Greenland Technologies Reports Revenue Decline to $83.94 Million but Achieves Net Income Turnaround

Greenland Technologies Holding Corporation reported a decrease in revenue for the fiscal year ending December 31, 2024, totaling approximately $83.94 million, down from $90.33 million in the previous year. This decline of about 7.1% was primarily attributed to a reduction in sales volume of transmission products, which fell by approximately $6.17 million. Despite the revenue drop, the company achieved a net income of approximately $15.15 million, a significant turnaround from a net loss of $25.02 million in 2023. This improvement was driven by a reduction in operating expenses, which decreased by 28% to $9.94 million, alongside a notable increase in interest income.

In terms of operational metrics, Greenland sold 149,597 sets of transmission products in 2024, slightly up from 149,543 in 2023, indicating stable demand despite the revenue decline. The company continues to focus on its electric industrial vehicle subsidiary, HEVI, which has expanded its product offerings and market presence. HEVI launched new electric machinery, including the H55L and H65L all-electric wheeled front-end loaders, and established a 54,000 square foot assembly site in Baltimore, Maryland, to support its operations in the U.S. market.

Geographically, the majority of Greenland's sales remain concentrated in China, with domestic sales accounting for approximately $82.25 million in 2024, compared to $89.65 million in 2023. The company’s reliance on a limited number of customers is evident, as its five largest customers contributed 40.60% of total revenues in 2024. This customer concentration poses risks, as the loss of any major client could significantly impact future revenues.

The company has also made strategic changes, including the formation of Greenland Holding Enterprises Inc. in August 2023, which now serves as a holding company for its subsidiaries. Additionally, the company has been proactive in managing its financial health, with cash and cash equivalents decreasing to approximately $6.66 million as of December 31, 2024, down from $22.98 million in the previous year. This decrease was primarily due to increased short-term investments and repayments of bank loans.

Looking ahead, Greenland Technologies aims to enhance its operational efficiency and expand its market share in the electric industrial vehicle sector. The company plans to continue leveraging government subsidies and incentives to support its growth initiatives. However, it acknowledges potential challenges, including fluctuating raw material prices and the need for effective cash flow management to sustain its operations and investments.