EAST WINDSOR, NJ., Jan. 23, 2024 /PRNewswire/ -- Greenland Technologies Holding Corporation (Nasdaq: GTEC) ("Greenland" or the "Company"), a technology developer and manufacturer of electric industrial vehicles and drivetrain systems for material handling machineries and vehicles, today announced that Amerit Fleet Solutions ("Amerit") has joined Greenland's HEVI Authorized Service Provider (ASP) network program to support increased demand for the Company's growing HEVI electric industrial vehicle product li ...

Greenland Technologies Holding Corporation (NASDAQ:GTEC) Q3 2023 Earnings Call Transcript November 20, 2023 8:00 AM ET Company Participants Josh Centanni - Director of Investor Relations Raymond Wang - Chief Executive Officer Jing Jin - Chief Financial Officer Conference Call Participants Theodore O'Neill - Litchfield Hills Research Graham Mattison - Water Tower Research Rommel Dionisio - Aegis Capital Operator Good day, and thank you for standing by. Welcome to the Greenland Technologies Reports Third Quar ...

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, 2023 ☐ 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 001-38605 GREENLAND TECHNOLOGIES HOLDING CORPORATION (Exact name of registrant as specified in charter) | --- | --- | ...

Greenland Technologies Holding Corporation (NASDAQ:GTEC) Q2 2023 Earnings Conference Call August 21, 2023 4:30 PM ET Company Participants Josh Centanni - Director of Investor Relations Raymond Wang - Chief Executive Officer Jing Jin - Chief Financial Officer Conference Call Participants Theodore O'Neill - Hill Research Rommel Dionisio - Aegis Capital Graham Mattison - Water Tower Research Operator Good day, ladies and gentlemen. Thank you for standing by, and we warmly welcome you all to the Greenland Techn ...

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, 2023 ☐ 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 001-38605 GREENLAND TECHNOLOGIES HOLDING CORPORATION (Exact name of registrant as specified in charter) | --- | |---------- ...

Greenland Technologies Holding Corporation (NASDAQ:GTEC) Q1 2023 Results Conference Call May 19, 2023 8:00 AM ET Company Participants Raymond Wang - Chief Executive Officer Conference Call Participants Theodore O'Neill - Litchfield Hills Research Rommel Dionisio - Aegis Capital Graham Mattison - Water Tower Research Operator Good day, ladies and gentlemen. Thank you for standing by, and we warmly welcome you all to the Greenland Technologies First Quarter 2023 Earnings Conference Call. [Operator Instruction ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. Financial Statements (unaudited)](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements for Q1 2023, including Balance Sheets, Income, Equity, and Cash Flow Statements, with detailed notes [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets increased to **$157.4 million** from **$155.1 million** at year-end 2022, with liabilities decreasing and equity growing | Balance Sheet Highlights | March 31, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $135,163,335 | $132,364,160 | | **Total Assets** | **$157,425,580** | **$155,115,341** | | **Total Current Liabilities** | $65,902,134 | $66,208,689 | | **Total Liabilities** | **$69,731,911** | **$70,197,578** | | **Total Equity** | **$87,693,669** | **$84,917,763** | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For Q1 2023, revenues decreased 24.4% to **$22.1 million**, with net income attributable to the company at **$1.45 million**, resulting in diluted EPS of **$0.11** | Income Statement Highlights | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Revenues** | $22,149,360 | $29,306,957 | | **Gross Profit** | $5,523,430 | $6,367,974 | | **Income from Operations** | $2,374,150 | $3,365,987 | | **Net Income** | $2,458,574 | $2,914,798 | | **Net Income Attributable to Greenland** | $1,446,975 | $1,787,052 | | **Basic and Diluted EPS** | $0.11 | $0.16 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2023, net cash from operations significantly improved to **$3.76 million**, with a net cash outflow from financing, increasing total cash and restricted cash to **$20.26 million** | Cash Flow Summary | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $3,756,318 | $1,261,046 | | **Net Cash Provided by (Used in) Investing Activities** | $195,216 | $1,012 | | **Net Cash Provided by (Used in) Financing Activities** | ($3,464,491) | ($5,956,538) | | **Net Increase (Decrease) in Cash** | $487,043 | ($4,694,480) | | **Cash and Restricted Cash at End of Period** | $20,260,617 | $13,184,452 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's structure, accounting policies, and financial items, including its core transmission business, EV expansion, customer concentration, and related party receivables - The company's main business is developing and manufacturing traditional transmission products for material handling machinery in the PRC, while also expanding into the production and sale of electric industrial vehicles in the U.S. market through its subsidiary HEVI Corp[31](index=31&type=chunk)[32](index=32&type=chunk)[35](index=35&type=chunk) | Revenue by Product (Q1 2023 vs Q1 2022) | For the three months ended March 31, 2023 | For the three months ended March 31, 2022 | | :--- | :--- | :--- | | Transmission boxes for Forklift | $20,868,739 | $25,405,541 | | Transmission boxes for Non-Forklift (EV, etc.) | $1,280,621 | $3,901,416 | | **Total** | **$22,149,360** | **$29,306,957** | - The company has significant customer concentration risk, with two customers accounting for **19.55%** and **11.49%** of total revenues for Q1 2023[110](index=110&type=chunk) - A significant related party balance of **$36.61 million** is due from Cenntro Holding Limited, the controlling shareholder, as of March 31, 2023[184](index=184&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis attributes Q1 2023 revenue decline to market conditions, notes improved gross margin from product mix, and discusses liquidity [Results of Operations](index=43&type=section&id=Results%20of%20Operations) In Q1 2023, revenue fell **24.4%** to **$22.15 million** due to lower sales volume, while gross margin improved to **24.9%** from product mix, despite increased operating expenses and decreased net income | Metric | Q1 2023 | Q1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | **Revenues** | $22,149,360 | $29,306,957 | (24.4)% | | **Gross Profit** | $5,523,430 | $6,367,974 | (13.3)% | | **Gross Margin** | 24.9% | 21.7% | +3.2 p.p. | | **Income from Operations** | $2,374,150 | $3,365,987 | (29.5)% | | **Net Income** | $2,458,574 | $2,914,798 | (15.7)% | - The decrease in revenue was primarily a result of a decrease in sales volume, driven by poor market conditions[199](index=199&type=chunk)[209](index=209&type=chunk) - The increase in gross margin was primarily due to a shift in the product mix towards higher value and more sophisticated products, such as hydraulic transmission products[211](index=211&type=chunk) - General and administrative expenses increased by **28.3%** year-over-year, driven by increased allowance for doubtful accounts, higher staff salaries, and increased lease costs[215](index=215&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company primarily funds operations via cash from operations, bank loans, and shareholder support, with cash and equivalents at **$15.40 million** and working capital increasing to **$69.26 million** as of March 31, 2023 - The company funds working capital and other capital requirements primarily by equity contributions, cash flow from operations, and short-term bank loans[225](index=225&type=chunk)[227](index=227&type=chunk) | Liquidity Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $15,401,387 | $16,295,695 | | Restricted Cash | $4,859,230 | $3,433,361 | | Working Capital | $69,261,201 | $66,155,471 | - A significant balance of **$36.61 million** is due from the controlling shareholder, Cenntro Holding Limited, as of March 31, 2023[236](index=236&type=chunk) - Net cash from operating activities was **$3.76 million** for Q1 2023, compared to **$1.26 million** for Q1 2022[241](index=241&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Greenland Technologies is not required to provide quantitative and qualitative market risk disclosures - The Company is a smaller reporting company and is therefore not required to provide the information required by this Item[262](index=262&type=chunk) [ITEM 4. Controls and Procedures](index=52&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of March 31, 2023, due to a material weakness in accounting personnel, with a remedial plan underway - Based on an evaluation as of March 31, 2023, the CEO and CFO concluded that the company's disclosure controls and procedures were ineffective[265](index=265&type=chunk) - A material weakness was identified due to a lack of sufficient and competent financial reporting and accounting personnel with appropriate knowledge of U.S. GAAP and SEC reporting requirements[265](index=265&type=chunk) - A remedial plan is being implemented, which includes recruiting more qualified personnel, providing training, formalizing policies, and establishing effective oversight[266](index=266&type=chunk) [PART II. OTHER INFORMATION](index=54&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEM 1. Legal Proceedings](index=54&type=section&id=ITEM%201.%20Legal%20Proceedings) Management is not aware of any pending or threatened legal proceedings involving the company or its properties - As of the date of the report, management is not aware of any pending or threatened legal proceedings against the company[270](index=270&type=chunk) [ITEM 1A. Risk Factors](index=54&type=section&id=ITEM%201A.%20Risk%20Factors) This section outlines significant business risks including cash intensity, customer concentration, and new ventures, alongside China-specific regulatory and delisting risks, and share-related price volatility [Risks Related to Our Business and Industry](index=57&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) The company's business faces risks including cash intensity, high customer concentration, intense competition, challenges in new EV product lines, and steel price volatility - The business is cash-intensive, and failure to maintain sufficient liquidity could adversely affect operations; as of March 31, 2023, cash and cash equivalents were **$15.40 million**[279](index=279&type=chunk)[280](index=280&type=chunk) - Revenues are highly dependent on a limited number of customers, with the five largest accounting for **51.79%** of revenues for Q1 2023[286](index=286&type=chunk)[287](index=287&type=chunk) - The company is introducing new lines of business, such as electric industrial heavy equipment, which presents risks due to limited experience and potential insufficient revenue to cover investments[291](index=291&type=chunk)[294](index=294&type=chunk) - A substantial balance of **$36.61 million** is due from Cenntro Holding Limited, the controlling shareholder, posing a credit risk[310](index=310&type=chunk) [Risks Related to Doing Business in China](index=63&type=section&id=Risks%20Related%20to%20Doing%20Business%20in%20China) Operating in China exposes the company to risks from changing policies, an uncertain legal system, evolving data security laws, new overseas listing rules requiring CSRC filings, and potential delisting under the HFCA Act - The PRC government exerts substantial influence over business activities, and changes in laws, regulations, or policies could materially and adversely affect operations[325](index=325&type=chunk)[332](index=332&type=chunk) - Under the new Trial Measures effective March 31, 2023, the company is required to make filings with the China Securities Regulatory Commission (CSRC) for future offerings[336](index=336&type=chunk)[340](index=340&type=chunk) - The Holding Foreign Companies Accountable Act (HFCA) could lead to delisting if the PCAOB is unable to inspect the company's auditor for two consecutive years; its current auditor, WWC P.C., is U.S.-based and was last inspected in November 2021[382](index=382&type=chunk)[385](index=385&type=chunk)[387](index=387&type=chunk) - PRC regulations on data security, such as the Cybersecurity Review Measures, are evolving and could subject the company to review, fines, or other penalties if it is deemed a critical information infrastructure operator or holds data on over one million users[343](index=343&type=chunk)[346](index=346&type=chunk)[348](index=348&type=chunk) [Risks Related to Our Ordinary Shares](index=76&type=section&id=Risks%20Related%20to%20Our%20Ordinary%20Shares) Investment in the company's ordinary shares carries risks including price decline from future sales, reliance on price appreciation due to no expected dividends, and potential negative impact from short sellers - Future sales of ordinary shares by the company or its shareholders could cause the trading price to decline significantly[390](index=390&type=chunk) - The company does not expect to pay dividends in the foreseeable future, so investors must rely on price appreciation for any return on investment[393](index=393&type=chunk) - The company may be targeted by short sellers, which could drive down the market price of its ordinary shares and require significant resources to defend against[396](index=396&type=chunk)[398](index=398&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=77&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company confirms no unregistered sales of equity securities during Q1 2023 that were not previously disclosed - There were no unregistered sales of the Company's equity securities during the three months ended March 31, 2023 that were not previously disclosed[399](index=399&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=77&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company had no senior securities issued and outstanding during Q1 2023, resulting in no defaults on such securities - No senior securities were issued and outstanding during the three-month period ended March 31, 2023[400](index=400&type=chunk) [ITEM 4. Mine Safety Disclosures](index=77&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable[400](index=400&type=chunk) [ITEM 5. Other Information](index=77&type=section&id=ITEM%205.%20Other%20Information) The company reported no information for this item during the period - None[400](index=400&type=chunk) [ITEM 6. Exhibits](index=78&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents, incentive plans, loan agreements, and CEO/CFO certifications - The exhibits filed with this report include: - Amended and Restated Memorandum and Articles of Association - 2020 and 2021 Equity Incentive Plans - A Working Capital Loan Agreement dated February 21, 2023 - Certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002[403](index=403&type=chunk)

Greenland Technologies Holding Corporation (NASDAQ:GTEC) Q4 2022 Results Conference Call March 30, 2023 8:00 AM ET Company Participants Yujia Zhai - Managing Director of the Blueshirt Group. Raymond Wang - Chief Executive Officer Jing Jin - Chief Financial Officer Conference Call Participants Graham Mattison - Water Tower Research Theodore O'Neill - Litchfield Hills Research Rommel Dionisio - Aegis Capital Operator Good day, ladies, and gentlemen. Thank you for standing by, and we warmly welcome you all to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Ordinary shares, no par value GTEC The Nasdaq Stock Market LLC 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, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO ______ COMMISSION FILE N ...

Part I. Financial Information [Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) The unaudited consolidated financial statements for the nine months ended September 30, 2022, show a decrease in total assets to $157.7 million and a decrease in total liabilities to $74.4 million compared to year-end 2021, with revenues declining 5.5% year-over-year to $71.7 million, while net income increased to $7.4 million from $6.8 million, and cash position ended at $15.0 million [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2022, the company's total assets decreased to $157.7 million from $162.6 million at the end of 2021, primarily due to reductions in inventories and notes receivable, while total liabilities saw a significant reduction to $74.4 million from $87.7 million, driven by lower notes payable and accounts payable, consequently increasing total equity from $74.8 million to $83.3 million Consolidated Balance Sheet Highlights (in U.S. Dollars) | Balance Sheet Item | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $135,341,847 | $139,305,403 | | **TOTAL ASSETS** | **$157,675,332** | **$162,568,442** | | **Total current liabilities** | $70,262,069 | $85,463,224 | | **TOTAL LIABILITIES** | **$74,384,253** | **$87,723,776** | | **TOTAL EQUITY** | **$83,291,079** | **$74,844,666** | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For the third quarter of 2022, revenues decreased by 5.6% to $21.8 million, while net income rose by 67.4% to $2.1 million compared to Q3 2021, and for the nine-month period, revenues fell 5.5% to $71.7 million, and net income increased by 7.9% to $7.4 million, though diluted EPS for the nine months decreased from $0.55 in 2021 to $0.39 in 2022 Q3 Operating Results (in U.S. Dollars) | Metric | Q3 2022 | Q3 2021 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $21,786,862 | $23,084,793 | -5.6% | | **Gross Profit** | $4,812,296 | $5,097,430 | -5.6% | | **Income from Operations** | $2,074,778 | $2,051,676 | +1.1% | | **Net Income** | $2,098,193 | $1,253,529 | +67.4% | | **Diluted EPS** | $0.10 | $0.09 | +11.1% | Nine-Month Operating Results (in U.S. Dollars) | Metric | 9M 2022 | 9M 2021 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $71,696,324 | $75,899,994 | -5.5% | | **Gross Profit** | $16,019,431 | $15,906,986 | +0.7% | | **Income from Operations** | $7,654,669 | $8,358,348 | -8.4% | | **Net Income** | $7,392,417 | $6,849,091 | +7.9% | | **Diluted EPS** | $0.39 | $0.55 | -29.1% | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2022, net cash used in operating activities was $6.1 million, a slight increase from $5.9 million in the prior year period, while investing activities provided $0.36 million in cash, a reversal from a $0.69 million use of cash in 2021, and financing activities provided $4.0 million, a significant decrease from $12.7 million in 2021, mainly due to lower proceeds from notes payable and higher loan repayments Cash Flow Summary for Nine Months Ended Sep 30 (in U.S. Dollars) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | $(6,121,235) | $(5,864,423) | | **Net Cash Provided by (Used in) Investing Activities** | $356,085 | $(685,761) | | **Net Cash Provided by Financing Activities** | $3,961,098 | $12,669,108 | | **Net (Decrease) Increase in Cash** | $(1,804,052) | $6,118,924 | | **Cash and Restricted Cash at End of Period** | $15,027,531 | $15,656,356 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's business activities, including manufacturing transmission products in the PRC and expanding into electric industrial vehicles in the U.S., noting a significant concentration of revenue with two customers accounting for 32.2% of sales, a substantial related-party receivable of $35.35 million due from the controlling shareholder, Cenntro Holding Limited, with repayment extended to June 2024, and a $5.2 million share offering in July 2022 - The company's primary business is developing and manufacturing transmission products for material handling machinery in the PRC, having expanded into producing and selling electric industrial vehicles in the U.S. market through its subsidiary HEVI Corp[34](index=34&type=chunk)[35](index=35&type=chunk)[38](index=38&type=chunk) - Revenue for the nine months ended **Sep 30, 2022**, decreased to **$71.70 million** from **$75.90 million** in the prior year, primarily due to reduced sales volume from COVID-19 lockdowns in China[36](index=36&type=chunk) Major Customer Concentration (Nine Months Ended Sep 30, 2022) | Customer | Revenue (USD) | % of Total Revenue | | :--- | :--- | :--- | | Company A | $13,521,896 | 18.86% | | Company B | $9,581,396 | 13.36% | | **Total** | **$23,103,292** | **32.22%** | - A significant receivable of **$35.35 million** is due from the controlling shareholder, Cenntro Holding Limited, with the repayment deadline for this amount extended to **June 30, 2024**[207](index=207&type=chunk)[208](index=208&type=chunk) - On **July 27, 2022**, the company closed a firm commitment offering of **1,250,000** ordinary shares, raising gross proceeds of **$5,212,500**[173](index=173&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 5.5% revenue decline for the first nine months of 2022 to COVID-19 lockdowns in China, despite which gross margin improved from 21.0% to 22.3% due to a favorable product mix shift, while operating expenses rose 10.8% from increased G&A and selling costs related to business expansion, highlighting the company's expansion into electric industrial vehicles in the U.S., including a new assembly site in Baltimore, with a key liquidity factor being a $35.5 million receivable from its controlling shareholder, with repayment extended to mid-2024 [Results of Operations](index=45&type=section&id=Results%20of%20Operations) For the nine months ended Sep 30, 2022, revenue decreased 5.5% to $71.7 million due to lower sales volume from COVID-19 lockdowns in China, while gross margin improved to 22.3% from 21.0% in the prior year, attributed to a product mix shift towards higher-value hydraulic transmission products, and operating expenses increased by 10.8% to $8.4 million, driven by higher legal, consulting, and salary costs, yet net income rose 7.9% to $7.4 million, aided by lower interest expenses and higher other income Comparison of Nine-Month Results (2022 vs 2021) | Metric | 9M 2022 | 9M 2021 | Variance | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $71.70M | $75.90M | -5.5% | Decrease in sales volume from COVID-19 lockdowns | | **Gross Margin** | 22.3% | 21.0% | +1.3pp | Shift in product mix towards higher value products | | **Operating Expenses** | $8.36M | $7.55M | +10.8% | Increased legal/consultancy fees and staff salary | | **Net Income** | $7.39M | $6.85M | +7.9% | Aided by lower interest expense and higher grant income | [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company funds its operations through cash flow, bank loans, and equity financing, with cash and cash equivalents at $11.31 million as of September 30, 2022, and a significant liquidity consideration being the $35.46 million due from its controlling shareholder, Cenntro Holding Limited, for which the repayment deadline has been extended to June 30, 2024, believing it has sufficient cash for the next 12 months but may need additional resources for future investments or acquisitions - The company's working capital increased to **$65.08 million** as of **Sep 30, 2022**, from **$53.84 million** as of **Dec 31, 2021**[277](index=277&type=chunk) - A key balance sheet item is the **$35.46 million** due from a related party, primarily its controlling shareholder Cenntro Holding Limited, with the repayment deadline extended from **April 2022** to **June 2024**[274](index=274&type=chunk) - For the nine months ended **Sep 30, 2022**, the company generated a net cash inflow of **$3.96 million** from financing activities, mainly from short-term loans and equity financing, which was significantly lower than the **$12.67 million** in the same period of **2021**[284](index=284&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company, as a smaller reporting company, is not required to provide quantitative and qualitative disclosures about market risk - As a smaller reporting company, Greenland Technologies is exempt from the requirement to provide information on market risk[300](index=300&type=chunk) [Controls and Procedures](index=56&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that as of September 30, 2022, the company's disclosure controls and procedures were ineffective due to a material weakness in internal control over financial reporting, specifically a lack of sufficient financial reporting and accounting personnel with adequate knowledge of U.S. GAAP and SEC requirements, with a remedial plan being implemented that includes hiring more qualified personnel and formalizing accounting policies - Management identified a **material weakness** in internal control over financial reporting as of **September 30, 2022**[303](index=303&type=chunk) - The weakness stems from a lack of sufficient and competent financial reporting and accounting personnel with appropriate knowledge of U.S. GAAP and SEC reporting requirements[303](index=303&type=chunk) - The company is implementing a remedial plan that includes recruiting more financial personnel, providing training, and formalizing accounting policies and procedures[304](index=304&type=chunk) Part II. Other Information [Legal Proceedings](index=58&type=section&id=ITEM%201.%20Legal%20Proceedings) As of the report date, management is not aware of any pending or threatened legal proceedings involving the company, its properties, directors, officers, or affiliates - The company reports no material pending or threatened legal proceedings[308](index=308&type=chunk) [Risk Factors](index=58&type=section&id=ITEM%201A.%20Risk%20Factors) The company outlines significant risks, including business and industry risks such as cash intensity and customer concentration; risks of doing business in China, such as regulatory uncertainty and potential government intervention; and risks related to its ordinary shares, including price volatility and lack of dividends, with a key operational risk being the new electric vehicle venture, and a major financial risk being the large receivable from its controlling shareholder [Risks Related to Business and Industry](index=61&type=section&id=Risks%20Related%20to%20our%20Business%20and%20Industry) Key business risks include the cash-intensive nature of operations, reliance on a limited number of customers for a significant portion of revenue (**48.10%** from the top five in 9M **2022**), and intense competition, with the company also highlighting the risks and uncertainties associated with its new electric industrial vehicle business, volatile steel prices impacting raw material costs, and a substantial balance of $35.35 million due from its controlling shareholder - The company's revenues are highly dependent on a limited number of customers, with the five largest customers contributing **48.10%** of revenues in the first nine months of **2022**[325](index=325&type=chunk) - The new business of producing and selling electric industrial vehicles subjects the company to additional risks, as it has limited experience in this area and may not generate sufficient revenue to cover investments[329](index=329&type=chunk)[331](index=331&type=chunk) - A significant risk is a **$35.35 million** receivable from Cenntro Holding Limited, the company's controlling shareholder, with no guarantee it will be repaid by the extended **June 2024** deadline[346](index=346&type=chunk) [Risks Related to Doing Business in China](index=69&type=section&id=Risks%20Related%20to%20Doing%20Business%20in%20China) The company faces risks from China's evolving political, economic, and legal landscape, including uncertainties in the interpretation and enforcement of PRC laws, potential government intervention, and complex regulations regarding overseas listings and data security, noting the Holding Foreign Companies Accountable Act (HFCA Act) but stating its U.S.-based auditor, WWC P.C., was inspected by the PCAOB in **November 2021**, mitigating immediate delisting risk under the act - The PRC government's substantial influence and the evolving legal system create uncertainties that could materially affect business operations and the value of the company's securities[363](index=363&type=chunk)[367](index=367&type=chunk) - The company believes it is not currently required to obtain approval from the CSRC or other PRC authorities for its U.S. listing, but acknowledges that future regulations or changes in interpretation could create such requirements[371](index=371&type=chunk)[374](index=374&type=chunk) - While the HFCA Act poses a risk to China-based companies, the company's auditor, WWC P.C., is U.S.-based and was inspected by the PCAOB in **November 2021**, making it not subject to the PCAOB's **2021** non-inspection determination[417](index=417&type=chunk) [Risks Related to Our Ordinary Shares](index=80&type=section&id=Risks%20Related%20to%20Our%20Ordinary%20Shares) Investment risks for ordinary shares include potential price declines from future share sales by the company or existing shareholders, as the company does not expect to pay dividends in the foreseeable future, meaning investors must rely on share price appreciation for returns, and additionally, the company notes the risk of negative impacts from short-seller reports, a common issue for U.S.-listed companies with substantial China operations - The company does not expect to pay dividends in the foreseeable future, and investors must rely on price appreciation for any return on investment[422](index=422&type=chunk) - Future sales of ordinary shares by the company or its shareholders could cause the trading price to decline[419](index=419&type=chunk) - The company acknowledges the risk of being targeted by short sellers, which could drive down the market price of its shares and require significant resources to defend against[425](index=425&type=chunk)[427](index=427&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=81&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the nine months ended September 30, 2022, the company had no sales of unregistered equity securities that were not previously disclosed in SEC filings - There were no unregistered sales of the Company's equity securities during the nine months ended **September 30, 2022**, that were not previously disclosed[428](index=428&type=chunk) [Exhibits](index=82&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including the company's articles of association, equity incentive plans, recent loan agreements, and required certifications by the CEO and CFO under the Sarbanes-Oxley Act - The report includes various exhibits, such as certifications pursuant to the Sarbanes-Oxley Act (31.1, 31.2, 32.1, 32.2) and English translations of recent loan agreements entered into by its PRC subsidiary[430](index=430&type=chunk)