Greenland Technologies (GTEC) - 2024 Q4 - Annual Report

Financial Performance - Greenland's revenue decreased by approximately $6.39 million, or 7.1$83.94 million for the fiscal year ended December 31, 2024, compared to $90.33 million for the fiscal year ended December 31, 2023[285]. - The cost of goods sold decreased by approximately$4.35 million, or 6.6%, to approximately $61.41 million for the fiscal year ended December 31, 2024, from approximately$65.76 million for the fiscal year ended December 31, 2023[286]. - Gross profit decreased by approximately $2.04 million, or 8.3$22.53 million for the fiscal year ended December 31, 2024, with a gross margin of approximately 26.8%[287]. - Operating expenses decreased by 28.0% to $9.94 million for the fiscal year ended December 31, 2024, from$13.80 million for the fiscal year ended December 31, 2023[288]. - Research and development expenses decreased by approximately $2.49 million, or 45.9$2.94 million for the fiscal year ended December 31, 2024[291]. - Income from operations increased by approximately $1.81 million, or 16.8$12.59 million for the fiscal year ended December 31, 2024[292]. - Greenland's net income for the fiscal year ended December 31, 2024, was approximately $15.15 million, an increase of approximately$40.17 million from a net loss of approximately $25.02 million for the fiscal year ended December 31, 2023[306]. Cash Flow and Liquidity - Cash and cash equivalents decreased by approximately$16.32 million, or 71.02%, to approximately $6.66 million as of December 31, 2024, from approximately$22.98 million as of December 31, 2023[316]. - Net cash provided by operating activities was approximately $13.34 million for the fiscal year ended December 31, 2024, compared to$2.45 million for the fiscal year ended December 31, 2023[325]. - Cash outflow from financing activities was approximately $30.90 million for the fiscal year ended December 31, 2024, primarily due to approximately$16.58 million in notes payable and approximately $8.56 million in repayment of short-term bank loans[330]. - Working capital increased by approximately$7.84 million to approximately $35.11 million as of December 31, 2024, compared to$27.27 million as of December 31, 2023[323]. - Accounts receivable decreased by approximately $1.55 million, or 8.96$15.80 million as of December 31, 2024, compared to approximately $17.35 million as of December 31, 2023[318]. - Notes receivable decreased by approximately$4.40 million, or 16.21%, to approximately $22.74 million as of December 31, 2024, from approximately$27.14 million as of December 31, 2023[322]. Risk Management - Greenland is exposed to credit risk primarily from accounts receivable, which are typically unsecured and derived from customer revenues[332]. - Liquidity risk is managed through financial position analysis and monitoring procedures, with additional short-term funding sought from financial institutions when necessary[333]. - Inflation risk may impair operating results due to increases in raw material and overhead costs, although it has not materially impacted financial results to date[334]. Revenue Recognition - The Company recognizes revenues in accordance with ASC Topic 606, reflecting the consideration expected to be received for goods or services transferred to customers[336]. - Revenues are recognized at a point in time when control over the product is transferred to the customer, typically upon acceptance or consumption[337]. - Greenland's contracts are short-term in nature, with a contract term of one year or less, and receivables are recorded when there is an unconditional right to consideration[339]. Business Developments - Greenland launched new electric industrial vehicle products and expanded its assembly site in Baltimore, Maryland, to support local services and distribution[281]. - Government subsidies income increased to approximately $0.88 million for the fiscal year ended December 31, 2024, up by approximately$0.19 million from approximately $0.69 million in the previous fiscal year[299]. - Other income decreased by approximately$0.55 million, or 45.6%, to approximately $0.66 million for the fiscal year ended December 31, 2024, compared to approximately$1.21 million for the fiscal year ended December 31, 2023[300]. Corporate Structure - On October 24, 2019, Greenland completed a Business Combination with Zhongchai Holding, resulting in Zhongchai Holding becoming a wholly owned subsidiary[340]. - The Business Combination involved the issuance of 7,500,000 newly issued ordinary shares to Cenntro Holding Limited[341]. Tax and Off-Balance Sheet Arrangements - The Company accounts for income taxes following the liability method under FASB ASC 740, with no liability for unrecognized tax benefits as of December 31, 2024[345]. - There are no off-balance sheet arrangements reported by the Company[346].