Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 19, 2023 | |
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 | 12,978,504 | |
Amendment Flag | false | |
Entity Central Index Key | 0001735041 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
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 | 001-38605 | |
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 ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 15,401,387 | $ 16,295,695 |
Restricted cash | 4,859,230 | 3,433,361 |
Short Term Investment | 5,968,897 | 7,800,723 |
Notes receivable | 28,979,885 | 28,748,879 |
Accounts receivable, net of allowance for doubtful accounts of $1,005,569 and $762,325, respectively | 19,383,411 | 14,337,760 |
Inventories | 22,502,791 | 23,096,382 |
Due from related parties-current | 36,829,529 | 36,669,907 |
Advance to suppliers | 626,646 | 412,766 |
Prepayments and other current assets | 611,559 | 1,568,687 |
Total Current Assets | 135,163,335 | 132,364,160 |
Non-current asset | ||
Property, plant, equipment and construction in progress, net | 15,165,621 | 15,585,214 |
Land use rights, net | 3,632,351 | 3,639,067 |
Other intangible assets | 133,422 | 147,465 |
Long term investment | 300,000 | 250,000 |
Deferred tax assets | 271,609 | 219,207 |
Operating lease right-of-use assets | 2,503,903 | 2,627,110 |
Other non-current assets | 255,339 | 283,118 |
Total non-current assets | 22,262,245 | 22,751,181 |
TOTAL ASSETS | 157,425,580 | 155,115,341 |
Current Liabilities | ||
Short-term bank loans | 7,717,398 | 8,986,255 |
Notes payable-bank acceptance notes | 25,230,911 | 28,272,472 |
Accounts payable | 28,421,937 | 24,817,165 |
Taxes payables | 158,802 | 192,478 |
Customer deposits | 196,028 | 227,432 |
Due to related parties | 1,693,605 | 1,693,315 |
Other current liabilities | 2,001,331 | 1,547,390 |
Current portion of operating lease liabilities | 482,122 | 472,182 |
Total current liabilities | 65,902,134 | 66,208,689 |
Long-term liabilities | ||
Long term operating lease liabilities | 2,048,848 | 2,176,130 |
Other long-term liabilities | 1,780,929 | 1,812,759 |
Total long-term liabilities | 3,829,777 | 3,988,889 |
TOTAL LIABILITIES | 69,731,911 | 70,197,578 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Ordinary shares, no par value, unlimited shares authorized; 12,978,504 and 12,978,504 shares issued and outstanding as of March 31, 2023 and December 31, 2022. | ||
Additional paid-in capital | 32,955,927 | 32,955,927 |
Statutory reserves | 3,842,331 | 3,842,331 |
Retained earnings | 38,675,236 | 37,228,261 |
Accumulated other comprehensive income (loss) | (2,619,067) | (2,831,419) |
Total shareholders’ equity | 72,854,427 | 71,195,100 |
Non-controlling interest | 14,839,242 | 13,722,663 |
TOTAL EQUITY | 87,693,669 | 84,917,763 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 157,425,580 | $ 155,115,341 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts (in Dollars) | $ 1,005,569 | $ 762,325 |
Ordinary shares, par value (in Dollars per share) | ||
Ordinary shares, authorized | 12,978,504 | 12,978,504 |
Ordinary shares, issued | 12,978,504 | 12,978,504 |
Ordinary shares, outstanding | 12,978,504 | 12,978,504 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
REVENUES | $ 22,149,360 | $ 29,306,957 |
COST OF GOODS SOLD | 16,625,930 | 22,938,983 |
GROSS PROFIT | 5,523,430 | 6,367,974 |
Selling expenses | 387,485 | 639,647 |
General and administrative expenses | 1,641,904 | 1,279,746 |
Research and development expenses | 1,119,891 | 1,082,594 |
Total operating expenses | 3,149,280 | 3,001,987 |
INCOME FROM OPERATIONS | 2,374,150 | 3,365,987 |
Interest income | 30,393 | 12,562 |
Interest expense | (66,493) | (105,009) |
Loss on disposal of property and equipment | (404) | |
Other income | 417,382 | 261,032 |
INCOME BEFORE INCOME TAX | 2,755,432 | 3,534,168 |
INCOME TAX | 296,858 | 619,370 |
NET INCOME | 2,458,574 | 2,914,798 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 1,011,599 | 1,127,746 |
NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES | 1,446,975 | 1,787,052 |
OTHER COMPREHENSIVE INCOME (LOSS): | 317,332 | 373,910 |
Unrealized foreign currency translation income (loss) attributable to Greenland technologies holding corporation and subsidiaries | 212,352 | 248,082 |
Unrealized foreign currency translation income (loss) attributable to Noncontrolling interest | 104,980 | 125,828 |
Comprehensive income (loss) | 1,659,327 | 2,035,134 |
Noncontrolling interest | $ 1,116,579 | $ 1,253,574 |
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING: | ||
Basic and diluted (in Shares) | 12,978,504 | 11,329,530 |
NET INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY: | ||
Basic and diluted (in Dollars per share) | $ 0.11 | $ 0.16 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Diluted weighted average ordinary shares outstanding | 12,978,504 | 11,329,530 |
Diluted net income per ordinary share | $ 0.11 | $ 0.16 |
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, 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, 2022 | 32,955,927 | (2,831,419) | 3,842,331 | 37,228,261 | 13,722,663 | 84,917,763 | |
Balance (in Shares) at Dec. 31, 2022 | 12,978,504 | ||||||
Net income | 1,446,975 | 1,011,599 | 2,458,574 | ||||
Foreign currency translation adjustment | 212,352 | 104,980 | 317,332 | ||||
Balance at Mar. 31, 2023 | $ 32,955,927 | $ (2,619,067) | $ 3,842,331 | $ 38,675,236 | $ 14,839,242 | $ 87,693,669 | |
Balance (in Shares) at Mar. 31, 2023 | 12,978,504 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,458,574 | $ 2,914,798 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 542,713 | 631,150 |
Loss on disposal of property and equipment | (404) | |
Increase in allowance for doubtful accounts | 240,845 | 5,203 |
Increase in allowance for notes receivable | ||
Increase in provision for inventory | 59,521 | (23,930) |
Deferred tax assets | (51,647) | (534,516) |
Decrease (Increase) In: | ||
Accounts receivable | (5,243,127) | (8,726,726) |
Notes receivable | (107,492) | (4,225,481) |
Inventories | 636,181 | 999,943 |
Advance to suppliers | (212,885) | (195,582) |
Other current and noncurrent assets | 2,874,700 | (2,016,804) |
Increase (Decrease) In: | ||
Accounts payable | 3,510,741 | 3,042,556 |
Customer deposits | (32,504) | 53,207 |
Other current liabilities | (574,123) | 1,103,368 |
Income tax payables | (34,633) | (108,679) |
Due to related parties | (8,611) | 58,839 |
Other long-term liabilities | (301,935) | (166,858) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 3,756,318 | 1,261,046 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of long term assets | (16,929) | (101,188) |
Proceeds from government grants for construction | 262,145 | 102,200 |
Investment in a joint venture | (50,000) | |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 195,216 | 1,012 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term bank loans | 1,169,197 | 1,578,233 |
Repayments of short-term bank loans | (2,481,621) | (789,116) |
Notes payable | (3,175,115) | (5,244,491) |
Proceeds from related parties | ||
Repayment of loans from related parties | (1,578,233) | |
Repayment of loans from third parties | (438,449) | |
Proceeds from third parties | 1,461,497 | |
Proceeds from equity and debt financing | 77,069 | |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (3,464,491) | (5,956,538) |
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 487,043 | (4,694,480) |
Effect of exchange rate changes on cash | 44,518 | 78,040 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 19,729,056 | 17,800,892 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 20,260,617 | 13,184,452 |
Bank balances and cash | 15,401,387 | 6,853,839 |
Bank balances and cash included in assets classified as restricted cash | 4,859,230 | 6,330,613 |
Supplemental Disclosure of Cash Flow Information | ||
Income taxes paid | ||
Interest paid | $ 77,073 | $ 99,343 |
Organization and Principal Acti
Organization and Principal Activities | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [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 $29.31 million for the three months ended March 31, 2022 to $22.15 million for the three months ended March 31, 2023. The decrease in revenue was primarily the result of a decrease in the Company’s sales volume, driven by the poor market conditions for the three months ended March 31, 2023. Based on the revenues for the three months ended March 31, 2023 and 2022, 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 three months ended March 31, 2023 and 2022, Greenland sold an aggregate of 36,841 and 41,902 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, GEX-8000, an all-electric 8.0 ton rated load lithium powered wheeled excavator, and GEL-5000, an all-electric 5.0 ton rated load lithium wheeled front loader. These products are available for purchase in the United States (“U.S.”) market. In August 2022, Greenland launched a 54,000 square foot industrial electric vehicle assembly site in Baltimore, Maryland to support local services, assembly and distribution of its electric industrial heavy equipment products line. The COVID-19 pandemic has significantly affected business and manufacturing activities within China, including travel restrictions, widespread mandatory quarantines, and suspension of business activities within China. For the three months ended March 31, 2023 and 2022, we experienced rising material costs due to the pandemic. As of the date of this report, Chinese industries have gradually resumed businesses as the Chinese government lifted its COVID-19 protocols and measures since December 2022. However, we remain cautious and prudent when assessing the future impact of COVID-19 on our business due to the current ongoing global pandemic. The Company’s Shareholders As of March 31, 2023, Cenntro Holding Limited owned 47.86% 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. 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”), 100% of HEVI (formerly known as Greenland Technologies Corp.) and 62.5% of Hengyu Capital, Ltd. (“Hengyu Capital”). 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 March 31, 2023, 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. Hengyu Capital Hengyu Capital is a limited liability company registered on August 16, 2022 in Hong Kong. The main business of Hengyu Capital is to engage in investment management and consulting services. Details of the Company’s subsidiaries, which are included in these unaudited consolidated financial statements as of March 31, 2023, are as follows: Name Domicile Paid-in Percentage of 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. Delaware USD 6,363,557 100 % U.S. operation and distribution of electric industrial vehicles for North American market Hengyu Capital, Ltd Hong Kong HKD 10,000 62.5 % Investment management and consulting services |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited 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 unaudited 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 three months ended March 31, 2023 and 2022 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 “$”). The functional currency of the Company is Renminbi (“RMB”). Transactions in foreign currencies are initially recorded at the functional currency rate then-in-effect at the date of the transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of operations. As of March 31, December 31, Period end RMB: US$ exchange rate 6.8676 6.8972 For the 2023 2022 Period average RMB: US$ exchange rate 6.8423 6.3362 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 its bank accounts in the U.S., the PRC and Hong Kong. Balances at financial institutions or state-owned banks within the 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 $1.01 million and $0.76 million as of March 31, 2023 and December 31, 2022, 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 $0.63 million and $0.41 million as of March 31, 2023 and December 31, 2022, respectively. 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 the three months ended March 31, 2023 and 2022. 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 5.0%. The Company has leased premises for its offices under non-cancellable operating leases since May 2021 and its assembly site under non-cancellable operating leases since June 2022. Operating lease payments are expensed over the term of lease using straight line method. The Company’s office leases have a 3-year term and the lease of its assembly site has a 5.5-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’s product returns and recorded reserve for sales returns were minimal for the three months ended March 31, 2023 and 2022. The total rebates amount accounted for around 0.52% and 0.63% of the total revenue of Greenland for the three months ended March 31, 2023 and 2022. The following table sets forth disaggregation of revenue: For the Major Product 2023 2022 Transmission boxes for Forklift 20,868,739 25,405,541 Transmission boxes for Non-Forklift (EV, etc.) 1,280,621 3,901,416 Total 22,149,360 29,306,957 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 $1,119,891 and $1,082,594 for the three months ended March 31, 2023 and 2022, 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 $1.78 million and $1.81 million as of March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022, 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) 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 the 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 March 31, 2023 and December 31, 2022. 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 March 31, 2023 and December 31, 2022. 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 A significant portion of 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. The Company’s cash is maintained with banks within the U.S., the PRC and Hong Kong, 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 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 April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”) which clarifies treatment of certain credit losses. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief” (“ASU 2019-05”) which provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. In November 2019, the FASB issued ASU No. 2019- 11, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses” (“ASU 2019- 11”), which provides guidance around how to report expected recoveries. In February 2020, the Financial Accounting Standards Board issued ASU No. 2020-02, “Financial Instruments - Credit Losses” (Topic 326) (“ASU 2020-02”) which provides updated guidance on how an entity should measure credit losses on financial instruments and delayed the effective date of the original pronouncement for smaller reporting companies. ASU 2016- 13, ASU 2018- 19, ASU 2019-04, ASU 2019-05, ASU 2019- 11 and ASU 2020-02 (collectively, “ASC 326”) are effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of ASC 326 did not have a material impact on the Company’s recognition of financial instruments within the scope of the standard. 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 removes certain exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles. ASU 2019- 12 is effective for public entities for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2019-12, which did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments” (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted ASU 2020-03 upon issuance, which did not have a material effect on the Company’s current financial position, results of ope |
Short Term Investment
Short Term Investment | 3 Months Ended |
Mar. 31, 2023 | |
Short Term Investment [Abstract] | |
SHORT TERM INVESTMENT | NOTE 3 – SHORT TERM INVESTMENT As of March 31, 2023 and December 31, 2022, the Company’s short term investment amounted to $5,968,897 and $7,800,723, 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, 2023. The Company contributed a total amount of $500,000 under this agreement. On March 27, 2023, the contract was terminated early and the Company received a total amount of $493,943(RMB3,400,005). For the six months ended March 31 2023, the Company purchased bank management products in a total amount of $5,845,987 (RMB40,000,000). As of March 31, 2023, the fair value of the Company’s bank management products was $5,968,897 (RMB40,992,000). 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023 2022 Major customers representing more than 10% of the Company’s revenues Company A $ 4,329,109 19.55 % $ 6,774,618 23.12 % Company B 2,545,243 11.49 % 4,507,829 15.38 Total Revenues $ 6,874,352 31.04 % $ 11,282,447 38.50 % As of March 31, 2023 December 31, 2022 Major customers of the Company’s accounts receivable, net Company A 2,515,734 12.98 % 2,266,095 15.81 % Company B 1,923,656 9.92 % 2,140,591 14.93 % Company C 1,800,298 9.29 % 1,430,298 9.98 % Total $ 6,239,688 32.19 % $ 5,836,984 40.72 % Accounts receivable from the Company’s major customers accounted for 32.19% and 40.72% of total accounts receivable balances as of March 31, 2023 and December 31, 2022, respectively. There were no suppliers representing more than 10% of the Company’s total purchases for the three months ended March 31, 2023 and 2022, respectively. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2023 | |
Accounts Receivable [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 5 – ACCOUNTS RECEIVABLE Accounts receivable is net of allowance for doubtful accounts. As of March 31, December 31, Accounts receivable $ 20,388,980 $ 15,100,085 Less: allowance for doubtful accounts (1,005,569 ) (762,325 ) Accounts receivable, net $ 19,383,411 $ 14,337,760 Changes in the allowance for doubtful accounts are as follows: As of March 31, December 31, Beginning balance $ 762,325 $ 859,319 Provision for doubtful accounts 240,845 (32,316 ) Effect of FX change 2,399 (64,678 ) Ending balance $ 1,005,569 $ 762,325 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 6 – INVENTORIES As of March 31, December 31, Raw materials $ 8,334,550 $ 7,975,097 Revolving material 1,157,825 1,122,313 Consigned processing material 40,270 15,056 Work-in-progress 2,480,940 2,255,453 Finished goods 10,925,583 12,104,309 Less: inventory impairment (436,377 ) (375,846 ) Inventories, net $ 22,502,791 $ 23,096,382 Changes in the inventory reserves are as follows: As of March 31, December 31, Beginning balance $ 375,846 $ 23,793 (Release of) inventory write-downs 59,521 359,534 Effect of FX change 1,010 (7,481 ) Ending balance $ 436,377 $ 375,846 |
Notes Receivable
Notes Receivable | 3 Months Ended |
Mar. 31, 2023 | |
Notes Receivable [Abstract] | |
NOTES RECEIVABLE | NOTE 7 – NOTES RECEIVABLE As of March 31, December 31, Bank notes receivable: $ 26,025,808 $ 26,713,919 Commercial notes receivable 2,954,077 2,034,960 Total $ 28,979,885 $ 28,748,879 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 issuers at maturity, which bear no interest and generally range from three to six months from the date of issuance. As of March 31, 2023, the Company pledged notes receivable for an aggregate amount of $16.52 million to Bank of Ningbo and Bank of Hangzhou as a means of security for issuance of bank acceptance notes for an aggregate amount of $17.61 million. As of December 31, 2022, the Company pledged notes receivable for an aggregate amount of $15.51 million to Bank of Hangzhou as a means of security for issuance of bank acceptance notes in an aggregate amount of $13.27 million. The Company expects to collect notes receivable within 6 months. |
Property, Plant and Equipment a
Property, Plant and Equipment and Construction in Progress | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment and Construction in Progress [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS | NOTE 8 – PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS (a) As of March 31, 2023 and December 31, 2022, property, plant and equipment consisted of the following: As of March 31, December 31, Buildings $ 11,832,035 $ 11,781,256 Machinery 21,123,822 21,010,613 Motor vehicles 317,068 315,708 Electronic equipment 235,462 223,806 Fixed assets decoration* - - Total property plant and equipment, at cost 33,508,387 33,331,383 Less: accumulated depreciation (18,359,517 ) (17,763,247 ) Property, plant and equipment, net $ 15,148,470 $ 15,568,136 Construction in process 17,151 17,078 Total $ 15,165,621 $ 15,585,214 For the three months ended March 31, 2023 and 2022, depreciation expense amounted to $0.54 million and $0.63 million, respectively, of which $0.30 million and $0.38 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 three months ended March 31, 2023 and 2022, $0 and $0.31 of construction in progress were converted into fixed assets. Restricted assets consist of the following: As of March 31, December 31, Buildings, net $ 9,527,131 $ 9,599,313 Machinery, net - - Total 9,527,131 9,599,313 As of March 31, 2023, the Company pledged its ownership interests in certain buildings for book value of RMB65.43 million ($9.53 million) as security with Agricultural Bank of PRC Co., Ltd. Xinchang County Sub-Branch (“ABC Xinchang”) and Rural Commercial Bank of Xinchang, for its loan facility with maximum exposure of RMB167.73 million. |
Land Use Rights
Land Use Rights | 3 Months Ended |
Mar. 31, 2023 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS | NOTE 9 – LAND USE RIGHTS Land use rights consisted of the following: As of March 31, December 31, Land use rights, cost $ 4,479,964 $ 4,460,738 Less: Accumulated amortization (847,613 ) (821,671 ) Land use rights, net $ 3,632,351 $ 3,639,067 As of March 31, 2023, the Company had land use rights with net book value of $3.63 million, which were pledged as collateral for the Company’s short-term bank loans. As of December 31, 2022, the Company had land use rights with net book value of $3.64 million, which were pledged as collateral for the Company’s short-term bank loans. Estimated future amortization expense is as follows as of March 31, 2023: Years ending March 31, Amortization 2024 $ 89,931 2025 89,931 2026 89,931 2027 89,931 2028 89,931 Thereafter 3,182,696 Total $ 3,632,351 |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2023 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | NOTE 10 – NOTES PAYABLE As of March 31, December 31, Bank acceptance notes $ 25,230,911 $ 28,272,472 Total $ 25,230,911 $ 28,272,472 The interest-free notes payable, ranging from six months to one year from the date of issuance, were secured by $4.86 million and $3.43 million restricted cash, $16.52 million and $15.51 million notes receivable, and $3.63 million and $3.64million land use rights, as of March 31, 2023 and December 31, 2022, 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 | 3 Months Ended |
Mar. 31, 2023 | |
Accounts Payable [Abstract] | |
ACCOUNTS PAYABLE | NOTE 11 – ACCOUNTS PAYABLE Accounts payable are summarized as follow: As of March 31, December 31, Procurement of Materials $ 28,082,352 $ 24,541,774 Infrastructure& Equipment 259,196 207,587 Freight fee 80,389 67,804 Total $ 28,421,937 $ 24,817,165 |
Short Term Bank Loans
Short Term Bank Loans | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
SHORT TERM BANK LOANS | NOTE 12 – SHORT TERM BANK LOANS Short-term loans are summarized as follow: As of March 31, December 31, Collateralized bank loans $ 6,552,508 $ 7,536,392 Unsecured bank loans 1,164,890 1,449,863 Total $ 7,717,398 $ 8,986,255 Short-term loans as of March 31, 2023 are as follow: Maturity Date Type Bank Name Interest March 31, August 29, 2023 Operating Loans Agricultural Bank of PRC 3.85 $ 2,621,003 June 29, 2023 Operating Loans Bank of Communications 3.85 $ 1,456,113 August 23, 2023 Operating Loans Rural Commercial Bank of Xinchang 3.85 $ 2,475,392 February 23, 2024 Operating Loans Industrial and Commercial Bank of Xinchang 4.05 $ 1,164,890 Total $ 7,717,398 Short-term loans as of December 31, 2022 are as follow: Maturity Date Type Bank Name Interest December 31, August 29, 2023 Operating Loans Agricultural Bank of PRC 3.85 $ 2,609,755 June 29, 2023 Operating Loans Bank of Communications 3.85 $ 1,449,864 January 30, 2023 Operating Loans Bank of Ningbo 1.12 $ 1,012,005 August 23, 2023 Operating Loans Rural Commercial Bank of Xinchang 3.85 $ 2,464,768 February 23, 2023 Operating Loans Industrial and Commercial Bank of Xinchang 4.05 $ 1,449,863 Total $ 8,986,255 All short-term bank loans were obtained from local banks in the PRC and are repayable within one year. The average annual interest rate of the short-term bank loans was 3.880% and 4.344% for the three months ended March 31, 2023 and 2022, respectively. The Company was in compliance with its loan financial covenants as of March 31, 2023 and December 31, 2022, respectively. |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Other Current Liabilities [Abstract] | |
OTHER CURRENT LIABILITIES | NOTE 13 – OTHER CURRENT LIABILITIES Other current liabilities are summarized as follow: As of March 31, December 31, Employee payables 159,569 747,923 Other tax payables 817,634 141,772 Other payable 162,977 88,403 Accrued expenses 861,151 569,292 Total $ 2,001,331 $ 1,547,390 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, December 31, Subsidy 1,780,929 1,812,759 Total $ 1,780,929 $ 1,812,759 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 March 31, 2023, grant income decreased by $0.03 million, as compared to December 31, 2022. The change was mainly due to timing of incurring qualifying expenses. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 15 – LEASES The Company leases its corporate offices and assembly site under operating leases, with initial terms of 3 years and 5.58 years, respectively. 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 three months ended March 31, 2023 is as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 146,106 Right-of-use assets obtained in exchange for lease obligations: Operating leases - Supplemental balance sheet information related to leases as of March 31, 2023 is as follows: Operating leases: Operating lease right-of-use assets $ 2,503,903 Current portion of operating lease liabilities $ 482,122 Long-term operating lease liabilities 2,048,848 Total operating lease liabilities $ 2,530,970 The following table summarizes the maturity of lease liabilities under operating leases as of March 31, 2023: For the years ending March 31, Operating 2024 $ 597,777 2025 579,901 2026 593,457 2027 610,686 Thereafter 470,641 Total lease payments $ 2,852,462 |
Shareholder_s Equity
Shareholder’s Equity | 3 Months Ended |
Mar. 31, 2023 | |
Shareholders’ Equity [Abstract] | |
SHAREHOLDER’S EQUITY | NOTE 16 – SHAREHOLDER’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 dated as of July 12, 2019 by and among (i) Greenland, (ii) Zhongchai Holding, (iii) the Sponsor in the capacity as the purchaser representative, and (iv) Cenntro Holding Limited, the sole member of Zhongchai Holding (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. On July 27, 2022, the Company closed a firm commitment offering of 1,250,000 ordinary shares and 398,974 pre-funded warrants at $4.17 per share and $4.169 per pre-funded warrant with gross proceeds of $6,876,222 under its effective shelf registration statement. Rights As of March 31, 2023, all of the 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 March 31, 2023, 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 March 31, 2023, an option exercisable by Chardan for 120,000 units is outstanding. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 17 – 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: Three months ended 2023 2022 Net income attributable to the Greenland Technologies Holding Corporation and subsidiaries $ 1,446,975 $ 1,787,052 Weighted average basic and diluted computation shares outstanding: Weighted average shares used in basic computation 12,978,504 11,329,530 Diluted effect of stock options and warrants — — Weighted average shares used in diluted computation 12,978,504 11,329,530 Basic and diluted net income per share $ 0.11 $ 0.16 |
Geographical Sales and Segments
Geographical Sales and Segments | 3 Months Ended |
Mar. 31, 2023 | |
Geographical Sales and Segments [Abstract] | |
GEOGRAPHICAL SALES AND SEGMENTS | NOTE 18 – 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 months ended March 31, 2023 and 2022 are as follows: For the 2023 2022 Domestic Sales $ 22,129,222 $ 29,132,922 International Sales 20,138 174,035 Total $ 22,149,360 $ 29,306,957 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 19 – 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 three months ended March 31, 2023 was 10.77%. The effective tax rate for the three months ended March 31, 2023 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 three months ended March 31, 2022 was 17.53%. The effective tax rate for the three months ended March 31, 2022 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 March 31, 2023 and December 31, 2022, 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 | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 20 – COMMITMENTS AND CONTINGENCIES Guarantees and pledged collateral for bank loans to other parties: Pledged collateral for bank loans On December 23, 2020, Zhejiang Zhongchai signed a Maximum Amount Pledge Contract with 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 November 17, 2020 to November 16, 2023. As of March 31, 2023 and December 31, 2022, the outstanding amount of the short-term bank loan under this pledge contract was RMB18.00 million and RMB18.00 million, respectively. On September 21, 2020, 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 RMB37.95 million during the period from September 21, 2020 to September 20, 2026. As of March 31, 2023 and December 31, 2022, the outstanding amount of the short-term bank loan under this pledge contract was RMB17.00 million and RMB17.00 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, 2027. As of March 31, 2023 and December 31, 2022, the outstanding amount of the short-term bank loan under this pledge contract was RMB10.00 million and RMB10.00 million, respectively. Facility Leases The Company has leased premises for its offices under non-cancellable operating leases since May 2021 and its assembly site under non-cancellable operating leases since June 2022. 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 March 31, 2023: For the years ending March 31, Operating 2024 $ 597,777 2025 579,901 2026 593,457 2027 610,686 Thereafter 470,641 Total lease payments $ 2,852,462 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 21 – 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 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 March 31, December 31, Due to related parties: Zhejiang Zhonggong Machinery Co., Ltd. 1 $ 64,842 $ 64,563 Cenntro Smart Manufacturing Tech. Co., Ltd. 2 2,694 2,683 Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 3 94,442 94,442 Cenntro Holding Limited 4 1,341,627 1,341,627 Hangzhou Jiuru Economic Information Consulting Co. Ltd 4 190,000 190,000 Total $ 1,693,605 $ 1,693,315 The balance of due to related parties as of March 31, 2023 and December 31, 2022 consisted of: 1 Unpaid balances for purchasing of materials and equipment and temporary borrowing from Zhejiang Zhonggong Machinery Co., Ltd.; 2 Prepayment from Cenntro Smart Manufacturing Tech. Co., Ltd. 3 Temporary borrowings from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership); and 4 Borrowings from related parties. As of March 31, December 31, 2023 2022 Due from related parties-current: Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 216,740 214,245 Cenntro Holding Limited $ 36,612,789 $ 36,455,662 Total $ 36,829,529 $ 36,669,907 The balance of due from related parties as of March 31, 2023 and December 31, 2022 consisted of: Other receivable from Cenntro Holding Limited in the amount of $36.61 million and $36.46 million as of March 31, 2023 and December 31, 2022, respectively. (c) Summary of Related Party Funds Lending: A summary of funds lending with related parties for the three months ended March 31, 2023 and 2022 are listed below: Withdraw funds from related parties: For the 2023 2022 Zhejiang Zhonggong Machinery Co., Ltd. - - Cenntro Smart Manufacturing Tech. Co., Ltd. - - Peter Zuguang Wang - - Xinchang County Jiuxin Investment Management Partnership (LP) - - Cenntro Holding Limited - - Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) - - For the 2023 2022 Deposit funds with related parties: Zhejiang Zhonggong Machinery Co., Ltd. $ - $ - Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) - - Xinchang County Jiuxin Investment Management Partnership (LP) - 1,578,233 Cenntro Smart Manufacturing Tech. Co., Ltd. - - Peter Zuguang Wang - - Cenntro Holding Limited - - Zhejiang Kangchen Biotechnology Co., Ltd - - |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 22 – SUBSEQUENT EVENTS Management has evaluated subsequent events through the date that the financial statements were available to be issued, which is May 19, 2023. All subsequent events requiring recognition as of March 31, 2023 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) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited 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 unaudited 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 three months ended March 31, 2023 and 2022 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. As of March 31, December 31, Period end RMB: US$ exchange rate 6.8676 6.8972 For the 2023 2022 Period average RMB: US$ exchange rate 6.8423 6.3362 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 its bank accounts in the U.S., the PRC and Hong Kong. Balances at financial institutions or state-owned banks within the 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 $1.01 million and $0.76 million as of March 31, 2023 and December 31, 2022, 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 $0.63 million and $0.41 million as of March 31, 2023 and December 31, 2022, respectively. |
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 the three months ended March 31, 2023 and 2022. |
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 5.0%. The Company has leased premises for its offices under non-cancellable operating leases since May 2021 and its assembly site under non-cancellable operating leases since June 2022. Operating lease payments are expensed over the term of lease using straight line method. The Company’s office leases have a 3-year term and the lease of its assembly site has a 5.5-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’s product returns and recorded reserve for sales returns were minimal for the three months ended March 31, 2023 and 2022. The total rebates amount accounted for around 0.52% and 0.63% of the total revenue of Greenland for the three months ended March 31, 2023 and 2022. The following table sets forth disaggregation of revenue: For the Major Product 2023 2022 Transmission boxes for Forklift 20,868,739 25,405,541 Transmission boxes for Non-Forklift (EV, etc.) 1,280,621 3,901,416 Total 22,149,360 29,306,957 |
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 $1,119,891 and $1,082,594 for the three months ended March 31, 2023 and 2022, 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 $1.78 million and $1.81 million as of March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022, 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 (Loss) | 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) 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 the 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 March 31, 2023 and December 31, 2022. 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 March 31, 2023 and December 31, 2022. |
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 A significant portion of 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. The Company’s cash is maintained with banks within the U.S., the PRC and Hong Kong, 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 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 April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”) which clarifies treatment of certain credit losses. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief” (“ASU 2019-05”) which provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. In November 2019, the FASB issued ASU No. 2019- 11, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses” (“ASU 2019- 11”), which provides guidance around how to report expected recoveries. In February 2020, the Financial Accounting Standards Board issued ASU No. 2020-02, “Financial Instruments - Credit Losses” (Topic 326) (“ASU 2020-02”) which provides updated guidance on how an entity should measure credit losses on financial instruments and delayed the effective date of the original pronouncement for smaller reporting companies. ASU 2016- 13, ASU 2018- 19, ASU 2019-04, ASU 2019-05, ASU 2019- 11 and ASU 2020-02 (collectively, “ASC 326”) are effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of ASC 326 did not have a material impact on the Company’s recognition of financial instruments within the scope of the standard. 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 removes certain exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles. ASU 2019- 12 is effective for public entities for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2019-12, which did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments” (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted ASU 2020-03 upon issuance, which did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In March 2020, the FASB issued ASU No 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. ASU 2020-04 is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company adopted ASU 2020-04, which did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of subsidiary included consolidated financial statements | Name Domicile Paid-in Percentage of 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. Delaware USD 6,363,557 100 % U.S. operation and distribution of electric industrial vehicles for North American market Hengyu Capital, Ltd Hong Kong HKD 10,000 62.5 % Investment management and consulting services |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of gain or loss on foreign currency transaction | As of March 31, December 31, Period end RMB: US$ exchange rate 6.8676 6.8972 |
Schedule of gain or loss on foreign currency transaction | For the 2023 2022 Period average RMB: US$ exchange rate 6.8423 6.3362 |
Schedule of estimated useful lives | 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 Major Product 2023 2022 Transmission boxes for Forklift 20,868,739 25,405,541 Transmission boxes for Non-Forklift (EV, etc.) 1,280,621 3,901,416 Total 22,149,360 29,306,957 |
Concentration on Revenues and_2
Concentration on Revenues and Cost of Goods Sold (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Concentration on Revenues and Cost of Goods Sold [Abstract] | |
Schedule of concentration of major customers and suppliers | For the three months ended March 31, 2023 2022 Major customers representing more than 10% of the Company’s revenues Company A $ 4,329,109 19.55 % $ 6,774,618 23.12 % Company B 2,545,243 11.49 % 4,507,829 15.38 Total Revenues $ 6,874,352 31.04 % $ 11,282,447 38.50 % |
Schedule of major customers of accounts receivable | As of March 31, 2023 December 31, 2022 Major customers of the Company’s accounts receivable, net Company A 2,515,734 12.98 % 2,266,095 15.81 % Company B 1,923,656 9.92 % 2,140,591 14.93 % Company C 1,800,298 9.29 % 1,430,298 9.98 % Total $ 6,239,688 32.19 % $ 5,836,984 40.72 % |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounts Receivable [Abstract] | |
Schedule of accounts receivable net of allowance for doubtful accounts | As of March 31, December 31, Accounts receivable $ 20,388,980 $ 15,100,085 Less: allowance for doubtful accounts (1,005,569 ) (762,325 ) Accounts receivable, net $ 19,383,411 $ 14,337,760 |
Schedule of allowance for doubtful accounts | As of March 31, December 31, Beginning balance $ 762,325 $ 859,319 Provision for doubtful accounts 240,845 (32,316 ) Effect of FX change 2,399 (64,678 ) Ending balance $ 1,005,569 $ 762,325 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
Schedule of inventories | As of March 31, December 31, Raw materials $ 8,334,550 $ 7,975,097 Revolving material 1,157,825 1,122,313 Consigned processing material 40,270 15,056 Work-in-progress 2,480,940 2,255,453 Finished goods 10,925,583 12,104,309 Less: inventory impairment (436,377 ) (375,846 ) Inventories, net $ 22,502,791 $ 23,096,382 |
Schedule of inventory reserve | As of March 31, December 31, Beginning balance $ 375,846 $ 23,793 (Release of) inventory write-downs 59,521 359,534 Effect of FX change 1,010 (7,481 ) Ending balance $ 436,377 $ 375,846 |
Notes Receivable (Tables)
Notes Receivable (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Receivable (Tables) [Line Items] | |
Schedule of notes receivable | As of March 31, December 31, Bank notes receivable: $ 26,025,808 $ 26,713,919 Commercial notes receivable 2,954,077 2,034,960 Total $ 28,979,885 $ 28,748,879 |
Property, Plant and Equipment_2
Property, Plant and Equipment and Construction in Progress (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | As of March 31, December 31, Buildings $ 11,832,035 $ 11,781,256 Machinery 21,123,822 21,010,613 Motor vehicles 317,068 315,708 Electronic equipment 235,462 223,806 Fixed assets decoration* - - Total property plant and equipment, at cost 33,508,387 33,331,383 Less: accumulated depreciation (18,359,517 ) (17,763,247 ) Property, plant and equipment, net $ 15,148,470 $ 15,568,136 Construction in process 17,151 17,078 Total $ 15,165,621 $ 15,585,214 |
Schedule of restricted assets | As of March 31, December 31, Buildings, net $ 9,527,131 $ 9,599,313 Machinery, net - - Total 9,527,131 9,599,313 |
Land Use Rights (Tables)
Land Use Rights (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Land Use Rights [Abstract] | |
Schedule of land use rights | As of March 31, December 31, Land use rights, cost $ 4,479,964 $ 4,460,738 Less: Accumulated amortization (847,613 ) (821,671 ) Land use rights, net $ 3,632,351 $ 3,639,067 |
Schedule of estimated future amortization expense | Years ending March 31, Amortization 2024 $ 89,931 2025 89,931 2026 89,931 2027 89,931 2028 89,931 Thereafter 3,182,696 Total $ 3,632,351 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Payable (Tables) [Line Items] | |
Schedule of notes payable | As of March 31, December 31, Bank acceptance notes $ 25,230,911 $ 28,272,472 Total $ 25,230,911 $ 28,272,472 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounts Payable [Abstract] | |
Schedule of accounts payable | As of March 31, December 31, Procurement of Materials $ 28,082,352 $ 24,541,774 Infrastructure& Equipment 259,196 207,587 Freight fee 80,389 67,804 Total $ 28,421,937 $ 24,817,165 |
Short Term Bank Loans (Tables)
Short Term Bank Loans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of short term bank loans | As of March 31, December 31, Collateralized bank loans $ 6,552,508 $ 7,536,392 Unsecured bank loans 1,164,890 1,449,863 Total $ 7,717,398 $ 8,986,255 |
Schedule of short term loans | Maturity Date Type Bank Name Interest March 31, August 29, 2023 Operating Loans Agricultural Bank of PRC 3.85 $ 2,621,003 June 29, 2023 Operating Loans Bank of Communications 3.85 $ 1,456,113 August 23, 2023 Operating Loans Rural Commercial Bank of Xinchang 3.85 $ 2,475,392 February 23, 2024 Operating Loans Industrial and Commercial Bank of Xinchang 4.05 $ 1,164,890 Total $ 7,717,398 Maturity Date Type Bank Name Interest December 31, August 29, 2023 Operating Loans Agricultural Bank of PRC 3.85 $ 2,609,755 June 29, 2023 Operating Loans Bank of Communications 3.85 $ 1,449,864 January 30, 2023 Operating Loans Bank of Ningbo 1.12 $ 1,012,005 August 23, 2023 Operating Loans Rural Commercial Bank of Xinchang 3.85 $ 2,464,768 February 23, 2023 Operating Loans Industrial and Commercial Bank of Xinchang 4.05 $ 1,449,863 Total $ 8,986,255 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Current Liabilities [Abstract] | |
Schedule of other current liabilities | As of March 31, December 31, Employee payables 159,569 747,923 Other tax payables 817,634 141,772 Other payable 162,977 88,403 Accrued expenses 861,151 569,292 Total $ 2,001,331 $ 1,547,390 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Long-Term Liabilities [Abstract] | |
Schedule of other long-term liabilities | As of March 31, December 31, Subsidy 1,780,929 1,812,759 Total $ 1,780,929 $ 1,812,759 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 $ 146,106 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 $ 2,503,903 Current portion of operating lease liabilities $ 482,122 Long-term operating lease liabilities 2,048,848 Total operating lease liabilities $ 2,530,970 |
Schedule of lease liabilities under operating leases | For the years ending March 31, Operating 2024 $ 597,777 2025 579,901 2026 593,457 2027 610,686 Thereafter 470,641 Total lease payments $ 2,852,462 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share computation | Three months ended 2023 2022 Net income attributable to the Greenland Technologies Holding Corporation and subsidiaries $ 1,446,975 $ 1,787,052 Weighted average basic and diluted computation shares outstanding: Weighted average shares used in basic computation 12,978,504 11,329,530 Diluted effect of stock options and warrants — — Weighted average shares used in diluted computation 12,978,504 11,329,530 Basic and diluted net income per share $ 0.11 $ 0.16 |
Geographical Sales and Segmen_2
Geographical Sales and Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Geographical Sales and Segments [Abstract] | |
Schedule of sales by geographical area | For the 2023 2022 Domestic Sales $ 22,129,222 $ 29,132,922 International Sales 20,138 174,035 Total $ 22,149,360 $ 29,306,957 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of non-cancellable future minimum lease payments | For the years ending March 31, Operating 2024 $ 597,777 2025 579,901 2026 593,457 2027 610,686 Thereafter 470,641 Total lease payments $ 2,852,462 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] [Standard Label] | |
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 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 March 31, December 31, Due to related parties: Zhejiang Zhonggong Machinery Co., Ltd. 1 $ 64,842 $ 64,563 Cenntro Smart Manufacturing Tech. Co., Ltd. 2 2,694 2,683 Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 3 94,442 94,442 Cenntro Holding Limited 4 1,341,627 1,341,627 Hangzhou Jiuru Economic Information Consulting Co. Ltd 4 190,000 190,000 Total $ 1,693,605 $ 1,693,315 1 Unpaid balances for purchasing of materials and equipment and temporary borrowing from Zhejiang Zhonggong Machinery Co., Ltd.; 2 Prepayment from Cenntro Smart Manufacturing Tech. Co., Ltd. 3 Temporary borrowings from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership); and 4 Borrowings from related parties. |
Schedule of due from related parties | As of March 31, December 31, 2023 2022 Due from related parties-current: Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 216,740 214,245 Cenntro Holding Limited $ 36,612,789 $ 36,455,662 Total $ 36,829,529 $ 36,669,907 |
Schedule of related party funds lending | Withdraw funds from related parties: For the 2023 2022 Zhejiang Zhonggong Machinery Co., Ltd. - - Cenntro Smart Manufacturing Tech. Co., Ltd. - - Peter Zuguang Wang - - Xinchang County Jiuxin Investment Management Partnership (LP) - - Cenntro Holding Limited - - Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) - - For the 2023 2022 Deposit funds with related parties: Zhejiang Zhonggong Machinery Co., Ltd. $ - $ - Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) - - Xinchang County Jiuxin Investment Management Partnership (LP) - 1,578,233 Cenntro Smart Manufacturing Tech. Co., Ltd. - - Peter Zuguang Wang - - Cenntro Holding Limited - - Zhejiang Kangchen Biotechnology Co., Ltd - - |
Organization and Principal Ac_3
Organization and Principal Activities (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) | Mar. 31, 2022 | |
Organization and Principal Activities (Details) [Line Items] | ||
Revenue amount (in Dollars) | $ 22,150 | |
Transmission product sale of sets | 36,841 | 41,902 |
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, GEX-8000, an all-electric 8.0 ton rated load lithium powered wheeled excavator, and GEL-5000, an all-electric 5.0 ton rated load lithium wheeled front loader. These products are available for purchase in the United States (“U.S.”) market. In August 2022, Greenland launched a 54,000 square foot industrial electric vehicle assembly site in Baltimore, Maryland to support local services, assembly and distribution of its electric industrial heavy equipment products line. | |
Percentage of outstanding ordinary shares | 47.86% | |
Greenland Technologies Corporation [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Revenue amount (in Dollars) | $ 29,310 | |
Percentage of outstanding ordinary shares | 100% | |
Zhejiang Zhongchai Machinery Co., Ltd. [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of outstanding ordinary shares | 71.576% | |
Shanghai Hengyu Business Management Consulting Co., Ltd [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of outstanding ordinary shares | 62.50% | |
Hangzhou Greenland Energy Technologies Co., Ltd [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of outstanding ordinary shares | 100% | |
Hengyu Capital, Ltd. [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of outstanding ordinary shares | 62.50% | |
Zhejiang Zhongchai [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Subsidiaries, description | 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$2.6 million. On November 1, 2017, Xinchang County Jiuxin Investment Management Partnership (LP) (“Jiuxin”), an entity controlled and beneficially owned by Mr. He Mengxing, president of Zhejiang Zhongchai, closed its investment of approximately RMB31,590,000 in Zhejiang Zhongchai for 10.53% of its interest.On December 29, 2021, Xinchang County Jiuhe Investment Management Partnership (LP) (“Jiuhe”), an entity controlled and beneficially owned by Mr. He Mengxing, president of Zhejiang Zhongchai, closed its investment of approximately RMB34,300,000 in Zhejiang Zhongchai for 20.00% of its interest. As of March 31, 2023, Zhongchai Holding owned approximately 71.576% of the equity interests, Jiuxin owned approximately 8.424% of the equity interests, and Jiuhe owned approximately 20.00% of the equity interests in Zhejiang Zhongchai. |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of subsidiary included consolidated financial statements | 3 Months Ended |
Mar. 31, 2023 HKD ($) | |
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 |
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 | U.S. operation and distribution of electric industrial vehicles for North American market |
Paid-in Capital, Currency | USD |
Hengyu Capital, Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Domicile and Date of Incorporation | Hong Kong August 16, 2022 |
Paid-in Capital | $ 10,000 |
Percentage of Effective Ownership | 62.50% |
Principal Activities | Investment management and consulting services |
Paid-in Capital, Currency | HKD |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | ||||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Oct. 24, 2019 | Apr. 01, 2019 | Apr. 30, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies (Textual) | |||||||
Allowance of doubtful accounts (in Dollars) | $ 1,010,000 | $ 760,000 | |||||
Advance to suppliers (in Dollars) | $ 630,000 | 410,000 | |||||
Straight-line method lease term | 50 years | ||||||
Implicit interest rate | 5% | ||||||
Total revenue of Greenland | 0.52% | ||||||
Total sales return, percentage | 0.63% | ||||||
Research and development costs (in Dollars) | $ 1,119,891 | $ 1,082,594 | |||||
Other long-term liabilities (in Dollars) | $ 1,780,000 | $ 1,810,000 | |||||
Income tax rate | 50% | ||||||
Owned foreign enterprise percentage | 10% | ||||||
Registered capital percentage | 50% | ||||||
Ownership percentage | 10% | ||||||
Minimum [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Office leases term | 3 years | ||||||
Interest rate percentage | 13% | 16% | |||||
Maximum [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Office leases term | 5 years 6 months | ||||||
Interest rate percentage | 17% | ||||||
PRC [Member] | Minimum [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Interest rate percentage | 13% | 16% | |||||
PRC [Member] | Maximum [Member] | |||||||
Summary of Significant Accounting Policies (Textual) | |||||||
Interest rate percentage | 17% | ||||||
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Gain Or Loss On Foreign Currency Transaction Abstract | ||
Period end RMB: US$ exchange rate | 6.8676 | 6.8972 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of gain or loss on foreign currency transaction | Mar. 31, 2023 | Mar. 31, 2022 |
PRC [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of gain or loss on foreign currency transaction [Line Items] | ||
Period average RMB: US$ exchange rate | 6.8423 | 6.3362 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | Mar. 31, 2023 |
Plant, buildings and improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 20 years |
Machinery and equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 2 years |
Machinery and equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 10 years |
Motor vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 4 years |
Office equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 3 years |
Office equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 5 years |
Fixtures and decorations [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of sets forth disaggregation of revenue - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Major Product | $ 22,149,360 | $ 29,306,957 |
Transmission boxes for Forklift [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Major Product | 20,868,739 | 25,405,541 |
Transmission boxes for Non-Forklift (EV, etc.) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Major Product | $ 1,280,621 | $ 3,901,416 |
Short Term Investment (Details)
Short Term Investment (Details) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 CNY (¥) | Mar. 27, 2023 USD ($) | Mar. 27, 2023 CNY (¥) | Dec. 31, 2022 USD ($) |
Short Term Investment Details [Abstract] | |||||
Short term investment | $ 5,968,897 | $ 7,800,723 | |||
Contributed total | 500,000 | ||||
Purchased bank management products total amount | $ 493,943 | ¥ 3,400,005 | |||
Purchased bank management products total amount | 5,845,987 | ¥ 40,000,000 | |||
Debt instrument fair value | $ 5,968,897 | ¥ 40,992,000 |
Concentration on Revenues and_3
Concentration on Revenues and Cost of Goods Sold (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Accounts Receivable [Member] | |||
Concentration on Revenues and Cost of Goods Sold (Details) [Line Items] | |||
Concentration risk, percentage | 32.19% | 40.72% | |
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 - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue, Major Customer [Line Items] | ||
Total Revenues | $ 6,874,352 | $ 11,282,447 |
Customer percentage | 31.04% | 38.50% |
Company A [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenues | $ 4,329,109 | $ 6,774,618 |
Customer percentage | 19.55% | 23.12% |
Company B [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenues | $ 2,545,243 | $ 4,507,829 |
Customer percentage | 11.49% | 15.38% |
Concentration on Revenues and_5
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of major customers of accounts receivable - Customer Concentration Risk [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of major customers of accounts receivable [Line Items] | ||
Accounts receivable, net | $ 6,239,688 | $ 5,836,984 |
Percentage of revenues | 32.19% | 40.72% |
Company A [Member] | ||
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of major customers of accounts receivable [Line Items] | ||
Accounts receivable, net | $ 2,515,734 | $ 2,266,095 |
Percentage of revenues | 12.98% | 15.81% |
Company B [Member] | ||
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of major customers of accounts receivable [Line Items] | ||
Accounts receivable, net | $ 1,923,656 | $ 2,140,591 |
Percentage of revenues | 9.92% | 14.93% |
Company C [Member] | ||
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of major customers of accounts receivable [Line Items] | ||
Accounts receivable, net | $ 1,800,298 | $ 1,430,298 |
Percentage of revenues | 9.29% | 9.98% |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable net of allowance for doubtful accounts - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of accounts receivable net of allowance for doubtful accounts [Abstract] | ||
Accounts receivable | $ 20,388,980 | $ 15,100,085 |
Less: allowance for doubtful accounts | (1,005,569) | (762,325) |
Accounts receivable, net | $ 19,383,411 | $ 14,337,760 |
Accounts Receivable (Details)_2
Accounts Receivable (Details) - Schedule of allowance for doubtful accounts - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Schedule of allowance for doubtful accounts [Abstract] | ||
Beginning balance | $ 762,325 | $ 859,319 |
Provision for doubtful accounts | 240,845 | (32,316) |
Effect of FX change | 2,399 | (64,678) |
Ending balance | $ 1,005,569 | $ 762,325 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 8,334,550 | $ 7,975,097 |
Revolving material | 1,157,825 | 1,122,313 |
Consigned processing material | 40,270 | 15,056 |
Work-in-progress | 2,480,940 | 2,255,453 |
Finished goods | 10,925,583 | 12,104,309 |
Less: inventory impairment | (436,377) | (375,846) |
Inventories, net | $ 22,502,791 | $ 23,096,382 |
Inventories (Details) - Sched_2
Inventories (Details) - Schedule of inventory reserve - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Schedule of inventory reserve [Abstract] | ||
Beginning balance | $ 375,846 | $ 23,793 |
(Release of) inventory write-downs | 59,521 | 359,534 |
Effect of FX change | 1,010 | (7,481) |
Ending balance | $ 436,377 | $ 375,846 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2023 | |
Notes Receivable (Details) [Line Items] | ||
Security for issuance | $ 15,510 | $ 16,520 |
Notes receivable | $ 13,270 | $ 17,610 |
Notes Receivable [Member] | ||
Notes Receivable (Details) [Line Items] | ||
Notes receivable term | 6 months |
Notes Receivable (Details) - Sc
Notes Receivable (Details) - Schedule of notes receivable - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Notes Receivable [Abstract] | ||
Bank notes receivable: | $ 26,025,808 | $ 26,713,919 |
Commercial notes receivable | 2,954,077 | 2,034,960 |
Total | $ 28,979,885 | $ 28,748,879 |
Property, Plant and Equipment_3
Property, Plant and Equipment and Construction in Progress (Details) ¥ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 CNY (¥) | |
Property, Plant and Equipment and Construction in Progress [Abstract] | |||
Cost of revenue and inventories | $ 380,000 | ||
Construction in progress fixed assets | 0.31 | ||
Ownership of buildings for net book value | $ 9,530,000 | ¥ 65,430 | |
Loan facility with maximum exposure (in Yuan Renminbi) | ¥ | ¥ 167,730 | ||
Property, Plant and Equipment [Member] | |||
Property, Plant and Equipment and Construction in Progress [Abstract] | |||
Depreciation expense amount | 540,000 | $ 630,000 | |
Cost of revenue and inventories | 300,000 | ||
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 ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of property, plant and equipment [Abstract] | ||
Buildings | $ 11,832,035 | $ 11,781,256 |
Machinery | 21,123,822 | 21,010,613 |
Motor vehicles | 317,068 | 315,708 |
Electronic equipment | 235,462 | 223,806 |
Fixed assets decoration | ||
Total property plant and equipment, at cost | 33,508,387 | 33,331,383 |
Less: accumulated depreciation | (18,359,517) | (17,763,247) |
Property, plant and equipment, net | 15,148,470 | 15,568,136 |
Construction in process | 17,151 | 17,078 |
Total | $ 15,165,621 | $ 15,585,214 |
Property, Plant and Equipment_5
Property, Plant and Equipment and Construction in Progress (Details) - Schedule of restricted assets - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of restricted assets [Abstract] | ||
Buildings, net | $ 9,527,131 | $ 9,599,313 |
Machinery, net | ||
Total | $ 9,527,131 | $ 9,599,313 |
Land Use Rights (Details)
Land Use Rights (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Land Use Rights [Abstract] | ||
Land use rights, net | $ 3,630 | $ 3,640 |
Land Use Rights (Details) - Sch
Land Use Rights (Details) - Schedule of land use rights - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Land Use Rights [Abstract] | ||
Land use rights, cost | $ 4,479,964 | $ 4,460,738 |
Less: Accumulated amortization | (847,613) | (821,671) |
Land use rights, net | $ 3,632,351 | $ 3,639,067 |
Land Use Rights (Details) - S_2
Land Use Rights (Details) - Schedule of estimated future amortization expense | Dec. 31, 2023 USD ($) |
Schedule of Estimated Future Amortization Expense [Abstract] | |
2024 | $ 89,931 |
2025 | 89,931 |
2026 | 89,931 |
2027 | 89,931 |
2028 | 89,931 |
Thereafter | 3,182,696 |
Total | $ 3,632,351 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Notes Payable (Details) [Line Items] | ||
Restricted cash | $ 4,860 | $ 3,430 |
Notes receivable | 16,520 | 15,510 |
Land use rights | $ 3,630 | $ 3,630 |
Percentage of bank charges | 0.05% | |
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 ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Notes Payable [Abstract] | ||
Bank acceptance notes | $ 25,230,911 | $ 28,272,472 |
Total | $ 25,230,911 | $ 28,272,472 |
Accounts Payable (Details) - Sc
Accounts Payable (Details) - Schedule of accounts payable - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts Payable (Details) - Schedule of accounts payable [Line Items] | ||
Accounts payable | $ 28,421,937 | $ 24,817,165 |
Procurement of Materials [Member] | ||
Accounts Payable (Details) - Schedule of accounts payable [Line Items] | ||
Accounts payable | 28,082,352 | 24,541,774 |
Infrastructure& Equipment [Member] | ||
Accounts Payable (Details) - Schedule of accounts payable [Line Items] | ||
Accounts payable | 259,196 | 207,587 |
Freight fee [Member] | ||
Accounts Payable (Details) - Schedule of accounts payable [Line Items] | ||
Accounts payable | $ 80,389 | $ 67,804 |
Short Term Bank Loans (Details)
Short Term Bank Loans (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Short term debt loan repayable duration | 1 year | |
Average annual interest rate | 3.88% | 4.344% |
Short Term Bank Loans (Detail_2
Short Term Bank Loans (Details) - Schedule of short term bank loans - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Short Term Bank Loans [Abstract] | ||
Collateralized bank loans | $ 6,552,508 | $ 7,536,392 |
Unsecured bank loans | 1,164,890 | 1,449,863 |
Total | $ 7,717,398 | $ 8,986,255 |
Short Term Bank Loans (Detail_3
Short Term Bank Loans (Details) - Schedule of short term loans - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | Total | |
Total | $ 7,717,398 | $ 8,986,255 |
Operating Loans [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | August 29, 2023 | August 29, 2023 |
Bank Name | Agricultural Bank of PRC | Agricultural Bank of PRC |
Interest Rate per Annum (%) | 3.85% | 3.85% |
Total | $ 2,621,003 | $ 2,609,755 |
Operating Loans One [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | June 29, 2023 | June 29, 2023 |
Bank Name | Bank of Communications | Bank of Communications |
Interest Rate per Annum (%) | 3.85% | 3.85% |
Total | $ 1,456,113 | $ 1,449,864 |
Operating Loans Two [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | August 23, 2023 | January 30, 2023 |
Bank Name | Rural Commercial Bank of Xinchang | Bank of Ningbo |
Interest Rate per Annum (%) | 3.85% | 1.12% |
Total | $ 2,475,392 | $ 1,012,005 |
Operating Loans Three [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | February 23, 2024 | August 23, 2023 |
Bank Name | Industrial and Commercial Bank of Xinchang | Rural Commercial Bank of Xinchang |
Interest Rate per Annum (%) | 4.05% | 3.85% |
Total | $ 1,164,890 | $ 2,464,768 |
Operating Loans Four [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | Total | February 23, 2023 |
Bank Name | Industrial and Commercial Bank of Xinchang | |
Interest Rate per Annum (%) | 4.05% | |
Total | $ 7,717,398 | $ 1,449,863 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - Schedule of other current liabilities - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Other Current Liabilities [Abstract] | ||
Employee payables | $ 159,569 | $ 747,923 |
Other tax payables | 817,634 | 141,772 |
Other payable | 162,977 | 88,403 |
Accrued expenses | 861,151 | 569,292 |
Total | $ 2,001,331 | $ 1,547,390 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Other Longterm Liabilities Disclosure [Abstract] | |
Grant income decreased | $ 30 |
Other Long-Term Liabilities (_2
Other Long-Term Liabilities (Details) - Schedule of other long-term liabilities - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of other long-term liabilities [Abstract] | ||
Subsidy | $ 1,780,929 | $ 1,812,759 |
Total | $ 1,780,929 | $ 1,812,759 |
Leases (Details)
Leases (Details) | Mar. 31, 2023 |
Leases (Details) [Line Items] | |
Operating leases, with initial terms | 5 years 6 months 29 days |
Corporate Offices [Member] | |
Leases (Details) [Line Items] | |
Operating leases, with initial terms | 3 years |
Leases (Details) - Schedule of
Leases (Details) - Schedule of lease to the property and equipment | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows paid for operating leases | $ 146,106 |
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] | Mar. 31, 2023 USD ($) |
Operating leases: | |
Operating lease right-of-use assets | $ 2,503,903 |
Current portion of operating lease liabilities | 482,122 |
Long-term operating lease liabilities | 2,048,848 |
Total operating lease liabilities | $ 2,530,970 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of lease liabilities under operating leases | Mar. 31, 2023 USD ($) |
Schedule of lease liabilities under operating leases [Abstract] | |
2024 | $ 597,777 |
2025 | 579,901 |
2026 | 593,457 |
2027 | 610,686 |
Thereafter | 470,641 |
Total lease payments | $ 2,852,462 |
Shareholder_s Equity (Details)
Shareholder’s Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jul. 12, 2019 | Jul. 27, 2022 | May 29, 2019 | Jul. 27, 2018 | Mar. 31, 2023 | Dec. 31, 2019 | Dec. 31, 2022 | |
Shareholder’s Equity (Details) [Line Items] | |||||||
Ordinary shares issued | 12,978,504 | 12,978,504 | |||||
Ordinary shares outstanding | 12,978,504 | 12,978,504 | |||||
Redeemed shares | 3,875,458 | ||||||
Converted ordinary shares | 81,400 | ||||||
Ordinary shares outstanding | 1,906,542 | ||||||
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. | ||||||
Commitment offering ordinary shares | 1,250,000 | ||||||
Pre-funded warrants shares | 398,974 | ||||||
Warrant price (in Dollars per share) | $ 4.17 | ||||||
Pre-funded warrant price (in Dollars per share) | $ 4.169 | ||||||
Gross proceeds (in Dollars) | $ 6,876,222 | ||||||
Warrants expire year | 5 years | ||||||
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 | ||||||
Purchase option outstanding | 120,000 | ||||||
IPO [Member] | |||||||
Shareholder’s Equity (Details) [Line Items] | |||||||
Initial public offering units | 4,400,000 | ||||||
Over-allotment option amount | 400,000 | ||||||
Private Warrants [Member] | |||||||
Shareholder’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 | ||||||
Ordinary Shares [Member] | |||||||
Shareholder’s Equity (Details) [Line Items] | |||||||
Voting rights | one | ||||||
Existing ordinary shares were converted | 468,200 | ||||||
Piggy Back [Member] | |||||||
Shareholder’s Equity (Details) [Line Items] | |||||||
Grant term | 7 years | ||||||
Piggy Back [Member] | IPO [Member] | |||||||
Shareholder’s Equity (Details) [Line Items] | |||||||
Grant term | 5 years | ||||||
Greenland Asset Management Corporation [Member] | |||||||
Shareholder’s Equity (Details) [Line Items] | |||||||
Private placement units | 282,000 | ||||||
Zhongchai Holding [Member] | |||||||
Shareholder’s Equity (Details) [Line Items] | |||||||
Newly issued ordinary shares | 7,500,000 | ||||||
Zhou Hanyi [Member] | |||||||
Shareholder’s Equity (Details) [Line Items] | |||||||
Newly issued ordinary shares | 50,000 | ||||||
CEDE & CO [Member] | Public Warrants [Member] | |||||||
Shareholder’s Equity (Details) [Line Items] | |||||||
Warrants outstanding | 4,303,312 | ||||||
Chardan Capital Markets, LLC [Member] | |||||||
Shareholder’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] | |||||||
Shareholder’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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Basic and Diluted Earnings Per Share Computation [Abstract] | ||
Net income attributable to the Greenland Technologies Holding Corporation and subsidiaries | $ 1,446,975 | $ 1,787,052 |
Weighted average shares used in basic computation | 12,978,504 | 11,329,530 |
Diluted effect of stock options and warrants | ||
Weighted average shares used in diluted computation | 12,978,504 | 11,329,530 |
Basic and diluted net income per share | $ 0.11 | $ 0.16 |
Earnings Per Share (Details) _2
Earnings Per Share (Details) - Schedule of basic and diluted earnings per share computation (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Basic and Diluted Earnings Per Share Computation [Abstract] | ||
Diluted net income per share | $ 0.11 | $ 0.16 |
Geographical Sales and Segmen_3
Geographical Sales and Segments (Details) - Schedule of sales by geographical area - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Geographical Sales and Segments (Details) - Schedule of sales by geographical area [Line Items] | ||
Total | $ 22,149,360 | $ 29,306,957 |
Domestic Sales [Member] | ||
Geographical Sales and Segments (Details) - Schedule of sales by geographical area [Line Items] | ||
Total | 22,129,222 | 29,132,922 |
International Sales [Member] | ||
Geographical Sales and Segments (Details) - Schedule of sales by geographical area [Line Items] | ||
Total | $ 20,138 | $ 174,035 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Income Taxes (Details) [Line Items] | ||
Effective tax rate income before income taxes | 17.53% | |
PRC standard income tax rate | 25% | |
Unrecognized tax benefits (in Dollars) | $ 0 | $ 0 |
PRC [Member] | ||
Income Taxes (Details) [Line Items] | ||
Effective tax rate income before income taxes | 10.77% | |
PRC standard income tax rate | 25% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 27, 2022 | Dec. 23, 2020 | Sep. 21, 2020 | Mar. 31, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies (Details) [Line Items] | |||||
Loand facility with a maximum principal amount | ¥ 60,010 | ¥ 69,770 | ¥ 37,950 | ||
Agricultural Bank of PRC Co., Ltd. Xinchang [Member] | |||||
Commitments and Contingencies (Details) [Line Items] | |||||
Outstanding amount of short-term bank loan under pledge contract | ¥ 18,000 | ¥ 18,000 | |||
Rural Commercial Bank of PRC Co., Ltd. [Member] | |||||
Commitments and Contingencies (Details) [Line Items] | |||||
Outstanding amount of short-term bank loan under pledge contract | 17,000 | 17,000 | |||
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 | ¥ 10,000 | ¥ 10,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of non-cancellable future minimum lease payments | Mar. 31, 2023 USD ($) |
Schedule Of Non Cancellable Future Minimum Lease Payments [Abstract] | |
2024 | $ 597,777 |
2025 | 579,901 |
2026 | 593,457 |
2027 | 610,686 |
Thereafter | 470,641 |
Total lease payments | $ 2,852,462 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Related Party Transactions [Abstract] | ||
Other receivables | $ 36,610 | $ 36,460 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of names and relationship of related parties | 3 Months Ended |
Mar. 31, 2023 | |
Sinomachinery Holding Limited [Member] | |
Schedule of names and relationship of related parties [Abstract] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Cenntro Holding Limited [Member] | |
Schedule of names and relationship of related parties [Abstract] | |
Existing Relationship with the Company | Controlling shareholder of the Company |
Zhejiang Kangchen Biotechnology Co., Ltd. [Member] | |
Schedule of names and relationship of related parties [Abstract] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Cenntro Smart Manufacturing Tech. Co., Ltd. [Member] | |
Schedule of names and relationship of related parties [Abstract] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Zhejiang Zhonggong Machinery Co., Ltd. [Member] | |
Schedule of names and relationship of related parties [Abstract] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Xinchang County Jiuxin Investment Management Partnership (LP) [Member] | |
Schedule of names and relationship of related parties [Abstract] | |
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] | |
Schedule of names and relationship of related parties [Abstract] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Hangzhou Cenntro Autotech Co., Limited [Member] | |
Schedule of names and relationship of related parties [Abstract] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Peter Zuguang Wang [Member] | |
Schedule of names and relationship of related parties [Abstract] | |
Existing Relationship with the Company | Chairman of the Company |
Greenland Asset Management Corporation [Member] | |
Schedule of names and relationship of related parties [Abstract] | |
Existing Relationship with the Company | Shareholder of the Company |
Hangzhou Jiuru Economic Information Consulting Co. Ltd [Member] | |
Schedule of names and relationship of related parties [Abstract] | |
Existing Relationship with the Company | One of the directors of Hengyu |
Xinchang County Jiuhe Investment Management Partnership (LP) [Member] | |
Schedule of names and relationship of related parties [Abstract] | |
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] | |
Schedule of names and relationship of related parties [Abstract] | |
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 ($) | Mar. 31, 2023 | Dec. 31, 2022 | |
Due to related parties: | |||
Total | $ 1,693,605 | $ 1,693,315 | |
Zhejiang Zhonggong Machinery Co., Ltd. [Member] | |||
Due to related parties: | |||
Total | [1] | 64,842 | 64,563 |
Xinchang County Jiuxin Investment Management Partnership (LP) [Member] | |||
Due to related parties: | |||
Total | [2] | 2,694 | 2,683 |
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) [Member] | |||
Due to related parties: | |||
Total | [3] | 94,442 | 94,442 |
Cenntro Holding Limited [Member] | |||
Due to related parties: | |||
Total | [4] | 1,341,627 | 1,341,627 |
Hangzhou Jiuru Economic Information Consulting Co. Ltd [Member] | |||
Due to related parties: | |||
Total | [4] | $ 190,000 | $ 190,000 |
[1] Unpaid balances for purchasing of materials and equipment and temporary borrowing from Zhejiang Zhonggong Machinery Co., Ltd.; Prepayment from Cenntro Smart Manufacturing Tech. Co., Ltd. Temporary borrowings from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership); and Borrowings from related parties. |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of due from related parties - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Due from related parties-current: | ||
Total | $ 36,829,529 | $ 36,669,907 |
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) [Member] | ||
Due from related parties-current: | ||
Total | 216,740 | 214,245 |
Cenntro Holding Limited [Member] | ||
Due from related parties-current: | ||
Total | $ 36,612,789 | $ 36,455,662 |
Related Party Transactions (D_5
Related Party Transactions (Details) - Schedule of related party funds lending - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Zhejiang Zhonggong Machinery Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | ||
Deposit funds with related parties: | ||
Deposit funds with related parties | ||
Cenntro Smart Manufacturing Tech. Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | ||
Deposit funds with related parties: | ||
Deposit funds with related parties | ||
Peter Zuguang Wang [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | ||
Deposit funds with related parties: | ||
Deposit funds with related parties | ||
Xinchang County Jiuxin Investment Management Partnership (LP) [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | ||
Deposit funds with related parties: | ||
Deposit funds with related parties | 1,578,233 | |
Cenntro Holding Limited [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | ||
Deposit funds with related parties: | ||
Deposit funds with related parties | ||
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | ||
Deposit funds with related parties: | ||
Deposit funds with related parties | ||
Zhejiang Kangchen Biotechnology Co., Ltd [Member] | ||
Deposit funds with related parties: | ||
Deposit funds with related parties |