loss) from Operations		$	630			$	676				(7	%)		$	1,174			$	(272	)			532	%
% of Revenue			16	%			15	%			0	%			8	%			(3	%)			11	%
Other Income/(Expenses)		$	(5,698	)		$	(639	)			(792	%)		$	(17,761	)		$	(6,953	)			(155	%)
% of Revenue			(141	%)			(15	%)			(126	%)			(122	%)			(67	%)			(55	%)
Net Income/(Loss)		$	(5,068	)		$	37				(13797	%)		$	(16,587	)		$	(7,225	)			(130	%)
% of Revenue			(125	%)			1	%			(126	%)			(114	%)			(70	%)			(44	%
Net Income/(Loss) Attributable to GLG		$	(5,089	)		$	19				(26884	%)		$	(16,587	)		$	(7,224	)			(130	%)
% of Revenue			(126	%)			0	%			(126	%)			(114	%)			(70	%)			(44	%
Net Earnings/(Loss) Per Share Attributable to GLG		$	(0.13	)		$	0.00				(26991	%)		$	(0.43	)		$	(0.19	)			(130	%)
Consolidated Results (Consolidating Continued and Discontinued Operations)
Net Income/(Loss) - Continuing Operations		$	(5,068	)		$	37				(13797	%)		$	(16,587	)		$	(7,225	)			(130	%)
Net Income/(Loss) - Discontinued Operations		$	(1,717	)		$	17,073				(110	%)		$	83,715			$	1,615	)			5084	%
Net Income/(Loss)		$	(6,785	)		$	17,110				(140	%)		$	67,128			$	(5,610	)			1297	%
Net Income/(Loss) Attributable to GLG		$	(6,786	)		$	16,896				(140	%)		$	66,165			$	(5,628	)			1276	%
Net Earnings/(Loss) Per Share Attributable to GLG		$	(0.18	)		$	0.44				(140	%)		$	1.72			$	(0.15	)			1276	%
Other Comprehensive Income/(Loss)		$	(624	)		$	(108	)			(478	%)		$	(2,598	)		$	6,177				(142	%)
Comprehensive Net Income/(Loss)		$	(7,408	)		$	17,001				(144	%)		$	64,530			$	568	)			11261	%
Comprehensive Net Income/(Loss) Attributable to GLG		$	(7,340	)		$	16,780				(144	%)		$	63,653			$	477	)			13244	%

Note regarding presentation of financials:

Discontinued Operations / Restatement - Runde

In August 2023, the Company through its subsidiary, Qingdao Runde Biotechnology Company, Ltd. ("Runde") entered into an agreement with a third party, Qingdao Honghongyuan Health Industry Technology Co., Ltd. ("HHY"), incorporated in Qingdao, China in 2023. With this agreement in place, Runde transferred most of its employees to HHY and HHY, with the former Runde production and oversight personnel performing their same operations, still at the Runde facility but operating under the name of HHY, commenced production of products to be sold to the Company (and in turn, the Company's customers). While HHY is owned by a third party, production by HHY for the Company leverages principally a) the production staff formerly employed by Runde and transferred to HHY and b) the existing production know-how, including adherence to specific customer requirements and established protocols.

Further, in January 2024, the Company entered into an ownership transfer agreement to sell 100% of its ownership in Runde to another third party. This transfer agreement was made expressly contingent on the Company gaining shareholder approval for the transfer and regulatory approvals in Canada. In May 2024, the Company's shareholders approved the transaction. As of August 13, 2024, the Company has determined that no further regulatory review or approvals are required.

On the basis of Runde's cessation of production under its own name, in the course of completing the Company's fiscal year 2023 reporting, the Company has reclassified Runde's operations as discontinued operations on a retrospective basis for the years ended December 31, 2023 and 2022, and has continued this classification into 2024. While the Company's third quarter 2024 interim financial filings reflect, as of September 30, 2024, Runde's operations as discontinued operations, the Company has fully recorded the transfer of the Runde subsidiary in its third quarter 2024 interim financial filings.

Additionally, the Company restated the term loans in its 2022 financials, as a result of an incorrect exchange rate used, which was reported in the Company's 2023 financials.

Discontinued Operations / Restatement - Runhai

In November 2024, and as further discussed in the Company's Management Circular (available on the Company's website) for the Company's upcoming (May 22, 2025) Annual General and Special Meeting, the Company entered into a transfer agreement for its Runhai subsidiary, akin to the transfer agreement discussed above for Runde. With consummation of the transfer pending the shareholder vote at the Special Meeting, the Company has reclassified Runhai's operations (idled since September 2023) into discontinued operations on a retrospective basis for years ended December 21, 2024 and 2023. If shareholders approve the proposed consummation of the transfer agreement, the Company expects to record the disposition of Runhai and its subsidiaries (Bengbu) in its second quarter interim financial filings.

Revenue

Revenue for the three months ended December 31, 2024, decreased by 8% to $4.0 million, a $0.4 million decrease compared to $4.4 million for the same period in 2023. This 8% decrease was driven by a decrease in stevia revenues. International sales comprised 100% of revenues in the fourth quarter (100% in fourth quarter of 2023).

Revenue for the twelve months ended December 31, 2024, increased by 41% to $14.6 million, a $4.2 million increase compared to $10.3 million in revenue for the same period in 2023. The revenue increase of $4.2 million was driven by an increase in stevia sales reflecting the introduction of new stevia products and successful efforts to grow the Company's sales with both existing and new customers. International sales made up 100% of the Company's revenues in 2024 (100% in 2023).

Cost of Sales

For the quarter ended December 31, 2024, the cost of sales decreased to $3.4 million, compared to a cost of sales of $4.1 million for the same period last year, a decrease of 16%. This decrease in cost of sales is driven in part by the decrease in sales in the fourth quarter of 2024 and in part by a base effect in the fourth quarter of 2023 arising from full-year adjustments made for the reclassification treatment as discontinued operations for Runde's cost of goods sold that were attributed solely to the fourth quarter of 2023. The cost of sales as a percentage of revenues was 85% for the fourth quarter of 2024, compared with a cost of sales as a percentage of revenues of 93% for the comparable period. Management views the cost of sales as a percentage of revenues in the fourth quarter of 2024 as more representative, relative to the same metric in the fourth quarter of 2023, of ongoing costs of sales.

For the twelve months ended December 31, 2024, the cost of sales was $12.0 million compared to $8.8 million for the same period last year ($3.2 million or 36% increase). Cost of sales as a percentage of revenues was 83% for the first twelve months of 2024, compared to 85% in the comparable period, a two percentage point improvement.

Gross Profit

Gross profit for the three months ended December 31, 2024, was $0.6 million, compared to $0.3 million in gross profit for the same period last year. The gross profit margin was 15% for the fourth quarter of 2024, compared to 7% in the fourth quarter of 2023. As noted above, a comparison between the two periods involves a base effect from the fourth quarter of 2023 arising from full-year adjustments made for the reclassification treatment as discontinued operations for Runde's cost of goods sold that were attributed solely to the fourth quarter of 2023.

Gross profit for the twelve months ended December 31, 2024, was $2.5 million, compared to a gross profit of $1.5 million for the comparable period in 2023. The gross profit margin was 17% for the twelve months ended December 31, 2024, compared to 15% for the same period in 2023, an improvement of 2 percentage points, attributable to an increase in sales volumes in 2024 providing economies of scale, relative to 2023, and despite lower average unit prices in 2024.

Net Income (Loss) Attributable to the Company - Continuing Operations

Net Loss Attributable to the Company
In thousands Canadian $, except per share amounts		3 Months Ended December 31								% Change				12 Months Ended December 31								% Change
		2024				2023								2024				2023
Net Income/(Loss) - Continuing Operations
Net Income/(Loss)		$	(5,068	)		$	37				13797	%		$	(16,587	)		$	(7,225	)			(130	%)
% of Revenue			(125	%)			1	%			(126	%)			(114	%)			(70	%)			(44	%)
Net Income/(Loss) Attributable to NCI		$	21			$	18				--			$	0			$	0				--
Net Income/(Loss) Attributable to GLG		$	(5,089	)		$	19				26884	%		$	(16,587	)		$	(7,224	)			(130	%)
% of Revenue			(126	%)			0	%			(126	%)			(114	%)			(70	%)			(44	%)
Net Earnings/(Loss) Per Share Attributable to GLG		$	(0.13	)		$	0.00				26991	%		$	(0.43	)		$	(0.19	)			(130	%)

For the three months ended December 31, 2024, the Company had net loss attributable to the Company from continuing operations of $5.1 million, an increase of $5.1 million over the comparable period in 2023 (net income attributable to the Company from continuing operations of $nil million). The $5.1 million increase is attributable to an increase in other expenses ($5.1 million); increases in gross profit ($0.3 million) and SG&A expenses ($0.3 million) offset each other.

For the year ended December 31, 2024, the Company had a net loss attributable to the Company from continuing operations of $16.6 million, an increase of $9.4 million over the comparable period in 2023 (net loss attributable to the Company from continuing operations of $7.2 million). The $9.4 million increase is attributable to (1) an increase in other expenses ($10.8 million), which was offset by (2) an increase in gross profit ($1.0 million) and (3) a decrease in SG&A expenses ($0.4 million).

Quarterly Basic and Diluted Loss per Share

The basic loss and diluted loss per share from continuing operations was $0.13 for the three months ended December 31, 2024, compared with a basic and diluted net income per share from continuing operations of $nil for the comparable period in 2023. The consolidated continued/discontinued operations income/loss per share is net loss per share of $0.18 for the fourth quarter of 2024 and net income per share of $0.44 for the fourth quarter of 2023.

The basic loss and diluted loss per share from continuing operations was $0.43 for the twelve months ended December 31, 2024, compared with a basic and diluted net loss per share from continuing operations of $0.19 for the comparable period in 2023. The consolidated continued/discontinued operations income/loss per share is net income per share of $1.72 for the year 2024 and net loss per share of $0.15 for the year 2023.

Additional Information

Additional information relating to the Company, including our Annual Information Form, is available on SEDAR (www.sedar.com). Additional information relating to the Company is also available on our website (www.glglifetech.com).

For further information, please contact:

Simon Springett, Investor Relations
Phone: +1 (604) 669-2602 ext. 101
Fax: +1 (604) 662-8858
Email: ir@glglifetech.com

About GLG Life Tech Corporation

GLG Life Tech Corporation is a global leader in the supply of high-purity zero calorie natural sweeteners including stevia and monk fruit extracts used in food and beverages. GLG's vertically integrated operations, which incorporate our Fairness to Farmers program and emphasize sustainability throughout, cover each step in the stevia and monk fruit supply chains including non-GMO seed and seedling breeding, natural propagation, growth and harvest, proprietary extraction and refining, marketing and distribution of the finished products. Additionally, to further meet the varied needs of the food and beverage industry, GLG has launched its Naturals+ product line, enabling it to supply a host of complementary ingredients reliably sourced through its supplier network in China. For further information, please visit www.glglifetech.com.

Forward-looking statements: This press release may contain certain information that may constitute "forward-looking statements" and "forward looking information" (collectively, "forward-looking statements") within the meaning of applicable securities laws. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

While the Company has based these forward-looking statements on its current expectations about future events, the statements are not guarantees of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors include amongst others the effects of general economic conditions, consumer demand for our products and new orders from our customers and distributors, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures and misjudgments in the course of preparing forward-looking statements. Specific reference is made to the risks set forth under the heading "Risk Factors" in the Company's Annual Information Form for the financial year ended December 31, 2024. In light of these factors, the forward-looking events discussed in this press release might not occur.

Further, although the Company has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

As there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, readers should not place undue reliance on forward-looking statements.

SOURCE: GLG Life Tech Corporation

View the original press release on ACCESS Newswire

FAQ

What caused GLGLF's Q4 2024 revenue decline of 8% to $4.0 million?

The press release does not explicitly state the cause of the 8% revenue decline in Q4 2024 compared to Q4 2023. However, it mentions competitive price pressures in the stevia market and increased raw materials costs from recent harvests as ongoing challenges.

How much debt will GLGLF eliminate through the Runde facility transfer to Xiaogang?

The exact debt amount is not specified, but the press release indicates that transferring the Runde production facility to Xiaogang will eliminate 'significant bank debt' from GLG's balance sheet, while allowing GLG to maintain production through exclusive manufacturing agreements.

Why was GLGLF delisted from TSX in September 2024?

GLGLF was delisted from TSX due to failing to remedy several deficiencies including the company's financial condition, operating results, share price, and market capitalization during the 120-day review period that began April 2, 2024.

What is GLGLF's financial outlook for 2024 after reporting $16.6M loss in 2024?

Management expects 2024 full-year revenues to meaningfully exceed 2023 revenues, despite challenges. However, the company needs cash infusion to remain a going concern and continue operations, while focusing on maintaining positive cash flow and EBITDA.

How will the Runhai facility transfer impact GLGLF's operations?

The proposed Runhai facility transfer, pending shareholder approval, will improve GLGLF's balance sheet and working capital position while reducing exposure to China risks. The company plans to continue production through its agreement with contract manufacturer HHY.