Greenland Technologies (GTEC)

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Greenland Technologies (GTEC) - 2020 Q4 - Annual Report
2021-03-30 16:00
PART I [ITEM 1. BUSINESS](index=4&type=section&id=ITEM%201.%20BUSINESS) Greenland Technologies develops transmission products in China and is expanding into the electric industrial vehicle market - Greenland Technologies Holding Corporation was incorporated on December 28, 2017, and completed a business combination with Zhongchai Holding in October 2019[13](index=13&type=chunk) - Greenland is a leading developer of transmission products for material handling machinery in China and is also developing electric industrial vehicles, with the first model expected in Q3/Q4 2021[14](index=14&type=chunk)[17](index=17&type=chunk) - The company sold over **108,913 sets** of transmission products in 2020 to more than 100 forklift manufacturers in the PRC, an increase from 83,567 in 2019[17](index=17&type=chunk) - A new division was launched in December 2020 to focus on the electric industrial vehicle market, with plans for a new production facility on the U.S. east coast[17](index=17&type=chunk) - Competitive strengths include favorable market trends, well-developed manufacturing capabilities, robust R&D, a strategic service network, and an experienced management team[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - As of December 31, 2020, the company held **108 registered patents** (98 utility, 10 invention) and 2 registered trademarks in the PRC[58](index=58&type=chunk) - The company's five largest customers contributed **48.85% of total revenues** in 2020, with Hangcha Group alone accounting for 21.25%[42](index=42&type=chunk) - The sales and marketing team consisted of 14 employees as of December 31, 2020, primarily selling products domestically in the PRC[59](index=59&type=chunk) Revenue Growth (2019-2020) | Fiscal Year | Revenue (USD) | | :---------- | :------------ | | 2019 | $52.40 million | | 2020 | $66.86 million | | **Increase**| **$14.46 million (27.60%)** | Employees by Function (December 31, 2020) | Function | Number | | :------------------ | :----- | | Management | 8 | | Administration | 33 | | Production | 186 | | Research and development | 69 | | Sales and marketing | 14 | | Other | 18 | | **Total** | **328**| [ITEM 1A. RISK FACTORS](index=19&type=section&id=ITEM%201A.%20RISK%20FACTORS) As a smaller reporting company, Greenland is not required to provide specific risk factor disclosures - Smaller reporting companies are not required to provide the information required by this item[87](index=87&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS](index=19&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[87](index=87&type=chunk) [ITEM 2. PROPERTIES](index=19&type=section&id=ITEM%202.%20PROPERTIES) The company's principal facilities are located in Zhejiang Province, PRC, consisting of owned and leased properties - Greenland's principal executive offices, headquarters, manufacturing, and R&D facilities are located in Xinchang County, Zhejiang Province, PRC[88](index=88&type=chunk) - As of December 31, 2020, Greenland held land use rights for approximately **81,171 square meters**, expiring in 2062[88](index=88&type=chunk) - The company owned three buildings with an aggregate gross floor area of approximately **44,751 square meters** as of year-end 2020[88](index=88&type=chunk) - Greenland leased one property of approximately 200 square meters for its operations[89](index=89&type=chunk) [ITEM 3. LEGAL PROCEEDINGS](index=19&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company is not currently involved in any material legal proceedings - There are currently no legal proceedings or claims that are believed to have a material adverse effect on the company's business, financial condition, or operating results[90](index=90&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=19&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) The company has no mine safety disclosures to report - There are no mine safety disclosures[90](index=90&type=chunk) PART II [ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=20&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY%2C%20RELATED%20SHAREHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's shares trade on Nasdaq, with details on holders, dividends, and recent unregistered securities sales - Greenland's ordinary shares are traded on the Nasdaq Capital Market under the symbol **"GTEC"** and commenced public trading on August 8, 2018[92](index=92&type=chunk) - As of March 26, 2021, the last reported sale price for ordinary shares was approximately **$15.50 per share**[93](index=93&type=chunk) - As of March 19, 2021, there were 9 recorded holders of the company's ordinary shares and **10,498,127 shares outstanding**[3](index=3&type=chunk)[95](index=95&type=chunk) - Prior to the business combination, Zhejiang Zhongchai paid approximately **$0.16 million** in dividends to its shareholders[94](index=94&type=chunk) - The company issued restricted ordinary shares to Chineseinvestors.com, Inc. and Skyline Corporate Communication Group, LLC as termination payments for investor relations services[101](index=101&type=chunk)[102](index=102&type=chunk) - In late 2020 and early 2021, the company issued **255,000 ordinary shares** to its CEO and CFO to offset unpaid salaries and a personal loan[103](index=103&type=chunk) [ITEM 6. SELECTED FINANCIAL DATA](index=21&type=section&id=ITEM%206.%20SELECTED%20FINANCIAL%20DATA) As a smaller reporting company, Greenland is not required to provide selected financial data - As a smaller reporting Company, Greenland Technologies Holding Corporation is not required to provide the information requested by this Item[104](index=104&type=chunk) [ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=22&type=section&id=ITEM%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) The company's 2020 financial performance saw significant revenue growth, impacted by COVID-19 and managed through cash flow and loans - The COVID-19 pandemic adversely affected operations in early 2020, but business recovered, and backlogged orders contributed to increased revenues in the latter half of the year[118](index=118&type=chunk)[119](index=119&type=chunk) - **Gross margin decreased** from 23.6% in FY2019 to 19.16% in FY2020, primarily due to a decrease in procurement costs[127](index=127&type=chunk) - R&D expenses increased by 1.26% to **$2.38 million** in FY2020, reflecting a significant increase in R&D activities[131](index=131&type=chunk) - Net income was significantly impacted by a one-time remeasurement gain of approximately **$1.94 million** from a change in functional currency[134](index=134&type=chunk) - Income tax increased by 168.24% to **$2.27 million** in FY2020, with Zhejiang Zhongchai benefiting from a reduced 15% 'high-tech enterprise' tax rate[122](index=122&type=chunk)[135](index=135&type=chunk) - Working capital increased by $4.59 million to **$28.84 million** as of December 31, 2020, primarily due to an increase in notes receivable[153](index=153&type=chunk) - Cash and cash equivalents increased by 237.14% to **$7.16 million** as of December 31, 2020[146](index=146&type=chunk) - Accounts receivable increased by 3.65% to **$12.41 million** as of December 31, 2020, attributed to slowed collection efforts due to COVID-19[148](index=148&type=chunk) - Notes receivable increased by 90.66% to **$30.80 million** as of December 31, 2020[152](index=152&type=chunk) - Due from related party Cenntro Holding Limited was **$38.54 million** as of December 31, 2020, with repayment extended to April 27, 2022[150](index=150&type=chunk) - The company faces credit risk from unsecured accounts receivable, liquidity risk from capital resource management, and inflation risk[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - The business combination in October 2019 was accounted for as a **reverse recapitalization**, with Zhongchai Holding considered the accounting acquirer[169](index=169&type=chunk)[170](index=170&type=chunk) - As an emerging growth company, Greenland intends to take advantage of exemptions for complying with new or revised accounting standards[175](index=175&type=chunk) - The company has **no off-balance sheet arrangements**[176](index=176&type=chunk) Key Financial Highlights (FY2020 vs. FY2019) | Metric | FY2020 (USD) | FY2019 (USD) | Change (USD) | % Variance | | :-------------------------- | :----------- | :----------- | :----------- | :--------- | | Revenues | 66,864,375 | 52,400,844 | 14,463,531 | 27.60 | | Cost of Goods Sold | 54,051,367 | 40,022,243 | 14,029,124 | 35.05 | | Gross Profit | 12,813,008 | 12,378,601 | 434,407 | 3.51 | | Total Operating Expenses | 6,104,658 | 5,774,523 | 330,135 | 5.72 | | Income from Operations | 6,708,350 | 6,604,078 | 104,272 | 1.58 | | Income before Income Tax | 8,644,560 | 5,934,533 | 2,710,027 | 45.67 | | Net Income | 6,371,563 | 5,087,166 | 1,284,397 | 25.25 | Cash Flow Summary (FY2020 vs. FY2019) | Cash Flow Activity | FY2020 (USD) | FY2019 (USD) | | :-------------------------- | :----------- | :----------- | | Net cash from operating activities | $2,695,570 | $7,999,230 | | Net cash (used in) investing activities | $(822,769) | $(1,600,288) | | Net cash from financing activities | $2,307,164 | $(9,644,359) | | Net increase (decrease) in cash and restricted cash | $4,179,965 | $(3,245,417) | [ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=33&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Market risk disclosures are incorporated by reference from the Management's Discussion and Analysis section - Information regarding market risks (Credit Risk, Liquidity Risk, and Inflation Risk) is contained in Item 7[177](index=177&type=chunk) [ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](index=33&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) The consolidated financial statements and supplementary data are included as identified in Item 15 - The consolidated financial statements and supplementary data required for this Item are included in this Report and identified in Item 15[177](index=177&type=chunk) [ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](index=33&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company changed its independent registered public accounting firm twice in 2020 without any reported disagreements - Marcum LLP was dismissed as the independent registered public accounting firm on January 6, 2020[177](index=177&type=chunk) - BDO China Shu Lun Pan Certified Public Accountants LLP was dismissed on November 13, 2020[180](index=180&type=chunk) - WWC Professional Corporation was appointed on November 13, 2020, to audit the consolidated financial statements for the fiscal year ending December 31, 2020[185](index=185&type=chunk) - **No disagreements or reportable events** were reported with Marcum LLP or BDO China Shu Lun Pan Certified Public Accountants LLP during their respective engagement periods[179](index=179&type=chunk)[181](index=181&type=chunk) [ITEM 9A. CONTROLS AND PROCEDURES](index=35&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were ineffective due to a material weakness in financial reporting personnel - As of December 31, 2020, management concluded that disclosure controls and procedures were **ineffective** due to a material weakness in internal controls over financial reporting[188](index=188&type=chunk) - The material weakness identified was the **lack of sufficient and competent financial reporting and accounting personnel** with appropriate knowledge of U.S. GAAP and SEC reporting requirements[190](index=190&type=chunk) - A remedial plan for fiscal year 2021 includes formalizing policies, recruiting qualified personnel, providing training, and establishing effective oversight[191](index=191&type=chunk)[193](index=193&type=chunk) - Despite the material weakness, the consolidated financial statements **fairly present** the company's financial position, results of operations, and cash flows in conformity with U.S. GAAP[195](index=195&type=chunk) - There were no changes in internal control over financial reporting during the fiscal year ended December 31, 2020, that materially affected internal controls[196](index=196&type=chunk) [ITEM 9B. OTHER INFORMATION](index=36&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) There is no other information to report in this section - There is no other information to report[197](index=197&type=chunk) PART III [ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](index=37&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) The company details its board of directors, executive officers, committee structures, and corporate governance policies - Peter Zuguang Wang (Chairman) and Raymond Z. Wang (CEO) are father and son[207](index=207&type=chunk) - The Board has determined that Ming Zhao, Charles Athle Nelson, Everett Xiaolin Wang, and Frank Shen are **'independent directors'** as defined under Nasdaq Listing Rules[213](index=213&type=chunk) - The Board has a classified structure, with directors serving staggered terms until 2021 and 2022[215](index=215&type=chunk) - The company has an audit committee, a compensation committee, and a nominating and corporate governance committee, all composed of independent directors[218](index=218&type=chunk)[219](index=219&type=chunk)[222](index=222&type=chunk)[225](index=225&type=chunk) - The company has adopted a code of ethics that applies to all executive officers, directors, and employees[226](index=226&type=chunk) - Jing Jin, the Chief Financial Officer, filed one Form 4 late as of the most recently completed fiscal year[227](index=227&type=chunk) Directors and Executive Officers | Name | Age | Position | | :----------------- | :-- | :------------------------------------- | | Peter Zuguang Wang | 66 | Chairman of the Board | | Raymond Z. Wang | 37 | Chief Executive Officer and President | | Jing Jin | 37 | Chief Financial Officer | | Lei Chen | 61 | Chief Scientist | | Ming Zhao | 52 | Independent Director | | Charles Athle Nelson | 67 | Independent Director | | Everett Xiaolin Wang | 59 | Independent Director | | Frank Shen | 51 | Independent Director | [ITEM 11. EXECUTIVE COMPENSATION](index=43&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Executive compensation for 2020 consisted of salaries and stock awards, with details on employment agreements - Employment agreements with key executives outline specific employment periods, termination conditions, and confidentiality obligations[234](index=234&type=chunk)[235](index=235&type=chunk)[236](index=236&type=chunk) - Non-employee directors did not hold any outstanding option awards as of December 31, 2020[237](index=237&type=chunk) - The company does not offer pension plans or similar retirement benefits to its executive officers or employees[238](index=238&type=chunk) - Non-executive directors did not receive compensation for their services in fiscal year 2020 but were reimbursed for expenses[239](index=239&type=chunk) Executive Compensation (FY2020 vs. FY2019) | Name and Principal Position | Year | Salary ($) | Stock Awards ($) | Total ($) | | :-------------------------- | :--- | :--------- | :--------------- | :-------- | | Raymond Z. Wang, CEO & President | 2020 | 145,000 | 69,000 | 214,000 | | | 2019 | 108,750 | - | 108,750 | | Jing Jin, CFO | 2020 | 72,000 | 135,000 | 207,000 | | | 2019 | 30,000 | - | 30,000 | | Lei Chen, Chief Scientist | 2020 | - | - | - | | | 2019 | 33,750 | - | 33,750 | [ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](index=45&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) The Chairman is the largest beneficial owner, with directors and officers as a group holding over 72% of shares - As of March 19, 2021, there were **10,498,127 ordinary shares** issued and outstanding[242](index=242&type=chunk) - As of December 31, 2020, there were no securities authorized for issuance under equity compensation plans[247](index=247&type=chunk) Beneficial Ownership of Ordinary Shares (March 19, 2021) | Name and Address of Beneficial Owner | Amount | Percent of Class | | :----------------------------------- | :---------- | :--------------- | | Peter Zuguang Wang | 7,306,949 | 69.602% | | Raymond Z. Wang | 120,000 | 1.143% | | Jing Jin | 135,000 | 1.286% | | Lei Chen | - | - | | Ming Zhao | - | - | | Charles Athle Nelson | - | - | | Everett Xiaolin Wang | - | - | | Frank Shen | - | - | | All Directors and executive officers as a group (8 persons) | 7,561,949 | 72.949% | [ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](index=46&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information on related party transactions and director independence is incorporated by reference from the proxy statement - The information required by this item is incorporated by reference to the Definitive Proxy Statement filed on December 1, 2020[248](index=248&type=chunk) [ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES](index=46&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) Total accounting fees decreased in 2020, consisting primarily of audit and audit-related services - Audit fees consist of fees for the audit of annual financial statements and services related to statutory and regulatory filings[250](index=250&type=chunk) - Audit-related fees are for accounting, assurance, and related services reasonably related to the audit or review of financial statements[251](index=251&type=chunk) - The audit committee has pre-approved all audit and non-audit related services provided by the independent registered public accounting firm[252](index=252&type=chunk) Principal Accounting Fees and Services (FY2020 vs. FY2019) | Category | 2020 (USD) | 2019 (USD) | | :----------------- | :--------- | :--------- | | Audit Fees | $300,000 | $379,303 | | Audit-Related Fees | $30,000 | - | | Tax Fees | - | - | | All Other Fees | - | - | | **Total** | **$330,000** | **$379,303** | PART IV [ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES](index=47&type=section&id=ITEM%2015.%20EXHIBITS%2C%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists the financial statements and a comprehensive index of exhibits filed with the report - The section includes an index to financial statements, comprising reports of independent auditors, consolidated balance sheets, and statements of income, equity, and cash flows[254](index=254&type=chunk) - A detailed list of exhibits is provided, including organizational documents, warrant agreements, employment agreements, and various certifications[255](index=255&type=chunk)[256](index=256&type=chunk)[258](index=258&type=chunk) [ITEM 16. FORM 10-K SUMMARY](index=49&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) The company has elected not to provide a Form 10-K summary - There is no Form 10-K summary provided[259](index=259&type=chunk) SIGNATURES [SIGNATURES](index=50&type=section&id=SIGNATURES) The report was duly signed by the CEO, CFO, and other directors on March 31, 2021 - The Annual Report on Form 10-K was signed on March 31, 2021, by Raymond Z. Wang (CEO) and Jing Jin (CFO), along with other directors[260](index=260&type=chunk)[262](index=262&type=chunk) FINANCIAL STATEMENTS [Reports of Independent Registered Public Accounting Firms](index=52&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firms) The independent auditor issued an unqualified opinion, highlighting accounts receivable valuation as a critical audit matter - WWC, P.C. issued an **unqualified opinion** on the consolidated financial statements for the two-year period ended December 31, 2020[268](index=268&type=chunk) - A critical audit matter identified was the **fair valuation of accounts receivables** and related allowance for doubtful accounts, due to significant subjective judgment[271](index=271&type=chunk) - The audit opinion is not qualified as a result of the emphasis of matter regarding a one-time gain on remeasurement of foreign currency[269](index=269&type=chunk) [Consolidated Balance Sheets](index=54&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $131.98 million in 2020, driven by increases in current assets and liabilities - Cash and cash equivalents increased significantly from $2.12 million in 2019 to **$7.16 million** in 2020[274](index=274&type=chunk) - Notes receivable nearly doubled from $16.16 million in 2019 to **$30.80 million** in 2020[274](index=274&type=chunk) - Due from related parties (current) increased from $36.04 million in 2019 to **$38.54 million** in 2020[274](index=274&type=chunk) - Short-term bank loans increased from $16.86 million in 2019 to **$18.49 million** in 2020[277](index=277&type=chunk) - Notes payable-bank acceptance notes increased from $15.05 million in 2019 to **$25.89 million** in 2020[277](index=277&type=chunk) - Accounts payable increased from $14.71 million in 2019 to **$22.01 million** in 2020[277](index=277&type=chunk) Consolidated Balance Sheet Highlights (December 31, 2020 vs. 2019) | Category | Dec 31, 2020 (USD) | Dec 31, 2019 (USD) | | :------------------------ | :----------------- | :----------------- | | Total Current Assets | $107,643,434 | $80,239,713 | | Total Non-Current Assets | $24,335,303 | $26,244,130 | | **TOTAL ASSETS** | **$131,978,737** | **$106,483,843** | | Total Current Liabilities | $78,808,335 | $55,993,321 | | Total Long-Term Liabilities | $2,508,940 | $3,528,398 | | **TOTAL LIABILITIES** | **$81,317,275** | **$59,521,719** | | Total Shareholders' Equity | $44,889,922 | $38,595,878 | | Non-controlling Interest | $5,771,540 | $8,366,246 | | **TOTAL EQUITY** | **$50,661,462** | **$46,962,124** | [Consolidated Statements of Income and Comprehensive Income](index=56&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Net income increased 25.25% to $6.37 million in 2020, driven by revenue growth and a remeasurement gain - Revenues increased by **27.60%** from $52.40 million in 2019 to $66.86 million in 2020[280](index=280&type=chunk) - Gross profit increased by 3.51% to **$12.81 million** in 2020, while cost of goods sold increased by 35.05%[280](index=280&type=chunk) - A remeasurement gain of **$1.94 million** from a change in functional currency significantly impacted income before income tax in 2020[280](index=280&type=chunk) - Net income attributable to owners increased by **51.3%** from $4.46 million in 2019 to $6.76 million in 2020[280](index=280&type=chunk) - Basic and diluted net income per ordinary share increased from **$0.56** in 2019 to **$0.67** in 2020[280](index=280&type=chunk) Consolidated Statements of Income and Comprehensive Income (FY2020 vs. FY2019) | Metric | FY2020 (USD) | FY2019 (USD) | | :------------------------------------------------------------------ | :----------- | :----------- | | REVENUES | $66,864,375 | $52,400,844 | | COST OF GOODS SOLD | $54,051,367 | $40,022,243 | | GROSS PROFIT | $12,813,008 | $12,378,601 | | Total operating expenses | $6,104,658 | $5,774,523 | | INCOME FROM OPERATIONS | $6,708,350 | $6,604,078 | | Remeasurement gain from change in functional currency | $1,940,773 | - | | INCOME BEFORE INCOME TAX | $8,644,560 | $5,934,533 | | INCOME TAX | $2,272,997 | $847,367 | | NET INCOME | $6,371,563 | $5,087,166 | | NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES | $6,758,502 | $4,464,556 | | Basic and diluted NET INCOME PER ORDINARY SHARE | $0.67 | $0.56 | [Consolidated Statements of Shareholders' Equity](index=57&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Total equity increased to $50.66 million in 2020, primarily driven by net income and currency translation adjustments - Net income contributed **$6.37 million** to equity in 2020[285](index=285&type=chunk) - Foreign currency translation adjustment resulted in a **$0.94 million** increase in comprehensive income in 2020[285](index=285&type=chunk) - A reduction of capital of **$3.86 million** occurred in 2020[285](index=285&type=chunk) - The number of ordinary shares outstanding increased by 219,000 shares in 2020 due to restricted stock grants[285](index=285&type=chunk) Consolidated Statements of Shareholders' Equity Highlights (December 31, 2020 vs. 2019) | Metric | Dec 31, 2020 (USD) | Dec 31, 2019 (USD) | | :------------------------------------ | :----------------- | :----------------- | | Ordinary Shares (No Par Value) | 10,225,142 | 10,006,142 | | Additional Paid-in Capital | $13,707,398 | $15,226,685 | | Statutory Reserve | $4,517,117 | $3,866,574 | | Retained Earnings | $26,728,332 | $19,863,600 | | Accumulated Other Comprehensive Income (Loss) | $(62,925) | $(360,981) | | Total Shareholders' Equity | $44,889,922 | $38,595,878 | | Non-controlling Interest | $5,771,540 | $8,366,246 | | **Total Equity** | **$50,661,462** | **$46,962,124** | [Consolidated Statements of Cash Flows](index=58&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company generated a positive net cash flow of $4.18 million in 2020, a reversal from the prior year - Net cash provided by operating activities decreased in 2020 primarily due to changes in notes receivable and inventories, despite higher net income[155](index=155&type=chunk) - Net cash used in investing activities decreased in 2020, mainly due to lower purchases of long-term assets[157](index=157&type=chunk) - Net cash provided by financing activities in 2020 was driven by proceeds from short-term bank loans ($21.13 million) and third parties ($4.38 million)[159](index=159&type=chunk) - Total cash and cash equivalents and restricted cash at the end of 2020 was **$9.40 million**, up from $5.72 million in 2019[291](index=291&type=chunk) Consolidated Statements of Cash Flows (FY2020 vs. FY2019) | Cash Flow Activity | FY2020 (USD) | FY2019 (USD) | | :---------------------------------------------------------- | :----------- | :----------- | | Net cash provided by operating activities | $2,695,570 | $7,999,230 | | Net cash (used in) investing activities | $(822,769) | $(1,600,288) | | Net cash provided/(used) in financing activities | $2,307,164 | $(9,644,359) | | Net increase (decrease) in cash and cash equivalents and restricted cash | $4,179,965 | $(3,245,417) | | Cash and cash equivalents and restricted cash at end of period | $9,403,053 | $5,717,207 | [Notes to Consolidated Financial Statements](index=60&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies, financial accounts, related party transactions, and other key disclosures - The business combination was accounted for as a **reverse recapitalization**, with Zhongchai Holding as the accounting acquirer[308](index=308&type=chunk)[309](index=309&type=chunk)[310](index=310&type=chunk) - Cenntro Holding Limited, controlled by Chairman Peter Zuguang Wang, owns **69.60%** of Greenland's outstanding ordinary shares as of December 31, 2020[297](index=297&type=chunk) - The company's five largest customers contributed **34.41% of total revenues** in 2020[374](index=374&type=chunk) - Inventories, net, increased from $9.97 million in 2019 to **$15.38 million** in 2020[381](index=381&type=chunk) - Notes receivable increased to **$30.80 million** in 2020, with $26.53 million pledged as security for bank acceptance notes[381](index=381&type=chunk) - Notes payable (bank acceptance notes) increased to **$25.89 million** in 2020, secured by restricted cash, notes receivable, and land use rights[394](index=394&type=chunk) - Short-term bank loans totaled **$18.49 million** in 2020, with an average annual interest rate of 4.547%[399](index=399&type=chunk)[400](index=400&type=chunk)[405](index=405&type=chunk) - Due from related parties (Cenntro Holding Limited) was **$38.54 million** in 2020, with repayment extended to April 27, 2022[461](index=461&type=chunk)[462](index=462&type=chunk) - Subsequent events include the grant of **51,000 shares** of restricted common stock to Raymond Z. Wang on February 8, 2021[471](index=471&type=chunk) Disaggregation of Revenue by Major Product (FY2020 vs. FY2019) | Major Product | FY2020 (USD) | FY2019 (USD) | | :--------------------------------- | :----------- | :----------- | | Transmission boxes for Forklift | 58,407,137 | 52,140,258 | | Transmission boxes for Non-Forklift (EV, etc.) | 8,457,238 | 260,586 | | **Total** | **66,864,375** | **52,400,844** |
Greenland Technologies (GTEC) - 2020 Q3 - Quarterly Report
2020-11-23 13:06
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File number 000-26731 GREENLAND TECHNOLOGIES HOLDING CORPORATION (Exact name of registrant as specified in charter) | --- | --- | ...
Greenland Technologies (GTEC) - 2020 Q2 - Quarterly Report
2020-08-14 15:30
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File number 000-26731 GREENLAND TECHNOLOGIES HOLDING CORPORATION (Exact name of registrant as specified in charter) British Virgin Isla ...
Greenland Technologies (GTEC) - 2020 Q1 - Quarterly Report
2020-06-29 20:13
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File number 000-26731 GREENLAND TECHNOLOGIES HOLDING CORPORATION (Exact name of registrant as specified in charter) BritishVirginIslan ...
Greenland Technologies (GTEC) - 2019 Q4 - Annual Report
2020-04-03 19:15
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 British Virgin Islands 001-38605 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO ______ COMMISSION FILE NUMBER 000- ...
Greenland Technologies (GTEC) - 2018 Q4 - Annual Report
2019-02-27 21:31
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended November 30, 2018 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38368 GREENLAND ACQUISITION CORPORATION (Exact name of registrant as specified in its charter) BritishVirginIslands (State or other jurisdiction o ...