Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 12, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | Greenland Technologies Holding Corp. | |
Trading Symbol | GTEC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 12,579,530 | |
Amendment Flag | false | |
Entity Central Index Key | 0001735041 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-26731 | |
Entity Incorporation, State or Country Code | D8 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 50 Millstone Road | |
Entity Address, Address Line Two | Building 400 Suite 130 | |
Entity Address, City or Town | East Windsor | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08512 | |
City Area Code | 1 (888) | |
Local Phone Number | 827-4832 | |
Title of 12(b) Security | Ordinary shares, no par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 3,217,925 | $ 11,062,590 |
Restricted cash | 4,819,779 | 6,738,302 |
Short Term Investment | 7,666,483 | 2,105,938 |
Notes receivable | 33,019,721 | 37,551,121 |
Accounts receivable, net of allowance for doubtful accounts of $822,482 and $859,319, respectively | 18,194,405 | 15,915,002 |
Inventories | 23,948,131 | 25,803,474 |
Due from related parties-current | 37,654,097 | 39,679,565 |
Advance to suppliers | 703,149 | 434,893 |
Prepayments and other current assets | 89,402 | 14,518 |
Total Current Assets | 129,313,092 | 139,305,403 |
Non-current asset | ||
Property, plant, equipment and construction in progress, net | 17,001,960 | 18,957,553 |
Land use rights, net | 3,793,171 | 4,035,198 |
Other intangible assets | 30,294 | |
Deferred tax assets | 134,740 | 141,623 |
Goodwill | 3,890 | 3,890 |
Operating lease right-of-use assets | 64,176 | 80,682 |
Other non-current assets | 44,335 | 44,093 |
Total non-current assets | 21,072,566 | 23,263,039 |
TOTAL ASSETS | 150,385,658 | 162,568,442 |
Current Liabilities | ||
Short-term bank loans | 9,081,680 | 8,760,945 |
Notes payable-bank acceptance notes | 33,752,065 | 42,093,061 |
Accounts payable | 25,843,583 | 29,064,132 |
Taxes payables | 108,058 | |
Customer deposits | 272,140 | 387,919 |
Due to related parties | 1,598,109 | 3,619,459 |
Other current liabilities | 1,276,059 | 1,198,427 |
Current portion of operating lease liabilities | 34,331 | 33,308 |
Lease obligations - current | 197,915 | |
Total current liabilities | 71,857,967 | 85,463,224 |
Long-term liabilities | ||
Lease obligations – non-current | ||
Long term operating lease liabilities | 30,205 | 47,614 |
Other long-term liabilities | 1,983,069 | 2,212,938 |
Total long-term liabilities | 2,013,274 | 2,260,552 |
TOTAL LIABILITIES | 73,871,241 | 87,723,776 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Ordinary shares, no par value, unlimited shares authorized; 11,329,530 and 11,329,530 shares issued and outstanding as of June 30, 2022 and December 31, 2021. | ||
Additional paid-in capital | 23,836,433 | 23,759,364 |
Statutory reserves | 3,842,331 | 3,842,331 |
Retained earnings | 36,943,012 | 33,668,696 |
Accumulated other comprehensive income (loss) | (1,457,559) | 1,014,399 |
Total shareholders’ equity | 63,164,217 | 62,284,790 |
Non-controlling interest | 13,350,200 | 12,559,876 |
TOTAL EQUITY | 76,514,417 | 74,844,666 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 150,385,658 | $ 162,568,442 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts (in Dollars) | $ 822,482 | $ 859,319 |
Ordinary shares, par value (in Dollars per share) | ||
Ordinary shares, authorized | Unlimited | Unlimited |
Ordinary shares, issued | 11,329,530 | 11,329,530 |
Ordinary shares, outstanding | 11,329,530 | 11,329,530 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
REVENUES | $ 20,602,505 | $ 28,204,307 | $ 49,909,462 | $ 52,815,201 |
COST OF GOODS SOLD | 15,763,344 | 22,499,138 | 38,702,327 | 42,005,645 |
GROSS PROFIT | 4,839,161 | 5,705,169 | 11,207,135 | 10,809,556 |
Selling expenses | 518,088 | 495,462 | 1,157,735 | 874,692 |
General and administrative expenses | 1,244,634 | 752,212 | 2,524,380 | 1,663,351 |
Research and development expenses | 862,535 | 1,005,296 | 1,945,129 | 1,964,841 |
Total operating expenses | 2,625,257 | 2,252,970 | 5,627,244 | 4,502,884 |
INCOME FROM OPERATIONS | 2,213,904 | 3,452,199 | 5,579,891 | 6,306,672 |
Interest income | 9,887 | 4,833 | 22,449 | 9,428 |
Interest expense | (91,651) | (221,664) | (196,660) | (401,853) |
Loss on disposal of property and equipment | 10 | 811 | (394) | (959) |
Other income | 501,710 | 310,303 | 762,742 | 599,049 |
INCOME BEFORE INCOME TAX | 2,633,860 | 3,546,482 | 6,168,028 | 6,512,337 |
INCOME TAX | 254,434 | 394,159 | 873,804 | 916,775 |
NET INCOME | 2,379,426 | 3,152,323 | 5,294,224 | 5,595,562 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 892,162 | 371,570 | 2,019,908 | 686,241 |
NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES | 1,487,264 | 2,780,753 | 3,274,316 | 4,909,321 |
OTHER COMPREHENSIVE INCOME (LOSS): | (4,075,452) | 833,963 | (3,701,542) | 575,734 |
Unrealized foreign currency translation income (loss) attributable to Greenland Technologies Holding Corporation and subsidiaries | (2,720,040) | 591,484 | (2,471,958) | 402,381 |
Unrealized foreign currency translation income (loss) attributable to Noncontrolling interest | (1,355,412) | 242,479 | (1,299,584) | 173,353 |
Comprehensive income | (1,232,776) | 3,372,237 | 802,358 | 5,311,702 |
Noncontrolling interest | $ (463,250) | $ 614,049 | $ 790,324 | $ 859,594 |
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING: | ||||
Basic and diluted (in Shares) | 11,329,530 | 10,814,479 | 11,329,530 | 10,574,223 |
NET INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY: | ||||
Basic and diluted (in Dollars per share) | $ 0.13 | $ 0.26 | $ 0.29 | $ 0.46 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Basic and diluted (in Shares) | 11,329,530 | 10,814,479 | 11,329,530 | 10,574,223 |
Basic and diluted (in Dollars per share) | $ 0.13 | $ 0.26 | $ 0.29 | $ 0.46 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity (Unaudited) - USD ($) | Ordinary Shares No Par Value | Additional Paid-in Capital | Accumulated Other Comprehensive Income/(loss) | Statutory Reserve | Retained Earnings | Non- controlling Interest | Total |
Balance at Dec. 31, 2020 | $ 13,707,398 | $ (62,925) | $ 4,517,117 | $ 26,728,332 | $ 5,771,540 | $ 50,661,462 | |
Balance (in Shares) at Dec. 31, 2020 | 10,225,142 | ||||||
Restricted share grants | 51,000 | 51,000 | |||||
Restricted share grants (in Shares) | 51,000 | ||||||
Sale of shares and warrants | 1,858,841 | 1,858,841 | |||||
Sale of shares and warrants (in Shares) | 221,985 | ||||||
Net income | 2,128,568 | 314,671 | 2,443,239 | ||||
Foreign currency translation adjustment | (189,103) | (69,126) | (258,229) | ||||
Balance at Mar. 31, 2021 | 15,617,239 | (252,028) | 4,517,117 | 28,856,900 | 6,017,085 | 54,756,313 | |
Balance (in Shares) at Mar. 31, 2021 | 10,498,127 | ||||||
Balance at Dec. 31, 2020 | 13,707,398 | (62,925) | 4,517,117 | 26,728,332 | 5,771,540 | 50,661,462 | |
Balance (in Shares) at Dec. 31, 2020 | 10,225,142 | ||||||
Net income | 5,595,562 | ||||||
Balance at Jun. 30, 2021 | 21,983,495 | 339,456 | 3,842,331 | 32,312,439 | 6,631,134 | 65,108,855 | |
Balance (in Shares) at Jun. 30, 2021 | 11,448,327 | ||||||
Balance at Mar. 31, 2021 | 15,617,239 | (252,028) | 4,517,117 | 28,856,900 | 6,017,085 | 54,756,313 | |
Balance (in Shares) at Mar. 31, 2021 | 10,498,127 | ||||||
Sale of shares and warrants | 6,366,256 | 6,366,256 | |||||
Sale of shares and warrants (in Shares) | 950,200 | ||||||
Net income | 2,780,753 | 371,570 | 3,152,323 | ||||
Transfer to statutory reserve | (674,786) | 674,786 | |||||
Foreign currency translation adjustment | 591,484 | 242,479 | 833,963 | ||||
Balance at Jun. 30, 2021 | 21,983,495 | 339,456 | 3,842,331 | 32,312,439 | 6,631,134 | 65,108,855 | |
Balance (in Shares) at Jun. 30, 2021 | 11,448,327 | ||||||
Balance at Dec. 31, 2021 | 23,759,364 | 1,014,399 | 3,842,331 | 33,668,696 | 12,559,876 | 74,844,666 | |
Balance (in Shares) at Dec. 31, 2021 | 11,329,530 | ||||||
Sale of shares and warrants | 77,069 | 77,069 | |||||
Net income | 1,787,052 | 1,127,746 | 2,914,798 | ||||
Foreign currency translation adjustment | 248,082 | 125,828 | 373,910 | ||||
Balance at Mar. 31, 2022 | 23,836,433 | 1,262,481 | 3,842,331 | 35,455,748 | 13,813,450 | 78,210,443 | |
Balance (in Shares) at Mar. 31, 2022 | 11,329,530 | ||||||
Balance at Dec. 31, 2021 | 23,759,364 | 1,014,399 | 3,842,331 | 33,668,696 | 12,559,876 | 74,844,666 | |
Balance (in Shares) at Dec. 31, 2021 | 11,329,530 | ||||||
Net income | 5,294,224 | ||||||
Balance at Jun. 30, 2022 | 23,836,433 | (1,457,559) | 3,842,331 | 36,943,012 | 13,350,200 | 76,514,417 | |
Balance (in Shares) at Jun. 30, 2022 | 11,329,530 | ||||||
Balance at Mar. 31, 2022 | 23,836,433 | 1,262,481 | 3,842,331 | 35,455,748 | 13,813,450 | 78,210,443 | |
Balance (in Shares) at Mar. 31, 2022 | 11,329,530 | ||||||
Net income | 1,487,264 | 892,162 | 2,379,426 | ||||
Foreign currency translation adjustment | (2,720,040) | (1,355,412) | (4,075,452) | ||||
Balance at Jun. 30, 2022 | $ 23,836,433 | $ (1,457,559) | $ 3,842,331 | $ 36,943,012 | $ 13,350,200 | $ 76,514,417 | |
Balance (in Shares) at Jun. 30, 2022 | 11,329,530 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 5,294,224 | $ 5,595,562 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,213,581 | 1,248,256 |
Loss on disposal of property and equipment | 394 | 959 |
Increase in allowance for doubtful accounts | 5,073 | |
Increase (Decrease) in provision for inventory | (23,335) | |
Deferred tax assets | 1,433 | |
Stock based compensation expense | 51,000 | |
Decrease (Increase) In: | ||
Accounts receivable | (3,152,033) | (7,966,860) |
Notes receivable | 2,790,046 | (1,980,407) |
Inventories | 643,284 | (2,184,865) |
Advance to suppliers | (298,315) | (278,919) |
Other current and noncurrent assets | (5,915,459) | 128,879 |
Increase (Decrease) In: | ||
Accounts payable | (1,863,919) | 6,052,012 |
Customer deposits | (99,917) | (206,136) |
Other current liabilities | 332,437 | (604,808) |
Income tax payable | (105,978) | |
Due to related parties | 147,167 | (391,343) |
Long-term payables-unamortized deferred financing costs | (194,105) | (2,470) |
Other long-term liabilities | (438,170) | (250,714) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (1,665,025) | (778,421) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of long-term assets | (133,941) | (425,860) |
Proceeds from government grants for construction | 312,068 | 122,485 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 178,127 | (303,375) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term bank loans | 1,539,006 | 773,144 |
Repayments of short-term bank loans | (769,503) | (7,545,885) |
Notes payable | (6,489,609) | 12,020,074 |
Proceeds from related parties | 422,324 | |
Repayment of loans from related parties | (1,949,340) | (1,284,631) |
Repayment of loans from third parties | (309,258) | |
Proceeds from third parties | 154,629 | |
Payment of principal on financing lease obligation | (192,376) | (386,572) |
Proceeds from equity and debt financing | 77,069 | 8,225,097 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (7,784,753) | 12,068,922 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (9,271,651) | 10,987,126 |
Effect of exchange rate changes on cash | (491,537) | 133,999 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 17,800,892 | 9,403,053 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 8,037,704 | 20,524,178 |
Supplemental Disclosure of Cash Flow Information | ||
Income taxes paid | 265,356 | 782,596 |
Interest paid | 224,546 | 408,582 |
Bank balances and cash | 3,217,925 | 10,756,968 |
Bank balances and cash included in assets classified as restricted cash | $ 4,819,779 | $ 9,767,210 |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES Greenland Technologies Holding Corporation (the “Company” or “Greenland”) was incorporated on December 28, 2017 as a British Virgin Islands company with limited liability. The Company was incorporated as a blank check company for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more target businesses. Following the Business Combination (as described and defined below) in October 2019, the Company changed its name from Greenland Acquisition Corporation to Greenland Technologies Holding Corporation. Greenland serves as the parent company of Zhongchai Holding (Hong Kong) Limited, a holding company formed under the laws of 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., an operating company formed under the laws of the PRC in 2019, and Shanghai Hengyu Business Management Consulting Co., Ltd., a company formed under the laws of the PRC in 2005. Through Zhongchai Holding and its subsidiaries, Greenland develops and manufactures traditional transmission products for material handling machineries in the PRC. HEVI Corp. (“HEVI”), formerly known as Greenland Technologies Corp. prior to May 2022, was incorporated on January 14, 2020 under the laws of the State of Delaware. HEVI is a wholly-owned subsidiary of Greenland and promotes sales of sustainable alternative products for the heavy industrial equipment industry, including electric industrial vehicles, in the North American market. 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 $52.82 million for the six months ended June 30, 2021 to $49.91 million for the six months ended June 30, 2022. The decrease in revenue was primarily the result of a decrease in the Company’s sales volume, driven by decreasing market demand for the six months ended June 30, 2022. Based on the revenues for the six months ended June 30, 2022 and 2021, Greenland believes that it is one of the major developers and manufacturers of transmission products for small and medium-sized forklift trucks in China. 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, 2022 and 2021, Greenland sold an aggregate of 70,841 and 79,032 sets of transmission products, respectively, to more than 100 forklift manufacturers in the PRC. There is increasing demand for electric industrial vehicles powered by sustainable energy in order to reduce air pollution and lower carbon emissions. In December 2020, Greenland launched a new division to focus on the production and sale of electric industrial vehicles—a division that Greenland intends to develop to diversify its product offerings. Greenland’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, and GEX-8000, an all-electric 8.0 ton rated load lithium powered wheeled excavator. These products have become available for purchase in the U.S. market. In July 2022, Greenland launched its new GEL-5000 all-electric 5.0 ton rated load lithium wheeled front loader. Greenland plans to launch a 54,000 square foot assembly site in Baltimore, Maryland in the third quarter of 2022 to support local service, assembly and distribution of its electric industrial heavy equipment product line. Greenland also plans to establish an experience center within the Mid-Atlantic region in 2023 to promote local sales and marketing.. The outbreak of the novel coronavirus, commonly referred to as “COVID-19,” first found in mainland China, then in Asia and eventually throughout the world, has significantly affected business and manufacturing activities within China, including travel restrictions, widespread mandatory quarantines, and suspension of business activities within China. For the six months ended June 30, 2022, we experienced rising raw material costs, and we expect raw material costs to continue increasing in the foreseeable future due to the COVID-19 pandemic. Additionally, local outbreaks of COVID-19 infections continued to emerge in additional regions in China since 2022, and it is difficult to predict how these local outbreaks and relevant remedial measures and lockdown policies may affect our business operations for the rest of 2022. The Company’s Shareholders As of June 30, 2022, Cenntro Holding Limited owned 59.42% of Greenland’s outstanding ordinary shares. Cenntro Holding Limited is controlled and beneficially owned by Mr. Peter Zuguang Wang, the chairman of the board of directors of the Company. As a result, the Company is a “controlled company” as defined under the Nasdaq Stock Market Rules because Mr. Peter Zuguang Wang beneficially owns more than 50% of the voting power of the Company. As a “controlled company,” the Company is permitted to elect not to comply with certain corporate governance requirements. If the Company relies on these exemptions, the Company’s investors will not have the same protection afforded to shareholders of companies that are subject to these corporate governance requirements. The Company’s Subsidiaries Zhongchai Holding, the wholly-owned subsidiary of the Company, owned 71.576% of Zhejiang Zhongchai Machinery Co., Ltd. (“Zhejiang Zhongchai”), 62.5% of Shanghai Hengyu Business Management Consulting Co., Ltd. (“Hengyu”), 100% of Hangzhou Greenland Energy Technologies Co., Ltd Co., Ltd (“Hangzhou Greenland”) and 100% of Greenland Technologies Corporation. The remaining 37.5% equity interests in Hengyu are beneficially owned by Mr. Peter Zuguang Wang, the chairman of the board of directors of the Company. The other shareholders of Zhejiang Zhongchai include Xinchang County Juxin Investment (Limited Partnership), which holds 8.42% of the equity interests in Zhejiang Zhongchai, and Xinchang County Jiuhe Enterprise Management (Limited Partnership), which holds 20.0% of the equity interests in Zhejiang Zhongchai and serves as a holding partnership for Zhejiang Zhongchai’s equity incentive plan. Zhejiang Zhongchai Zhejiang Zhongchai, a limited liability company registered on November 21, 2005, is the direct operating subsidiary of Zhongchai Holding in the PRC. On April 5, 2007, Usunco Automotive Limited (“Usunco”), a British Virgin Islands limited liability company, invested US$8,000,000 for purchasing approximately 75.47% equity interest of Zhejiang Zhongchai. On December 16, 2009, Usunco agreed to transfer its 75.47% interest in Zhejiang Zhongchai to Zhongchai Holding. On April 26, 2010, Xinchang County Keyi Machinery Co., Ltd. transferred 24.528% equity interest it owned in Zhejiang Zhongchai to Zhongchai Holding in exchange for a consideration of US$2.6 million. On November 1, 2017, Xinchang County Jiuxin Investment Management Partnership (LP) (“Jiuxin”), an entity controlled and beneficially owned by Mr. He Mengxing, president of Zhejiang Zhongchai, closed its investment of approximately RMB31,590,000 in Zhejiang Zhongchai for 10.53% of its interest. On December 29, 2021, Xinchang County Jiuhe Investment Management Partnership (LP) (“Jiuhe”), an entity controlled and beneficially owned by Mr. He Mengxing, president of Zhejiang Zhongchai, closed its investment of approximately RMB34,300,000 in Zhejiang Zhongchai for 20.00% of its interest. As of June 30, 2022, Zhongchai Holding owned approximately 71.576% of the equity interests, Jiuxin owned approximately 8.424% of the equity interests, and Jiuhe owned approximately 20.00% of the equity interests in Zhejiang Zhongchai. Through Zhejiang Zhongchai, the Company has been engaging in the manufacturing and sales of transmission systems mainly for forklift trucks since 2006. These forklift trucks are used in manufacturing and logistics applications, such as factory, workshop, warehouse, fulfilment centers, shipyards and seaports. The transmission systems are the key components for forklift trucks. The Company supplies transmission systems to forklift truck manufacturers. Its transmission systems fit for forklift trucks ranging from 1 to 15 tons, with either mechanical shift or automatic shift. All the products are currently manufactured at the Company’s facility in Xinchang, Zhejiang Province, the PRC and are sold to both domestic and oversea markets. Hengyu Hengyu is a limited liability Company registered on September 10, 2015 in Shanghai Free Trade Zone, Shanghai, the PRC. Hengyu holds no assets other than an account receivable owed by Cenntro Holding Limited. The main business of Hengyu is to provide investment management and consulting services. Hangzhou Greenland Hangzhou Greenland is a limited liability company registered on August 9, 2019 in Hangzhou Sunking Plaza, Zhejiang, the PRC. Hangzhou Greenland engages in the business of trading construction engineering machinery, electronic components, hardware, and others. HEVI HEVI, formerly known as Greenland Technologies Corp. prior to May 2022, was incorporated on January 14, 2020 under the laws of the State of Delaware. HEVI is a wholly-owned subsidiary of Greenland and promotes sales of sustainable alternative products for the heavy industrial equipment industry, including electric industrial vehicles, in the North American market. Details of the Company’s subsidiaries, which are included in these unaudited consolidated financial statements as of June 30, 2022, are as follows: Name Domicile and Date of Incorporation Paid-in Capital Percentage of Effective Ownership Principal Activities Zhongchai Holding (Hong Kong) Limited Hong Kong HKD 10,000 100 % Holding Zhejiang Zhongchai Machinery Co., Ltd. PRC RMB 25,000,000 71.576 % Manufacture, sale of various transmission boxes Shanghai Hengyu Business Management Consulting Co., Ltd. PRC RMB 251,500,000 62.5 % Investment management and consulting services. Hangzhou Greenland Energy Technologies Co., Ltd. PRC RMB 7,224,922 100 % Trading. HEVI Corp., formerly known as Greenland Technologies Corporation Delaware USD 6,363,557 100 % US operation and distribution of electric industrial vehicles for North American market |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Principles of Consolidation The consolidated financial statements include the accounts of Greenland Technologies Holding Corporation and its subsidiaries and have been prepared in accordance with U.S. GAAP. Intercompany accounts and transactions have been eliminated upon consolidation. Certain reclassifications to previously reported financial information have been made to conform to the current period presentation. The Business Combination was accounted for as a reverse recapitalization (the “Recapitalization Transaction”) in accordance with Accounting Standard Codification (“ASC”) 805, Business Combinations. For accounting and financial reporting purposes, Zhongchai Holding is considered the acquirer based on facts and circumstances, including the following: ● Zhongchai Holding’s operations comprise the ongoing operations of the combined entity; ● The officers of the newly combined company consist of Zhongchai Holding’s executives, including the Chief Executive Officer, Chief Financial Officer and General Counsel; and ● The former shareholders of Zhongchai Holding own a majority voting interest in the combined entity. As a result of Zhongchai Holding being the accounting acquirer, the financial reports filed with the SEC by the Company subsequent to the Business Combination are prepared “as if” Zhongchai Holding is the predecessor and legal successor to the Company. The historical operations of Zhongchai Holding are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Zhongchai Holding prior to the Business Combination; (ii) the combined results of the Company and Zhongchai Holding following the Business Combination in October 24, 2019; (iii) the assets and liabilities of Zhongchai Holding at their historical cost, and (iv) Greenland’s equity structure for all periods presented. Zhongchai Holding received 7,500,000 shares of Greenland in exchange for all the share capital, which is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods. No step-up basis of intangible assets or goodwill was recorded in the Business Combination transaction consistent with the treatment of the transaction as a reverse capitalization of Zhongchai Holding. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. Actual results could differ from those estimates. Significant estimates in the six months ended June 30, 2022 and 2021 include allowance for doubtful accounts, reserve for inventories, useful life of property, plant and equipment, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets and accruals for taxes due. Non-controlling Interest Non-controlling interests in the Company’s subsidiaries are recorded in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 810 Consolidation (“ASC 810”) and are reported as a component of equity, separate from the parent’s equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollars (“US$” or “$”). The functional currency of the Company is Renminbi (“RMB”). Transactions in foreign currencies are initially recorded at the functional currency rate then in effect at the date of the transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of operations. For the six months ended 2022 2021 Period end RMB: US$ exchange rate 6.6981 6.4566 Period average RMB: US$ exchange rate 6.4977 6.4671 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. Cash and Cash Equivalents For financial reporting purposes, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains no bank account in the United States of America. The Company maintains its bank accounts in PRC and Hong Kong. Balances at financial institutions or state-owned banks within PRC and Hong Kong are not covered by insurance. Restricted Cash Restricted cash represents amounts held by a bank as security for bank acceptance bills, as well as the financial product secured for the short-term bank loan and therefore is not available for the Company’s use until such time as the bank acceptance notes and bank loans have been fulfilled or expired, normally within a twelve-month period. Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements and Disclosures ● Level 1—defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; ● Level 2—defined as inputs other than quoted prices in active markets, that are either directly or indirectly observable; and ● Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, accounts payable, other payables and accrued liabilities, short-term bank loans, and notes payable. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other current assets and liabilities approximate fair value because of the short-term nature of these items. The estimated fair values of short-term bank loans were not materially different from their carrying value as presented due to the short maturities and that the interest rates on the borrowing approximate those that would have been available for loans of similar remaining maturity and risk profile. As the carrying amounts are reasonable estimates of the fair value, these financial instruments are classified within Level 1 of the fair value hierarchy. Accounts Receivable Accounts receivable are carried at net realizable value. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, its current creditworthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. The Company only grants credit terms to established customers who are deemed to be financially responsible. Credit periods to customers are within 60 days after customers received the purchased goods. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. Balance of allowance of doubtful accounts was $0.82 million and $0.86 million as of June 30, 2022 and December 31, 2021, respectively. Inventories Inventories are stated at the lower of cost or net realizable value, which is based on estimated selling prices less any further costs expected to be incurred for completion and disposal. Cost of raw materials is calculated using the weighted average method and is based on purchase cost. Work-in-progress and finished goods costs are determined using the weighted average method and comprise direct materials, direct labor and an appropriate proportion of overhead. The Company records inventory reserves for excess or obsolete inventories based upon assumptions about its current and future demand forecasts. Advance to Suppliers Advance to suppliers represents interest-free cash paid in advance to suppliers for purchases of parts and/or raw materials. The balance of advance to suppliers was $0.70 million and $0.43 million as of June 30, 2022 and December 31, 2021. Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation, and include expenditure that substantially increases the useful lives of existing assets. Expenditures for repairs and maintenance, which do not extend the useful life of the assets, are expensed as incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives are as follows: Plant, buildings and improvements 20 years Machinery and equipment 2~10 years Motor vehicles 4 years Office equipment 3~5 years Fixtures and decorations 5 years When assets are sold or retired, their costs and accumulated depreciation are eliminated from the consolidated financial statements and any gain or loss resulting from their disposal is recognized in the period of disposition as an element of other income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. Land Use Rights According to the PRC laws, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government. The land use rights granted to the Company are being amortized using the straight-line method over the lease term of fifty years. Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance with FASB ASC 360, “Property, Plant and Equipment”. In evaluating long-lived assets for recoverability, the Company uses its best estimate of future cash flows expected to result from the use of the asset and eventual disposition in accordance with FASB ASC 360-10-15. To the extent that estimated future, undiscounted cash inflows attributable to the asset, less estimated future, undiscounted cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan of disposal, whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell. There was no impairment loss recognized for six months ended June 30, 2022 and 2021. Lease ASC 842 supersedes the lease requirements in ASC 840 “Leases,” and generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. Leases that transfer substantially all of the benefits and risks incidental to the ownership of assets are accounted for as finance leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. A sale-leaseback transaction occurs when an entity sells an asset it owns and immediately leases the asset back from the buyer. The seller then becomes the lessee and the buyer becomes the lessor. Under ASC 842, both parties must assess whether the buyer-lessor has obtained control of the asset and a sale has occurred. The Company has determined that the leaseback transaction that it entered in 2019 fails to qualify as a sale because control is not transferred to the buyer-lessor. Therefore, the Company has classified the lease portion of the transaction as a finance lease whereby the Company continues to depreciate the assets and recorded a financing obligation for the consideration received from the buyer-lessor, with an implicit interest rate of 4.0038%. The Company has leased premises for its offices under non-cancellable operating leases since May 2021. Operating lease payments are expensed over the term of lease using straight line method. The Company’s office leases have a 3 year term. Usually within four months prior to the expiration date of a lease, the Company is required to notify the lessor and has a priority to continue renting the lease property if a lessor intends to lease property. The lease itself does not have restrictions or covenants. Any damage, if made by the lessee, to the property and equipment within the property has to been fixed or reimbursed by the lessee. The Company does not have any leases entered into that have not yet commenced. Under the terms of the lease agreements, the Company has no legal or contractual asset retirement obligations at the end of the leases. Revenue Recognition 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. Revenues are recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the performance obligation is fulfilled, usually at the time of customers’ acceptance or consumption, at the net sales price (transaction price) and each of the criteria under ASC 606 have been met. Contract terms may require the Company to deliver the finished goods to the customers’ location or the customer may pick up the finished goods at the Company’s factory. International sales are recognized when shipment clears customs and leaves the port. The Company adopted ASC 606 on January 1, 2018, using the transition method of Modified-Retrospective Method (“MRM”). The adoption of ASC 606 had no impact on the Company’s beginning balance of retained earnings. The Company’s contracts are all short-term in nature with a contract term of one year or less. Receivables are recorded when the Company has an unconditional right to consideration. Contracts do not offer any price protection, but allow for the return of certain goods if quality problem, which is standard warranty. The Company product returns and recorded reserve for sales returns were minimal for the six months ended June 30, 2022 and 2021. The total rebates amount is accounting for around 0.10% and 0.19% of the total revenue of Greenland. The following table sets forth disaggregation of revenue: For the three months ended June 30, For the six months ended June 30, Major Product 2022 2021 2022 2021 Transmission boxes for Forklift 18,298,385 24,844,007 43,703,926 46,393,363 Transmission boxes for Non-Forklift (EV, etc.) and parts of transmission boxes 2,304,120 3,360,300 6,205,536 6,421,838 Total 20,602,505 28,204,307 49,909,462 52,815,201 Cost of Goods Sold 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 production of products. Write-down of inventory to lower of cost or net realizable value is also recorded in cost of goods sold. Selling Expenses Selling expenses include operating expenses such as payroll and traveling and transportation expenses. General and Administrative Expenses General and administrative expenses include management and office salaries and employee benefits, depreciation for office facility and office equipment, travel and entertainment, legal and accounting, consulting fees and other office expenses. Research and Development Research and development costs are expensed as incurred and totaled approximately $862,535 and $1,005,296 for the three months ended June 30, 2022 and 2021, respectively. Research and development costs are expensed as incurred and totaled approximately $1,945,129 and $1,964,841 for the six months ended June 30, 2022 and 2021, respectively. Research and development costs are incurred on a project specific basis. Government subsidies Government subsidies are recognized when there is reasonable assurance that the subsidy will be received and all attaching conditions will be complied with. When the subsidy relates to an expense item, it is recognized as income over the periods necessary to match the subsidy on a systematic basis to the costs that it is intended to compensate. Where the subsidy relates to an asset, it is recognized as other long-term liabilities and is released to the statement of operations over the expected useful life in a consistent manner with the depreciation method for the relevant asset. Total government subsidies recorded in the other long-term liabilities were $1.98 million and $2.21 million as of June 30, 2022 and December 31, 2021, respectively. Income Taxes The Company accounts for income taxes following the liability method pursuant to FASB ASC 740 “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in income in the period that includes the enactment date. The Company also follows FASB ASC 740, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of June 30, 2022 and December 31, 2021, the Company did not have a liability for unrecognized tax benefits. It is the Company’s policy to include penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary. The Company’s historical tax years will remain open for examination by the local authorities until the statute of limitations has passed. Value-Added Tax Enterprises or individuals, who sell commodities, engage in repair and maintenance or import or export goods in the PRC are subject to a value added tax in accordance with PRC Laws. The VAT standard rate had been 17% of the gross sale price 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. A credit is available whereby VAT paid on the purchases of semi-finished products or raw materials used in the production of the Company’s finished products can be used to offset the VAT due on the sales of the finished products. Statutory Reserve In accordance with the PRC Regulations on Enterprises with Foreign Investment, an enterprise established in the PRC with foreign investment is required to provide for certain statutory reserves, namely (i) a General Reserve Fund, (ii) an Enterprise Expansion Fund and (iii) a Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A wholly-owned foreign enterprise is required to allocate at least 10% of its annual after-tax profit to the General Reserve Fund until the balance of such fund has reached 50% of its respective registered capital. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. Appropriations to the Enterprise Expansion Fund and Staff Welfare and Bonus Fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during the year from transactions and other events, excluding the changes resulting from investments by owners and distributions to owners, and is not included in the computation of income tax expense or benefit. Accumulated comprehensive income consists of foreign currency translation. The Company presents comprehensive income (loss) consists in accordance with ASC Topic 220, “Comprehensive Income”. Earnings per share The Company calculates earnings per share in accordance with ASC Topic 260 “Earnings per Share.” Basic earnings per share is computed by dividing the net income by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional ordinary shares that would have been outstanding if the potential ordinary shares equivalents had been issued and if the additional ordinary shares were dilutive. On October 24, 2019, the Company completed its Business Combination, whereby Zhongchai Holding received 7,500,000 shares in exchange for all the share capital of Zhongchai Holding, which is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods. The per share amounts have been updated to show the effect of the exchange on earnings per share as if the exchange occurred at the beginning of both years for the annual financial statements of the Company. The impact of the stock exchange is also shown on the Company’s Statements of Shareholders’ Equity. Segments and Related Information ASC 280 “Segment reporting” establishes standards for reporting information on operating segments in interim and annual financial statements. All of the Company’s operations are considered by the chief operating decision maker to be aggregated in one reportable operating segment. The Company is engaged in the business of manufacturing and selling various transmission boxes. The Company’s manufacturing process is essentially the same for the entire Company and is performed in-house at the Company’s facilities in PRC. The Company’s customers primarily consist of entities in the automotive, construction machinery or warehousing equipment industries. The distribution of the Company’s products is consistent across the entire Company. In addition, the economic characteristics of each customer arrangement are similar in that the Company maintains policies at the corporate level. Commitments and contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and environmental claims arising out of the normal course of businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals for such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management may consider many factors in making these assessments including past history, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of June 30, 2022 and December 31, 2021. Normal course of businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals for such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management may consider many factors in making these assessments including past history, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of June 30, 2022 and December 31, 2021. Related Party In general, related parties exist when there is a relationship that offers the potential for transactions at less than arm’s-length, favorable treatment, or the ability to influence the outcome of events different from that which might result in the absence of that relationship. A related party may be any of the following: a) an affiliate, which is a party that directly or indirectly controls, is controlled by, or is under common control with another party; b) a principle owner, owner of record or known beneficial owner of more than 10% of the voting interest of an entity; c) management, which are persons having responsibility for achieving objectives of the entity and requisite authority to make decision; d) immediate family of management or principal owners; e) a parent Company and its subsidiaries; and f) other parties that have ability to significant influence the management or operating policies of the entity. The Company discloses all significant related party transactions. Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. All of the Company’s cash is maintained with state-owned banks within the PRC, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose abilities to pay are dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk Exchange Risk The Company cannot guarantee that the current exchange rate will remain steady. Therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and yet, because of the fluctuating exchange rate, record higher or lower profit depending on exchange rate of PRC Renminbi (RMB) converted to U.S. dollars on the relevant dates. The exchange rate could fluctuate depending on changes in the political and economic environment without notice. Recently Issued Accounting Pronouncements Recent accounting pronouncements that the Company has adopted or may be required to adopt in the future are summarized below: In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. Subsequently, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, in April 2019. To clarify that receivables arising from operating leases are within the scope of lease accounting standards. In October 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842), which defers the effective date for public filers that are considered small reporting companies as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is a smaller reporting company, implementation is not needed until January 1, 2023. Adoption of the standard requires using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align existing credit loss methodology with the new standard. The Company is evaluating the impact of this standard on its consolidated financial statements, including accounting policies, processes, and systems, and expects the standard will have a minor impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 (Topic 350) Intangibles — Goodwill and Other: Simplifying the Test for Goodwill Impairment, which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. As amended by ASU 2019-10, this ASU will be applied on a prospective basis and is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted for any impairment tests performed after January 1, 2017. The Company is evaluating the impact of the application of this standard and does not expect that the adoption of the ASU 2017-04 will have a material impact on the Company’s consolidated financial stat |
Short Term Investment
Short Term Investment | 6 Months Ended |
Jun. 30, 2022 | |
Short Term Investment [Abstract] | |
SHORT TERM INVESTMENT | Note 3 – SHORT TERM INVESTMENT As of June 30, 2022 and December 31, 2021, the Company’s short term investment amounted to $7,666,483 and $2,105,938, respectively. On July 1, 2021, the Company entered into a financial management agreement with Zhejiang Jilin Electronic Technology Co., LTD, pursuant to which Zhejiang Jilin Electronic Technology Co., LTD agreed to make short term investments with the amount contributed by the Company during the period from July 1, 2021 to June 30, 2022. The Company contributed a total of $500,000 under this agreement. During the six months ended June 30, 2022, the Company purchased bank management products in a total amount of US$7,310,279 (RMB47,500,000). As of June 30, 2022, the fair value of the Company’s bank management products was $7,166,483 (RMB48,001,818). The Company has recognized and measured these short-term investments as Level 2 assets based on the fair value hierarchy framework. |
Concentration on Revenues and C
Concentration on Revenues and Cost of Goods Sold | 6 Months Ended |
Jun. 30, 2022 | |
Concentration on Revenues and Cost of Goods Sold [Abstract] | |
CONCENTRATION ON REVENUES AND COST OF GOODS SOLD | NOTE 4 – CONCENTRATION ON REVENUES AND COST OF GOODS SOLD Concentration of major customers and suppliers: For the 2022 2021 Major customers representing more than 10% of the Company’s revenues Company A $ 10,502,142 21.04 % $ 8,881,037 16.82 % Company B 6,464,543 12.95 % 6,593,104 12.48 Total Revenues $ 16,966,685 33.99 % $ 15,474,141 29.30 % As of June 30, December 31, 2021 Major customers of the Company’s accounts receivable, net Company A 2,621,533 14.41 % 2,157,638 13.56 % Company B 1,404,920 7.72 % 2,148,131 13.50 % Company C 1,388,178 7.63 % 1,957,936 12.30 % Total $ 5,414,631 29.76 % $ 6,263,705 39.36 % Accounts receivable from the Company’s major customers accounted for 29.76% and 39.36% of total accounts receivable balances as of June 30, 2022 and December 31, 2021, respectively. There were no suppliers representing more than 10% of the Company’s total purchases for the six months ended June 30, 2022 and 2021, respectively. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2022 | |
Accounts Receivable [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 5 – ACCOUNTS RECEIVABLE Accounts receivable is net of allowance for doubtful accounts. As of June 30, 2022 December 31, 2021 Accounts receivable $ 19,016,887 $ 16,774,321 Less: allowance for doubtful accounts (822,482 ) (859,319 ) Accounts receivable, net $ 18,194,405 $ 15,915,002 Changes in the allowance for doubtful accounts are as follows: As of, June 30, 2022 December 31, 2021 Beginning balance $ 859,319 $ 986,532 Provision for doubtful accounts 5,073 (149,172 ) Effect of FX change (41,910 ) 21,959 Ending balance $ 822,482 $ 859,319 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 6 – INVENTORIES As of June 30, 2022 December 31, 2021 Raw materials $ 9,457,356 $ 9,789,196 Revolving material 1,135,570 1,078,292 Consigned processing material 82,204 67,706 Work-in-progress 2,319,081 2,620,821 Finished goods 10,953,920 12,271,252 Less: inventory impairment - (23,793 ) Inventories, net $ 23,948,131 $ 25,803,474 |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2022 | |
Notes Receivable Disclosure [Abstract] | |
NOTES RECEIVABLE | NOTE 7 – NOTES RECEIVABLE As of June 30, 2022 December 31, Bank notes receivable: $ 31,278,775 $ 36,075,366 Commercial notes receivable 1,740,946 1,475,755 Total $ 33,019,721 $ 37,551,121 Bank notes and commercial notes are means of payment from customers for the purchase of the Company’s products and are issued by financial institutions or business entities, respectively, that entitle the Company to receive the full nominal amount from the issuer at maturity, which bears no interest and generally ranges from three to six months from the date of issuance. As of June 30, 2022, the Company pledged notes receivable for an aggregate amount of $22.13 million to Bank of Communications and Bank of Hangzhou as a means of security for issuance of bank acceptance notes for an aggregate amount of $21.64 million. As of December 31, 2021, the Company pledged notes receivable for an aggregate amount of $28.14 million to Bank of Communications as a means of security for issuance of bank acceptance notes in an aggregate amount of $24.89 million. The Company expects collection of notes receivable within 6 months. |
Property, Plant and Equipment a
Property, Plant and Equipment and Construction In Progress | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS | NOTE 8 – PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS (a) As of June 30, 2022 and December 31, 2021, property, plant and equipment consisted of the following: As of June 30, 2022 December 31, 2021 Buildings $ 12,131,454 $ 12,751,105 Machinery 21,324,228 21,930,452 Motor vehicles 325,092 341,697 Electronic equipment 226,115 206,122 Fixed assets decoration* - - Total property plant and equipment, at cost 34,006,889 35,229,376 Less: accumulated depreciation (17,094,507 ) (16,679,022 ) Property, plant and equipment, net $ 16,912,382 $ 18,550,354 Construction in process 89,578 407,199 Total $ 17,001,960 $ 18,957,553 For the six months ended June 30, 2022 and 2021, depreciation expense amounted to $1.21 million and $1.20 million, respectively, of which $0.76 million and $0.77 million, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense and research and development expenses, respectively. For the six months ended June 30, 2022 and 2021, $0.31 and $0 of construction in progress were converted into fixed assets. Restricted assets consist of the following: As of June 30, 2022 December 31, 2021 Buildings, net $ 9,850,649 $ 11,314,916 Machinery, net - 2,201,707 Total 9,850,649 13,516,623 As of June 30, 2022, the Company pledged its ownership interests in certain buildings for the book value of RMB65.98 million ($9.85 million) as security to ABC Xinchang and Rural Commercial Bank of PRC Co., Ltd., for loan facilities with an aggregate maximum principal amount of RMB107.82 million. On January 3, 2019, the Company sold a set of manufacturing equipment to third parties for aggregate proceeds of $3.08 million (RMB21.25 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 3 years. On April 26, 2019, the Company sold various equipment including general assembly lines and differential assembly lines to third parties for aggregate proceeds of $2.12 million (RMB14.66 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 2 years. On May 27, 2020, the Company sold various equipment including general assembly lines and differential assembly lines to third parties for aggregate proceeds of $1.42 million (RMB10.00 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 2 years. The Company determined that it did not relinquish control of the assets to the buyer-lessor. Therefore, the Company accounted for the transactions as failed sale-leaseback transactions whereby the Company continues to depreciate the assets and recorded a financing obligation for the consideration received from the buyer-lessor. |
Land Use Rights
Land Use Rights | 6 Months Ended |
Jun. 30, 2022 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS | NOTE 9 – LAND USE RIGHTS Land use rights consisted of the following: As of June 30, 2022 December 31, 2021 Land use rights, cost $ 4,593,333 $ 4,827,951 Less: Accumulated amortization (800,162 ) (792,753 ) Land use rights, net $ 3,793,171 $ 4,035,198 As of June 30, 2022, the Company had land use rights with net book value of $3.79 million, which were pledged as collateral for the Company’s short-term bank loans. As of December 31, 2021, the Company had land use rights with net book value of $4.04 million, which were pledged as collateral for the Company’s short-term bank loans. Estimated future amortization expense is as follows as of June 30, 2022: Years ending June 30, Amortization expense 2023 $ 94,700 2024 94,700 2025 94,700 2026 94,700 2027 94,700 Thereafter 3,319,671 Total $ 3,793,171 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2022 | |
Notes Payable Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 10 – NOTES PAYABLE As of June 30, 2022 December 31, 2021 Bank acceptance notes $ 33,752,065 $ 42,093,061 Total $ 33,752,065 $ 42,093,061 The interest-free notes payable, ranging from nine months to one year from the date of issuance, were secured by $4.82 million and $6.74 million restricted cash, $22.13 million and $28.14 million notes receivable, and $4.03 million and $4.04 million land use rights, as of June 30, 2022 and December 31, 2021, respectively. All the notes payable are subject to bank charges of 0.05% of the principal amount as commission, included in the financial expenses in the statement of operations, on each loan transaction. The interest charge of notes payable is free. |
Accounts Payable
Accounts Payable | 6 Months Ended |
Jun. 30, 2022 | |
Accounts Payable [Abstract] | |
ACCOUNTS PAYABLE | NOTE 11 – ACCOUNTS PAYABLE Accounts payable are summarized as follow: As of June 30, 2022 December 31, 2021 Procurement of Materials $ 25,186,025 $ 28,076,580 Infrastructure& Equipment 537,762 870,616 Freight fee 119,796 116,936 Total $ 25,843,583 $ 29,064,132 |
Short Term Bank Loans
Short Term Bank Loans | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
SHORT TERM BANK LOANS | NOTE 12 – SHORT TERM BANK LOANS Short-term loans are summarized as follow: As of June 30, 2022 December 31, 2021 Collateralized bank loans $ 7,588,719 $ 7,976,336 Guaranteed bank loans 1,492,961 784,609 Total $ 9,081,680 $ 8,760,945 Short-term loans as of June 30, 2022 are as follow: Maturity Date Type Bank Name Interest Rate per Annum (%) June 30, 2022 August 23, 2022 Operating Loans Agricultural Bank of PRC 4.57 $ 2,811,245 August 18, 2022 Operating Loans Rural Commercial Bank of Xinchang 4.35 $ 1,194,369 August 23, 2022 Operating Loans Rural Commercial Bank of Xinchang 5.30 $ 1,045,072 September 1, 2022 Operating Loans Rural Commercial Bank of Xinchang 4.35 $ 2,538,033 February 23, 2023 Operating Loans Industrial and Commercial Bank of Xinchang 3.24 $ 1,492,961 Total $ 9,081,680 Short-term loans as of December 31, 2021 are as follow: Maturity Date Type Bank Name Interest Rate per Annum (%) December 31, 2021 August 23, 2022 Operating Loans Agricultural Bank of PRC 4.57 $ 2,954,837 August 18, 2022 Operating Loans Rural Commercial Bank of Xinchang 4.35 $ 1,255,375 August 23, 2022 Operating Loans Rural Commercial Bank of Xinchang 5.30 $ 1,098,453 September 1, 2022 Operating Loans Rural Commercial Bank of Xinchang 4.35 $ 2,667,671 January 21, 2022 Operating Loans Rural Commercial Bank of Xinchang 5.30 $ 784,609 Total $ 8,760,945 All short-term bank loans were obtained from local banks in PRC and are repayable within one year. The average annual interest rate of the short-term bank loans was 4.3442% and 4.5547% for the six months ended June 30, 2022 and 2021, respectively. The Company was in compliance with its loan financial covenants as of June 30, 2022 and December 31, 2021, respectively. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Other Current Liabilities [Abstract] | |
OTHER CURRENT LIABILITIES | NOTE 13 – OTHER CURRENT LIABILITIES Other current liabilities are summarized as follow: As of June 30, 2022 December 31, 2021 Employee payables 142,640 946,678 Other tax payables 900,943 31,779 Borrowing from third party 232,476 219,970 Total $ 1,276,059 $ 1,198,427 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Other Long-Term Liabilities [Abstract] | |
OTHER LONG-TERM LIABILITIES | NOTE 14 – OTHER LONG-TERM LIABILITIES Other long-term liabilities are summarized as follow: As of June 30, 2022 December 31, 2021 Subsidy 1,983,069 2,212,938 Total $ 1,983,069 $ 2,212,938 The subsidy mainly consists of an incentive granted by the Chinese government to encourage transformation of fixed assets in China and other miscellaneous subsidy from the Chinese government. As of June 30, 2022, grant income decreased by $0.23 million, as compared to December 31, 2021. The change was mainly due to timing of incurring qualifying expenses. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 15 – LEASES The Company leases its corporate offices under operating leases, with initial terms of 3 years. Usually within four months prior to the expiration date of a lease, the Company is required to notify the lessor and has a priority to continue renting the lease property if a lessor intends to lease property. The lease itself does not have restrictions or covenants. Any damage, if made by the lessee, to the property and equipment within the property has to been fixed or reimbursed by the lessee. Supplemental cash flow information related to leases for the six months ended June 30, 2022 is as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 18,240 Right-of-use assets obtained in exchange for lease obligations: Operating leases - Supplemental balance sheet information related to leases as of June 30, 2022 is as follows: Operating leases: Operating lease right-of-use assets $ 64,176 Current portion of operating lease liabilities $ 34,331 Long-term operating lease liabilities 30,205 Total operating lease liabilities $ 64,536 The following table summarizes the maturity of lease liabilities under operating leases as of June 30, 2022: For the six months ending June 30, Operating Leases 2023 36,780 2024 30,900 Total lease payments 67,680 |
Long Term Payables
Long Term Payables | 6 Months Ended |
Jun. 30, 2022 | |
Long Term Payables [Abstract] | |
LONG TERM PAYABLES | NOTE 16 – LONG TERM PAYABLES As of June 30, 2022 December 31, 2021 Long-term payables current portion $ - $ 197,915 Long-term payables– non-current portion - - Total $ - $ 197,915 On January 3, 2019, the Company sold a set of manufacturing equipment to third parties for aggregate proceeds of $3.08 million (RMB21.25 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 3 years. On April 26, 2019, the Company sold various equipment including general assembly lines and differential assembly lines to third parties for aggregate proceeds of $2.12 million (RMB14.66 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 2 years. On May 27, 2020, the Company sold various equipment including general assembly lines and differential assembly lines to third parties for aggregate proceeds of $1.42 million (RMB10.00 million). The Company also entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 2 years. The Company determined that it did not relinquish control of the assets to the buyer-lessor. Therefore, the sale of the equipment does not qualify for sale-leaseback accounting. As a result, the aggregate proceeds have been recorded as a financing obligation and the assets related to the sold and leased manufacturing equipment remain on the Company’s Consolidated Balance Sheet and continue to be depreciated. The current and long-term portions of the financing obligation are included within long-term payables-current portion and long-term payables-non-current portion, respectively. |
Stockholder_s Equity
Stockholder’s Equity | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDER’S EQUITY | NOTE 17 – STOCKHOLDER’S EQUITY Preferred Shares Ordinary Shares On July 27, 2018, the Company consummated its initial public offering of 4,400,000 units, including a partial exercise by the underwriters of their over-allotment option in the amount of 400,000 units. Each unit consists of one ordinary share, no par value, one warrant to purchase one-half of one ordinary share and one right to receive one-tenth of one ordinary share upon the consummation of its initial business combination. Simultaneously with the consummation of its initial public offering, the Company completed a private placement of 282,000 units, issued to Greenland Asset Management Corporation (the “Sponsor”) and Chardan Capital Markets, LLC (“Chardan”). In 2019, in connection with the Business Combination, 3,875,458 shares were redeemed, 81,400 shares were converted into ordinary shares, and 1,906,542 ordinary shares were left outstanding upon consummation of the reverse recapitalization. Pursuant to the Share Exchange Agreement, Greenland acquired from Cenntro Holding Limited all of the issued and outstanding equity interests of Zhongchai Holding in exchange for 7,500,000 newly issued ordinary shares, no par value of Greenland, to be issued to Cenntro Holding Limited (the “Exchange Shares”). As a result, Cenntro Holding Limited became the controlling shareholder of Greenland, and Zhongchai Holding became a directly and wholly owned subsidiary of Greenland. The Business Combination was accounted for as a reverse merger effected by a share exchange, wherein Zhongchai Holding is considered the acquirer for accounting and financial reporting purposes. The recapitalization of the number of ordinary shares attributable to the purchase of Zhongchai Holding in connection with the Business Combination is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods presented. The impact of the stock exchange is also shown on the Company’s Statements of Shareholders’ Equity. Pursuant to that certain Finder Agreement with Hanyi Zhou, dated May 29, 2019, 50,000 newly issued ordinary shares were issued to Zhou Hanyi as a finder’s fee for the Business Combination. In connection with the Business Combination, all the outstanding rights of the Company were converted into 468,200 ordinary shares on a one-tenth (1/10) ordinary share per right basis if holders of the rights elected to convert their rights into underlying ordinary shares. Pursuant to the Service Agreement entered into and by the Company and Chineseinvestors.com, Inc., an Indiana corporation (“CIIX”) on August 21, 2019 (the “Service Agreement”), CIIX was obligated to provide certain investor relations services to the Company for a period of three months beginning on August 21, 2019. Pursuant to the Service Agreement, the Company was obligated to pay CIIX fees consisting of three equal monthly instalments of $12,000 and 5,000 restricted ordinary shares, no par value, of the Company on a quarterly basis during the term of the Service Agreement. On February 24, 2020, Greenland and CIIX entered into a termination agreement (the “CIIX Termination Agreement”) to terminate their respective obligations under the Service Agreement. Pursuant to the CIIX Termination Agreement, the Company agreed to issue 5,000 restricted ordinary shares, no par value (the “CIIX Termination Shares”) to CIIX. Upon CIIX’s receipt of the CIIX Termination Shares, the Company fully satisfied its payment obligations under the Service Agreement. Pursuant to the Investor Relations Consulting Agreement entered into by the Company and Skyline Corporate Communication Group, LLC, a Massachusetts limited liability company (“SCCG”) on August 15, 2019 (the “Consulting Agreement”), SCCG was obligated to provide certain investor relations services to the Company for a period of twelve months beginning on August 15, 2019. Pursuant to the Consulting Agreement, the Company was obligated to pay SCCG fees consisting of $5,000 per month and 1,250 restricted ordinary shares, no par value, of the Company on a quarterly basis during the term of the Consulting Agreement. On February 25, 2020, Greenland and SCCG entered into a termination agreement (the “SCCG Termination Agreement”) to terminate their respective obligations under the Consulting Agreement. Pursuant to the SCCG Termination Agreement, the Company agreed to issue 10,000 restricted ordinary shares, no par value (the “SCCG Termination Shares”) to SCCG. Upon SCCG’s receipt of the SCCG Termination Shares, the Company fully satisfied its payment obligations under the Consulting Agreement. On October 24, 2020, the Company’s board of directors held a meeting and executed resolutions to approve the issuance of 120,000 ordinary shares to Raymond Wang, the Company’s chief executive officer, to offset unpaid salary to him in the amount of $120,833.33 and the issuance of 135,000 ordinary shares to Jing Jin, the Company’s chief financial officer, to offset unpaid salary to him in the amount of $60,000 and his personal loan to the Company in the amount of $75,000. On November 10, 2020, the Company issued 135,000 ordinary shares to Jing Jin. On December 30, 2020 and February 8, 2021, the Company issued 69,000 and 51,000 ordinary shares to Raymond Wang, respectively. In February 2021, the Company issued 48,344 ordinary shares from the exercise of warrants by certain warrantholders. On March 4, 2021, the Company issued 132,000 ordinary shares to Chardan from the exercise of Chardan’s unit purchase option to purchase 120,000 units. On April 19, 2021, the Company issued 2,500 ordinary shares to each of Peter Zuguang Wang, Charles Athle Nelson, Everett Xiaolin Wang, Ming Zhao and Bo Shen. On April 20, 2021, the Company issued 2,700 ordinary shares to Xiaqing Yang. On June 30, 2021, the Company closed a firm commitment offering of 857,844 ordinary shares at $8.16 per share with gross proceeds of $7,000,007 under its effective shelf registration statement. Rights As of June 30, 2022, all of the foregoing existing rights had been converted into 468,200 ordinary shares as a result of the Business Combination. Warrants — The Company may call the warrants for redemption (excluding the Private Warrants (as defined below)), in whole and not in part, at a price of $0.01 per warrant: ● At any time while the Public Warrants are exercisable, ● Upon not less than 30 days’ prior written notice of redemption to each Public Warrant holder, ● If, and only if, the reported last sale price of the ordinary shares equals or exceeds $16.50 per share, for any 20 trading days within a 30 trading day period ending on the third trading day prior to the notice of redemption to Public Warrant holders, and ● If, and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of ordinary shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. Accordingly, the warrants may expire worthless. Private warrants include (i) the 282,000 warrants underlying the units issued to the Sponsor and Chardan in a private placement in connection with our initial public offering (“Private Unit Warrants”), and (ii) 120,000 warrants held by Chardan upon the exercise of its unit purchase option to purchase 120,000 units in March 2021 (“Option Warrants,” together with Private Unit Warrants, the “Private Warrants”). The Private Warrants are identical to the Public Warrants underlying the units sold in the Initial Public Offering, except that the Private Warrants and the ordinary shares issuable upon the exercise of the Private Warrants are not transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable on a cashless basis and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. As of June 30, 2022, there were a total of 4,705,312 Warrants outstanding, including 4,303,312 Public Warrants held by CEDE & CO, and 142,000 and 260,000 Private Warrants held by Chardan and the Sponsor, respectively. Unit Purchase Option On July 27, 2018, the Company sold to Chardan (and its designees), for $100, an option to purchase up to 240,000 units exercisable at $11.50 per unit (or an aggregate exercise price of $2,760,000), commencing on the consummation of the Business Combination. The unit purchase option may be exercised for cash or on a cashless basis, at the holder’s option, and expires July 24, 2023. The units issuable upon exercise of the option are identical to those offered in the initial public offering. The Company accounted for the unit purchase option, inclusive of the receipt of $100 cash payment, as an expense of the initial public offering resulting in a charge directly to shareholders’ equity. The option and such units purchased pursuant to the option, as well as the ordinary shares underlying such units, the rights included in such units, the ordinary shares that are issuable for the rights included in such units, the warrants included in such units, and the shares underlying such warrants, have been deemed compensation by FINRA and are therefore subject to a 180-day lock-up pursuant to Rule 5110(g) (1) of FINRA’s Nasdaq Conduct Rules. Additionally, the option may not be sold, transferred, assigned, pledged or hypothecated for a one-year period (including the foregoing 180-day period) following the date of initial public offering except to any underwriter and selected dealer participating in the initial public offering and their bona fide officers or partners. The option grants to holders demand and “piggy back” rights for periods of five and seven years, respectively, from the effective date of the registration statement with respect to the registration under the Securities Act of 1933, as amended, of the securities directly and indirectly issuable upon exercise of the option. The Company will bear all fees and expenses attendant to registering the securities, other than underwriting commissions which will be paid for by the holders themselves. The exercise price and number of units issuable upon exercise of the option may be adjusted in certain circumstances including in the event of a stock dividend, or the Company’s recapitalization, reorganization, merger or consolidation. However, the option will not be adjusted for issuances of ordinary shares at a price below its exercise price. As of June 30, 2022, an option exercisable by Chardan for 120,000 units is outstanding. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 18 – EARNINGS PER SHARE The Company reports earnings per share in accordance with the provisions of the FASB’s related accounting standard. This standard requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution, but includes vested restricted stocks and is computed by dividing income available to shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. On October 24, 2019, the Company completed a reverse merger with Zhongchai Holding. The recapitalization of the number of ordinary shares attributable to the purchase of Zhongchai Holding in connection with the Business Combination is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods presented. The following is a reconciliation of the basic and diluted earnings per share computation: For the three months ended For the six months ended 2022 2021 2022 2021 Net income attributable to the Greenland Corporation and subsidiaries $ 1,487,264 $ 2,780,753 $ 3,274,316 $ 4,909,321 Weighted average basic and diluted computation shares outstanding: Weighted average shares used in basic computation 11,329,530 10,814,479 11,329,530 10,574,223 Diluted effect of stock options and warrants — — — — Weighted average shares used in diluted computation 11,329,530 10,814,479 11,329,530 10,574,223 Basic and diluted net income per share $ 0.13 $ 0.26 0.29 0.46 |
Geographical Sales and Segments
Geographical Sales and Segments | 6 Months Ended |
Jun. 30, 2022 | |
Geographical Sales and Segments [Abstract] | |
GEOGRAPHICAL SALES AND SEGMENTS | NOTE 19 – GEOGRAPHICAL SALES AND SEGMENTS All of the Company’s operations are considered by the chief operating decision maker to be aggregated in one reportable operating segment. Information for the Company’s sales by geographical area for the three and six months ended June 30, 2022 and 2021 are as follows: For the three months ended For the six months ended 2022 2021 2022 2021 Domestic Sales $ 20,338,491 $ 28,106,861 $ 49,471,413 $ 52,607,900 International Sales 264,014 97,446 438,049 207,301 Total $ 20,602,505 $ 28,204,307 $ 49,909,462 $ 52,815,201 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 20 – INCOME TAXES Income tax expense includes a provision for federal, state and foreign taxes based on the annual estimated effective tax rate applicable to the Company and its subsidiaries, adjusted for items which are considered discrete to the period. The effective tax rates on income before income taxes for the six months ended June 30, 2022 was 14.17%. The effective tax rate for the six months ended June 30, 2022 was lower than the PRC tax rate of 25.0% primarily due to the China Super R&D deduction. The effective tax rates on income before income taxes for the six months ended June 30, 2021 was 14.08%. The effective tax rate for the three months ended June 30, 2021 was lower than the PRC tax rate of 25.0% primarily due to the China Super R&D deduction. The Company has recorded $0 unrecognized benefit as of June 30, 2022 and December 31, 2021, respectively. On the information currently available, the Company does not anticipate a significant increase or decrease to its unrecognized benefit within the next 12 months. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 21 – COMMITMENTS AND CONTINGENCIES Guarantees and pledged collateral for bank loans to other parties: (1) Pledged collateral for bank loans On May 22, 2019, Zhejiang Zhongchai signed a Maximum Amount Pledge Contract with Agricultural Bank of PRC Co., Ltd. Xinchang County Sub-Branch (ABC Xinchang), pledging its land use rights and property ownership as security to ABC Xinchang, for a loan facility with a maximum principal amount of RMB69.77 million during the period from May 22, 2019 to May 21, 2022. As of June 30, 2022 and December 31, 2021, the outstanding amount of the short-term bank loan under this pledge contract was RMB18.83 million and RMB18.83 million, respectively. On December 16, 2019, Zhejiang Zhongchai signed a Maximum Amount Pledge Contract with Rural Commercial Bank of PRC Co., Ltd., pledging its five patent rights as security, for a loan facility with a maximum principal amount of RMB23.40 million during the period from December 16, 2019 to December 15, 2022. As of June 30, 2022 and December 31, 2021, the outstanding amount of the short-term bank loan under this pledge contract was RMB7.00 million and RMB7.00 million, respectively. On December 16, 2019, Zhejiang Zhongchai signed a Maximum Amount Pledge Contract with Rural Commercial Bank of PRC Co., Ltd., pledging its land use rights and property ownership as security, for a loan facility with a maximum principal amount of RMB38.05 million during the period from December 16, 2019 to December 15, 2024. As of June 30, 2022 and December 31, 2021, the outstanding amount of the short-term bank loan under this pledge contract was RMB25.00 million and RMB25.00 million, respectively. On June 27, 2022, Zhejiang Zhongchai signed a Maximum Amount Pledge Contract with Bank of Communications Co. LTD., pledging its land use rights and property ownership as security, for a loan facility with a maximum principal amount of RMB60.01 million during the period from June 27, 2022 to June 26, 2022. As of June 30, 2022 and December 31, 2021, the outstanding amount of the short-term bank loan under this pledge contract was RMB0.00 million and RMB0.00 million, respectively. (2) Litigation On September 19, 2019, a purported class action challenging the Business Combination was filed in the United States District Court for the District of Delaware (the “District Court”), captioned Wheby v. Greenland Acquisition Corporation, et al., Case No. 19-1758-MN (D. Del.) (the “Action”). The Action alleged certain violations of the Securities Exchange Act of 1934, as amended, and sought, among other things, to enjoin the Business Combination from closing (or, if consummated, to rescind the Business Combination or award rescissory damages), to require the Company to issue a separate proxy statement, and to receive an award of attorneys’ fees and costs. On October 14, 2019, the plaintiff, the Company and all other named defendants entered into a confidential memorandum of understanding (the “MOU”), pursuant to which a Stipulation and Order of Dismissal (“Stipulation of Dismissal”) of the Action was filed on October 14, 2019. The Stipulation of Dismissal was approved and entered by the District Court on October 15, 2019. Among other things, the Stipulation of Dismissal acknowledged that the Definitive Proxy Statement on Schedule 14A, filed with the Commission on December 1, 2020 mooted the plaintiff’s claims regarding the sufficiency of disclosures, dismissed all claims asserted in the Action, with prejudice as to the plaintiff only, permits the plaintiff to seek an award of attorneys’ fees in connection with the mooted claims, and reserves the defendants’ rights to oppose such an award, if appropriate. Pursuant to the MOU, the parties have engaged in discussions regarding the amount of attorneys’ fees, if any, to which the plaintiff’s counsel is entitled in connection with the Action. As of January 25, 2021, the Company settled with its counter party and paid a total of $65,000. Facility Leases The Company entered into a failed sale-leaseback transaction in August 2020. See further discussion in NOTE 16 –LONG TERM PAYABLES. The Company has leased premises for its offices under non-cancellable operating leases since May 2021.See further discussion in NOTE 15 – LEASES. Rent expense is recognized on a straight-line basis over the terms of the operating leases accordingly and the Company records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. The following are the aggregate non-cancellable future minimum lease payments under operating and financing leases as of June 30, 2022: Years ending June 30, Amount 2023 36,780 2024 30,900 Total $ 67,680 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 22 – RELATED PARTY TRANSACTIONS (a) Names and Relationship of Related Parties: Existing Relationship with the Company Sinomachinery Holding Limited Under common control of Peter Zuguang Wang Cenntro Holding Limited Controlling shareholder of the Company Zhejiang Kangchen Biotechnology Co., Ltd. Under common control of Peter Zuguang Wang Cenntro Smart Manufacturing Tech. Co., Ltd. Under common control of Peter Zuguang Wang Zhejiang Zhonggong Machinery Co., Ltd. Under common control of Peter Zuguang Wang Zhejiang Zhonggong Agricultural Equipment Co., Ltd. Under common control of Peter Zuguang Wang Xinchang County Jiuxin Investment Management Partnership (LP) Under control of Mr. Mengxing He, the General Manger and one of the directors of Zhejiang Zhongchai Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) Under common control of Peter Zuguang Wang Hangzhou Cenntro Autotech Co., Limited Under common control of Peter Zuguang Wang Peter Zuguang Wang Chairman of the Company Greenland Asset Management Corporation Shareholder of the Company Hangzhou Jiuru Economic Information Consulting Co. Ltd One of the directors of Hengyu Xinchang County Jiuhe Investment Management Partnership (LP) Under control of Mr. Mengxing He, the General Manger and one of the directors of Zhejiang Zhongchai/NCI of Zhejiang Zhongchai Cenntro Automotive Corporation Under common control of Peter Zuguang Wang (b) Summary of Balances with Related Parties: As of June 30, December 31, Due to related parties: Sinomachinery Holding Limited 1 $ - $ - Zhejiang Kangchen Biotechnology Co., Ltd 2 - - Zhejiang Zhonggong Machinery Co., Ltd. 3 66,482 409,807 Zhejiang Zhonggong Agricultural Equipment Co., Ltd. 4 - - Cenntro Smart Manufacturing Tech. Co., Ltd. 5 - 2,903 Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 6 - 94,442 Cenntro Holding Limited⁷ 1,341,627 1,341,627 Peter Zuguang Wang⁷ - - Cenntro Automotive Corporation 7 - 11,462 Xinchang County Jiuxin Investment Management Partnership (LP) 7 - 1,569,218 Hangzhou Jiuru Economic Information Consulting Co. Ltd 7 190,000 190,000 Total $ 1,598,109 $ 3,619,459 The balance of due to related parties as of June 30, 2022 and December 31, 2021 consisted of: 1 Advance from Sinomachinery Holding Limited for certain purchase order; 2 Temporary borrowings from Zhejiang Kangchen Biotechnology Co., Ltd.; 3 Unpaid balances for purchasing of materials and equipment and temporary borrowing from Zhejiang Zhonggong Machinery Co., Ltd.; 4 Unpaid balances for purchasing of materials from Zhejiang Zhonggong Agricultural Equipment Co., Ltd.; 5 Prepayment from Cenntro Smart Manufacturing Tech. Co., Ltd.; 6 Temporary borrowings from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership); and 7 Borrowings from related parties. As of June 30, December 31, 2022 2021 Due from related parties-current: Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 114,572 219,691 Cenntro Smart Manufacturing Tech. Co., Ltd. 224 - Cenntro Holding Limited $ 37,539,301 $ 39,459,874 Total $ 37,654,097 $ 39,679,565 The balance of due from related parties as of June 30, 2022 and December 31, 2021 consisted primarily of other receivables from Cenntro Holding Limited in the amount of $37.54 million and $39.46 million as of June 30, 2022 and December 31, 2021, respectively. The Company expects the amount due from its equity holder, Cenntro Holding Limited, will be paid back based on certain payment schedules, with the last payment to be made by June 30, 2024, as the Company and Cenntro Holding Limited mutually agreed to an extension of the repayment deadline from April 27, 2022. (c) Summary of Related Party Funds Lending: A summary of funds lending with related parties for the six months ended June 30, 2022 and 2021 are listed below: Withdraw funds from related parties: For the 2022 2021 Zhejiang Zhonggong Machinery Co., Ltd. - 77,314 Cenntro Smart Manufacturing Tech. Co., Ltd. - 33,091 Peter Zuguang Wang - 25,000 Cenntro Holding Limited - 251,973 Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) - 34,946 Total - 422,324 Deposit funds with related parties: Zhejiang Zhonggong Machinery Co., Ltd. 410,334 77,314 Xinchang County Jiuxin Investment Management Partnership (LP) 1,539,006 773,144 Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) - 310,804 Cenntro Smart Manufacturing Tech. Co., Ltd. - 33,864 Zhejiang Kangchen Biotechnology Co., Ltd - 64,505 Peter Zuguang Wang - 25,000 Total 1,949,340 1,284,631 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 23 – SUBSEQUENT EVENTS Management has evaluated subsequent events through the date that the financial statements were available to be issued, which is August 15, 2022. All subsequent events requiring recognition as of June 30, 2022 have been incorporated into these financial statements and there are no other subsequent events that require disclosure in accordance with FASB ASC Topic 855. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Greenland Technologies Holding Corporation and its subsidiaries and have been prepared in accordance with U.S. GAAP. Intercompany accounts and transactions have been eliminated upon consolidation. Certain reclassifications to previously reported financial information have been made to conform to the current period presentation. The Business Combination was accounted for as a reverse recapitalization (the “Recapitalization Transaction”) in accordance with Accounting Standard Codification (“ASC”) 805, Business Combinations. For accounting and financial reporting purposes, Zhongchai Holding is considered the acquirer based on facts and circumstances, including the following: ● Zhongchai Holding’s operations comprise the ongoing operations of the combined entity; ● The officers of the newly combined company consist of Zhongchai Holding’s executives, including the Chief Executive Officer, Chief Financial Officer and General Counsel; and ● The former shareholders of Zhongchai Holding own a majority voting interest in the combined entity. As a result of Zhongchai Holding being the accounting acquirer, the financial reports filed with the SEC by the Company subsequent to the Business Combination are prepared “as if” Zhongchai Holding is the predecessor and legal successor to the Company. The historical operations of Zhongchai Holding are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Zhongchai Holding prior to the Business Combination; (ii) the combined results of the Company and Zhongchai Holding following the Business Combination in October 24, 2019; (iii) the assets and liabilities of Zhongchai Holding at their historical cost, and (iv) Greenland’s equity structure for all periods presented. Zhongchai Holding received 7,500,000 shares of Greenland in exchange for all the share capital, which is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods. No step-up basis of intangible assets or goodwill was recorded in the Business Combination transaction consistent with the treatment of the transaction as a reverse capitalization of Zhongchai Holding. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. Actual results could differ from those estimates. Significant estimates in the six months ended June 30, 2022 and 2021 include allowance for doubtful accounts, reserve for inventories, useful life of property, plant and equipment, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets and accruals for taxes due. |
Non-controlling Interest | Non-controlling Interest Non-controlling interests in the Company’s subsidiaries are recorded in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 810 Consolidation (“ASC 810”) and are reported as a component of equity, separate from the parent’s equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. |
Foreign Currency Translation | Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollars (“US$” or “$”). The functional currency of the Company is Renminbi (“RMB”). Transactions in foreign currencies are initially recorded at the functional currency rate then in effect at the date of the transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of operations. For the six months ended 2022 2021 Period end RMB: US$ exchange rate 6.6981 6.4566 Period average RMB: US$ exchange rate 6.4977 6.4671 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents For financial reporting purposes, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains no bank account in the United States of America. The Company maintains its bank accounts in PRC and Hong Kong. Balances at financial institutions or state-owned banks within PRC and Hong Kong are not covered by insurance. |
Restricted Cash | Restricted Cash Restricted cash represents amounts held by a bank as security for bank acceptance bills, as well as the financial product secured for the short-term bank loan and therefore is not available for the Company’s use until such time as the bank acceptance notes and bank loans have been fulfilled or expired, normally within a twelve-month period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements and Disclosures ● Level 1—defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; ● Level 2—defined as inputs other than quoted prices in active markets, that are either directly or indirectly observable; and ● Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, accounts payable, other payables and accrued liabilities, short-term bank loans, and notes payable. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other current assets and liabilities approximate fair value because of the short-term nature of these items. The estimated fair values of short-term bank loans were not materially different from their carrying value as presented due to the short maturities and that the interest rates on the borrowing approximate those that would have been available for loans of similar remaining maturity and risk profile. As the carrying amounts are reasonable estimates of the fair value, these financial instruments are classified within Level 1 of the fair value hierarchy. |
Accounts Receivable | Accounts Receivable Accounts receivable are carried at net realizable value. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, its current creditworthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. The Company only grants credit terms to established customers who are deemed to be financially responsible. Credit periods to customers are within 60 days after customers received the purchased goods. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. Balance of allowance of doubtful accounts was $0.82 million and $0.86 million as of June 30, 2022 and December 31, 2021, respectively. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, which is based on estimated selling prices less any further costs expected to be incurred for completion and disposal. Cost of raw materials is calculated using the weighted average method and is based on purchase cost. Work-in-progress and finished goods costs are determined using the weighted average method and comprise direct materials, direct labor and an appropriate proportion of overhead. The Company records inventory reserves for excess or obsolete inventories based upon assumptions about its current and future demand forecasts. |
Advance to Suppliers | Advance to Suppliers Advance to suppliers represents interest-free cash paid in advance to suppliers for purchases of parts and/or raw materials. The balance of advance to suppliers was $0.70 million and $0.43 million as of June 30, 2022 and December 31, 2021. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation, and include expenditure that substantially increases the useful lives of existing assets. Expenditures for repairs and maintenance, which do not extend the useful life of the assets, are expensed as incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives are as follows: Plant, buildings and improvements 20 years Machinery and equipment 2~10 years Motor vehicles 4 years Office equipment 3~5 years Fixtures and decorations 5 years When assets are sold or retired, their costs and accumulated depreciation are eliminated from the consolidated financial statements and any gain or loss resulting from their disposal is recognized in the period of disposition as an element of other income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. |
Land Use Rights | Land Use Rights According to the PRC laws, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government. The land use rights granted to the Company are being amortized using the straight-line method over the lease term of fifty years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance with FASB ASC 360, “Property, Plant and Equipment”. In evaluating long-lived assets for recoverability, the Company uses its best estimate of future cash flows expected to result from the use of the asset and eventual disposition in accordance with FASB ASC 360-10-15. To the extent that estimated future, undiscounted cash inflows attributable to the asset, less estimated future, undiscounted cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan of disposal, whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell. There was no impairment loss recognized for six months ended June 30, 2022 and 2021. |
Lease | Lease ASC 842 supersedes the lease requirements in ASC 840 “Leases,” and generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. Leases that transfer substantially all of the benefits and risks incidental to the ownership of assets are accounted for as finance leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. A sale-leaseback transaction occurs when an entity sells an asset it owns and immediately leases the asset back from the buyer. The seller then becomes the lessee and the buyer becomes the lessor. Under ASC 842, both parties must assess whether the buyer-lessor has obtained control of the asset and a sale has occurred. The Company has determined that the leaseback transaction that it entered in 2019 fails to qualify as a sale because control is not transferred to the buyer-lessor. Therefore, the Company has classified the lease portion of the transaction as a finance lease whereby the Company continues to depreciate the assets and recorded a financing obligation for the consideration received from the buyer-lessor, with an implicit interest rate of 4.0038%. The Company has leased premises for its offices under non-cancellable operating leases since May 2021. Operating lease payments are expensed over the term of lease using straight line method. The Company’s office leases have a 3 year term. Usually within four months prior to the expiration date of a lease, the Company is required to notify the lessor and has a priority to continue renting the lease property if a lessor intends to lease property. The lease itself does not have restrictions or covenants. Any damage, if made by the lessee, to the property and equipment within the property has to been fixed or reimbursed by the lessee. The Company does not have any leases entered into that have not yet commenced. Under the terms of the lease agreements, the Company has no legal or contractual asset retirement obligations at the end of the leases. |
Revenue Recognition | Revenue Recognition 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. Revenues are recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the performance obligation is fulfilled, usually at the time of customers’ acceptance or consumption, at the net sales price (transaction price) and each of the criteria under ASC 606 have been met. Contract terms may require the Company to deliver the finished goods to the customers’ location or the customer may pick up the finished goods at the Company’s factory. International sales are recognized when shipment clears customs and leaves the port. The Company adopted ASC 606 on January 1, 2018, using the transition method of Modified-Retrospective Method (“MRM”). The adoption of ASC 606 had no impact on the Company’s beginning balance of retained earnings. The Company’s contracts are all short-term in nature with a contract term of one year or less. Receivables are recorded when the Company has an unconditional right to consideration. Contracts do not offer any price protection, but allow for the return of certain goods if quality problem, which is standard warranty. The Company product returns and recorded reserve for sales returns were minimal for the six months ended June 30, 2022 and 2021. The total rebates amount is accounting for around 0.10% and 0.19% of the total revenue of Greenland. The following table sets forth disaggregation of revenue: For the three months ended June 30, For the six months ended June 30, Major Product 2022 2021 2022 2021 Transmission boxes for Forklift 18,298,385 24,844,007 43,703,926 46,393,363 Transmission boxes for Non-Forklift (EV, etc.) and parts of transmission boxes 2,304,120 3,360,300 6,205,536 6,421,838 Total 20,602,505 28,204,307 49,909,462 52,815,201 |
Cost of Goods Sold | Cost of Goods Sold 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 production of products. Write-down of inventory to lower of cost or net realizable value is also recorded in cost of goods sold. |
Selling Expenses | Selling Expenses Selling expenses include operating expenses such as payroll and traveling and transportation expenses. |
General and Administrative Expenses | General and Administrative Expenses General and administrative expenses include management and office salaries and employee benefits, depreciation for office facility and office equipment, travel and entertainment, legal and accounting, consulting fees and other office expenses. |
Research and Development | Research and Development Research and development costs are expensed as incurred and totaled approximately $862,535 and $1,005,296 for the three months ended June 30, 2022 and 2021, respectively. Research and development costs are expensed as incurred and totaled approximately $1,945,129 and $1,964,841 for the six months ended June 30, 2022 and 2021, respectively. Research and development costs are incurred on a project specific basis. |
Government subsidies | Government subsidies Government subsidies are recognized when there is reasonable assurance that the subsidy will be received and all attaching conditions will be complied with. When the subsidy relates to an expense item, it is recognized as income over the periods necessary to match the subsidy on a systematic basis to the costs that it is intended to compensate. Where the subsidy relates to an asset, it is recognized as other long-term liabilities and is released to the statement of operations over the expected useful life in a consistent manner with the depreciation method for the relevant asset. Total government subsidies recorded in the other long-term liabilities were $1.98 million and $2.21 million as of June 30, 2022 and December 31, 2021, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes following the liability method pursuant to FASB ASC 740 “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in income in the period that includes the enactment date. The Company also follows FASB ASC 740, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of June 30, 2022 and December 31, 2021, the Company did not have a liability for unrecognized tax benefits. It is the Company’s policy to include penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary. The Company’s historical tax years will remain open for examination by the local authorities until the statute of limitations has passed. |
Value-Added Tax | Value-Added Tax Enterprises or individuals, who sell commodities, engage in repair and maintenance or import or export goods in the PRC are subject to a value added tax in accordance with PRC Laws. The VAT standard rate had been 17% of the gross sale price 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. A credit is available whereby VAT paid on the purchases of semi-finished products or raw materials used in the production of the Company’s finished products can be used to offset the VAT due on the sales of the finished products. |
Statutory Reserve | Statutory Reserve In accordance with the PRC Regulations on Enterprises with Foreign Investment, an enterprise established in the PRC with foreign investment is required to provide for certain statutory reserves, namely (i) a General Reserve Fund, (ii) an Enterprise Expansion Fund and (iii) a Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A wholly-owned foreign enterprise is required to allocate at least 10% of its annual after-tax profit to the General Reserve Fund until the balance of such fund has reached 50% of its respective registered capital. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. Appropriations to the Enterprise Expansion Fund and Staff Welfare and Bonus Fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. |
Comprehensive Income | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during the year from transactions and other events, excluding the changes resulting from investments by owners and distributions to owners, and is not included in the computation of income tax expense or benefit. Accumulated comprehensive income consists of foreign currency translation. The Company presents comprehensive income (loss) consists in accordance with ASC Topic 220, “Comprehensive Income”. |
Earnings per share | Earnings per share The Company calculates earnings per share in accordance with ASC Topic 260 “Earnings per Share.” Basic earnings per share is computed by dividing the net income by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional ordinary shares that would have been outstanding if the potential ordinary shares equivalents had been issued and if the additional ordinary shares were dilutive. On October 24, 2019, the Company completed its Business Combination, whereby Zhongchai Holding received 7,500,000 shares in exchange for all the share capital of Zhongchai Holding, which is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods. The per share amounts have been updated to show the effect of the exchange on earnings per share as if the exchange occurred at the beginning of both years for the annual financial statements of the Company. The impact of the stock exchange is also shown on the Company’s Statements of Shareholders’ Equity. |
Segments and Related Information | Segments and Related Information ASC 280 “Segment reporting” establishes standards for reporting information on operating segments in interim and annual financial statements. All of the Company’s operations are considered by the chief operating decision maker to be aggregated in one reportable operating segment. The Company is engaged in the business of manufacturing and selling various transmission boxes. The Company’s manufacturing process is essentially the same for the entire Company and is performed in-house at the Company’s facilities in PRC. The Company’s customers primarily consist of entities in the automotive, construction machinery or warehousing equipment industries. The distribution of the Company’s products is consistent across the entire Company. In addition, the economic characteristics of each customer arrangement are similar in that the Company maintains policies at the corporate level. |
Commitments and contingencies | Commitments and contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and environmental claims arising out of the normal course of businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals for such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management may consider many factors in making these assessments including past history, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of June 30, 2022 and December 31, 2021. Normal course of businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals for such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management may consider many factors in making these assessments including past history, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of June 30, 2022 and December 31, 2021. |
Related Party | Related Party In general, related parties exist when there is a relationship that offers the potential for transactions at less than arm’s-length, favorable treatment, or the ability to influence the outcome of events different from that which might result in the absence of that relationship. A related party may be any of the following: a) an affiliate, which is a party that directly or indirectly controls, is controlled by, or is under common control with another party; b) a principle owner, owner of record or known beneficial owner of more than 10% of the voting interest of an entity; c) management, which are persons having responsibility for achieving objectives of the entity and requisite authority to make decision; d) immediate family of management or principal owners; e) a parent Company and its subsidiaries; and f) other parties that have ability to significant influence the management or operating policies of the entity. The Company discloses all significant related party transactions. |
Economic and Political Risks | Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. All of the Company’s cash is maintained with state-owned banks within the PRC, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose abilities to pay are dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk |
Exchange Risk | Exchange Risk The Company cannot guarantee that the current exchange rate will remain steady. Therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and yet, because of the fluctuating exchange rate, record higher or lower profit depending on exchange rate of PRC Renminbi (RMB) converted to U.S. dollars on the relevant dates. The exchange rate could fluctuate depending on changes in the political and economic environment without notice. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recent accounting pronouncements that the Company has adopted or may be required to adopt in the future are summarized below: In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. Subsequently, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, in April 2019. To clarify that receivables arising from operating leases are within the scope of lease accounting standards. In October 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842), which defers the effective date for public filers that are considered small reporting companies as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is a smaller reporting company, implementation is not needed until January 1, 2023. Adoption of the standard requires using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align existing credit loss methodology with the new standard. The Company is evaluating the impact of this standard on its consolidated financial statements, including accounting policies, processes, and systems, and expects the standard will have a minor impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 (Topic 350) Intangibles — Goodwill and Other: Simplifying the Test for Goodwill Impairment, which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. As amended by ASU 2019-10, this ASU will be applied on a prospective basis and is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted for any impairment tests performed after January 1, 2017. The Company is evaluating the impact of the application of this standard and does not expect that the adoption of the ASU 2017-04 will have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds, and modifies certain disclosure requirements for fair value measurements under ASC 820. This ASU is to be applied on a prospective basis for certain modified or new disclosure requirements, and all other amendments in the standard are to be applied on a retrospective basis. The new standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted Topic 820 on January 1, 2020. The adoption of the ASU 2018-13 did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in Topic 740 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company does not expect that the requirements of ASU 2019-12 will have a material impact on its consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of subsidiary included in unaudited consolidated financial statements | Name Domicile and Date of Incorporation Paid-in Capital Percentage of Effective Ownership Principal Activities Zhongchai Holding (Hong Kong) Limited Hong Kong HKD 10,000 100 % Holding Zhejiang Zhongchai Machinery Co., Ltd. PRC RMB 25,000,000 71.576 % Manufacture, sale of various transmission boxes Shanghai Hengyu Business Management Consulting Co., Ltd. PRC RMB 251,500,000 62.5 % Investment management and consulting services. Hangzhou Greenland Energy Technologies Co., Ltd. PRC RMB 7,224,922 100 % Trading. HEVI Corp., formerly known as Greenland Technologies Corporation Delaware USD 6,363,557 100 % US operation and distribution of electric industrial vehicles for North American market |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of gain or loss on foreign currency transaction | For the six months ended 2022 2021 Period end RMB: US$ exchange rate 6.6981 6.4566 Period average RMB: US$ exchange rate 6.4977 6.4671 |
Schedule of estimated useful lives, using the straight-line method | Plant, buildings and improvements 20 years Machinery and equipment 2~10 years Motor vehicles 4 years Office equipment 3~5 years Fixtures and decorations 5 years |
Schedule of sets forth disaggregation of revenue | For the three months ended June 30, For the six months ended June 30, Major Product 2022 2021 2022 2021 Transmission boxes for Forklift 18,298,385 24,844,007 43,703,926 46,393,363 Transmission boxes for Non-Forklift (EV, etc.) and parts of transmission boxes 2,304,120 3,360,300 6,205,536 6,421,838 Total 20,602,505 28,204,307 49,909,462 52,815,201 |
Concentration on Revenues and_2
Concentration on Revenues and Cost of Goods Sold (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Concentration on Revenues and Cost of Goods Sold [Abstract] | |
Schedule of concentration of major customers and suppliers | For the 2022 2021 Major customers representing more than 10% of the Company’s revenues Company A $ 10,502,142 21.04 % $ 8,881,037 16.82 % Company B 6,464,543 12.95 % 6,593,104 12.48 Total Revenues $ 16,966,685 33.99 % $ 15,474,141 29.30 % |
Schedule of major customers of accounts receivable | As of June 30, December 31, 2021 Major customers of the Company’s accounts receivable, net Company A 2,621,533 14.41 % 2,157,638 13.56 % Company B 1,404,920 7.72 % 2,148,131 13.50 % Company C 1,388,178 7.63 % 1,957,936 12.30 % Total $ 5,414,631 29.76 % $ 6,263,705 39.36 % |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounts Receivable [Abstract] | |
Schedule of accounts receivable is net of allowance for doubtful accounts | As of June 30, 2022 December 31, 2021 Accounts receivable $ 19,016,887 $ 16,774,321 Less: allowance for doubtful accounts (822,482 ) (859,319 ) Accounts receivable, net $ 18,194,405 $ 15,915,002 |
Schedule of allowance for doubtful accounts | As of, June 30, 2022 December 31, 2021 Beginning balance $ 859,319 $ 986,532 Provision for doubtful accounts 5,073 (149,172 ) Effect of FX change (41,910 ) 21,959 Ending balance $ 822,482 $ 859,319 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | As of June 30, 2022 December 31, 2021 Raw materials $ 9,457,356 $ 9,789,196 Revolving material 1,135,570 1,078,292 Consigned processing material 82,204 67,706 Work-in-progress 2,319,081 2,620,821 Finished goods 10,953,920 12,271,252 Less: inventory impairment - (23,793 ) Inventories, net $ 23,948,131 $ 25,803,474 |
Notes Receivable (Tables)
Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Receivable Disclosure [Abstract] | |
Schedule of notes receivable | As of June 30, 2022 December 31, Bank notes receivable: $ 31,278,775 $ 36,075,366 Commercial notes receivable 1,740,946 1,475,755 Total $ 33,019,721 $ 37,551,121 |
Property, Plant and Equipment_2
Property, Plant and Equipment and Construction In Progress (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | As of June 30, 2022 December 31, 2021 Buildings $ 12,131,454 $ 12,751,105 Machinery 21,324,228 21,930,452 Motor vehicles 325,092 341,697 Electronic equipment 226,115 206,122 Fixed assets decoration* - - Total property plant and equipment, at cost 34,006,889 35,229,376 Less: accumulated depreciation (17,094,507 ) (16,679,022 ) Property, plant and equipment, net $ 16,912,382 $ 18,550,354 Construction in process 89,578 407,199 Total $ 17,001,960 $ 18,957,553 |
Schedule of assets used | As of June 30, 2022 December 31, 2021 Buildings, net $ 9,850,649 $ 11,314,916 Machinery, net - 2,201,707 Total 9,850,649 13,516,623 |
Land Use Rights (Tables)
Land Use Rights (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Land Use Rights [Abstract] | |
Schedule of land use rights | As of June 30, 2022 December 31, 2021 Land use rights, cost $ 4,593,333 $ 4,827,951 Less: Accumulated amortization (800,162 ) (792,753 ) Land use rights, net $ 3,793,171 $ 4,035,198 |
Schedule of estimated future amortization expense | Years ending June 30, Amortization expense 2023 $ 94,700 2024 94,700 2025 94,700 2026 94,700 2027 94,700 Thereafter 3,319,671 Total $ 3,793,171 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Payable Disclosure [Abstract] | |
Schedule of notes payable | As of June 30, 2022 December 31, 2021 Bank acceptance notes $ 33,752,065 $ 42,093,061 Total $ 33,752,065 $ 42,093,061 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounts Payable [Abstract] | |
Schedule of accounts payable | As of June 30, 2022 December 31, 2021 Procurement of Materials $ 25,186,025 $ 28,076,580 Infrastructure& Equipment 537,762 870,616 Freight fee 119,796 116,936 Total $ 25,843,583 $ 29,064,132 |
Short Term Bank Loans (Tables)
Short Term Bank Loans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of short term bank loans | As of June 30, 2022 December 31, 2021 Collateralized bank loans $ 7,588,719 $ 7,976,336 Guaranteed bank loans 1,492,961 784,609 Total $ 9,081,680 $ 8,760,945 |
Schedule of short term loans | Maturity Date Type Bank Name Interest Rate per Annum (%) June 30, 2022 August 23, 2022 Operating Loans Agricultural Bank of PRC 4.57 $ 2,811,245 August 18, 2022 Operating Loans Rural Commercial Bank of Xinchang 4.35 $ 1,194,369 August 23, 2022 Operating Loans Rural Commercial Bank of Xinchang 5.30 $ 1,045,072 September 1, 2022 Operating Loans Rural Commercial Bank of Xinchang 4.35 $ 2,538,033 February 23, 2023 Operating Loans Industrial and Commercial Bank of Xinchang 3.24 $ 1,492,961 Total $ 9,081,680 Maturity Date Type Bank Name Interest Rate per Annum (%) December 31, 2021 August 23, 2022 Operating Loans Agricultural Bank of PRC 4.57 $ 2,954,837 August 18, 2022 Operating Loans Rural Commercial Bank of Xinchang 4.35 $ 1,255,375 August 23, 2022 Operating Loans Rural Commercial Bank of Xinchang 5.30 $ 1,098,453 September 1, 2022 Operating Loans Rural Commercial Bank of Xinchang 4.35 $ 2,667,671 January 21, 2022 Operating Loans Rural Commercial Bank of Xinchang 5.30 $ 784,609 Total $ 8,760,945 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Current Liabilities [Abstract] | |
Schedule of other current liabilities | As of June 30, 2022 December 31, 2021 Employee payables 142,640 946,678 Other tax payables 900,943 31,779 Borrowing from third party 232,476 219,970 Total $ 1,276,059 $ 1,198,427 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Longterm Liabilities Disclosure [Abstract] | |
Schedule of other long-term liabilities | As of June 30, 2022 December 31, 2021 Subsidy 1,983,069 2,212,938 Total $ 1,983,069 $ 2,212,938 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of lease to the property and equipment | Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 18,240 Right-of-use assets obtained in exchange for lease obligations: Operating leases - |
Schedule of supplemental balance sheet | Operating leases: Operating lease right-of-use assets $ 64,176 Current portion of operating lease liabilities $ 34,331 Long-term operating lease liabilities 30,205 Total operating lease liabilities $ 64,536 |
Schedule of lease liabilities under operating leases | For the six months ending June 30, Operating Leases 2023 36,780 2024 30,900 Total lease payments 67,680 |
Long Term Payables (Tables)
Long Term Payables (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Long Term Payables [Abstract] | |
Schedule of long term payables | As of June 30, 2022 December 31, 2021 Long-term payables current portion $ - $ 197,915 Long-term payables– non-current portion - - Total $ - $ 197,915 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share computation | For the three months ended For the six months ended 2022 2021 2022 2021 Net income attributable to the Greenland Corporation and subsidiaries $ 1,487,264 $ 2,780,753 $ 3,274,316 $ 4,909,321 Weighted average basic and diluted computation shares outstanding: Weighted average shares used in basic computation 11,329,530 10,814,479 11,329,530 10,574,223 Diluted effect of stock options and warrants — — — — Weighted average shares used in diluted computation 11,329,530 10,814,479 11,329,530 10,574,223 Basic and diluted net income per share $ 0.13 $ 0.26 0.29 0.46 |
Geographical Sales and Segmen_2
Geographical Sales and Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Geographical Sales and Segments [Abstract] | |
Schedule of sales by geographical area | For the three months ended For the six months ended 2022 2021 2022 2021 Domestic Sales $ 20,338,491 $ 28,106,861 $ 49,471,413 $ 52,607,900 International Sales 264,014 97,446 438,049 207,301 Total $ 20,602,505 $ 28,204,307 $ 49,909,462 $ 52,815,201 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of non-cancellable future minimum lease payments | Years ending June 30, Amount 2023 36,780 2024 30,900 Total $ 67,680 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of names and relationship of related parties | Existing Relationship with the Company Sinomachinery Holding Limited Under common control of Peter Zuguang Wang Cenntro Holding Limited Controlling shareholder of the Company Zhejiang Kangchen Biotechnology Co., Ltd. Under common control of Peter Zuguang Wang Cenntro Smart Manufacturing Tech. Co., Ltd. Under common control of Peter Zuguang Wang Zhejiang Zhonggong Machinery Co., Ltd. Under common control of Peter Zuguang Wang Zhejiang Zhonggong Agricultural Equipment Co., Ltd. Under common control of Peter Zuguang Wang Xinchang County Jiuxin Investment Management Partnership (LP) Under control of Mr. Mengxing He, the General Manger and one of the directors of Zhejiang Zhongchai Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) Under common control of Peter Zuguang Wang Hangzhou Cenntro Autotech Co., Limited Under common control of Peter Zuguang Wang Peter Zuguang Wang Chairman of the Company Greenland Asset Management Corporation Shareholder of the Company Hangzhou Jiuru Economic Information Consulting Co. Ltd One of the directors of Hengyu Xinchang County Jiuhe Investment Management Partnership (LP) Under control of Mr. Mengxing He, the General Manger and one of the directors of Zhejiang Zhongchai/NCI of Zhejiang Zhongchai Cenntro Automotive Corporation Under common control of Peter Zuguang Wang |
Schedule of due to related parties | As of June 30, December 31, Due to related parties: Sinomachinery Holding Limited 1 $ - $ - Zhejiang Kangchen Biotechnology Co., Ltd 2 - - Zhejiang Zhonggong Machinery Co., Ltd. 3 66,482 409,807 Zhejiang Zhonggong Agricultural Equipment Co., Ltd. 4 - - Cenntro Smart Manufacturing Tech. Co., Ltd. 5 - 2,903 Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 6 - 94,442 Cenntro Holding Limited⁷ 1,341,627 1,341,627 Peter Zuguang Wang⁷ - - Cenntro Automotive Corporation 7 - 11,462 Xinchang County Jiuxin Investment Management Partnership (LP) 7 - 1,569,218 Hangzhou Jiuru Economic Information Consulting Co. Ltd 7 190,000 190,000 Total $ 1,598,109 $ 3,619,459 |
Schedule of due from related parties | As of June 30, December 31, 2022 2021 Due from related parties-current: Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 114,572 219,691 Cenntro Smart Manufacturing Tech. Co., Ltd. 224 - Cenntro Holding Limited $ 37,539,301 $ 39,459,874 Total $ 37,654,097 $ 39,679,565 |
Schedule of related party funds lending | Withdraw funds from related parties: For the 2022 2021 Zhejiang Zhonggong Machinery Co., Ltd. - 77,314 Cenntro Smart Manufacturing Tech. Co., Ltd. - 33,091 Peter Zuguang Wang - 25,000 Cenntro Holding Limited - 251,973 Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) - 34,946 Total - 422,324 Deposit funds with related parties: Zhejiang Zhonggong Machinery Co., Ltd. 410,334 77,314 Xinchang County Jiuxin Investment Management Partnership (LP) 1,539,006 773,144 Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) - 310,804 Cenntro Smart Manufacturing Tech. Co., Ltd. - 33,864 Zhejiang Kangchen Biotechnology Co., Ltd - 64,505 Peter Zuguang Wang - 25,000 Total 1,949,340 1,284,631 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Organization and Principal Activities (Details) [Line Items] | ||
increased revenue amount (in Dollars) | $ 49,910 | $ 52,820 |
Transmission product sale of sets | 70,841 | 79,032 |
Electric industrial vehicles, description | Greenland’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, and GEX-8000, an all-electric 8.0 ton rated load lithium powered wheeled excavator. These products have become available for purchase in the U.S. market. In July 2022, Greenland launched its new GEL-5000 all-electric 5.0 ton rated load lithium wheeled front loader. Greenland plans to launch a 54,000 square foot assembly site in Baltimore, Maryland in the third quarter of 2022 to support local service, assembly and distribution of its electric industrial heavy equipment product line. | |
Percentage of outstanding ordinary shares | 59.42% | |
Voting power percentage | 50% | |
Board of directors [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Equity interest percentage | 37.50% | |
County Jiuhe Enterprise Management [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Equity interest percentage | 8.42% | |
Equity Incentive Plan [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Equity interest percentage | 20% | |
Zhongchai Holding [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of outstanding ordinary shares | 71.576% | |
Shanghai Hengyu Enterprise Management Consulting Co., Ltd. [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of outstanding ordinary shares | 62.50% | |
Hangzhou Greenland [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of outstanding ordinary shares | 100% | |
Greenland Technologies Corporation [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of outstanding ordinary shares | 100% | |
Zhejiang Zhongchai Machinery Co., Ltd. [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Subsidiaries, description | company registered on November 21, 2005, is the direct operating subsidiary of Zhongchai Holding in the PRC. On April 5, 2007, Usunco Automotive Limited (“Usunco”), a British Virgin Islands limited liability company, invested US$8,000,000 for purchasing approximately 75.47% equity interest of Zhejiang Zhongchai. On December 16, 2009, Usunco agreed to transfer its 75.47% interest in Zhejiang Zhongchai to Zhongchai Holding. On April 26, 2010, Xinchang County Keyi Machinery Co., Ltd. transferred 24.528% equity interest it owned in Zhejiang Zhongchai to Zhongchai Holding in exchange for a consideration of US$2.6 million. On November 1, 2017, Xinchang County Jiuxin Investment Management Partnership (LP) (“Jiuxin”), an entity controlled and beneficially owned by Mr. He Mengxing, president of Zhejiang Zhongchai, closed its investment of approximately RMB31,590,000 in Zhejiang Zhongchai for 10.53% of its interest. On December 29, 2021, Xinchang County Jiuhe Investment Management Partnership (LP) (“Jiuhe”), an entity controlled and beneficially owned by Mr. He Mengxing, president of Zhejiang Zhongchai, closed its investment of approximately RMB34,300,000 in Zhejiang Zhongchai for 20.00% of its interest. As of June 30, 2022, Zhongchai Holding owned approximately 71.576% of the equity interests, Jiuxin owned approximately 8.424% of the equity interests, and Jiuhe owned approximately 20.00% of the equity interests in Zhejiang Zhongchai. |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of subsidiary included in unaudited consolidated financial statements | 6 Months Ended |
Jun. 30, 2022 HKD ($) | |
Zhongchai Holding (Hong Kong) Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Domicile and Date of Incorporation | Hong Kong April 23, 2009 |
Paid-in Capital | $ 10,000 |
Percentage of Effective Ownership | 100% |
Principal Activities | Holding |
Paid-in Capital, Currency | HKD |
Zhejiang Zhongchai Machinery Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Domicile and Date of Incorporation | PRC November 21, 2005 |
Paid-in Capital | $ 25,000,000 |
Percentage of Effective Ownership | 71.576% |
Principal Activities | Manufacture, sale of various transmission boxes |
Paid-in Capital, Currency | RMB |
Shanghai Hengyu Business Management Consulting Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Domicile and Date of Incorporation | PRC September 10, 2015 |
Paid-in Capital | $ 251,500,000 |
Percentage of Effective Ownership | 62.50% |
Principal Activities | Investment management and consulting services. |
Paid-in Capital, Currency | RMB |
Hangzhou Greenland Energy Technologies Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Domicile and Date of Incorporation | PRC August 8, 2020 |
Paid-in Capital | $ 7,224,922 |
Percentage of Effective Ownership | 100% |
Principal Activities | Trading. |
Paid-in Capital, Currency | RMB |
HEVI Corp., formerly known as Greenland Technologies Corporation [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Domicile and Date of Incorporation | Delaware January 14, 2020 |
Paid-in Capital | $ 6,363,557 |
Percentage of Effective Ownership | 100% |
Principal Activities | US operation and distribution of electric industrial vehicles for North American market |
Paid-in Capital, Currency | USD |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Oct. 24, 2019 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies (Textual) | |||||||
Allowance of doubtful accounts | $ 820,000 | $ 820,000 | $ 860,000 | ||||
Advance to suppliers | 700,000 | $ 700,000 | 430,000 | ||||
Straight-line method lease term | 50 years | ||||||
Implicit interest rate | 4.0038% | ||||||
Total sales return, percentage | 0.10% | ||||||
Total revenue of Greenland | 0.19% | ||||||
Research and development costs | 862,535 | $ 1,005,296 | $ 1,945,129 | $ 1,964,841 | |||
Other long-term liabilities | $ 1,980,000 | $ 1,980,000 | $ 2,210,000 | ||||
Income tax rate | 50% | ||||||
Owned foreign enterprise percentage | 10% | ||||||
Registered capital percentage | 50% | ||||||
Ownership percentage | 10% | ||||||
PRC [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Value added tax description | The VAT standard rate had been 17% of the gross sale price 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. | ||||||
Zhongchai Holding [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Shares received (in Shares) | 7,500,000 | 7,500,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of gain or loss on foreign currency transaction | Jun. 30, 2022 | Jun. 30, 2021 |
Foreign Currency Translation [Abstract] | ||
Period end RMB: US$ exchange rate | 6.6981 | 6.4566 |
Period average RMB: US$ exchange rate | 6.4977 | 6.4671 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives, using the straight-line method | 3 Months Ended |
Mar. 31, 2022 | |
Plant, buildings and improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives, using the straight-line method [Line Items] | |
Estimated useful lives | 20 years |
Machinery and equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives, using the straight-line method [Line Items] | |
Estimated useful lives | 2 years |
Machinery and equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives, using the straight-line method [Line Items] | |
Estimated useful lives | 10 years |
Motor vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives, using the straight-line method [Line Items] | |
Estimated useful lives | 4 years |
Office equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives, using the straight-line method [Line Items] | |
Estimated useful lives | 3 years |
Office equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives, using the straight-line method [Line Items] | |
Estimated useful lives | 5 years |
Fixtures and decorations [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives, using the straight-line method [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of sets forth disaggregation of revenue - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Major Product | $ 20,602,505 | $ 28,204,307 | $ 49,909,462 | $ 52,815,201 |
Transmission boxes for Forklift [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Major Product | 18,298,385 | 24,844,007 | 43,703,926 | 46,393,363 |
Transmission boxes for Non-Forklift (EV, etc.) [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Major Product | $ 2,304,120 | $ 3,360,300 | $ 6,205,536 | $ 6,421,838 |
Short Term Investment (Details)
Short Term Investment (Details) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Dec. 31, 2021 USD ($) |
Short Term Investment Details [Abstract] | |||
Short term investment | $ 7,666,483 | $ 2,105,938 | |
Contributed total | 500,000 | ||
Purchased bank management products total amount | 7,310,279 | ¥ 47,500,000 | |
Fair value | $ 7,166,483 | ¥ 48,001,818 |
Concentration on Revenues and_3
Concentration on Revenues and Cost of Goods Sold (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Accounts Receivable [Member] | |||
Concentration on Revenues and Cost of Goods Sold (Details) [Line Items] | |||
Concentration risk, percentage | 29.76% | 39.36% | |
Supplier [Member] | |||
Concentration on Revenues and Cost of Goods Sold (Details) [Line Items] | |||
Concentration risk, percentage | 10% | 10% |
Concentration on Revenues and_4
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of concentration of major customers and suppliers - Revenues [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue, Major Customer [Line Items] | ||
Total Revenues | $ 16,966,685 | $ 15,474,141 |
Customer percentage | 33.99% | 29.30% |
Company A [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenues | $ 10,502,142 | $ 8,881,037 |
Customer percentage | 21.04% | 16.82% |
Company B [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenues | $ 6,464,543 | $ 6,593,104 |
Customer percentage | 12.95% | 12.48% |
Concentration on Revenues and_5
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of major customers of accounts receivable - Accounts Receivable [Member] - Customer Concentration Risk [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of major customers of accounts receivable [Line Items] | ||
Accounts receivable, net | $ 5,414,631 | $ 6,263,705 |
Percentage of revenues | 29.76% | 39.36% |
Company A [Member] | ||
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of major customers of accounts receivable [Line Items] | ||
Accounts receivable, net | $ 2,621,533 | $ 2,157,638 |
Percentage of revenues | 14.41% | 13.56% |
Company B [Member] | ||
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of major customers of accounts receivable [Line Items] | ||
Accounts receivable, net | $ 1,404,920 | $ 2,148,131 |
Percentage of revenues | 7.72% | 13.50% |
Company C [Member] | ||
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of major customers of accounts receivable [Line Items] | ||
Accounts receivable, net | $ 1,388,178 | $ 1,957,936 |
Percentage of revenues | 7.63% | 12.30% |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable is net of allowance for doubtful accounts - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of accounts receivable is net of allowance for doubtful accounts [Abstract] | ||
Accounts receivable | $ 19,016,887 | $ 16,774,321 |
Less: allowance for doubtful accounts | (822,482) | (859,319) |
Accounts receivable, net | $ 18,194,405 | $ 15,915,002 |
Accounts Receivable (Details)_2
Accounts Receivable (Details) - Schedule of allowance for doubtful accounts - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of allowance for doubtful accounts [Abstract] | ||
Beginning balance | $ 859,319 | $ 986,532 |
Provision for doubtful accounts | 5,073 | (149,172) |
Effect of FX change | (41,910) | 21,959 |
Ending balance | $ 822,482 | $ 859,319 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 9,457,356 | $ 9,789,196 |
Revolving material | 1,135,570 | 1,078,292 |
Consigned processing material | 82,204 | 67,706 |
Work-in-progress | 2,319,081 | 2,620,821 |
Finished goods | 10,953,920 | 12,271,252 |
Less: inventory impairment | (23,793) | |
Inventories, net | $ 23,948,131 | $ 25,803,474 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Notes Receivable Disclosure [Abstract] | ||
Notes receivable | $ 22,130 | $ 28,140 |
Security for issuance | $ 21,640 | $ 24,890 |
Notes Receivable (Details) - Sc
Notes Receivable (Details) - Schedule of notes receivable - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of notes receivable [Abstract] | ||
Bank notes receivable: | $ 31,278,775 | $ 36,075,366 |
Commercial notes receivable | 1,740,946 | 1,475,755 |
Total | $ 33,019,721 | $ 37,551,121 |
Property, Plant and Equipment_3
Property, Plant and Equipment and Construction In Progress (Details) ¥ in Thousands | 1 Months Ended | 6 Months Ended | |||||||
Jan. 03, 2019 USD ($) | Jan. 03, 2019 CNY (¥) | May 27, 2020 USD ($) | May 27, 2020 CNY (¥) | Apr. 26, 2019 USD ($) | Apr. 26, 2019 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 CNY (¥) | |
Property, Plant and Equipment and Construction In Progress (Details) [Line Items] | |||||||||
Accumulated Depreciation, Depletion and Amortization, Sale or Disposal of Property, Plant and Equipment | $ 770,000 | ||||||||
Construction in progress fixed assets | $ 0.31 | ||||||||
Ownership of buildings for net book value | 9,850,000 | ¥ 65,980 | |||||||
Loan facility with maximum exposure | 107,820,000 | ||||||||
Aggregate proceeds | $ 3,080,000 | ¥ 21,250 | $ 1,420,000 | ¥ 10,000 | $ 2,120,000 | ¥ 14,660 | |||
Initial term | 3 years | 3 years | 2 years | 2 years | 2 years | 2 years | |||
Property, Plant and Equipment [Member] | |||||||||
Property, Plant and Equipment and Construction In Progress (Details) [Line Items] | |||||||||
Depreciation expense amount | 1,210,000 | 1,200,000 | |||||||
Cost of revenue and inventories | $ 760,000 | ||||||||
Construction in progress fixed assets | $ 0 |
Property, Plant and Equipment_4
Property, Plant and Equipment and Construction In Progress (Details) - Schedule of property, plant and equipment - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of property, plant and equipment [Abstract] | ||
Buildings | $ 12,131,454 | $ 12,751,105 |
Machinery | 21,324,228 | 21,930,452 |
Motor vehicles | 325,092 | 341,697 |
Electronic equipment | 226,115 | 206,122 |
Fixed assets decoration | ||
Total property plant and equipment, at cost | 34,006,889 | 35,229,376 |
Less: accumulated depreciation | (17,094,507) | (16,679,022) |
Property, plant and equipment, net | 16,912,382 | 18,550,354 |
Construction in process | 89,578 | 407,199 |
Total | $ 17,001,960 | $ 18,957,553 |
Property, Plant and Equipment_5
Property, Plant and Equipment and Construction In Progress (Details) - Schedule of assets used - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of assets used [Abstract] | ||
Buildings, net | $ 9,850,649 | $ 11,314,916 |
Machinery, net | 2,201,707 | |
Total | $ 9,850,649 | $ 13,516,623 |
Land Use Rights (Details)
Land Use Rights (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Land Use Rights [Abstract] | ||
Land use rights, net | $ 3,790 | $ 4,040 |
Land Use Rights (Details) - Sch
Land Use Rights (Details) - Schedule of land use rights - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of land use rights [Abstract] | ||
Land use rights, cost | $ 4,593,333 | $ 4,827,951 |
Less: Accumulated amortization | (800,162) | (792,753) |
Land use rights, net | $ 3,793,171 | $ 4,035,198 |
Land Use Rights (Details) - S_2
Land Use Rights (Details) - Schedule of estimated future amortization expense | Jun. 30, 2022 USD ($) |
Schedule of estimated future amortization expense [Abstract] | |
2023 | $ 94,700 |
2024 | 94,700 |
2025 | 94,700 |
2026 | 94,700 |
2027 | 94,700 |
Thereafter | 3,319,671 |
Total | $ 3,793,171 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Notes Payable (Details) [Line Items] | ||
Restricted cash | $ 4,820 | $ 6,740 |
Notes receivable | 22,130 | 28,140 |
Land use rights | $ 4,030 | $ 4,040 |
Percentage of bank charges | 0.05% | |
Minimum [Member] | ||
Notes Payable (Details) [Line Items] | ||
Interest-free notes payable, term | 9 months | |
Maximum [Member] | ||
Notes Payable (Details) [Line Items] | ||
Interest-free notes payable, term | 1 year |
Notes Payable (Details) - Sched
Notes Payable (Details) - Schedule of notes payable - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of notes payable [Abstract] | ||
Bank acceptance notes | $ 33,752,065 | $ 42,093,061 |
Total | $ 33,752,065 | $ 42,093,061 |
Accounts Payable (Details) - Sc
Accounts Payable (Details) - Schedule of accounts payable - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts Payable (Details) - Schedule of accounts payable [Line Items] | ||
Accounts payable | $ 25,843,583 | $ 29,064,132 |
Procurement of Materials [Member] | ||
Accounts Payable (Details) - Schedule of accounts payable [Line Items] | ||
Accounts payable | 25,186,025 | 28,076,580 |
Infrastructure& Equipment [Member] | ||
Accounts Payable (Details) - Schedule of accounts payable [Line Items] | ||
Accounts payable | 537,762 | 870,616 |
Freight fee [Member] | ||
Accounts Payable (Details) - Schedule of accounts payable [Line Items] | ||
Accounts payable | $ 119,796 | $ 116,936 |
Short Term Bank Loans (Details)
Short Term Bank Loans (Details) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||
Short term debt loan repayable duration | 1 year | |
Average annual interest rate | 4.3442% | 4.5547% |
Short Term Bank Loans (Detail_2
Short Term Bank Loans (Details) - Schedule of short term bank loans - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of short term bank loans [Abstract] | ||
Collateralized bank loans | $ 7,588,719 | $ 7,976,336 |
Guaranteed bank loans | 1,492,961 | 784,609 |
Total | $ 9,081,680 | $ 8,760,945 |
Short Term Bank Loans (Detail_3
Short Term Bank Loans (Details) - Schedule of short term loans - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | Total | Total |
Total | $ 9,081,680 | $ 8,760,945 |
Operating Loans [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | August 23, 2022 | August 23, 2022 |
Bank Name | Agricultural Bank of PRC | Agricultural Bank of PRC |
Interest Rate per Annum (%) | 4.57% | 4.57% |
Total | $ 2,811,245 | $ 2,954,837 |
Operating Loans [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | August 18, 2022 | August 18, 2022 |
Bank Name | Rural Commercial Bank of Xinchang | Rural Commercial Bank of Xinchang |
Interest Rate per Annum (%) | 4.35% | 4.35% |
Total | $ 1,194,369 | $ 1,255,375 |
Operating Loans [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | August 23, 2022 | August 23, 2022 |
Bank Name | Rural Commercial Bank of Xinchang | Rural Commercial Bank of Xinchang |
Interest Rate per Annum (%) | 5.30% | 5.30% |
Total | $ 1,045,072 | $ 1,098,453 |
Operating Loans [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | September 1, 2022 | September 1, 2022 |
Bank Name | Rural Commercial Bank of Xinchang | Rural Commercial Bank of Xinchang |
Interest Rate per Annum (%) | 4.35% | 4.35% |
Total | $ 2,538,033 | $ 2,667,671 |
Operating Loans [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | February 23, 2023 | January 21, 2022 |
Bank Name | Industrial and Commercial Bank of Xinchang | Rural Commercial Bank of Xinchang |
Interest Rate per Annum (%) | 3.24% | 5.30% |
Total | $ 1,492,961 | $ 784,609 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - Schedule of other current liabilities - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of other current liabilities [Abstract] | ||
Employee payables | $ 142,640 | $ 946,678 |
Other tax payables | 900,943 | 31,779 |
Borrowing from third party | 232,476 | 219,970 |
Total | $ 1,276,059 | $ 1,198,427 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Other Longterm Liabilities Disclosure [Abstract] | |
Grant income decreased | $ 230 |
Other Long-Term Liabilities (_2
Other Long-Term Liabilities (Details) - Schedule of other long-term liabilities - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of other long-term liabilities [Abstract] | ||
Subsidy | $ 1,983,069 | $ 2,212,938 |
Total | $ 1,983,069 | $ 2,212,938 |
Leases (Details)
Leases (Details) | Jun. 30, 2022 |
Leases [Abstract] | |
Operating leases, with initial terms | 3 years |
Leases (Details) - Schedule of
Leases (Details) - Schedule of lease to the property and equipment | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows paid for operating leases | $ 18,240 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of supplemental balance sheet - Operating leases [Member] | Jun. 30, 2022 USD ($) |
Operating leases: | |
Operating lease right-of-use assets | $ 64,176 |
Current portion of operating lease liabilities | 34,331 |
Long-term operating lease liabilities | 30,205 |
Total operating lease liabilities | $ 64,536 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of lease liabilities under operating leases | Jun. 30, 2022 USD ($) |
Schedule of lease liabilities under operating leases [Abstract] | |
2023 | $ 36,780 |
2024 | 30,900 |
Total lease payments | $ 67,680 |
Long Term Payables (Details)
Long Term Payables (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | |||||
Jan. 03, 2019 USD ($) | Jan. 03, 2019 CNY (¥) | May 27, 2020 USD ($) | May 27, 2020 CNY (¥) | Apr. 26, 2019 USD ($) | Apr. 26, 2019 CNY (¥) | |
Long Term Payables [Abstract] | ||||||
Aggregate proceeds | $ 3,080 | ¥ 21,250 | $ 1,420 | ¥ 10,000 | $ 2,120 | ¥ 14,660 |
Initial term | 3 years | 3 years | 2 years | 2 years | 2 years | 2 years |
Long Term Payables (Details) -
Long Term Payables (Details) - Schedule of long term payables - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of long term payables [Abstract] | ||
Long-term payables current portion | $ 197,915 | |
Long-term payables– non-current portion | ||
Total | $ 197,915 |
Stockholder_s Equity (Details)
Stockholder’s Equity (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||||||
Aug. 15, 2019 | Oct. 24, 2020 | Feb. 24, 2020 | Aug. 21, 2019 | May 29, 2019 | Jul. 27, 2018 | Jun. 30, 2022 | Dec. 31, 2021 | Feb. 25, 2020 | |
Stockholder’s Equity (Details) [Line Items] | |||||||||
Ordinary shares vote, description | Holders of the Company’s ordinary shares are entitled to one vote for each share. | ||||||||
Ordinary shares, issued | 11,329,530 | 11,329,530 | |||||||
Ordinary shares, outstanding | 11,329,530 | 11,329,530 | |||||||
Ordinary shares, description | In connection with the Business Combination, all the outstanding rights of the Company were converted into 468,200 ordinary shares on a one-tenth (1/10) ordinary share per right basis if holders of the rights elected to convert their rights into underlying ordinary shares. | ||||||||
Instalments payment (in Dollars) | $ 12,000 | ||||||||
Restricted ordinary shares | 1,250 | 5,000 | |||||||
Pursuant service agreement, description | Greenland and CIIX entered into a termination agreement (the “CIIX Termination Agreement”) to terminate their respective obligations under the Service Agreement. Pursuant to the CIIX Termination Agreement, the Company agreed to issue 5,000 restricted ordinary shares, no par value (the “CIIX Termination Shares”) to CIIX. Upon CIIX’s receipt of the CIIX Termination Shares, the Company fully satisfied its payment obligations under the Service Agreement. | ||||||||
SCCG fees (in Dollars) | $ 5,000 | ||||||||
Pursuant consulting agreement, description | Greenland and SCCG entered into a termination agreement (the “SCCG Termination Agreement”) to terminate their respective obligations under the Consulting Agreement. Pursuant to the SCCG Termination Agreement, the Company agreed to issue 10,000 restricted ordinary shares, no par value (the “SCCG Termination Shares”) to SCCG. Upon SCCG’s receipt of the SCCG Termination Shares, the Company fully satisfied its payment obligations under the Consulting Agreement. | ||||||||
Stockholders equity , description | the Company’s board of directors held a meeting and executed resolutions to approve the issuance of 120,000 ordinary shares to Raymond Wang, the Company’s chief executive officer, to offset unpaid salary to him in the amount of $120,833.33 and the issuance of 135,000 ordinary shares to Jing Jin, the Company’s chief financial officer, to offset unpaid salary to him in the amount of $60,000 and his personal loan to the Company in the amount of $75,000. On November 10, 2020, the Company issued 135,000 ordinary shares to Jing Jin. On December 30, 2020 and February 8, 2021, the Company issued 69,000 and 51,000 ordinary shares to Raymond Wang, respectively. In February 2021, the Company issued 48,344 ordinary shares from the exercise of warrants by certain warrantholders. On March 4, 2021, the Company issued 132,000 ordinary shares to Chardan from the exercise of Chardan’s unit purchase option to purchase 120,000 units. On April 19, 2021, the Company issued 2,500 ordinary shares to each of Peter Zuguang Wang, Charles Athle Nelson, Everett Xiaolin Wang, Ming Zhao and Bo Shen. On April 20, 2021, the Company issued 2,700 ordinary shares to Xiaqing Yang. On June 30, 2021, the Company closed a firm commitment offering of 857,844 ordinary shares at $8.16 per share with gross proceeds of $7,000,007 under its effective shelf registration statement. | ||||||||
Voting rights description | Rights — Each holder of a right was entitled to receive one-tenth (1/10) of one ordinary share upon consummation of the Business Combination. | ||||||||
Warrants , description | Public Warrants (together with the Private Warrants (as defined below), the “Warrants”), may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants have been exercisable since October 24, 2019. No Public Warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the ordinary shares issuable upon exercise of the Public Warrants and a current prospectus relating to such ordinary shares. Notwithstanding the foregoing, if a registration statement covering the ordinary shares issuable upon the exercise of the Public Warrants is not effective within 90 days from the consummation of a Business Combination, the holders may, until such time as there is an effective registration statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise the Public Warrants on a cashless basis pursuant to an available exemption from registration under the Securities Act of 1933, as amended. If an exemption from registration is not available, holders will not be able to exercise their Public Warrants on a cashless basis. The Public Warrants will expire five years from the consummation of a Business Combination or earlier upon redemption or liquidation. | ||||||||
Private warrants, description | Private warrants include (i) the 282,000 warrants underlying the units issued to the Sponsor and Chardan in a private placement in connection with our initial public offering (“Private Unit Warrants”), and (ii) 120,000 warrants held by Chardan upon the exercise of its unit purchase option to purchase 120,000 units in March 2021 (“Option Warrants,” together with Private Unit Warrants, the “Private Warrants”). | ||||||||
Warrants outstanding | 4,705,312 | ||||||||
Cash payment (in Dollars) | $ 100 | ||||||||
Option outstanding | 120,000 | ||||||||
IPO [Member] | |||||||||
Stockholder’s Equity (Details) [Line Items] | |||||||||
Initial public offering units | 4,400,000 | ||||||||
Over-allotment option amount | 400,000 | ||||||||
Ordinary shares redeemed, description | In 2019, in connection with the Business Combination, 3,875,458 shares were redeemed, 81,400 shares were converted into ordinary shares, and 1,906,542 ordinary shares were left outstanding upon consummation of the reverse recapitalization. | ||||||||
Private Warrants [Member] | |||||||||
Stockholder’s Equity (Details) [Line Items] | |||||||||
Description of warrant redemption | The Company may call the warrants for redemption (excluding the Private Warrants (as defined below)), in whole and not in part, at a price of $0.01 per warrant: ● At any time while the Public Warrants are exercisable, ● Upon not less than 30 days’ prior written notice of redemption to each Public Warrant holder, ● If, and only if, the reported last sale price of the ordinary shares equals or exceeds $16.50 per share, for any 20 trading days within a 30 trading day period ending on the third trading day prior to the notice of redemption to Public Warrant holders, and ●If, and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. | ||||||||
Warrants outstanding | 260,000 | ||||||||
Common Stock [Member] | |||||||||
Stockholder’s Equity (Details) [Line Items] | |||||||||
Existing ordinary shares were converted | 468,200 | ||||||||
Greenland Asset Management Corporation [Member] | |||||||||
Stockholder’s Equity (Details) [Line Items] | |||||||||
Private placement units | 282,000 | ||||||||
Zhongchai Holding [Member] | |||||||||
Stockholder’s Equity (Details) [Line Items] | |||||||||
Newly issued ordinary shares | 7,500,000 | ||||||||
Zhou Hanyi [Member] | |||||||||
Stockholder’s Equity (Details) [Line Items] | |||||||||
Newly issued ordinary shares | 50,000 | ||||||||
CEDE & CO [Member] | Public Warrants [Member] | |||||||||
Stockholder’s Equity (Details) [Line Items] | |||||||||
Warrants outstanding | 4,303,312 | ||||||||
Chardan Capital Markets, LLC [Member] | |||||||||
Stockholder’s Equity (Details) [Line Items] | |||||||||
Sale of unit purchase option price (in Dollars) | $ 100 | ||||||||
Option to purchase shares exercisable | 240,000 | ||||||||
Common stock price share (in Dollars per share) | $ 11.5 | ||||||||
Aggregate exercise price (in Dollars) | $ 2,760,000 | ||||||||
Chardan Capital Markets, LLC [Member] | Private Warrants [Member] | |||||||||
Stockholder’s Equity (Details) [Line Items] | |||||||||
Warrants outstanding | 142,000 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of basic and diluted earnings per share computation - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of basic and diluted earnings per share computation [Abstract] | ||||
Net income attributable to the Greenland Corporation and subsidiaries (in Dollars) | $ 1,487,264 | $ 2,780,753 | $ 3,274,316 | $ 4,909,321 |
Weighted average shares used in basic computation | 11,329,530 | 10,814,479 | 11,329,530 | 10,574,223 |
Diluted effect of stock options and warrants (in Dollars) | ||||
Weighted average shares used in diluted computation | 11,329,530 | 10,814,479 | 11,329,530 | 10,574,223 |
Basic and diluted net income per share (in Dollars per share) | $ 0.13 | $ 0.26 | $ 0.29 | $ 0.46 |
Geographical Sales and Segmen_3
Geographical Sales and Segments (Details) - Schedule of sales by geographical area - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Geographical Sales and Segments (Details) - Schedule of sales by geographical area [Line Items] | ||||
Total | $ 20,602,505 | $ 28,204,307 | $ 49,909,462 | $ 52,815,201 |
Domestic Sales [Member] | ||||
Geographical Sales and Segments (Details) - Schedule of sales by geographical area [Line Items] | ||||
Total | 20,338,491 | 28,106,861 | 49,471,413 | 52,607,900 |
International Sales [Member] | ||||
Geographical Sales and Segments (Details) - Schedule of sales by geographical area [Line Items] | ||||
Total | $ 264,014 | $ 97,446 | $ 438,049 | $ 207,301 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 14.17% | 14.08% | |
PRC standard income tax rate | 25% | 25% | |
Unrecognized tax benefits (in Dollars) | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) ¥ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 06, 2019 | Jan. 25, 2021 USD ($) | Dec. 17, 2019 | Jun. 30, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Commitments and Contingencies (Details) [Line Items] | |||||
Paid in total (in Dollars) | $ | $ 65,000 | ||||
Agricultural Bank of PRC Co., Ltd. Xinchang [Member] | |||||
Commitments and Contingencies (Details) [Line Items] | |||||
Loan facility, description | Xinchang County Sub-Branch (ABC Xinchang), pledging its land use rights and property ownership as security to ABC Xinchang, for a loan facility with a maximum principal amount of RMB69.77 million during the period from May 22, 2019 to May 21, 2022. | ||||
Outstanding amount of short-term bank loan under pledge contract | ¥ 18,830 | ¥ 18,830 | |||
Agricultural Bank of PRC Co., Ltd. Xinchang One [Member] | |||||
Commitments and Contingencies (Details) [Line Items] | |||||
Outstanding amount of short-term bank loan under pledge contract | 7,000 | 7,000 | |||
Rural Commercial Bank of PRC Co., Ltd. [Member] | |||||
Commitments and Contingencies (Details) [Line Items] | |||||
Loan facility, description | pledging its land use rights and property ownership as security, for a loan facility with a maximum principal amount of RMB38.05 million during the period from December 16, 2019 to December 15, 2024. | ||||
Outstanding amount of short-term bank loan under pledge contract | 25,000 | 25,000 | |||
Rural Commercial Bank of PRC Co., Ltd. One [Member] | |||||
Commitments and Contingencies (Details) [Line Items] | |||||
Outstanding amount of short-term bank loan under pledge contract | ¥ 0 | ¥ 0 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of non-cancellable future minimum lease payments | Jun. 30, 2022 USD ($) |
Schedule of non-cancellable future minimum lease payments [Abstract] | |
2023 | $ 36,780 |
2024 | 30,900 |
Total | $ 67,680 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Other receivable | $ 37,540 | |
Other receivables | $ 39,460 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of names and relationship of related parties | 6 Months Ended |
Jun. 30, 2022 | |
Sinomachinery Holding Limited [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Cenntro Holding Limited [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Controlling shareholder of the Company |
Zhejiang Kangchen Biotechnology Co., Ltd. [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Cenntro Smart Manufacturing Tech. Co., Ltd. [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Zhejiang Zhonggong Machinery Co., Ltd. [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Zhejiang Zhonggong Agricultural Equipment Co., Ltd. [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Xinchang County Jiuxin Investment Management Partnership (LP) [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under control of Mr. Mengxing He, the General Manger and one of the directors of Zhejiang Zhongchai |
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Hangzhou Cenntro Autotech Co., Limited [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Peter Zuguang Wang [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Chairman of the Company |
Greenland Asset Management Corporation [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Shareholder of the Company |
Hangzhou Jiuru Economic Information Consulting Co. Ltd [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | One of the directors of Hengyu |
Xinchang County Jiuhe Investment Management Partnership (LP) [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under control of Mr. Mengxing He, the General Manger and one of the directors of Zhejiang Zhongchai/NCI of Zhejiang Zhongchai |
Cenntro Automotive Corporation [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of due to related parties - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | ||
Due to related parties: | |||
Total | $ 1,598,109 | $ 3,619,459 | |
Sinomachinery Holding Limited [Member] | |||
Due to related parties: | |||
Total | [1] | ||
Zhejiang Kangchen Biotechnology Co., Ltd. [Member] | |||
Due to related parties: | |||
Total | [2] | ||
Zhejiang Zhonggong Machinery Co., Ltd. [Member] | |||
Due to related parties: | |||
Total | [3] | 66,482 | 409,807 |
Zhejiang Zhonggong Agricultural Equipment Co., Ltd. [Member] | |||
Due to related parties: | |||
Total | [4] | ||
Cenntro Smart Manufacturing Tech. Co., Ltd. [Member] | |||
Due to related parties: | |||
Total | [5] | 2,903 | |
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) [Member] | |||
Due to related parties: | |||
Total | [6] | 94,442 | |
Cenntro Holding Limited [Member] | |||
Due to related parties: | |||
Total | [7] | 1,341,627 | 1,341,627 |
Peter Zuguang Wang [Member] | |||
Due to related parties: | |||
Total | [7] | ||
Cenntro Automotive Corporation [Member] | |||
Due to related parties: | |||
Total | [7] | 11,462 | |
Xinchang County Jiuxin Investment Management Partnership (LP) [Member] | |||
Due to related parties: | |||
Total | [7] | 1,569,218 | |
Hangzhou Jiuru Economic Information Consulting Co. Ltd [Member] | |||
Due to related parties: | |||
Total | [7] | $ 190,000 | $ 190,000 |
[1]Advance from Sinomachinery Holding Limited for certain purchase order;[2]Temporary borrowings from Zhejiang Kangchen Biotechnology Co., Ltd.;[3]Unpaid balances for purchasing of materials and equipment and temporary borrowing from Zhejiang Zhonggong Machinery Co., Ltd.;[4]Unpaid balances for purchasing of materials from Zhejiang Zhonggong Agricultural Equipment Co., Ltd.;[5]Prepayment from Cenntro Smart Manufacturing Tech. Co., Ltd.;[6]Temporary borrowings from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership); and[7]Borrowings from related parties. |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of due from related parties - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Due from related parties-current: | ||
Total | $ 37,654,097 | $ 39,679,565 |
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) [Member] | ||
Due from related parties-current: | ||
Total | 114,572 | 219,691 |
Cenntro Smart Manufacturing Tech. Co., Ltd. [Member] | ||
Due from related parties-current: | ||
Total | 224 | |
Cenntro Holding Limited [Member] | ||
Due from related parties-current: | ||
Total | $ 37,539,301 | $ 39,459,874 |
Related Party Transactions (D_5
Related Party Transactions (Details) - Schedule of related party funds lending - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | $ 422,324 | |
Deposit funds with related parties: | ||
Deposit funds with related parties | $ 1,949,340 | 1,284,631 |
Zhejiang Zhonggong Machinery Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | 77,314 | |
Deposit funds with related parties: | ||
Deposit funds with related parties | 410,334 | 77,314 |
Cenntro Smart Manufacturing Tech. Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | 33,091 | |
Deposit funds with related parties: | ||
Deposit funds with related parties | 33,864 | |
Peter Zuguang Wang [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | 25,000 | |
Deposit funds with related parties: | ||
Deposit funds with related parties | 25,000 | |
Cenntro Holding Limited [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | 251,973 | |
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | 34,946 | |
Deposit funds with related parties: | ||
Deposit funds with related parties | 310,804 | |
Xinchang County Jiuxin Investment Management Partnership (LP) [Member] | ||
Deposit funds with related parties: | ||
Deposit funds with related parties | $ 1,539,006 | 773,144 |
Zhejiang Kangchen Biotechnology Co., Ltd. [Member] | ||
Deposit funds with related parties: | ||
Deposit funds with related parties | $ 64,505 |