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Greenland Technologies (GTEC) - 2025 Q1 - Quarterly Report
GTECGreenland Technologies (GTEC)2025-05-15 12:00

Revenue Performance - Revenues for the three months ended March 31, 2025, were 21,677,564,adecreaseof4.621,677,564, a decrease of 4.6% compared to 22,723,591 for the same period in 2024[21] - Total revenue for the three months ended March 31, 2025, was 21,677,564,adecreaseofapproximately4.621,677,564, a decrease of approximately 4.6% compared to 22,723,591 for the same period in 2024[87] - Revenue decreased from approximately 22.72millionforthethreemonthsendedMarch31,2024to22.72 million for the three months ended March 31, 2024 to 21.68 million for the three months ended March 31, 2025, primarily due to a decrease of approximately 0.84millioninsalesvolumeoftransmissionproducts[188]Profitability−Grossprofitincreasedto0.84 million in sales volume of transmission products[188] Profitability - Gross profit increased to 6,660,950, representing a gross margin of 30.7%, compared to 5,647,069andamarginof24.95,647,069 and a margin of 24.9% in the prior year[21] - Net income attributable to Greenland Technologies Holding Corporation was 4,003,783, up 60.0% from 2,502,203inthesamequarterof2024[21]−NetincomeforthethreemonthsendedMarch31,2025,was2,502,203 in the same quarter of 2024[21] - Net income for the three months ended March 31, 2025, was 4,562,836, an increase of 28% compared to 3,569,248forthesameperiodin2024[27]−Thecompanyreportedatotalcomprehensiveincomeof3,569,248 for the same period in 2024[27] - The company reported a total comprehensive income of 4,415,919 for the three months ended March 31, 2025, compared to 1,848,395intheprioryear[21]ExpensesandCostManagement−Researchanddevelopmentexpensessignificantlydecreasedto1,848,395 in the prior year[21] Expenses and Cost Management - Research and development expenses significantly decreased to 81,457 from 987,724inthesamequarterof2024,reflectingastrategicfocusoncostmanagement[21]−Operatingexpensestotaledapproximately987,724 in the same quarter of 2024, reflecting a strategic focus on cost management[21] - Operating expenses totaled approximately 1.85 million, a significant decrease of 1.87millionor50.21.87 million or 50.2% from 3.72 million in the prior year[199] - Selling expenses were approximately 0.33million,adecreaseof0.33 million, a decrease of 0.22 million or 39.6% from 0.55millionintheprioryear,mainlyduetoreducedshippingandmarketingcosts[200]−Generalandadministrativeexpensesdecreasedtoapproximately0.55 million in the prior year, mainly due to reduced shipping and marketing costs[200] - General and administrative expenses decreased to approximately 1.44 million, down by 0.74millionor34.10.74 million or 34.1% from 2.18 million in the previous year[201] - Interest expenses were nil for the three months ended March 31, 2025, a decrease of 100% compared to approximately 0.04millioninthesameperiodlastyear[205]AssetsandLiabilities−Totalcurrentassetsincreasedto0.04 million in the same period last year[205] Assets and Liabilities - Total current assets increased to 93,467,880 as of March 31, 2025, compared to 92,646,759attheendof2024[15]−Totalliabilitiesdecreasedto92,646,759 at the end of 2024[15] - Total liabilities decreased to 60,557,999 from 62,307,307asofDecember31,2024[18]−Shareholders′equityroseto62,307,307 as of December 31, 2024[18] - Shareholders' equity rose to 58,091,598, an increase from 53,268,888attheendof2024[18]−Cashandcashequivalentsdecreasedto53,268,888 at the end of 2024[18] - Cash and cash equivalents decreased to 5,403,254 from 6,659,142attheendof2024,indicatinganeedforimprovedcashflowmanagement[15]−Accountsreceivableincreasedto6,659,142 at the end of 2024, indicating a need for improved cash flow management[15] - Accounts receivable increased to 21,424,889 as of March 31, 2025, compared to 15,796,423asofDecember31,2024[131]−Inventories,net,asofMarch31,2025,were15,796,423 as of December 31, 2024[131] - Inventories, net, as of March 31, 2025, were 23,944,050, slightly up from 23,378,090asofDecember31,2024[133]−Property,plant,andequipment,net,decreasedto23,378,090 as of December 31, 2024[133] - Property, plant, and equipment, net, decreased to 12,752,390 as of March 31, 2025, from 13,134,648asofDecember31,2024[137]CashFlow−Totalcashprovidedbyoperatingactivitieswas13,134,648 as of December 31, 2024[137] Cash Flow - Total cash provided by operating activities was 1,244,666, a significant improvement from a cash used of (8,422,330)intheprioryear[27]−Thecompanyreportedanetdecreaseincashandcashequivalentsof(8,422,330) in the prior year[27] - The company reported a net decrease in cash and cash equivalents of (1,222,914) for the quarter, compared to (7,962,895)inQ12024[30]−Cashandcashequivalentsattheendoftheperiodwere(7,962,895) in Q1 2024[30] - Cash and cash equivalents at the end of the period were 7,546,848, down from 19,835,290attheendofQ12024[30]SalesandMarketPerformance−Thecompanysold38,734setsoftransmissionproductsinQ12025,adecreaseof719,835,290 at the end of Q1 2024[30] Sales and Market Performance - The company sold 38,734 sets of transmission products in Q1 2025, a decrease of 7% from 41,866 sets sold in Q1 2024[35] - Domestic sales for the three months ended March 31, 2025, were 21,184,973, down from 22,524,060in2024,adecreaseofabout5.922,524,060 in 2024, a decrease of about 5.9%[167] - International sales increased significantly to 492,591 for the three months ended March 31, 2025, compared to 199,531in2024,representinganincreaseofapproximately146.5199,531 in 2024, representing an increase of approximately 146.5%[167] Strategic Initiatives - HEVI Corp. launched the H55L and H65L all-electric wheeled front-end loaders in August 2024, expanding its electric industrial vehicle product line[36] - The company formed a partnership with Lonking Holdings Limited in July 2024 to develop and distribute heavy electric machinery for the U.S. market[36] Financial Reporting and Compliance - The company adopted ASU No. 2016-13 for credit losses on January 1, 2023, enhancing its financial reporting on receivables[65] - The company adopted ASU 2023-07 on January 1, 2024, which did not have a material impact on financial disclosures[119] - The effective tax rate for the three months ended March 31, 2025 was 16.14%, lower than the PRC tax rate of 25.0% due to the China Super R&D deduction[169] Other Financial Metrics - The allowance for expected credit losses is based on customer risk characteristics, past collection experience, and current economic conditions, reflecting a proactive approach to managing receivables[66] - The company does not have a liability for unrecognized tax benefits as of March 31, 2025, indicating a stable tax position[96] - Total government subsidies recorded in other long-term liabilities were 1.21 million as of March 31, 2025, slightly down from $1.26 million as of December 31, 2024[93]