Greenland Technologies Holding Corp

Previous wording

Through its PRC subsidiaries, Greenland offers transmission products, which are key components for forklift trucks used in manufacturing and logistic applications, such as factories, workshops, warehouses, fulfilment centers, shipyards, and seaports. Forklifts play an important role in the logistic systems of many companies across different industries in China and globally. Generally, industries with the largest demand for forklifts include the transportation, warehousing logistics, electrical machinery, and automobile industries. Greenland’s revenue increased from approximately $45.72 million for the six months ended June 30, 2023 to $45.74 million for the six months ended June 30, 2024. The increase in revenue was primarily the result of an increase in the Company’s sales volume, driven by increasing market demand for electric industrial equipment for the six months ended June 30, 2024. Nevertheless, based on the revenues for the six months ended June 30, 2024 and 2023, Greenland believes that it is one of the major developers and manufacturers of transmission products for small and medium-sized forklift trucks in China.

Current wording

Through its PRC subsidiaries, Greenland offers transmission products, which are key components for forklift trucks used in manufacturing and logistic applications, such as factories, workshops, warehouses, fulfilment centers, shipyards, and seaports. Forklifts play an important role in the logistic systems of many companies across different industries in China and globally. Generally, industries with the largest demand for forklifts include the transportation, warehousing logistics, electrical machinery, and automobile industries. Greenland’s revenue decreased from approximately $67.56 million for the nine months ended September 30, 2023 to $64.57 million for the nine months ended September 30, 2024. The decrease in revenue was primarily the result of the decrease of approximately $2.88 million in the Company’s sales volume of transmission products for the nine months ended September 30, 2024. Nevertheless, based on the revenues for the nine months ended September 30, 2024 and 2023, Greenland believes that it is one of the major developers and manufacturers of transmission products for small and medium-sized forklift trucks in China.

Previous wording

Greenland’s transmission products are used in 1-ton to 15-tons forklift trucks, some with mechanical shift and some with automatic shift. Greenland sells these transmission products directly to forklift-truck manufacturers. For the six months ended June 30, 2024 and 2023, Greenland sold an aggregate of 80,496 and 75,097 sets of transmission products, respectively, to more than 100 forklift manufacturers in the PRC.

Current wording

Greenland’s transmission products are used in 1-ton to 15-tons forklift trucks, some with mechanical shift and some with automatic shift. Greenland sells these transmission products directly to forklift-truck manufacturers. For the nine months ended September 30, 2024 and 2023, Greenland sold an aggregate of 114,075 and 112,414 sets of transmission products, respectively, to more than 100 forklift manufacturers in the PRC.

Previous wording

In January 2020, Greenland launched HEVI Corp. (“HEVI”), formerly known as Greenland Technologies Corp. to focus on the production and sale of electric industrial vehicles to meet the increasing demand for electric industrial vehicles and machinery powered by sustainable energy in order to reduce air pollution and lower carbon emissions. HEVI is a wholly owned subsidiary of Greenland incorporated under the laws of the State of Delaware. HEVI’s electric industrial vehicle products currently include GEF-series electric forklifts, a series of lithium powered forklifts with three models ranging in size from 1.8 tons to 3.5 tons, GEL-1800, a 1.8 ton rated load lithium powered electric wheeled front loader, GEX-8000, an all-electric 8.0 ton rated load lithium powered wheeled excavator, and GEL-5000, an all-electric 5.0 ton rated load lithium wheeled front loader. In addition, HEVI introduced a line of mobile DC battery chargers that support DC powered EV applications in the North America market. These products are available for purchase in the United States (“U.S.”) market. In August 2022, Greenland launched a 54,000 square foot industrial electric vehicle assembly site in Baltimore, Maryland to support local services, assembly and distribution of its electric industrial heavy equipment products line. In July 2024, HEVI announced a partnership with Lonking Holdings Limited to develop and distribute heavy electric machinery and related technology specialized for the US market.

Current wording

In January 2020, Greenland launched HEVI Corp. (“HEVI”), formerly known as Greenland Technologies Corp. to focus on the production and sale of electric industrial vehicles to meet the increasing demand for electric industrial vehicles and machinery powered by sustainable energy in order to reduce air pollution and lower carbon emissions. HEVI is a wholly owned subsidiary of Greenland incorporated under the laws of the State of Delaware. HEVI’s electric industrial vehicle products currently include GEF-series electric forklifts, a series of lithium powered forklifts with three models ranging in size from 1.8 tons to 3.5 tons, GEL-1800, a 1.8 ton rated load lithium powered electric wheeled front loader, GEX-8000, an all-electric 8.0 ton rated load lithium powered wheeled excavator, and GEL-5000, an all-electric 5.0 ton rated load lithium wheeled front loader. In addition, HEVI introduced a line of mobile DC battery chargers that support DC powered EV applications in the North America market. These products are available for purchase in the United States (“U.S.”) market. In August 2022, Greenland launched a 54,000 square foot industrial electric vehicle assembly site in Baltimore, Maryland to support local services, assembly and distribution of its electric industrial heavy equipment products line. In July 2024, HEVI announced a partnership with Lonking Holdings Limited to develop and distribute heavy electric machinery and related technology specialized for the U.S. market. In August 2024, HEVI launched its H55L all-electric wheeled front-end loader, which can lift up to six tons in indoor and outdoor applications without the mess and emissions of diesel, and the H65L all-electric wheeled front-end loader, the largest lithium battery powered electric wheel loader commercially available in North America.

Previous wording

Greenland serves as the parent company of Zhongchai Holding (Hong Kong) Limited, a holding company formed under the laws of the Hong Kong Special Administrative Region (“Hong Kong”) on April 23, 2009 (“Zhongchai Holding”). Zhongchai Holding’s subsidiaries include Zhejiang Zhongchai Machinery Co. Ltd., an operating company formed under the laws of the People’s Republic of China (the “PRC” or “China”) in 2005, Hangzhou Greenland Energy Technologies Co., Ltd. (“Hangzhou Greenland”), an operating company formed under the laws of the PRC in 2019, and Hengyu Capital Limited, a company formed in Hong Kong on August 16, 2022 (“Hengyu Capital”). Through Zhongchai Holding and its subsidiaries, Greenland develops and manufactures traditional transmission products for material handling machineries in the PRC.

Current wording

Greenland serves as the parent company of Greenland Holding Enterprises Inc. (“Greenland Holding”), a company incorporated in the State of Delaware and a wholly-owned subsidiary of Greenland, which in turns holds 100% of the equity interests in Zhongchai Holding (Hong Kong) Limited, a holding company formed under the laws of the Hong Kong Special Administrative Region (“Hong Kong”) on April 23, 2009 (“Zhongchai Holding”). Zhongchai Holding’s subsidiaries include Zhejiang Zhongchai Machinery Co. Ltd., an operating company formed under the laws of the People’s Republic of China (the “PRC” or “China”) in 2005, Hangzhou Greenland Energy Technologies Co., Ltd. (“Hangzhou Greenland”), an operating company formed under the laws of the PRC in 2019, and Hengyu Capital Limited, a company formed in Hong Kong on August 16, 2022 (“Hengyu Capital”). Through Zhongchai Holding and its subsidiaries, Greenland develops and manufactures traditional transmission products for material handling machineries in the PRC.

Previous wording

Greenland’s revenue was approximately $23.02 million for the three months ended June 30, 2024, representing a decrease of approximately $0.55 million, or 2.3%, as compared to that of approximately $23.57 million for the three months ended June 30, 2023. The decrease in revenue was primarily a result of the decrease of approximately $1.62 million in the Company’s sales volume of transmission products for the three months ended June 30, 2024. On an RMB basis, our revenue for the three months ended June 30, 2024 increased by approximately 0.9% as compared to that for the three months ended June 30, 2023.

Current wording

Greenland’s revenue was approximately $18.83 million for the three months ended September 30, 2024, representing a decrease of approximately $3.01 million, or 13.8%, as compared to that of approximately $21.84 million for the three months ended September 30, 2023. The decrease in revenue was primarily a result of the decrease of approximately $2.88 million in the Company’s sales volume of transmission products for the three months ended September 30, 2024. On an RMB basis, our revenue for the three months ended September 30, 2024 decreased by approximately 14.9% as compared to that for the three months ended September 30, 2023.

Previous wording

Greenland’s cost of goods sold consists primarily of material costs, freight charges, purchasing and receiving costs, inspection costs, internal transfer costs, wages, employee compensation, amortization, depreciation and related costs, which are directly attributable to the Company’s manufacturing activities. The write down of inventory using the net realizable value impairment test is also recorded in cost of goods sold. The total cost of goods sold was approximately $16.24 million for the three months ended June 30, 2024, representing a decrease by approximately $0.40 million, or 2.4%, as compared to that of approximately $16.64 million for the three months ended June 30, 2023. Cost of goods sold decreased due to the decrease in our sales volume.

Current wording

Greenland’s cost of goods sold consists primarily of material costs, freight charges, purchasing and receiving costs, inspection costs, internal transfer costs, wages, employee compensation, amortization, depreciation and related costs, which are directly attributable to the Company’s manufacturing activities. The write down of inventory using the net realizable value impairment test is also recorded in cost of goods sold. The total cost of goods sold was approximately $13.87 million for the three months ended September 30, 2024, representing a decrease by approximately $1.70 million, or 10.9%, as compared to that of approximately $15.57 million for the three months ended September 30, 2023. Cost of goods sold decreased due to the decrease in our sales volume.

Previous wording

Greenland’s gross profit was approximately $6.77 million for the three months ended June 30, 2024, representing a decrease by approximately $0.15 million, or 2.2%, as compared to that of approximately $6.93 million for the three months ended June 30, 2023. For the three months ended June 30, 2024 and 2023, Greenland’s gross margin was approximately 29.4% . The decrease in gross profit in the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was primarily due to the decrease in our sales volume.

Current wording

Greenland’s gross profit was approximately $4.97 million for the three months ended September 30, 2024, representing a decrease by approximately $1.30 million, or 20.8%, as compared to that of approximately $6.27 million for the three months ended September 30, 2023. For the three months ended September 30, 2024 and 2023, Greenland’s gross margin were approximately 26.4% and 28.7%, respectively. The decrease in gross profit in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was primarily due to the decrease in our sales volume.

Previous wording

Selling expenses mainly comprise of operating expenses such as sales staff payroll, traveling expenses, and transportation expenses. Our selling expenses were approximately $0.47 million for the three months ended June 30, 2024, representing a decrease of approximately $0.10 million, or 19.0%, as compared to approximately $0.57 million for the three months ended June 30, 2023. The decrease was mainly due to a decrease in advertising and marketing expenses for the three months ended June 30, 2024.

Current wording

Selling expenses mainly comprise of operating expenses such as sales staff payroll, traveling expenses, and transportation expenses. Our selling expenses were approximately $0.40 million for the three months ended September 30, 2024, representing a decrease of approximately $0.21 million, or 34.5%, as compared to approximately $0.61 million for the three months ended September 30, 2023. The decrease was mainly due to a decrease in advertising and marketing expenses and shipping expenses for the three months ended September 30, 2024.

Previous wording

General and administrative expenses comprise of management and staff salaries, employee benefits, depreciation for office facility and office furniture and equipment, travel and entertainment expenses, legal and accounting fees, financial consulting fees, and other office expenses. General and administrative expenses were approximately $1.20 million for the three months ended June 30, 2024, representing a decrease of approximately $0.32 million, or 21.1%, as compared to that of approximately $1.52 million for the three months ended June 30, 2023. The decrease in general and administrative expenses was mainly due to the decrease of approximately $0.18 million in provision for inventory and the decrease of approximately $0.10 million in professional fees for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023.

Current wording

General and administrative expenses comprise of management and staff salaries, employee benefits, depreciation for office facility and office furniture and equipment, travel and entertainment expenses, legal and accounting fees, financial consulting fees, and other office expenses. General and administrative expenses were approximately $1.20 million for the three months ended September 30, 2024, representing a decrease of approximately $0.41 million, or 25.3%, as compared to that of approximately $1.61 million for the three months ended September 30, 2023. The decrease in general and administrative expenses was mainly due to the decrease of approximately $0.23 million in provision for inventory and the decrease of approximately $0.18 million in professional fees for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023.

Previous wording

R&D expenses consist of R&D personnel compensation, costs of materials used in R&D projects, and depreciation costs for research-related equipment. R&D expenses were approximately $1.12 million for the three months ended June 30, 2024, representing a decrease of approximately $0.31 million, or 21.2%, as compared to that of approximately $1.43 million for the three months ended June 30, 2023. Such decrease was primarily attributable to a significant decrease in the Company’s R&D activities during the three months ended June 30, 2024.

Current wording

R&D expenses consist of R&D personnel compensation, costs of materials used in R&D projects, and depreciation costs for research-related equipment. R&D expenses were approximately $0.44 million for the three months ended September 30, 2024, representing a decrease of approximately $0.81 million, or 64.8%, as compared to that of approximately $1.25 million for the three months ended September 30, 2023. Such decrease was primarily attributable to a significant decrease in the Company’s R&D activities during the three months ended September 30, 2024.

Previous wording

Income from operations for the three months ended June 30, 2024 was approximately $3.99 million, representing an increase of approximately $0.58 million, as compared to that of approximately $3.41 million for the three months ended June 30, 2023.

Current wording

Income from operations for the three months ended September 30, 2024 was approximately $2.93 million, representing an increase of approximately $0.12 million, as compared to that of approximately $2.81 million for the three months ended September 30, 2023.

Previous wording

Greenland’s interest income was approximately $0.22 million for the three months ended June 30, 2024, representing an increase of approximately $0.17 million, or 382.8%, as compared to that of approximately $0.04 million for the three months ended June 30, 2023. The increase in interest income was because more cash was deposited in banks during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023.

Current wording

Greenland’s interest income was approximately $0.24 million for the three months ended September 30, 2024, representing an increase of approximately $0.24 million, or 5,494.8%, as compared to that of approximately $0.00 million for the three months ended September 30, 2023. The increase in interest income was because more cash was deposited in banks during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023.

Previous wording

Greenland’s interest expenses were approximately $0.04 million for the three months ended June 30, 2024, representing a decrease of approximately $0.04 million, or 54.7%, as compared to that of approximately $0.08 million for the three months ended June 30, 2023. The decrease was primarily due to a decrease of our short-term loans for the three months ended June 30, 2024, compared to those for the three months ended June 30, 2023.

Current wording

Greenland’s interest expenses were approximately $0.01 million for the three months ended September 30, 2024, representing a decrease of approximately $0.06 million, or 87.0%, as compared to that of approximately $0.07 million for the three months ended September 30, 2023. The decrease was primarily due to a decrease of our short-term loans for the three months ended September 30, 2024, compared to those for the three months ended September 30, 2023.

Previous wording

Greenland’s income tax was approximately $0.68 million for the three months ended June 30, 2024, as compared to that of approximately $0.30 million for the three months ended June 30, 2023.

Current wording

Greenland’s income tax was approximately $0.34 million for the three months ended September 30, 2024, as compared to that of approximately $0.88 million for the three months ended September 30, 2023.

Previous wording

Zhejiang Zhongchai obtained a “high-tech enterprise” status near the end of the fiscal year of 2022. Such status allows Zhejiang Zhongchai to enjoy a reduced statutory income tax rate of 15%, rather than the standard PRC corporate income tax rate of 25%. Income tax for the six months ended June 30, 2024 and 2023 were calculated based on a rate of 15%. The “high-tech enterprise” status is reevaluated by relevant Chinese government agencies every three years. Zhejiang Zhongchai’s current “high-tech enterprise” will be reevaluated near the end of 2025.

Current wording

Zhejiang Zhongchai obtained a “high-tech enterprise” status near the end of the fiscal year of 2022. Such status allows Zhejiang Zhongchai to enjoy a reduced statutory income tax rate of 15%, rather than the standard PRC corporate income tax rate of 25%. Income tax for the nine months ended September 30, 2024 and 2023 were calculated based on a rate of 15%. The “high-tech enterprise” status is reevaluated by relevant Chinese government agencies every three years. Zhejiang Zhongchai’s current “high-tech enterprise” will be reevaluated near the end of 2025.

Previous wording

Our net income was approximately $5.87 million for the three months ended June 30, 2024, representing an increase of approximately $2.93 million, as compared to that of approximately $2.94 million for the three months ended June 30, 2023.

Current wording

Our net income was approximately $0.36 million for the three months ended September 30, 2024, representing an increase of approximately $0.17 million, as compared to that of approximately $0.19 million for the three months ended September 30, 2023.

Previous wording

Greenland’s revenue was approximately $45.74 million for the six months ended June 30, 2024, representing an increase of approximately $0.02 million, or 0.0%, as compared to that of approximately $45.72 million for the six months ended June 30, 2023. The increase in revenue was primarily a result of the increase of approximately $1.07 million in the Company’s sales volume, driven by increasing market demand of approximately $1.1 million for electric industrial equipment for the six months ended June 30, 2024. On an RMB basis, our revenue for the six months ended June 30, 2024 increased by approximately 4.2% as compared to that for the six months ended June 30, 2023.

Current wording

Greenland’s revenue was approximately $64.57 million for the nine months ended September 30, 2024, representing a decrease of approximately $2.99 million, or 4.4%, as compared to that of approximately $67.56 million for the nine months ended September 30, 2023. The decrease in revenue was primarily a result of the decrease of approximately $3.60 million in the Company’s sales volume of transmission products for the nine months ended September 30, 2024. On an RMB basis, our revenue for the nine months ended September 30, 2024 decreased by approximately 2.2% as compared to that for the nine months ended September 30, 2023.

Previous wording

Greenland’s cost of goods sold consists primarily of material costs, freight charges, purchasing and receiving costs, inspection costs, internal transfer costs, wages, employee compensation, amortization, depreciation and related costs, which are directly attributable to the Company’s manufacturing activities. The write down of inventory using the net realizable value impairment test is also recorded in cost of goods sold. The total cost of goods sold was approximately $33.32 million for the six months ended June 30, 2024, representing an increase by approximately $0.05 million, or 0.2%, as compared to that of approximately $33.27 million for the six months ended June 30, 2023. Cost of goods sold increased due to the increase in our sales volume.

Current wording

Greenland’s cost of goods sold consists primarily of material costs, freight charges, purchasing and receiving costs, inspection costs, internal transfer costs, wages, employee compensation, amortization, depreciation and related costs, which are directly attributable to the Company’s manufacturing activities. The write down of inventory using the net realizable value impairment test is also recorded in cost of goods sold. The total cost of goods sold was approximately $47.19 million for the nine months ended September 30, 2024, representing a decrease by approximately $1.65 million, or 3.4%, as compared to that of approximately $48.84 million for the nine months ended September 30, 2023. Cost of goods sold decreased due to the decrease in our sales volume.

Previous wording

Greenland’s gross profit was approximately $12.42 million for the six months ended June 30, 2024, representing a decrease by approximately $0.03 million, or 0.2%, as compared to that of approximately $12.45 million for the six months ended June 30, 2023. For the six months ended June 30, 2024 and 2023, Greenland’s gross margins were approximately 27.16% and 27.23%, respectively. The decrease in gross margins in the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was primarily due to an increase in raw material costs.

Current wording

Greenland’s gross profit was approximately $17.39 million for the nine months ended September 30, 2024, representing a decrease by approximately $1.33 million, or 7.1%, as compared to that of approximately $18.72 million for the nine months ended September 30, 2023. For the nine months ended September 30, 2024 and 2023, Greenland’s gross margins were approximately 26.9% and 27.7%, respectively. The decrease in gross profit in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was primarily due to a decrease in our sales volume.

Previous wording

Selling expenses mainly comprise of operating expenses such as sales staff payroll, traveling expenses, and transportation expenses. Our selling expenses were approximately $1.01 million for the six months ended June 30, 2024, representing an increase of approximately $0.05 million, or 5.5%, as compared to approximately $0.96 million for the six months ended June 30, 2023. The increase was mainly due to an increase in shipping expenses for the six months ended June 30, 2024.

Current wording

Selling expenses mainly comprise of operating expenses such as sales staff payroll, traveling expenses, and transportation expenses. Our selling expenses were approximately $1.41 million for the nine months ended September 30, 2024, representing a decrease of approximately $0.16 million, or 10.0%, as compared to approximately $1.57 million for the nine months ended September 30, 2023. The decrease was mainly due to a decrease in advertising and marketing expenses and shipping expenses for the nine months ended September 30, 2024.

Previous wording

General and administrative expenses comprise of management and staff salaries, employee benefits, depreciation for office facility and office furniture and equipment, travel and entertainment expenses, legal and accounting fees, financial consulting fees, and other office expenses. General and administrative expenses were approximately $3.38 million for the six months ended June 30, 2024, representing an increase of approximately $0.22 million, or 7.0%, as compared to that of approximately $3.16 million for the six months ended June 30, 2023. The increase in general and administrative expenses was mainly due to an increase in allowance for credit losses and an increase in staff salary for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023.

Current wording

General and administrative expenses comprise of management and staff salaries, employee benefits, depreciation for office facility and office furniture and equipment, travel and entertainment expenses, legal and accounting fees, financial consulting fees, and other office expenses. General and administrative expenses were approximately $4.59 million for the nine months ended September 30, 2024, representing a decrease of approximately $0.18 million, or 3.9%, as compared to that of approximately $4.77 million for the nine months ended September 30, 2023. The decrease in general and administrative expenses was mainly due to a decrease in professional fees for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023.

Previous wording

R&D expenses consist of R&D personnel compensation, costs of materials used in R&D projects, and depreciation costs for research-related equipment. R&D expenses were approximately $2.11 million for the six months ended June 30, 2024, representing a decrease of approximately $0.44 million, or 17.1%, as compared to that of approximately $2.55 million for the six months ended June 30, 2023. Such decrease was primarily attributable to a significant decrease in the Company’s R&D activities during the six months ended June 30, 2024.

Current wording

R&D expenses consist of R&D personnel compensation, costs of materials used in R&D projects, and depreciation costs for research-related equipment. R&D expenses were approximately $2.55 million for the nine months ended September 30, 2024, representing a decrease of approximately $1.24 million, or 32.8%, as compared to that of approximately $3.79 million for the nine months ended September 30, 2023. Such decrease was primarily attributable to a significant decrease in the Company’s R&D activities during the nine months ended September 30, 2024.

Previous wording

Income from operations for the six months ended June 30, 2024 was approximately $5.91 million, representing an increase of approximately $0.13 million, as compared to that of approximately $5.78 million for the six months ended June 30, 2023.

Current wording

Income from operations for the nine months ended September 30, 2024 was approximately $8.84 million, representing an increase of approximately $0.25 million, as compared to that of approximately $8.59 million for the nine months ended September 30, 2023.

Previous wording

Greenland’s interest income was approximately $0.38 million for the six months ended June 30, 2024, representing an increase of approximately $0.30 million, or 412.7%, as compared to that of approximately $0.08 million for the six months ended June 30, 2023. The increase in interest income was because more cash was deposited in banks during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023.

Current wording

Greenland’s interest income was approximately $0.62 million for the nine months ended September 30, 2024, representing an increase of approximately $0.54 million, or 684.5%, as compared to that of approximately $0.08 million for the nine months ended September 30, 2023. The increase in interest income was because more cash was deposited in banks during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.

Previous wording

Greenland’s interest expenses were approximately $0.08 million for the six months ended June 30, 2024, representing a decrease of approximately $0.07 million, or 45.3%, as compared to that of approximately $0.15 million for the six months ended June 30, 2023. The decrease was primarily due to a decrease of our short-term loans for the six months ended June 30, 2024, compared to those for the six months ended June 30, 2023.

Current wording

Greenland’s interest expenses were approximately $0.09 million for the nine months ended September 30, 2024, representing a decrease of approximately $0.13 million, or 59.2%, as compared to that of approximately $0.22 million for the nine months ended September 30, 2023. The decrease was primarily due to a decrease of our short-term loans for the nine months ended September 30, 2024, compared to those for the nine months ended September 30, 2023.

Previous wording

Greenland’s income tax was approximately $0.49 million for the six months ended June 30, 2024, as compared to that of approximately $0.60 million for the six months ended June 30, 2023.

Current wording

Greenland’s income tax was approximately $0.84 million for the nine months ended September 30, 2024, as compared to that of approximately $1.48 million for the nine months ended September 30, 2023.

Previous wording

Our net income was approximately $9.44 million for the six months ended June 30, 2024, representing an increase of approximately $4.04 million, as compared to that of approximately $5.40 million for the six months ended June 30, 2023.

Current wording

Our net income was approximately $9.80 million for the nine months ended September 30, 2024, representing an increase of approximately $4.21 million, as compared to that of approximately $5.59 million for the nine months ended September 30, 2023.

Previous wording

For the six months ended June 30, 2024, our PRC subsidiary, Zhejiang Zhongchai, paid off approximately $8.54 million in bank loan, approximately $0.69 million in loan to third parties, and maintained $17.12 million cash on hand. We plan to maintain the current debt structure and rely on governmentally supported loans with lower costs, if necessary.

Current wording

For the nine months ended September 30, 2024, our PRC subsidiary, Zhejiang Zhongchai, paid off approximately $8.56 million in bank loan, approximately $0.69 million in loan to third parties, and maintained $17.63 million cash on hand. We plan to maintain the current debt structure and rely on governmentally supported loans with lower costs, if necessary.

Previous wording

Government subsidies mainly consist of an incentive granted by the Chinese government to encourage transformation of fixed assets in China and other miscellaneous subsidies from the Chinese government. Government subsidies are recognized when there is reasonable assurance that the subsidy will be received and all conditions be completed. Total government subsidies recorded under long-term liabilities were $1.38 million and $1.53 million as of June 30, 2024 and December 31, 2023, respectively.

Current wording

Government subsidies mainly consist of an incentive granted by the Chinese government to encourage transformation of fixed assets in China and other miscellaneous subsidies from the Chinese government. Government subsidies are recognized when there is reasonable assurance that the subsidy will be received and all conditions be completed. Total government subsidies recorded under long-term liabilities were $1.37 million and $1.53 million as of September 30, 2024 and December 31, 2023, respectively.

Previous wording

Cash equivalents refers to all highly liquid investments purchased with original maturity of three months or less. As of June 30, 2024, Greenland had approximately $17.12 million of cash and cash equivalents, representing a decrease of approximately $5.86 million, or 25.51%, as compared to approximately $22.98 million as of December 31, 2023. The decrease of cash and cash equivalents was mainly due to a decrease in short-term bank loans and notes payable, as compared to that as of December 31, 2023.

Current wording

Cash equivalents refers to all highly liquid investments purchased with original maturity of three months or less. As of September 30, 2024, Greenland had approximately $17.63 million of cash and cash equivalents, representing a decrease of approximately $5.35 million, or 23.27%, as compared to approximately $22.98 million as of December 31, 2023. The decrease of cash and cash equivalents was mainly due to a decrease in short-term bank loans and notes payable, as compared to that as of December 31, 2023.

Previous wording

Restricted cash represents the amount held by a bank as security for bank acceptance notes and therefore is not available for use until the bank acceptance notes are fulfilled or expired, which typically takes less than twelve months. As of June 30, 2024, Greenland had approximately $3.91 million of restricted cash, representing a decrease of approximately $1.30 million, or 25.00%, as compared to that of approximately $5.21 million as of December 31, 2023. The decrease of restricted cash was due to a decrease of notes payable.

Current wording

Restricted cash represents the amount held by a bank as security for bank acceptance notes and therefore is not available for use until the bank acceptance notes are fulfilled or expired, which typically takes less than twelve months. As of September 30, 2024, Greenland had approximately $3.09 million of restricted cash, representing a decrease of approximately $2.12 million, or 40.64%, as compared to that of approximately $5.21 million as of December 31, 2023. The decrease of restricted cash was due to a decrease of notes payable.

Previous wording

As of June 30, 2024, Greenland had approximately $21.88 million of accounts receivables, an increase of approximately $5.34 million, or 32.76%, as compared to approximately $16.48 million as of December 31, 2023. The increase in accounts receivables was due to the increase in our sales volume and our slowed-down efforts in receivables collections.

Current wording

As of September 30, 2024, Greenland had approximately $20.27 million of accounts receivables, an increase of approximately $3.79 million, or 22.97%, as compared to approximately $16.48 million as of December 31, 2023. The increase in accounts receivables was due to the increase in our sales volume and our slowed-down efforts in receivables collections.

Previous wording

Greenland recorded approximately $1.41 million and $0.87 million of allowance for expected credit losses as of June 30, 2024 and December 31, 2023, respectively. Greenland conducted an aging analysis of each customer’s delinquent payments to determine whether allowance for expected credit losses is adequate. In establishing the allowance for expected credit losses, Greenland considers historical experience, economic environment, and expected collectability of past due receivables. An estimate of expected credit losses is recorded when collection of the full amount is no longer probable. When bad debts are identified, such debts are written off against the allowance for expected credit losses. Greenland will continuously assess its expected credit losses based on the credit history of and relationships with its customers on a regular basis to determine whether its allowance for expected credit losses on its accounts receivables is adequate. Greenland believes that its collection policies are generally in line with the transmissions industry’s standard in the PRC.

Current wording

Greenland recorded approximately $1.46 million and $0.87 million of allowance for expected credit losses as of September 30, 2024 and December 31, 2023, respectively. Greenland conducted an aging analysis of each customer’s delinquent payments to determine whether allowance for expected credit losses is adequate. In establishing the allowance for expected credit losses, Greenland considers historical experience, economic environment, and expected collectability of past due receivables. An estimate of expected credit losses is recorded when collection of the full amount is no longer probable. When bad debts are identified, such debts are written off against the allowance for expected credit losses. Greenland will continuously assess its expected credit losses based on the credit history of and relationships with its customers on a regular basis to determine whether its allowance for expected credit losses on its accounts receivables is adequate. Greenland believes that its collection policies are generally in line with the transmissions industry’s standard in the PRC.

Previous wording

As of June 30, 2024, Greenland had approximately $30.96 million of notes receivables, which Greenland expects to collect within the next twelve months. The decrease was approximately $3.83 million, or 14.10%, as compared to approximately $27.14 million as of December 31, 2023.

Current wording

As of September 30, 2024, Greenland had approximately $27.68 million of notes receivables, which Greenland expects to collect within the next twelve months. The increase was approximately $0.56 million, or 2.01%, as compared to approximately $27.14 million as of December 31, 2023.

Previous wording

Our working capital was approximately $38.46 million as of June 30, 2024, as compared to $27.27 million as of December 31, 2023. The increase in working capital of $3.7 million was primarily contributed to a decrease in fixed deposit and notes receivables.

Current wording

Our working capital was approximately $40.49 million as of September 30, 2024, as compared to $27.27 million as of December 31, 2023. The increase in working capital of $13.22 million was primarily contributed to a decrease in fixed deposit and notes payable.

Previous wording

Greenland’s net cash provided by (used in) operating activities were approximately $2.92 million and $(0.39) million for the six months ended June 30, 2024 and 2023, respectively.

Current wording

Greenland’s net cash provided by operating activities were approximately $8.98 million and $0.44 million for the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

For the six months ended June 30, 2024, the main sources of cash inflow from operating activities were net income, inventories, and other current and noncurrent assets, with each amounted to approximately $9.44 million, $3.96 million and $1.97 million, respectively. The main causes of cash outflow were changes in accounts receivable and notes receivable, with each amounted to approximately $6.38 million and $4.48 million, respectively.

Current wording

For the nine months ended September 30, 2024, the main sources of cash inflow from operating activities were net income, inventories, and other current and noncurrent assets, with each amounted to approximately $9.80 million, $3.07 million and $1.65 million, respectively. The main causes of cash outflow were changes in accounts receivable and other current and noncurrent assets, with each amounted to approximately $4.10 million and $1.80 million, respectively.

Previous wording

For the six months ended June 30, 2023, the main sources of cash inflow from operating activities were net income, change in inventories, and other current and noncurrent assets, with each amounted to approximately $5.40 million, $1.78 million and $3.10 million, respectively. The main causes of cash outflow were changes in accounts receivables and notes receivable, with each amounted to approximately $8.01 million and $4.21 million, respectively.

Current wording

For the nine months ended September 30, 2023, the main sources of cash inflow from operating activities were net income, accounts payable, and depreciation and amortization, with each amounted to approximately $2.59 million, $2.34 million and $2.68 million, respectively. The main causes of cash outflow were changes in accounts receivables and notes receivable, with each amounted to approximately $7.93 million and $5.42 million, respectively.

Previous wording

Net cash used in investing activities resulted in cash outflow of approximately $1.98 million for the six months ended June 30, 2024. Cash used in investing activities for the six months ended June 30, 2024 was mainly due to approximately $1.28 million used for purchases of long-term assets and approximately $0.70 million loan to third parties.

Current wording

Net cash used in investing activities resulted in cash outflow of approximately $2.11 million for the nine months ended September 30, 2024. Cash used in investing activities for the nine months ended September 30, 2024 was mainly due to approximately $1.42 million used for purchases of long-term assets and approximately $0.69 million in loans to third parties.

Previous wording

Net cash used in investing activities resulted a cash outflow of approximately $0.33 million for the six months ended June 30, 2023. Cash used in investing activities for the six months ended June 30, 2023 was mainly due to $0.26 million in proceeds from government grants for construction, offset by approximately $0.28 million used for purchases of long-term assets and approximately $0.05 million used for investment in a joint venture.

Current wording

Net cash provided by investing activities resulted in cash inflow of approximately $1.22 million for the nine months ended September 30, 2023. Cash provided by investing activities for the nine months ended September 30, 2023 was mainly due to approximately $0.44 million in proceeds from sale of short-term investment and approximately $1.85 million in repayment of loans lent to third parties, offset by approximately $0.60 million used for purchases of long-term assets and approximately $0.05 million used for investment in a joint venture.