Greenland Technologies Holding Corp (NASDAQ: GTEC) shares surged on Thursday after the company reported a significant turnaround in its 2024 results. The drivetrain and electric machinery specialist bounced back from a net loss of US$25 million in 2023 and pulled a net income totalling US$15.1 million.
Today’s rally follows the stock hitting a 13-month low last week at US$1.23.
“We achieved an impressive rebound in profitability,” chief executive Raymond Wang said.
Moreover, Greenland attained a 28 per cent year-over-year reduction in operating expenses and upped its earnings per share to US$1.03. In 2023, the transmission product manufacturer reported a loss of US$1.20 per basic diluted share.
“Our team quickly adjusted to the broader market volatility and took decisive steps to ensure the company’s financial strength and market position,” CFO Jing Jin added.
Revenue decreased by a modest 7.1 per cent to US$83.9 million during the 12-month period. This was primarily attributable to less drivetrain and gearbox sales last year.
Greenland is based in New Jersey, but a large segment of its business is situated in China. The equipment maker’s subsidiary in the Asian country, Zhejiang Zhongchai Machinery Co, is Greenland’s primary revenue generator. It produces drivetrain systems for internal combustion engine forklifts, transmission components for electric excavators, and various other parts.
The company currently has a market cap of approximately US$30 million considering today’s spike, and a float of 7.2 million shares. It distributes its equipment and components in more than 20 countries.
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Greenland launches ‘game-changing’ product in 2024
In August last year, Greenland’s HEVI subsidiary unveiled the H65L — North America’s largest all-electric wheel loader. The thing weighs about 50,000 pounds.
“The game-changing H65L delivers high performance while offering zero emissions, reduced operating and maintenance costs, lower noise levels, and enhanced operator comfort,” Wang boasted in a press release on Aug. 28.
One charge can last for up to 9 hours depending on how it’s used.
Greenland also initiated a new partnership with Lonking Holdings Ltd (OTCMKTS: LONKF) (FRA: C9IB) last year. They are collaborating on electric machinery development efforts.
Chinese Lonking raked in over US$1.5 billion from construction machinery sales in 2023.
rowan@mugglehead.com
