Greenland Technologies Holding Corp. Annual Report - How They Did This Year

Hey there! Thinking about investing in Greenland Technologies Holding Corp.? You've come to the right place. We'll explain their past year's performance simply. This will give you a clear picture. Think of this as a chat with a friend, not a stuffy financial report.

This guide covers their business year ending December 31, 2025.

Here's the scoop:

1. What does this company do and how did they perform this year? Greenland Technologies (or "Greenland") designs, makes, and sells parts for the global material handling industry. This includes equipment that moves items in factories, warehouses, and ports.

   Their main business is making forklift transmissions. These key parts help forklifts move. They sell these parts directly to over 100 forklift makers, mostly in China. Their subsidiary, Zhejiang Zhongchai, handles these sales. They supply leading industry makers, including Chinese branches of famous European and Asian brands. They make transmissions for traditional fuel-powered forklifts. They also increasingly make them for electric forklifts.

   They also develop integrated powertrains for electric forklifts. This is one combined unit. It includes the electric motor, gearbox, and driving axles. This helps forklift makers build electric models faster. It speeds up design and improves efficiency. They currently make these for 2-3.5 ton electric forklifts. They plan to expand this range to more electric forklift sizes.

   For transmissions, they make key parts like gearbox housings and gears themselves in China. They buy other parts from outside suppliers, then assemble them.

   A team of 15 employees in China handles sales and marketing. They attend trade shows, promote products, and gather customer feedback.

   As of December 31, 2025, Greenland had 340 full-time employees. This included 275 in production and 17 in research and development. They provide required social security and benefits to employees in China and the U.S. They report good relationships with their workers, with no unions or strikes.

   Where they operate:

   • Their main executive office is in East Windsor, New Jersey, U.S. They lease a 1,440 sq ft office there.
   • Their main office in China is in Hangzhou, Zhejiang Province.
   • All their manufacturing and R&D facilities are located in Xinchang County, Zhejiang Province, China.
   • In Xinchang County, they can use about 81,171 square meters of land until 2062. They own three buildings totaling 44,751 square meters. These are for production and offices. They believe these facilities meet their needs.

   How they did this year (2025):

   • Their main transmission products had a good year! They sold 166,317 sets in 2025. This was a nice jump from the 149,597 sets sold in 2024. That's an 11.18% increase in sales volume. Demand for their electric transmissions is growing.

   What about their electric vehicles?

   • Greenland also has HEVI Corp. ("HEVI"). HEVI was set up to make electric industrial vehicles for North America. These include electric forklifts, loaders, and excavators. Their Chinese branch, Hangzhou Greenland, researches and develops these electric vehicles.
   • HEVI launched cool new products. These included GEF-series electric forklifts (lithium-powered, 1.8 to 3.5 tons). They also launched the GEL-1800 electric wheeled front loader (1.8 ton load) and the GEX-8000 electric excavator (8.0 ton load). They also offered H55L and H65L all-electric loaders. Mobile DC battery chargers were also available.
   • But there's a catch: HEVI stopped operations in 2025. This was due to "uncertainty regarding tariff policy." They are not making or selling these electric vehicles now. They hope to restart HEVI when policies become clearer.

2. Financial performance - sales, profit, growth metrics: Strong unit sales in its main transmission products show good performance there. Their main business, forklift transmissions, saw an 11.18% increase in units sold. They sold 149,597 sets in 2024 and 166,317 in 2025. This shows good growth in that area. HEVI's suspended operations will likely hurt overall financial results. That part of the business brings in no sales.

3. Major wins and challenges this year:

   • Major Win: Sales volume for their main forklift transmissions grew 11.18%. This is a clear win. It shows their traditional business is strong and in demand. Growing demand for their electric transmissions and integrated powertrains is also positive. It shows they adapt to market trends.
   • Major Challenge: The biggest challenge is HEVI's suspended electric vehicle operations since 2025. This is a big setback for their electric vehicle market expansion. It stems from outside factors like uncertain tariff policies. Another challenge is changing raw material prices in China, like iron and steel. This can affect their costs and profit.

4. Financial health - cash, debt, liquidity: The SEC calls Greenland a "Non-accelerated filer" and a "Smaller reporting company." This usually means they are not as large or complex as bigger companies. Regular investors (non-affiliates) held shares worth about $21.99 million.

   Over the years, the company has raised money in several ways:

   • Initial Public Offering (IPO) in July 2018: Raised $44 million.
   • June 2021 Public Offering: Raised $7.0 million.
   • July 2022 Registered Direct Offering: Raised $6.88 million.
   • July 2022 Private Placement: Raised $3.14 million.
   • They also have an "at-the-market" agreement from November 2021. This lets them sell up to $7.72 million in shares. This offers a flexible way to raise money later. They have not utilized this option. This shows they often raise funds to support their business and growth.

   Recent Money Raised (after 2025 business year):

   • In January 2026, the company sold about 5.08 million units in a public offering. Each unit had one regular share and warrants, selling for $1.20. This brought in about $6.1 million before costs. They plan to use this for daily operations and general company needs. By March 2026, some warrants were used, creating new shares.

   Dividend Policy and Cash Flow within the Company:

   • Don't expect cash payouts (dividends) from Greenland soon. The company plans to keep all its profit. They will reinvest it to grow the business.
   • Their Chinese branches must set aside at least 10% of their after-tax profit each year. This goes into a "statutory reserve" until it hits 50% of their registered capital. This money is legally restricted. They cannot pay it out as dividends. This limits the profit available to the parent company. So far, no Chinese branches have paid any dividends or money to the main company or U.S. investors.
   • The Chinese government also has rules for converting local currency (Renminbi) to foreign money. This could make it harder to pay U.S. dollar dividends to shareholders, if they ever choose to.
   • The main company loaned its branch, Zhongchai Holding, about $2.45 million in 2025. This is down from $4.29 million in 2024, a 42.9% decrease in internal loans. This shows how money moves within the company to support its business.

5. Key risks that could hurt the stock price:

   • "Controlled Company" Status & Dual-Class Shares: Chairman Peter Zuguang Wang holds a huge amount of voting power. This makes Greenland a "controlled company" by Nasdaq rules. To make this official, the company adopted a dual-class share structure in January 2026. Now there are two types of shares. Class A shares (what you'd likely own) get one vote each. Class B shares (held by the chairman's company, Trendway Capital Limited) get 25 votes per share. This structure means Mr. Wang, through Trendway Capital Limited, controls the company. His voting power is much greater than his ownership. He could make decisions that don't benefit Class A shareholders.
   • HEVI's Suspension: The ongoing halt of their electric vehicle business is a big risk. This is due to uncertain tariff policies. This leaves a big part of their growth plan for North American electric vehicles on hold. If policies don't stabilize, or if they can't restart, it could hurt future growth. They might miss out on the electric vehicle trend. HEVI also relies on Chinese suppliers for parts. These ship to the U.S. for assembly. This adds shipping costs and potential supply chain risks.
   • Customer Concentration: A lot of Greenland's sales come from a few big customers. In 2025, their top five customers brought in about 40.32% of total sales. Hangcha Group, their biggest customer, made up 15.07% of sales. Longgong Forklift Truck, the second largest, was 10.05%. This high reliance means losing one or two key customers, or big order cuts, could quickly drop Greenland's sales and profit.
   • Raw Material Price Changes: Key raw material prices in China, like iron and steel, can change a lot. Greenland monitors prices, adjusts stock, and uses bidding. But they can't guarantee passing higher costs to customers. This could squeeze their profit.
   • Operating in China and Uncertain Rules: This is a big one. Greenland is a holding company in the British Virgin Islands. But its main business runs through branches in China. They don't use a "VIE structure" (a common way Chinese companies list overseas). Still, Chinese laws and rules heavily affect them.
     • Foreign Investment Status: Good news: current Chinese rules do not forbid or restrict their business for foreign investment.
     • Vague Laws: Chinese laws can be vague and change fast. This could affect their business. It might make their shares less valuable. It could even stop them from selling shares to investors. Chinese legal interpretations are unpredictable. They can be broad and change quickly. This creates big risks for operations and investments. Such changes could affect their business model. They might limit their ability to send money home. They could even hurt the value and tradability of their shares.
     • Government Control: The Chinese government controls its economy a lot. Their decisions could hurt the business. For example, policy changes in the steel sector where Greenland's branches operate.
     • Product Quality & Production Safety: Like all Chinese makers, they must follow strict product quality and safety laws. Breaking these laws can mean fines, business halts, lost licenses, or even criminal charges.
     • Overseas Listing Rules: They think they don't need special Chinese approval (from CSRC or CAC) to list overseas now. But this could change. If new, stricter approvals are required later, and Greenland can't get them, their shares could be delisted from U.S. exchanges. They might also be stopped from raising more money from international investors. This could make their shares worthless.
     • New Regulations: China recently introduced new rules for overseas listings. These include the CSRC Trial Measures from March 2023. Greenland will need to follow filing steps for future offerings. But they risk being barred from listing. This could happen if issues like national security or past legal problems arise.
     • PCAOB Inspection: A U.S. law (the HFCA Act) could lead to delisting. This happens if U.S. regulators (PCAOB) can't inspect the company's auditor. Good news: the PCAOB could inspect Greenland's auditor, Enrome LLP. Enrome is in Singapore, not subject to past concerns about Chinese/Hong Kong auditors. This successful inspection greatly reduces the immediate delisting risk. Many other U.S.-listed Chinese companies faced this. However, the HFCA Act still requires delisting if the PCAOB can't inspect the auditor for two years in a row (it used to be three). So, ongoing compliance is key.
   • No U.S. Intellectual Property Protection: As of December 31, 2025, Greenland has not registered any patents, trademarks, or copyrights in the U.S. They have many in China. Chinese laws protect these patents, trademarks, and domain names. But without U.S. registration, if Greenland relaunched HEVI's products or other innovations in the U.S., their unique designs would lack legal protection. This could expose them to competition or unauthorized copies with no legal help.
   • General Business Risks: Like any company, they face risks. These include economic conditions, competition, changing laws, and getting enough cash to run the business.
   • Legal Proceedings: They might face lawsuits sometimes. But they are currently not involved in any major legal cases. This is a good sign.

6. Competitive positioning: Greenland holds a strong position in China's forklift transmission market. They sell to over 100 makers, including international brands. They also adapt their main business. They develop electric transmissions and integrated powertrains. This meets growing demand for electric forklifts. Their HEVI branch also tried to enter the growing electric industrial vehicle market. They even partnered with Lonking Holdings Limited for the U.S. But the suspension pauses that.

   The Transmission Industry in China: This market is fragmented and competitive. Chinese-made transmissions hold the largest share. But international brands also try to expand, making the market tougher. Success depends on product quality, good prices, new technology, reliable service, and a proven history. It's also a capital-heavy industry. It needs big R&D investment and a strong service network. A good service network is also vital. Greenland's main competitors in this space are Shaoxing Advance Gearbox Co., Ltd., Changsha Zhongchuan Transmission Machinery Co. Ltd., and Ganzhou Wuhuan Machine Co., Ltd.

   What makes them stand out? Greenland believes they can benefit from the shift to green, safe, and affordable industrial equipment. Here's why:

   • Good Market Trends: They benefit from several positive trends in China. These include stricter carbon emission rules. There's also growing demand for safer workplaces, helped by electric vehicles. Rising labor costs make machinery more appealing. Strong government support for logistics and mechanization, including subsidies, also helps. Their main business is well-positioned to benefit from these.
   • Efficient Manufacturing & Supply Chain: Their manufacturing processes are well-developed. This makes them efficient and affordable. They make key parts like gearbox housings and gears themselves. Most suppliers are near their Chinese factories. This cuts shipping and inventory costs. Making key parts themselves and having local suppliers helps. It controls costs, keeps quality high, and speeds up delivery. This gives them an edge. They use an ERP system to manage stock. They usually keep a 30-day supply. They also increase stock before Chinese New Year to avoid problems.
   • Strong Research & Development (R&D): They invest a lot in R&D. A team of 17 professionals works there, 5% of all employees. They have special technology centers for transmissions and electric vehicles. One is accredited by the Zhejiang provincial government in China. Their R&D process is structured. It gets input from various departments. Management approves projects and budgets. As of December 31, 2025, they held 109 patents in China (82 utility, 21 invention, 6 design). They also held 2 trademarks and 2 copyrights. This shows their innovation. This large IP portfolio gives them a competitive edge in China. It protects their technology and brand. Chinese law protects these intellectual properties. It defines how patents and trademarks register. It also sets their duration (e.g., patents up to 20 years, trademarks 10 years and renewable). It also covers infringement.
   • Strategic Service Network: They know good after-sales service is key. They built a service network in China's developed regions. They offer quick on-site technical support to customers.
   • Strong Customer Relationships: They believe strong customer relationships give them a key competitive edge.
   • Experienced Leadership: Their senior leaders bring much experience. This includes operations, market knowledge, international management, and technical skills. For example, Chairman Peter Zuguang Wang has over 30 years of experience. He is also CEO of another Nasdaq-listed company, Cenntro Inc. CEO Raymond Z. Wang also has a strong background in logistics and finance. This deep experience helps them manage complex manufacturing. It also helps with strategic market growth.

7. Leadership or strategy changes: Strategically, moving into electric industrial vehicles with HEVI was a big step. Their R&D branch, Hangzhou Greenland, supported this. But the recent suspension due to tariff policy is a big change. It affects how they carry out that strategy.

   Corporate Structure Updates:

   • In July 2023, they closed Shanghai Hengyu Business Management Consulting Co., Ltd. This was an indirect branch.
   • In August 2023, they formed Greenland Holding in Delaware. Then, in March 2024, they reorganized. Greenland Holding became a wholly-owned branch. It now owns 100% of their main operating branch, Zhongchai Holding. This reorganization simplifies their company structure. It could improve administration or tax efficiency. It also centralizes ownership of their main operating branch.
   • Their new branch, Hengyu Capital Limited, formed in August 2022 in Hong Kong. It is for investing, but has no business activities yet. Greenland's branch owns 62.5%. The chairman owns the remaining 37.5%. It is inactive now. But its creation suggests future investment plans. The chairman holds a significant minority share.
   • A big change in company governance happened in January 2026. They implemented a dual-class share structure. This gives the chairman's entity much more voting power. This change greatly strengthens the chairman's voting control. It reduces public shareholders' influence on company decisions. It could also affect company governance ratings.

8. Future outlook: The future for their electric vehicle business (HEVI) depends on conditions. They "intend to resume operations once the policy environment stabilizes." This means a big part of their planned growth into North American electric vehicles depends on outside politics and economics. Once HEVI restarts, it plans to focus R&D on next-generation electric heavy equipment. It will also work on supporting products like mobile charging units and attachments. However, their main business looks promising. Demand for their electric transmissions is growing. They develop integrated powertrains. This positions them well for the shift to electric industrial machinery. Even with HEVI on hold, Greenland believes its U.S.-branded electric industrial vehicles will stay competitive long-term, once operations restart.

9. Market trends or regulatory changes affecting them:

   • Positive Trends: Beyond the general shift to electric vehicles, several trends in China help them. These include stricter carbon emission rules. There's a push for safer workplaces, which electric vehicles aid. Rising labor costs make machinery more appealing. Strong government support for logistics and mechanization, including subsidies, also helps. Their main business is well-positioned to benefit from these.
   • Raw Material Price Swings: Key raw material prices in China, like iron and steel, can swing a lot. This could affect their costs and profit.
   • Negative Rule Impact: "Uncertainty regarding tariff policy" is a direct rule issue. It forced HEVI to stop operations. This shows how government policies can greatly affect their business.
   • More Scrutiny from China: China has a growing and uncertain regulatory environment. This affects companies listed overseas. This could mean stricter rules or investigations. It might even affect their ability to operate or stay listed on U.S. exchanges.