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 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.

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 $22.72 million for the three months ended March 31, 2024 to $21.68 million for the three months ended March 31, 2025. The decrease in revenue was primarily the result of a decrease of approximately $0.84 million in the Company’s sales volume of transmission products for the three months ended March 31, 2025. Nevertheless, based on the revenues for the three months ended March 31, 2025 and 2024, 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 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.

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 three months ended March 31, 2025 and 2024, Greenland sold an aggregate of 38,734 and 41,866 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 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.

Current wording

In January 2020, Greenland formed HEVI 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 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.

Current wording

Greenland serves as the parent company of HEVI and 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 $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.

Current wording

Greenland’s revenue was approximately $21.68 million for the three months ended March 31, 2025, representing a decrease of approximately $1.05 million, or 4.6%, as compared to that of approximately $22.72 million for the three months ended March 31, 2024. The decrease in revenue was primarily the result of a decrease of approximately $0.84 million in the Company’s sales volume of transmission products for the three months ended March 31, 2025. On an RMB basis, our revenue for the three months ended March 31, 2025 decreased by approximately 4.5% as compared to that for the three months ended March 31, 2024.

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 $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.

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 $15.02 million for the three months ended March 31, 2025, representing a decrease by approximately $2.06 million, or 12.1%, as compared to that of approximately $17.08 million for the three months ended March 31, 2024. Cost of goods sold decreased due to the decrease in our sales volume.

Previous 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.

Current wording

Greenland’s gross profit was approximately $6.66 million for the three months ended March 31, 2025, representing an increase by approximately $1.01 million, or 18.0%, as compared to that of approximately $5.65 million for the three months ended March 31, 2024. For the three months ended March 31, 2025 and 2024, Greenland’s gross margins were approximately 30.7% and 24.9%, respectively. The increase in gross margins in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to a shift in Greenland’s product mix towards higher value and more sophisticated products, such as hydraulic transmission products.

Previous wording

Selling expenses mainly comprise of operating expenses such as sales staff payroll, traveling expenses, and transportation expenses. Our selling expenses were approximately $0.40 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.

Current wording

Selling expenses mainly comprise of operating expenses such as sales staff payroll, traveling expenses, and transportation expenses. Our selling expenses were approximately $0.33 million for the three months ended March 31, 2025, representing a decrease of approximately $0.22 million, or 39.6%, as compared to approximately $0.55 million for the three months ended March 31, 2024. The decrease in selling expenses was mainly due to a decrease in the shipping expenses and advertising and marketing expenses for the three months ended March 31, 2025 compared to the three months ended March 31, 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 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.

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 $1.44 million for the three months ended March 31, 2025, representing a decrease of approximately $0.74 million, or 34.1%, as compared to that of approximately $2.18 million for the three months ended March 31, 2024. The decrease in general and administrative expenses was mainly due to the decrease of approximately $0.57 million in allowance for credit losses and approximately $0.13 million in consultancy fees for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024.

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 $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.

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 $0.08 million for the three months ended March 31, 2025, representing a decrease of approximately $0.91 million, or 91.8%, as compared to that of approximately $0.99 million for the three months ended March 31, 2024. Such decrease was primarily attributable to a significant decrease in the Company’s R&D activities during the three months ended March 31, 2025.

Previous 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.

Current wording

Income from operations for the three months ended March 31, 2025 was approximately $4.81 million, representing an increase of approximately $2.88 million, as compared to that of approximately $1.93 million for the three months ended March 31, 2024.

Previous 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.

Current wording

Greenland’s interest income was approximately $0.14 million for the three months ended March 31, 2025, representing a decrease of approximately $0.03 million, or 16.6%, as compared to that of approximately $0.17 million for the three months ended March 31, 2024. The decrease in interest income was because less cash was deposited in banks during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Previous 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.

Current wording

Greenland’s interest expenses were nil for the three months ended March 31, 2025, representing a decrease of approximately $0.04 million, or 100.0%, as compared to that of approximately $0.04 million for the three months ended March 31, 2024. The decrease was primarily due to a decrease of our short-term loans for the three months ended March 31, 2025, compared to those for the three months ended March 31, 2024.

Previous 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.

Current wording

Greenland’s income tax was approximately $0.88 million for the three months ended March 31, 2025, as compared to that of approximately $(0.19) million for the three months ended March 31, 2024.

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 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.

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 three months ended March 31, 2025 and 2024 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 $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.

Current wording

Our net income was approximately $4.56 million for the three months ended March 31, 2025, representing an increase of approximately $0.99 million, as compared to that of approximately $3.57 million for the three months ended March 31, 2024.

Previous 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.

Current wording

For the three months ended March 31, 2025, our PRC subsidiary, Zhejiang Zhongchai, paid off approximately $1.00 million in repayment of loans from related parties, approximately $0.68 million in lend to third parties, and maintained $14.48 million cash on hand. We plan to maintain the current debt structure and rely on governmentally supported loans with lower cost, 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 $1.37 million and $1.53 million as of September 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 $1.21 million and $1.26 million as of March 31, 2025 and December 31, 2024, respectively.

Previous wording

Historically, we have expended considerable resources on building a new factory and paid off a considerable amount of debt, resulting in less available cash. However, we anticipate that our cash flow will continue to improve for the remainder of fiscal year 2024. More specifically, Zhejiang Zhongchai has completed the construction of a new factory, and our PRC subsidiaries have received COVID-19 related government subsidies. Furthermore, Zhejiang Zhongchai pledged the deed of its new factory as a collateral to banks in order to obtain additional loans, refinance expiring loans, restructure short-term loans, and fund other working capital needs upon acceptable terms to Greenland.

Current wording

Historically, we have expended considerable resources on building a new factory and paid off a considerable amount of debt, resulting in less available cash. However, we anticipate that our cash flow will continue to improve for the remainder of fiscal year 2025. More specifically, Zhejiang Zhongchai can pledge the deed of its factory as a collateral to banks in order to obtain loans, refinance expiring loans, restructure short-term loans, and fund other working capital needs upon acceptable terms to Greenland.

Previous 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.

Current wording

Cash equivalents refers to all highly liquid investments purchased with original maturity of three months or less. As of March 31, 2025, Greenland had approximately $5.40 million of cash and cash equivalents, representing a decrease of approximately $1.26 million, or 18.86%, as compared to approximately $6.66 million as of December 31, 2024. The decrease of cash and cash equivalents was mainly due to an increase in accounts receivables and fixed deposit, as compared to that as of December 31, 2024.

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 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.

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 March 31, 2025, Greenland had approximately $2.14 million of restricted cash, representing an increase of approximately $0.19 million, or 9.78%, as compared to that of approximately $1.95 million as of December 31, 2024. The decrease of restricted cash was due to an increase in notes payable collateralized by cash.

Previous 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.

Current wording

As of March 31, 2025, Greenland had approximately $21.42 million of accounts receivables, an increase of approximately $5.63 million, or 35.63%, as compared to approximately $15.80 million as of December 31, 2024. The increase in accounts receivables was due to our slowed-down efforts in receivables collections.

Previous 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.

Current wording

Greenland recorded approximately nil and nil million of allowance for expected credit losses as of March 31, 2025 and December 31, 2024, 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

Due from related party was $0.23 million and $0.23 million as of September 30, 2024 and December 31, 2023, respectively. Other receivable from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) was $0.23 million and $0.23 million as of September 30, 2024 and December 31, 2023, respectively, representing a loan with an annual interest rate of 4.785%.

Current wording

Due from related party was $1.24 million and $0.24 million as of March 31, 2025 and December 31, 2024, respectively. The balance of due from related parties as of March 31, 2025 and December 31, 2024 consisted primarily of other receivable from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) was $0.24 million and $0.24 million as of March 31, 2025 and December 31, 2024, respectively, representing a loan with an annual interest rate of 4.785% and other receivable from Cenntro Inc. was $1.00 million and nil as of March 31, 2025 and December 31, 2024, respectively, representing a loan with an annual interest rate of 7.5% that will mature before April 14, 2026.

Previous 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.

Current wording

As of March 31, 2025, Greenland had approximately $20.68 million of notes receivables, which Greenland expects to collect within the next twelve months. The decrease was approximately $2.05 million, or 9.04%, as compared to approximately $22.74 million as of December 31, 2024.

Previous 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.

Current wording

Our working capital was approximately $37.29 million as of March 31, 2025, as compared to $35.11 million as of December 31, 2024. The increase in working capital of $2.18 million was primarily contributed to an increase in accounts receivable.

Previous 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.

Current wording

Greenland’s net cash provided by (used in) operating activities were approximately $1.24 million and $(8.42) million for the three months ended March 31, 2025 and 2024, respectively.

Previous 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.

Current wording

For the three months ended March 31, 2025, the main sources of cash inflow from operating activities were net income, accounts payable, and notes receivable, with each amounted to approximately $4.56 million, $6.06 million and $2.18 million, respectively. The main causes of cash outflow were changes in due to related parties and accounts receivable, with each amounted to approximately $5.22 million and $5.53 million, respectively.

Previous 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.

Current wording

For the three months ended March 31, 2024, the main sources of cash outflow from operating activities were accounts receivable, notes receivable, and other current and noncurrent assets, with each amounted to approximately $5.54 million, $5.47 million and $6.12 million, respectively. The main causes of cash inflow were changes in net income and accounts payable, with each amounted to approximately $3.57 million and $6.02 million, respectively.

Previous 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.

Current wording

Net cash used in investing activities resulted in cash outflow of approximately $0.70 million for the three months ended March 31, 2025. Cash used in investing activities for the three months ended March 31, 2025 was mainly due to approximately $0.01 million used for purchases of long-term assets and approximately $0.69 million loaned to third parties.

Previous 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.

Current wording

Net cash used in investing activities resulted in cash outflow of approximately $1.88 million for the three months ended March 31, 2024. Cash used in investing activities for the three months ended March 31, 2024 was mainly due to approximately $1.19 million used for purchases of long-term assets and approximately $0.70 million loaned to third parties.

Previous wording

Net cash used in financing activities resulted a cash inflow of approximately $1.39 million for the nine months ended September 30, 2023, which was mainly attributable to approximately $6.77 million in proceeds from short-term bank loans and approximately $4.13 million in notes payable. Such amounts were further offset by approximately $8.81 million in repayment of short-term bank loans and approximately $0.43 million in repayment of loans to third parties.

Current wording

Net cash used in financing activities resulted a cash outflow of approximately $1.77 million for the three months ended March 31, 2025, which was mainly attributable to approximately $1.00 million in repayment of loans from related parties and approximately $0.58 million change in notes payable.

Previous wording

Net cash used in financing activities resulted a cash outflow of approximately $14.39 million for the nine months ended September 30, 2024, which was mainly attributable to approximately $8.56 million in repayment of short-term bank loans and approximately $11.39 million in repayment of notes payable. Such amounts were further offset by approximately $5.56 million in proceeds from short-term bank loans.

Current wording

Net cash provided by financing activities resulted a cash inflow of approximately $2.34 million for the three months ended March 31, 2024, which was mainly attributable to approximately $5.56 million in proceeds from short-term bank loans. Such amounts were further offset by approximately $0.28 million in repayment of short-term bank loans and approximately $2.95 million change in notes payable.

Previous wording

We prepare our consolidated financial statements in accordance with U.S. GAAP. In applying accounting principles, it is often required to use estimates. These estimates consider the facts, circumstances and information available, and may be based on subjective inputs, assumptions and information known and unknown to us. Material changes in certain of the estimates that we use could potentially affect, by a material amount, our consolidated financial position and results of operations. Although results may vary, we believe our estimates are reasonable and appropriate. See Note 2 to our consolidated financial statements included in “Item 1 - Financial Statements (Unaudited)” for a summary of our significant accounting policies. The following describes certain of our significant accounting policies that involve more subjective and complex judgments where the effect on our consolidated financial position and operating performance could be material.

Current wording

We prepare our consolidated financial statements in accordance with U.S. GAAP. In applying accounting principles, it is often required to use estimates. These estimates consider the facts, circumstances and information available, and may be based on subjective inputs, assumptions and information known and unknown to us. Material changes in certain of the estimates that we use could potentially affect, by a material amount, our consolidated financial position and results of operations. Although results may vary, we believe our estimates are reasonable and appropriate. See Note 2 to our consolidated financial statements included in “Item 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” for a summary of our significant accounting policies. The following describes certain of our significant accounting policies that involve more subjective and complex judgments where the effect on our consolidated financial position and operating performance could be material.

Previous wording

In accordance with ASC Topic 606, “Revenue from Contracts with Customers,” the Company recognizes revenues when goods or services are transferred to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. In determining when and how revenues are recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customer; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations, and (v) recognition of revenues when (or as) the Company satisfies each performance obligation. The Company derives revenues from the processing, distribution and sale of its products. The Company recognizes its revenues net of value added taxes (“VAT”). The Company is subject to VAT which had been levied at the rate of 17% on the invoiced value of sales until April 30, 2018, after which date the rate was reduced to 16%. VAT rate was further reduced to 13% starting from April 1, 2019. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales.

Current wording

In accordance with ASC Topic 606, “Revenue from Contracts with Customers,” the Company recognizes revenues when goods or services are transferred to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. In determining when and how revenues are recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customer; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations, and (v) recognition of revenues when (or as) the Company satisfies each performance obligation. The Company derives revenues from the processing, distribution and sale of its products. The Company recognizes its revenues net of VAT. The Company is subject to VAT which had been levied at the rate of 17% on the invoiced value of sales until April 30, 2018, after which date the rate was reduced to 16%. VAT rate was further reduced to 13% starting from April 1, 2019. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales.