GREENLAND TECHNOLOGIES HOLDING CORPORATION" This is the name of the registrant, which is a company that is filing its annual report with the Securities and Exchange Commission (SEC).
Greenland Technologies Holding Corporation filed its annual report for the fiscal year ended December 31, 2024. The company reported a market value of approximately $10.81 million for its common equity as of the last business day of its most recently completed second fiscal quarter. As of March 26, 2025, there were 13,594,530 ordinary shares outstanding. The report does not provide detailed financial information, but it does indicate that the company is a non-accelerated filer and is not a large accelerated filer, accelerated filer, smaller reporting company, or emerging growth company. The report also indicates that the company has not filed reports required to be filed under Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months.
Overview
Greenland Technologies Holding Corporation is a company that designs, develops, manufactures and sells components and products for the global material handling industries. Through its subsidiaries in China, Greenland offers transmission products that are key components for forklift trucks used in manufacturing, logistics, and other industrial applications.
Greenland’s revenue decreased from approximately $90.33 million in fiscal year 2023 to $83.94 million in fiscal year 2024, primarily due to a decrease in sales volume of transmission products. However, Greenland believes it remains one of the major developers and manufacturers of transmission products for small and medium-sized forklift trucks in China.
In 2020, Greenland formed a wholly-owned subsidiary called HEVI to focus on the production and sale of electric industrial vehicles in the North American market. HEVI’s current electric vehicle product line includes forklifts, loaders, and excavators. In 2022, Greenland launched a 54,000 square foot assembly site in Baltimore, Maryland to support local distribution of its electric industrial equipment.
Results of Operations
For the fiscal year ended December 31, 2024, Greenland’s key financial results include:
- Revenues of $83.94 million, down 7.1% from $90.33 million in 2023
- Cost of goods sold of $61.41 million, down 6.6% from $65.76 million in 2023
- Gross profit of $22.53 million, down 8.3% from $24.58 million in 2023
- Operating expenses of $9.94 million, down 28.0% from $13.80 million in 2023
- Net income of $15.15 million, compared to a net loss of $25.02 million in 2023
The decrease in revenue was primarily due to a $6.17 million decline in sales volume of transmission products. Cost of goods sold also decreased, but not as much as the revenue decline, leading to a lower gross margin of 26.8% in 2024 compared to 27.2% in 2023.
Greenland’s operating expenses saw a significant 28.0% decrease, driven by reductions in research and development, general and administrative, and selling expenses. The company recorded a $1.75 million gain from the change in fair value of its warrant liability, compared to a $1.40 million gain in 2023.
After accounting for other income and expenses, Greenland reported net income of $15.15 million in 2024, a substantial improvement from the $25.02 million net loss in 2023.
Revenue
Greenland’s revenue decreased by 7.1% in fiscal year 2024 compared to 2023, primarily due to a $6.17 million decline in sales volume of transmission products. Excluding the impact of exchange rate fluctuations, revenue decreased by 5.6% year-over-year.
Cost of Goods Sold and Gross Profit
Greenland’s cost of goods sold, which includes material costs, freight, labor, and other production-related expenses, decreased by 6.6% in 2024. However, the decrease in cost of goods sold was not as large as the revenue decline, leading to a lower gross margin of 26.8% in 2024 compared to 27.2% in 2023.
Operating Expenses
Greenland’s operating expenses, which include selling, general and administrative, and research and development costs, decreased by 28.0% in 2024. This was mainly due to:
- A 7.4% decrease in selling expenses, driven by lower after-sales service and advertising costs
- A 19.8% decrease in general and administrative expenses, primarily from a reduction in allowance for credit losses
- A 45.9% decrease in research and development expenses as the company scaled back R&D activities
Income from Operations
As a result of the changes in revenue, cost of goods sold, and operating expenses, Greenland’s income from operations increased by 16.8% to $12.59 million in 2024.
Other Income and Expenses
Greenland recorded several other notable items in its 2024 financial results:
- Interest income increased by 504.1% to $0.86 million due to higher cash balances
- Interest expenses decreased by 66.4% to $0.08 million from lower short-term borrowings
- The company recognized a $1.75 million gain from the change in fair value of its warrant liability
- Impairment charges for investments decreased from $0.30 million in 2023 to zero in 2024
- Allowance for expected credit losses on related party receivables decreased from $34.46 million in 2023 to zero in 2024
Net Income
Greenland reported net income of $15.15 million in fiscal year 2024, a significant improvement from the $25.02 million net loss in 2023. This was primarily driven by the decrease in operating expenses, the gains from the warrant liability and credit loss allowance, and the absence of the large remeasurement loss recorded in 2023.
Liquidity and Capital Resources
Greenland has funded its operations through a combination of equity contributions, cash flow from operations, short-term bank loans, and long-term borrowings. As of December 31, 2024, the company had $8.61 million in cash, cash equivalents, and restricted cash, down from $28.19 million at the end of 2023.
The decrease in cash was mainly due to $30.90 million in net cash used in financing activities, which included repayments of notes payable and short-term bank loans. However, Greenland generated $13.34 million in net cash from operating activities in 2024, a significant improvement from $2.45 million in 2023.
Greenland’s working capital increased to $35.11 million as of December 31, 2024, up from $27.27 million at the end of 2023. The company plans to fund its operations through cash flow, bank borrowings, equity financing, and support from shareholders as needed.
Risks and Outlook
Greenland faces several key risks, including credit risk from its accounts receivable, liquidity risk from managing its cash flows and debt, and inflation risk from rising costs. The company has policies and procedures in place to monitor and manage these risks.
Looking ahead, Greenland remains confident in its ability to generate positive cash flow from operations. The company plans to maintain its current debt structure and seek government-supported loans with lower costs. Greenland also intends to work on improving its collection efforts and credit policies with customers.
While the company’s traditional transmission product business saw a decline in 2024, Greenland is optimistic about the growth potential of its HEVI electric industrial vehicle subsidiary in the North American market. The launch of new electric equipment models and the new assembly facility in the U.S. are expected to support HEVI’s expansion.
Overall, Greenland appears to have weathered the challenges of 2024 and is positioning itself for potential growth opportunities in the electric industrial vehicle segment while maintaining a solid core transmission products business. The company’s focus on cost control, liquidity management, and strategic initiatives should help it navigate the road ahead.
