GLG Life Tech Corporation Reports 2021 Third Quarter Financial ResultsVANCOUVER, BC / ACCESSWIRE / November 15, 2021 / 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 nine months ended September 30, 2021. 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 SUMMARYThe Company reported revenues of $2.1 million in the third quarter of 2021, a $1.9 million decrease compared to the third quarter of 2020 ($4.0 million). The Company reported an increase of nine percentage points in gross profit margin for the third quarter 2021 (27%), relative to the same period in 2020 (18%).The Company reported revenues of $7.9 million for the first nine months of 2021, a $4.6 million decrease compared to the first nine months of 2020 ($12.5 million). The Company reported a gross profit margin of 28% for the first nine months of 2021, a six percentage point increase from the first nine months of 2020 (22%).The Company continues to closely manage its SG&A expenses, resulting in reduced G&A expenses in the nine-month period ending September 30, 2021, relative to the comparable period in 2020. For the three-month period ending September 30, 2021, G&A expenses would have also been lower but for one-time events in each of 2021 (increasing G&A costs) and 2020 (lowering G&A costs).For the three months ended September 30, 2021, the Company had a net loss attributable to the Company's shareholders of $7.0 million, or a decrease in net income of $28.1 million over the comparable period in 2020 (net income of $21.1 million). The Company reported a net loss per share of $0.18 for the third quarter of 2021, a $0.73 decrease relative to the third quarter of 2020 (income of $0.55 per share).For the nine months ended September 30, 2021, the Company had a net loss attributable to the Company's shareholders of $15.3 million, or a decrease in net income of $38.0 million over the comparable period in 2020 (net income of $22.9 million). The Company reported net loss per share of $0.40 for the first nine months of 2021, a $1.00 decrease relative to the first nine months of 2020 (income of $0.60 per share).CORPORATE DEVELOPMENTSCompany OutlookOver the past several quarters, management has focused on implementing and continuing plans that have helped stem the losses that the Company suffered in recent years and to ameliorate the Company's financial position. Those efforts have brought some success, as the Company's EBITDA has improved, due largely to significant reductions in SG&A expenses. It remains the case, however, that 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. 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 negotiated a CAD $1 million revolving loan facility with a related party for working capital purposes in 2020. Also in 2020, management realized the sale of one of its two idle assets; the sale of the "Runhao" facility resulted in significant debt reduction and better positions the Company to be able to access additional lines of working capital. Management also continues to explore options for the sale or repurposing of its idle "Runyang" primary processing facility in Jiangsu province to further address its cash needs and balance sheet.Another factor that continues to contribute to the Company's financial situation is the competitive price pressure in the stevia market over the last two 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 increasingly competitive in the marketplace. To maintain margins at sustainable levels, the Company has focused on improving its production efficiencies and continues to strive a mix of products that is weighted more heavily on higher margin, specialty products.The Company continues to explore options to significantly improve its balance sheet and cash flows, whether through restructuring of debt or other opportunities for infusions of cash to address the debt load. The Company also continues to explore options that may be complementary to the natural sweetener market, where it could leverage its production expertise and equipment towards an investment that may help grow the Company's revenues and improve its financial position.While the Company continues to face substantial risks and 2021 remains another pivotal year for the Company, management remains optimistic about the future opportunities for the Company. Having closed the idle asset sale last year and having successfully implemented right-sizing efforts to manage costs, as well as continuing to optimize production efficiencies, costs, and planning, management is proceeding down the best available path to increased financial stability and profitability.Appointment of Chief Financial OfficerThe Company announced the appointment of Edward Wang as Chief Financial Officer, effective November 12, 2021. Mr. Wang, who joined the Company in October 2019, had been serving as Acting Chief Financial Officer since June of 2020.In view of Mr. Wang's efforts and results in overseeing the Company's financial reporting, cost controls, and financial management of both the Chinese and North American operations, the Board of Directors agreed that Mr. Wang was the right person to continue leading the Company's financial operations. Dr. Zhang expressed: "With Edward's performance since joining the Company - Edward has helped deliver significant savings in our SG&A and has managed the Company's financial reporting professionally and admirably - as a result I have full faith in him to continue driving us towards strong results, to execute on our strategy, and to help take GLG to the next level."Mr. Wang, who joined the Company in October 2019, had been serving as Acting Chief Financial Officer since June of 2020. He received his Bachelor of Arts in Accounting degree in 1992, Master of Business Administration in 2005, and earned his CPA, CGA in 2010. Prior to joining GLG, Mr. Wang worked in Kraft Foods (China) for eight years and the mining business in both China and Canada for ten years.2021 AGM Voting ResultsThe Company held its Annual General Meeting virtually on June 23, 2021. The shareholders voted in all nominated directors, with favorable votes for each exceeding 99%. Dr. Luke Zhang continues as Chairman of the Board and Chief Executive Officer and Brian Palmieri continues as Vice Chairman of the Board.SELECTED FINANCIALSAs noted above, the complete set of financial statements and management discussion and analysis for the three and nine months ended September 30, 2021, are available on SEDAR and on the Company's website at www.glglifetech.com.Results from OperationsThe following results from operations have been derived from and should be read in conjunction with the Company's annual consolidated financial statements for 2020 and the condensed interim consolidated financial statements for the nine-month period ended September 30, 2021. 3 Months Ended September 30 % Change 9 Months Ended September 30 % Change In thousands Canadian $, except per share amounts 2021 2020 2021 2020 Revenue $2,094 $3,966 (47%) $7,874 $12,507 (37%)Cost of Sales $(1,536) $(3,239) (53%) $(5,675) $(9,793) (42%)% of Revenue (73%) (82%) 8% (72%) (78%) 6%Gross Profit $558 $727 (23%) $2,199 $2,713 (19%)% of Revenue 27% 18% 8% 28% 22% 6%Expenses $(1,209) $(1,468) (18%) $(3,495) $(5,298) (34%)% of Revenue (58%) (37%) (21%) (44%) (42%) (2%)(Loss) from Operations $(651) $(742) 12% $(1,296) $(2,586) 50%% of Revenue (31%) (19%) (12%) (16%) (21%) 4%Other Income (Expenses) $(6,347) $18,056 (135%) $(14,088) $25,850 (154%)% of Revenue (303%) 455% (758%) (179%) 207% (386%)Net Income (Loss) before Income Taxes $(6,998) $17,314 (140%) $(15,384) $23,264 (166%)% of Revenue (334%) 437% (771%) (195%) 186% (381%)Net Income (Loss) $(6,998) $17,314 (140%) $(15,384) $23,264 (166%)% of Revenue (334%) 437% (771%) (195%) 186% (381%)Net Income (Loss) Attributable to Non-Controlling Interest (NCI) $(36) $(3,827) 99% $(95) $363 (126%)Net Income (Loss) Attributable to GLG $(6,962) $21,141 (133%) $(15,289) $22,901 (167%)% of Revenue (332%) 533% (866%) (194%) 183% (377%)Net Income (Loss) per share (LPS, Basic & Diluted) $(0.18) $0.55 (133%) $(0.40) $0.60 (167%)Other Comprehensive Income (Loss) $(1,625) $9,154 (118%) $(590) $6,349 (109%)% of Revenue (78%) 231% (308%) (7%) 51% (58%)Comprehensive Net Income (Loss) $(8,623) $26,468 (133%) $(15,974) $29,613 (154%)Comprehensive Income (Loss) Attributable to NCI $(55) $(2,995) (98%) $(106) $382 (128%)Comprehensive Income (Loss) Attributable to GLG $(8,568) $29,463 (129%) $(15,868) $29,231 (154%)% of Revenue (409%) 743% (1152%) (202%) 234% (436%)RevenueRevenue for the three months ended September 30, 2021, was $2.1 million compared to $4.0 million in revenue for the same period last year. Sales decreased by 47% or $1.9 million for the period ending September 30, 2021, compared to the prior period. The sales decrease of $1.9 million is primarily attributable to a substantial increase in orders from one customer occurring in the third quarter of 2020 (resulting in a corresponding decrease in the third quarter of 2021), as well as a significant decrease in monk fruit sales in the third quarter of 2021 arising from limited monk fruit market supply; lower market pricing for stevia products also contributed to the decrease in sales. China domestic sales decreased 15% in the third quarter of 2021, compared to the prior period, but international sales continue to predominate, making up 95% of the Company's revenues in the third quarter of 2021 (97% in the third quarter of 2020).Revenue for the nine months ended September 30, 2021, was $7.9 million compared to $12.5 million in revenue for the same period last year. Sales decreased by 37% or $4.6 million for the nine months ending September 30, 2021, compared to the prior period. The sales decrease of $4.6 million was driven primarily by the factors driving the decrease in sales in the third quarter of 2021, resulting in decreases in both international stevia and monk fruit sales in the first nine months of 2021 compared to the first nine months of 2020. A decrease in China domestic sales between the two periods also contributed to the overall sales decrease, but international sales predominate, making up 96% of the Company's revenues in the first nine months of both 2021 and 2020.Cost of SalesFor the quarter ended September 30, 2021, the cost of sales was $1.5 million compared to $3.2 million in cost of sales for the same period last year ($1.7 million or 53% decrease). Cost of sales as a percentage of revenues was 73% for the third quarter 2021, compared to 82% for the comparable period, an improvement of 9 percentage points. The improvement in cost of sales as a percentage of revenue for the three months ended September 30, 2021, compared to the prior comparable period, is primarily attributable to (1) a higher ratio of stevia sales over monk fruit sales (monk fruit sales generally carry lower margins) and (2) a reduction in idle capacity charges.For the nine months ended September 30, 2021, the cost of sales was $5.7 million compared to $9.8 million for the same period last year ($4.1 million or 42% decrease). Cost of sales as a percentage of revenues was 72% for the first nine months of 2021, compared to 78% in the comparable period in 2020, an improvement of 6 percentage points. The improvement in cost of sales as a percentage of revenue for the nine months ended September 30, 2021, compared to the prior comparable period, is primarily attributable to (1) a higher ratio of stevia sales over monk fruit sales and (2) a reduction in idle capacity charges.Capacity charges charged to the cost of sales ordinarily would flow to inventory and are a significant component of the cost of sales. Only two of GLG's manufacturing facilities were operating during the first nine months of 2021, and capacity charges of $0.7 million were charged to cost of sales (representing 11% of cost of sales) compared to $1.4 million charged to cost of sales in the same period of 2020 (representing 14% of cost of sales).Gross Profit (Loss)Gross profit for the three months ended September 30, 2021, was $0.6 million, compared to a gross profit of $0.7 million for the comparable period in 2020. The gross profit margin was 27% in the third quarter of 2021 compared to 18% for the same period in 2020, an increase of 9 percentage points. This 9 percentage point increase in gross profit margin for the third quarter of 2021, relative to the comparable period in 2020, is primarily attributable to (1) a higher ratio of stevia sales over monk fruit sales (monk fruit sales generally carry lower margins) and (2) a reduction in idle capacity charges.Gross profit for the nine months ended September 30, 2021, was $2.2 million, compared to a gross profit of $2.7 million for the comparable period in 2020. The gross profit margin was 28% in the first nine months of 2021 compared to 22% for the same period in 2020, an increase of 6 percentage points. This 6 percentage point increase in gross profit margin for the first nine months of 2021, relative to the comparable period in 2020, is primarily attributable to (1) a higher ratio of stevia sales over monk fruit sales and (2) a reduction in idle capacity charges.Selling, General and Administration ExpensesSelling, General and Administration ("SG&A") expenses include sales, marketing, general and administration costs ("G&A"), stock-based compensation, and depreciation and amortization expenses on G&A fixed assets. A breakdown of SG&A expenses into these components is presented below: 3 Months Ended September 30 % Change 9 Months Ended September 30 % Change In thousands Canadian $ 2021 2020 2021 2020 G&A Expenses $946 $732 29% $2,638 $3,458 (24%)Stock Based Compensation Expenses $0 $45 (100%) $73 $315 (77%)Depreciation Expenses $263 $691 (62%) $784 $1,525 (49%)Total $1,209 $1,468 (18%) $3,495 $5,298 (34%)G&A expenses for the three months ended September 30, 2021, were $0.9 million, an increase of $0.2 million compared to $0.7 million in the same period in 2020. The $0.2 million increase in G&A expenses was driven primarily by (1) a one-time court fee payment related to debt repayment negotiations ($0.1 million) and (2) a reclassification of severance pay, recorded in the third quarter of 2020, from salary expenses to cost of goods sold ($0.2 million); these factors were offset by decreases in consulting fees, office expenses and rental expenses ($0.1 million).G&A expenses for the nine months ended September 30, 2021, were $2.6 million, a decrease of $0.8 million compared to $3.5 million in the same period in 2020. The $0.8 million decrease in G&A expenses was driven primarily by reductions in salaries and wages ($0.5 million), office expenses ($0.2 million), consulting fees ($0.1 million) and research and development and insurance expenses ($0.1 million); these decreases were offset by an increase in professional fees ($0.1 million).Net Loss Attributable to the Company 3 Months Ended September 30 % Change 9 Months Ended September 30 % Change In thousands Canadian $ 2021 2020