Greenland Technologies Holding Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue but notable improvements in net income and operational efficiency.

For the three months ended September 30, 2024, Greenland's revenues totaled $18.83 million, a decrease of 13.8% from $21.84 million in the same period of 2023. The decline was attributed primarily to a drop in sales volume of transmission products, particularly for forklifts, which saw revenues decrease from $21.01 million to $18.13 million year-over-year. For the nine months ended September 30, 2024, total revenues were $64.57 million, down 4.4% from $67.56 million in the prior year.

Despite the revenue decline, the company reported a significant increase in net income for the nine-month period, which rose to $9.80 million, up 75.2% from $5.59 million in 2023. This increase was driven by improved operational efficiencies, with income from operations rising to $8.84 million, a 2.9% increase from the previous year. The gross profit for the nine months also decreased to $17.39 million, reflecting a 7.1% decline from $18.72 million, with gross margins slightly down from 27.7% to 26.9%.

The company’s cash position showed a decrease, with cash and cash equivalents falling to $17.63 million as of September 30, 2024, down 23.3% from $22.98 million at the end of 2023. However, accounts receivable increased significantly to $20.27 million, up 22.97% from $16.48 million, indicating a potential challenge in cash flow management.

Strategically, Greenland has been active in expanding its product offerings and market presence. The company launched new electric industrial vehicles under its HEVI Corp subsidiary, including the H55L and H65L all-electric wheeled front-end loaders in August 2024. Additionally, a partnership with Lonking Holdings Limited was announced in July 2024 to develop and distribute heavy electric machinery in the U.S. market.

The company also reported a material weakness in its internal controls over financial reporting, prompting a remedial plan to enhance its accounting and financial reporting functions. This includes recruiting personnel knowledgeable in U.S. GAAP and SEC reporting requirements.

Overall, while Greenland Technologies faced revenue challenges, it demonstrated resilience through improved profitability and strategic initiatives aimed at expanding its market footprint in the electric industrial vehicle sector.