Greenland Technologies (US:GTEC)2025-11-07 14:00Financial Performance - Revenues for Q3 2025 reached $23.4 million, a 24.4% increase from $18.8 million in Q3 2024[19] - Gross profit for Q3 2025 was $7.6 million, up 52.5% from $5.0 million in Q3 2024[19] - Net income for Q3 2025 was $6.6 million, compared to a net income of $0.4 million in Q3 2024[19] - Total comprehensive income attributable to Greenland Technologies for Q3 2025 was $6.2 million, compared to $0.8 million in Q3 2024[19] - For the nine months ended September 30, 2025, net income was $8,388,754, compared to $9,801,725 for the same period in 2024, representing a decrease of approximately 14.5%[24] - For the nine months ended September 30, 2025, the net income attributable to Greenland Technologies was $6,511,037, compared to $6,468,722 for the same period in 2024, reflecting a slight increase[169] - The company reported a basic earnings per share of $0.33 for Q3 2025, compared to a loss of $0.05 per share in Q3 2024[19] - For the nine months ended September 30, 2025, the basic and diluted net income per share were $0.41 and $0.41, respectively, compared to $0.48 in 2024[169] Assets and Liabilities - Total current assets increased to $99.0 million as of September 30, 2025, from $92.6 million at the end of 2024, representing a 6.5% growth[14] - Total liabilities decreased to $53.6 million as of September 30, 2025, down from $62.3 million at the end of 2024, a reduction of 14.0%[17] - Shareholders' equity attributed to Greenland Technologies increased to $75.4 million as of September 30, 2025, from $60.2 million at the end of 2024, a growth of 25.2%[17] - Cash and cash equivalents decreased to $3.9 million as of September 30, 2025, from $6.7 million at the end of 2024, a decline of 41.0%[14] - Cash and cash equivalents at the end of the period were $3,942,129 as of September 30, 2025, down from $20,725,481 at the end of September 2024, reflecting a decrease of approximately 81%[27] - Accounts receivable increased to $21,551,378 as of September 30, 2025, compared to $15,796,423 as of December 31, 2024, marking a growth of 36.5%[132] - Inventories, net, rose to $23,860,032 as of September 30, 2025, from $23,378,090 as of December 31, 2024, reflecting an increase of 2.1%[134] - Fixed deposits increased significantly to $6,906,766 as of September 30, 2025, compared to $4,130,514 as of December 31, 2024, representing a growth of 67.2%[143] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $1.1 million, a decrease of 57.4% compared to $2.5 million in the same period of 2024[19] - Research and development costs for the three months ended September 30, 2025, were approximately $0.56 million, compared to $0.44 million for the same period in 2024, reflecting a 27.3% increase[96] - Research and development costs for the nine months ended September 30, 2025, totaled approximately $1.09 million, down 57.3% from $2.55 million in 2024[96] - Research and development (R&D) expenses rose to approximately $0.56 million for the three months ended September 30, 2025, an increase of $0.12 million or 28.0% from $0.44 million in the prior year[203] Sales and Market Activity - Greenland sold a total of 123,856 sets of transmission products in the nine months ended September 30, 2025, an increase of 8.5% from 114,075 sets sold in the same period in 2024[32] - Domestic sales for the three months ended September 30, 2025, were $22,975,249, up from $18,666,444 in 2024, representing a growth of approximately 23.5%[170] - International sales for the nine months ended September 30, 2025, were $1,308,690, a decrease from $1,855,927 in 2024, reflecting a decline of approximately 29.4%[170] - The company has launched new electric industrial vehicle products through its subsidiary HEVI, including various models of electric forklifts and loaders[192] Cash Flow and Investments - The net cash provided by operating activities for the nine months ended September 30, 2025, was $7,799,034, compared to $8,983,496 in 2024, indicating a decrease of approximately 13.2%[24] - The company reported a net cash used in investing activities of $680,974 for the nine months ended September 30, 2025, compared to $2,111,014 in 2024, showing a reduction in cash outflow[27] - The fair value of short-term investments as of September 30, 2025, was $29,098,513[63] - As of September 30, 2025, the Company's short-term investments increased to $29,098,513 from $18,535,354 as of December 31, 2024, representing a growth of 56.5%[127] Tax and Regulatory Matters - The effective tax rate on income before income taxes for the nine months ended September 30, 2025, was 23.99%, higher than the PRC tax rate of 25.0% due to non-deductible stock-based expenses[172] - Zhejiang Zhongchai maintains a "high-tech enterprise" status, allowing a reduced income tax rate of 15% for the three months ended September 30, 2025[209] - Hangzhou Greenland, a wholly owned subsidiary, is subject to a 25% standard income tax rate, while Greenland, registered in the British Virgin Islands, is not subject to income or capital gains tax[210] Shareholder Information - As of September 30, 2025, Trendway Capital Limited owned 34.56% of Greenland's outstanding ordinary shares[36] - Zhongchai Holding owns 89.47% of Zhejiang Zhongchai, 100% of Hangzhou Greenland, and 62.5% of Hengyu Capital[37] Other Financial Metrics - The company has no liability for unrecognized tax benefits as of September 30, 2025, reflecting a stable tax position[106] - The company assesses collectability of accounts receivable based on historical collectability and current economic conditions[66] - No customer accounted for more than 10% of total accounts receivable as of September 30, 2025, indicating a diversified customer base[114] - Major customers accounted for 39.05% of total accounts receivable as of September 30, 2025, slightly down from 40.11% as of December 31, 2024[129]