Greenland Technologies (GTEC) - 2025 Q1 - Quarterly Results

Financial & Operational Highlights Greenland Technologies significantly improved Q1 2025 profitability, expanding gross margin by 580 basis points and increasing EPS by 61% year-over-year through strategic shifts and cost management Q1 2025 vs Q1 2024 Performance Highlights | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $21.7 Million | $22.7 Million | -4.4% | | Gross Margin Expansion | - | - | +580 bps | | Operating Expenses Reduction | - | - | -50% | | Earnings Per Share (EPS) | $0.29 | $0.18 | +61% | - The company's performance reflects strong operational discipline and a strategic shift toward higher-value, sophisticated products in both electric industrial vehicles and hydraulic transmission systems[2] - Management successfully reduced operating expenses by over 50% and improved the cost structure, enhancing profitability and resilience[2] - The company is actively managing its global inventory and supply chain with discipline to remain agile and cost-effective amidst evolving tariff dynamics[2] Fiscal First Quarter 2025 Financial Results Analysis Q1 2025 saw a 4.6% revenue decline due to lower transmission product sales, yet significant cost reductions led to a 149.6% surge in operating income and increased net income, alongside key balance sheet changes Profitability Analysis Q1 2025 revenue decreased slightly to $21.68 million due to lower transmission product sales, but gross margin improved to 30.7%, operating expenses halved, and net income rose to $4.56 million with EPS at $0.29 Q1 2025 vs Q1 2024 Profitability Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $21.68 M | $22.72 M | -4.6% | | Gross Profit | $6.66 M | $5.65 M | +18.0% | | Gross Margin | 30.7% | 24.9% | +5.8 p.p. | | Operating Income | $4.81 M | $1.93 M | +149.6% | | Net Income | $4.56 M | $3.57 M | +27.7% | | EPS (basic and diluted) | $0.29 | $0.18 | +61.1% | - The decrease in revenue was primarily the result of a $0.84 million decrease in the sales volume of transmission products[3] - The increase in gross margin was primarily due to a shift in the product mix towards higher value and more sophisticated products[5] - Total operating expenses decreased by 50.2% to $1.85 million, mainly due to lower advertising, marketing, shipping, G&A, and R&D expenses[6] Balance Sheet and Liquidity Analysis As of March 31, 2025, cash decreased to $5.40 million due to increased accounts receivable, which grew by 35.63% to $21.42 million, while working capital increased to $37.29 million Key Balance Sheet Items (as of Mar 31, 2025 vs Dec 31, 2024) | Account | Mar 31, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $5.40 M | $6.66 M | -18.86% | | Accounts receivables | $21.42 M | $15.80 M | +35.63% | | Notes receivables | $20.68 M | $22.74 M | -9.04% | | Working capital | $37.29 M | $35.11 M | +6.21% | - The decrease in cash was mainly due to an increase in accounts receivables and fixed deposits[8] - The increase in accounts receivables was due to slowed-down efforts in receivables collections[9] Consolidated Financial Statements This section provides unaudited consolidated financial statements for Q1 2025, including the Statement of Operations and Balance Sheet, detailing the company's financial performance and position Unaudited Consolidated Statements of Operations and Comprehensive Income The statement details Q1 2025 revenues, costs, and expenses, showing a net income of $4.56 million, up from $3.57 million in Q1 2024, driven by higher gross profit and lower operating expenses Consolidated Statement of Operations (For the three months ended March 31) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $21,677,564 | $22,723,591 | | Gross profit | $6,660,950 | $5,647,069 | | Total operating expenses | $1,852,254 | $3,720,649 | | Income from operations | $4,808,696 | $1,926,420 | | Net income | $4,562,836 | $3,569,248 | | Net income attributable to GTEC | $4,003,783 | $2,502,203 | | EPS (Basic and diluted) | $0.29 | $0.18 | Unaudited Consolidated Balance Sheets The balance sheet shows total assets increased to $118.65 million as of March 31, 2025, total liabilities decreased to $60.56 million, and total shareholders' equity rose to $58.09 million Consolidated Balance Sheet Highlights | Account | As of Mar 31, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $93,467,880 | $92,646,759 | | Total Assets | $118,649,597 | $115,576,195 | | Total Current Liabilities | $56,182,102 | $57,537,963 | | Total Liabilities | $60,557,999 | $62,307,307 | | Total Shareholders' Equity | $58,091,598 | $53,268,888 | Company Overview and Forward-Looking Statements Greenland Technologies develops and manufactures drivetrain systems and electric industrial vehicles, with forward-looking statements subject to inherent risks and uncertainties - Greenland Technologies Holding Corporation (Nasdaq: GTEC) is a developer and manufacturer of drivetrain systems for material handling machineries and electric vehicles, as well as electric industrial vehicles[13] - The press release contains forward-looking statements that reflect current views and are subject to risks and uncertainties, many of which are beyond the company's control[14]