Greenland Technologies (GTEC) - 2023 Q4 - Annual Report

Revenue and Profitability - Greenland's revenue decreased by approximately $0.50 million, or 0.5$90.33 million for the fiscal year ended December 31, 2023, compared to $90.83 million for the fiscal year ended December 31, 2022. However, excluding the impact of exchange rate fluctuations, revenue increased by approximately 4.3$4.75 million, or 23.9%, to approximately $24.58 million for the fiscal year ended December 31, 2023, with a gross margin of approximately 27.21$10.78 million, representing an increase of approximately $4.82 million from approximately$5.96 million for the fiscal year ended December 31, 2022[283]. - Net loss was approximately $25.02 million for the fiscal year ended December 31, 2023, representing a decrease of approximately$28.82 million from the net income of approximately $3.8 million for the fiscal year ended December 31, 2022[295]. Costs and Expenses - The cost of goods sold decreased by approximately$5.24 million, or 7.4%, to approximately $65.76 million for the fiscal year ended December 31, 2023, from approximately$71.00 million for the fiscal year ended December 31, 2022, primarily due to a decrease in raw material costs[276]. - Operating expenses were $13.80 million for the fiscal year ended December 31, 2023, representing a decrease of 0.6$13.88 million for the fiscal year ended December 31, 2022[279]. - Selling expenses decreased by $0.31 million, or 11.8$2.32 million for the fiscal year ended December 31, 2023, from approximately $2.63 million for the fiscal year ended December 31, 2022[280]. - General and administrative expenses increased by approximately$0.59 million, or 10.9%, to approximately $6.05 million for the fiscal year ended December 31, 2023[281]. - Research and development expenses decreased by approximately$0.36 million, or 6.3%, to approximately $5.42 million for the fiscal year ended December 31, 2023[282]. Sales and Market Performance - Greenland sold an aggregate of 149,543 sets of transmission products in the fiscal year ended December 31, 2023, compared to 129,686 sets in the fiscal year ended December 31, 2022[267]. - The actual increase in revenue for the fiscal year ended December 31, 2023 was primarily driven by an increase in sales volume due to increasing market demand[275]. - Greenland is considered one of the major developers and manufacturers of transmission products for small and medium-sized forklift trucks in China[266]. Cash Flow and Financial Position - Cash and cash equivalents increased by approximately$6.68 million, or 41.03%, to approximately $22.98 million as of December 31, 2023[304]. - Accounts receivable increased by approximately$2.25 million, or 14.91%, to approximately $17.35 million as of December 31, 2023[306]. - Working capital decreased by approximately$32.43 million to approximately $27.27 million as of December 31, 2023[310]. - Net cash provided by operating activities for the fiscal year ended December 31, 2023, was approximately$2.45 million, a decrease of 69.8% from $8.12 million in 2022[313][314]. - The company reported a net increase in cash and cash equivalents of$6.39 million in 2023, compared to a net increase of $3.06 million in 2022[312]. - Cash and cash equivalents at the end of 2023 totaled$28.19 million, up from $19.73 million at the end of 2022[312]. Investments and Financing - Cash inflow from investing activities was approximately$1.07 million in 2023, primarily due to $0.44 million from the sale of short-term investments and$1.84 million from loan repayments[315]. - Financing activities generated a cash inflow of approximately $2.87 million in 2023, mainly from$6.72 million in short-term bank loans and $9.27 million in notes payable[316]. Risk Management - The company is exposed to credit risk, which is managed through credit approvals, limits, and monitoring procedures[318]. - Liquidity risk is managed by analyzing financial positions and obtaining short-term funding when necessary[320]. Corporate Developments - HEVI, a subsidiary of Greenland, focuses on the production and sale of electric industrial equipment, including various electric heavy industrial vehicles, and launched a 54,000 square foot assembly site in Baltimore, Maryland in August 2022[268]. - The company plans to explore a separation of its electric industrial vehicles and drivetrain systems segments into two independent, publicly-traded companies[271]. - The business combination with Zhongchai Holding was completed on October 24, 2019, resulting in Zhongchai Holding becoming a wholly owned subsidiary of the company[326][327]. Accounting Policies - The company recognizes revenues when goods or services are transferred to customers, following ASC Topic 606[323][324].