# EDGAR Filing Document

**Accession Number:** 0001735041
**File Stem:** 0001213900-26-055798
**Filing Date:** 2026-5
**Character Count:** 310763
**Document Hash:** 8407698d25f21f1cc31d23d77497daf8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-055798.hdr.sgml**: 20260513

**ACCESSION NUMBER**: 0001213900-26-055798

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 112

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260513

**DATE AS OF CHANGE**: 20260513

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Greenland Technologies Holding Corp.
- **CENTRAL INDEX KEY:** 0001735041
- **STANDARD INDUSTRIAL CLASSIFICATION:** GENERAL INDUSTRIAL MACHINERY & EQUIPMENT [3560]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** D8
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38605
- **FILM NUMBER:** 26973352

**BUSINESS ADDRESS:**
- **STREET 1:** 50 MILLSTONE ROAD, BUILDING 400
- **STREET 2:** SUITE 130
- **CITY:** EAST WINDSOR
- **STATE:** NJ
- **ZIP:** 08512
- **BUSINESS PHONE:** 1 888 827-4832

**MAIL ADDRESS:**
- **STREET 1:** 50 MILLSTONE ROAD, BUILDING 400
- **STREET 2:** SUITE 130
- **CITY:** EAST WINDSOR
- **STATE:** NJ
- **ZIP:** 08512

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Greenland Acquisition Corp.
- **DATE OF NAME CHANGE:** 20180320

?xml version='1.0' encoding='ASCII'?

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D. C. 20549**

**FORM 10-Q**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended <u>March 31, 2026</u>

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from __________ to __________

**Commission File number <u>001-38605</u>**

**<u>GREENLAND TECHNOLOGIES HOLDING CORPORATION</u>**

(Exact name of registrant as specified in charter)

---

| | |
|:---|:---|
| **British Virgin Islands** | **001-38605** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **50 Millstone Road, Building 400 Suite 130<br> East Windsor, NJ<br> United States** | **08512** |
| (Address of principal executive offices) | (Zip Code) |

---

<u>1 (888) 827-4832</u>

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Ordinary shares, no par value | GTEC | The NASDAQ Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

As of May 13, 2026, there were 20,532,482 Class A ordinary shares, no par value per share, of the registrant issued and outstanding.

**INDEX**

---

| | | |
|:---|:---|:---|
|  |  | **Page**<br>**Number** |
| PART I. | [FINANCIAL INFORMATION](#a_001) | 1 |
| ITEM 1. | [Financial Statements (unaudited)](#a_002) | 1 |
| ITEM 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_003) | 2 |
| ITEM 3. | [Quantitative and Qualitative Disclosures About Market Risk](#a_004) | 12 |
| ITEM 4. | [Controls and Procedures](#a_005) | 12 |
| PART II. | [OTHER INFORMATION](#a_006) | 14 |
| ITEM 1. | [Legal Proceedings](#a_007) | 14 |
| ITEM 1A. | [Risk Factors](#a_008) | 14 |
| ITEM 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#a_009) | 39 |
| ITEM 3. | [Defaults Upon Senior Securities](#a_010) | 39 |
| ITEM 4. | [Mine Safety Disclosures](#a_011) | 39 |
| ITEM 5. | [Other Information](#a_012) | 39 |
| ITEM 6. | [Exhibits](#a_013) | 40 |
| [Signatures](#a_014) |  | 41 |

---

i

**FORWARD LOOKING STATEMENTS**

This quarterly report on Form 10-Q (the "Quarterly Report"), and the Financial Statements and Notes to Financial Statements in this Quarterly Report contain forward-looking statements that discuss, among other things, future expectations and projections regarding future developments, operations and financial conditions. Forward-looking statements may appear throughout this Quarterly Report and other documents we file with the U.S. Securities and Exchange Commission ("SEC"), including without limitation, the following sections: Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Quarterly Report on Form 10-Q.

Forward-looking statements generally can be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "will be," "will continue," "may," "could," "will likely result," and similar expressions. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially from those reflected in the forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

ii

**PART I - FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS**

**GREENLAND TECHNOLOGIES HOLDING CORPORATION**

**UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**THREE MONTHS ENDED MARCH 31, 2026**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| PAGE | F-1 - F-2 | [CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2026 (UNAUDITED) AND DECEMBER 31, 2025](#f_001) |
| PAGE | F - 3 | [CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (UNAUDITED)](#f_002) |
| PAGE | F - 4 | [CONSOLIDATED STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (UNAUDITED)](#f_003) |
| PAGE | F-5 - F-6 | [CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (UNAUDITED)](#f_004) |
| PAGE | F-7 - F-34 | [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)](#f_005) |

---

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**UNAUDITED CONSOLIDATED BALANCE SHEETS**

**AS OF MARCH 31, 2026 AND DECEMBER 31, 2025**

**(IN U.S. DOLLARS)**

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| Cash and cash equivalents | $10392136 | $7775330 |
| Restricted cash | 215041 | 71540 |
| Short term investment | 20831283 | 24454701 |
| Notes receivable | 18733369 | 14704079 |
| Accounts receivable, net | 25885240 | 17256479 |
| Inventories, net | 25703356 | 24377036 |
| Due from related parties-current | 511400 | 1106417 |
| Advance to suppliers | 75640 | 80757 |
| Fixed deposit-current | 1500264 | 2966386 |
| Prepayments and other current assets | 9151451 | 2472387 |
| **Total Current Assets** | $**112999180** | $**95265112** |
| **Non-current asset** |  |  |
| Property, plant and equipment, net | 11746243 | 11889147 |
| Land use rights, net | 3348730 | 3325188 |
| Intangible assets | 53082 | 68691 |
| Deferred tax assets | 452771 | 446613 |
| Fixed deposit-non current | 7474063 | 4421828 |
| Other non-current assets | 478779 | 355762 |
| **Total non-current assets** | $**23553668** | $**20507229** |
| **TOTAL ASSETS** | $**136552848** | $**115772341** |

---

The accompanying notes are an integral part of the unaudited consolidated financial statements.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**UNAUDITED CONSOLIDATED BALANCE SHEETS**

**AS OF MARCH 31, 2026 AND DECEMBER 31, 2025 (Continued)**

**(IN U.S. DOLLARS)**

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| **Current Liabilities** |  |  |
| Notes payable-bank acceptance notes | $16440997 | $12759720 |
| Accounts payable | 33565416 | 25604917 |
| Taxes payables | 1525716 | 1622509 |
| Contract liabilities | 122775 | 93698 |
| Due to related parties | 3750588 | 5275011 |
| Other current liabilities | 1516342 | 2941871 |
| **Total current liabilities** | $**56921834** | $**48297726** |
| **Non-current liabilities** |  |  |
| Deferred revenue | 1039241 | 1083784 |
| Warrant liability | 123837 | 70910 |
| **Total non-current liabilities** | $**1163078** | $**1154694** |
| **TOTAL LIABILITIES** | $**58084912** | $**49452420** |
| **COMMITMENTS AND CONTINGENCIES** | - | - |
| **Shareholders' equity** |  |  |
| Ordinary shares, no par value, unlimited shares authorized; nil and 17,394,226 shares issued and outstanding as of March 31, 2026 and December 31, 2025. | - | - |
| Class A Ordinary Shares, no par value, unlimited shares authorized; 20,532,482 and nil shares issued and outstanding as of March 31, 2026 and December 31, 2025. | - | - |
| Class B Ordinary Shares, no par value, unlimited shares authorized; 6,011,740 and nil shares issued and outstanding as of March 31, 2026 and December 31, 2025. | - | - |
| Additional paid-in capital | 38602913 | 33017917 |
| Statutory reserves | 3842331 | 3842331 |
| Retained earnings | 42534128 | 37533648 |
| Accumulated other comprehensive loss | (727302) | (1452410) |
| **Total shareholders' equity attributed to Greenland Technologies Holding Corporation and subsidiaries** | $**84252070** | $**72941486** |
| Non-controlling interest | (5784134) | (6621565) |
| **TOTAL SHAREHOLDERS' EQUITY** | $**78467936** | $**66319921** |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**136552848** | $**115772341** |

---

The accompanying notes are an integral part of the unaudited consolidated financial statements.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

**FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025**

**(UNAUDITED, IN U.S. DOLLARS)**

---

| | | |
|:---|:---|:---|
|  | **For the three months ended <br> March 31,** | **For the three months ended <br> March 31,** |
|  | **2026** | **2025** |
| **Revenues** | $**25538345** | $**21677564** |
| **Cost of goods sold** | **16779083** | **15016614** |
| **Gross profit** | **8759262** | **6660950** |
| Selling expenses | 419014 | 331809 |
| General and administrative expenses | 1842428 | 1438988 |
| Research and development expenses | 778219 | 81457 |
| **Total operating expenses** | $**3039661** | $**1852254** |
| **INCOME FROM OPERATIONS** | $**5719601** | $**4808696** |
| Interest income | 519843 | 141040 |
| Interest expense | (33380) | - |
| Change in fair value of the warrant liability | (52927) | 209294 |
| Other income | 599189 | 282081 |
| **INCOME BEFORE INCOME TAX** | $**6752326** | $**5441111** |
| **INCOME TAX EXPENSE** | **1003895** | **878275** |
| **NET INCOME** | $**5748431** | $**4562836** |
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 747951 | 559053 |
| **NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES** | $**5000480** | $**4003783** |
| **OTHER COMPREHENSIVE INCOME:** | **814588** | **448096** |
| Unrealized foreign currency translation income attributable to Greenland Technologies Holding Corporation and subsidiaries | 725108 | 412136 |
| Unrealized foreign currency translation income attributable to non-controlling interest | 89480 | 35960 |
| **Total comprehensive income attributable to Greenland technologies holding corporation and subsidiaries** | **5725588** | **4415919** |
| **Total comprehensive income attributable to noncontrolling interest** | **837431** | **595013** |
| **WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:** | 21753958 | 13594530 |
| Basic and diluted | 0.23 | 0.29 |

---

The accompanying notes are an integral part of the unaudited consolidated financial statements.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**UNAUDITED CONSOLIDATED STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY**

**FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025**

**(UNAUDITED, IN U.S. DOLLARS, EXCEPT FOR SHARE DATA)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares** | **Ordinary Shares** | **Ordinary Shares** | **Ordinary Shares** | **Ordinary Shares** | **Ordinary Shares** | | | | | | | |
|  | **No Par Value** | **No Par Value** | **No Par Value** | **No Par Value** | **No Par Value** | **No Par Value** | | | | | | | |
|  | **Shares** | **Amount** | **Class A<br> Shares** | **Amount** | **Class B<br> Shares** | **Amount** |<br>**Additional**<br>**Paid-in<br> Capital** | **Accumulated**<br>**Other**<br>**Comprehensive<br> Loss** |<br>**Statutory<br> Reserve** |<br>**Retained<br> Earnings** | **Total<br> shareholders'<br> equity<br> attributed<br> to<br> Greenland<br> Technologies<br> Holding**<br> **Corporation**<br>**and<br> subsidiaries** |<br>**Non-**<br>**controlling<br> Interest** |<br>**Total**<br>**Shareholders'<br> Equity** |
| **Balance as of December 31, 2024** | **13594530** | $&nbsp;&nbsp;&nbsp;&nbsp; - | **-**  | $&nbsp;&nbsp;&nbsp;&nbsp; - | **-**  | $&nbsp;&nbsp;&nbsp;&nbsp; - | $**27470361** | $**(3707100)** | **3842331** | $**32602105** | **60207697** | $**(6938809)** | $**53268888** |
| Net income |  | - |  | - |  | - | - | - |  | 4003783 | **4003783** | 559053 | **4562836** |
| Dividend |  | - |  | - |  | - | - | - |  | - | **-**  | (188222) | **(188222)** |
| Foreign currency translation adjustment | - | - | - | - | - | - | - | 412136 | - | - | **412136** | 35960 | **448096** |
| **Balance as of March 31, 2025** | **13594530** | $- | **-**  | $- | **-**  | $- | $**27470361** | $**(3294964)** | **3842331** | $**36605888** | **64623616** | $**(6532018)** | $**58091598** |
| **Balance as of December 31, 2025** | **17394226** | $- | **-**  | $- | **-**  | $- | $**33017917** | $**(1452410)** | **3842331** | $**37533648** | **72941486** | $**(6621565)** | $**66319921** |
| Reclassification of existing ordinary shares | (17394226) | $- | 11382486 | $- | 6011740 | $- | - | - |  | - | **-**  |  | **-** |
| Sale of stock and warrants |  | - | 9149996 |  |  | - | 5584996 | - |  | - | **5584996** |  | **5584996** |
| Net income |  | - |  | $- |  | $- | - | - |  | 5000480 | **5000480** | 747951 | **5748431** |
| Foreign currency translation adjustment | - | - | - | - | - | - | - | 725108 | - | - | **725108** | 89480 | 814588 |
| **Balance as of March 31, 2026** | **-**  | $- | **20532482** | $- | **6011740** | $- | $**38602913** | $**(727302)** | **3842331** | $**42534128** | **84252070** | $**(5784134)** | $**78467936** |

---

The accompanying notes are an integral part of the unaudited consolidated financial statements.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025**

**(UNAUDITED, IN U.S. DOLLARS)**

---

| | | |
|:---|:---|:---|
|  | **For the three months ended <br> March 31,** | **For the three months ended <br> March 31,** |
|  | **2026** | **2025** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| **Net income** | $**5748431** | $**4562836** |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| Depreciation and amortization | 516924 | 517134 |
| Amortization of deferred subsidy | (59281) | (56420) |
| Change in fair value of warrant liability | 52927 | (209294) |
| Non-cash lease expenses | - | 162361 |
| Accrued interest income derived from loan to related parties | (2012) | (2334) |
| Accrued expense | (1816175) | (2591067) |
| **Changes in operating assets and liabilities:** |  |  |
| **Decrease (Increase) In:** |  |  |
| Accounts receivable | (8363974) | (5528940) |
| Notes receivable | (3813413) | 2183620 |
| Inventories | (993585) | (437598) |
| Advance to suppliers | 6209 | (116320) |
| Other current and noncurrent assets | (319609) | 1454809 |
| **Increase (Decrease) In:** |  |  |
| Accounts payable | 7581337 | 6056496 |
| Contract liabilities | 27813 | 69072 |
| Other current liabilities | 360868 | 340195 |
| Income tax payable | (112797) | 267885 |
| Due to related parties | - | (5224948) |
| Lease liabilities | - | (202821) |
| **NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES** | $**(1186337)** | $**1244666** |

---

The accompanying notes are an integral part of the unaudited consolidated financial statements.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (Continued)**

**(UNAUDITED, IN U.S. DOLLARS)**

---

| | | |
|:---|:---|:---|
|  | **For the three months ended <br> March 31,** | **For the three months ended <br> March 31,** |
|  | **2026** | **2025** |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| Purchases of property, plant and equipment | $(172528) | $(14371) |
| Loan lent to third parties | (4000000) | (687493) |
| **NET CASH USED IN INVESTING ACTIVITIES** | $**(4172528)** | $**(701864)** |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| Notes payable | $3493311 | $(577494) |
| Dividend paid | (1444711) | (188222) |
| Proceeds from related parties | 597029 | - |
| Repayment of loans from related parties | (94442) | (1000000) |
| Proceeds from equity and debt financing | 5584996 | - |
| **NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES** | $**8136183** | $**(1765716)** |
| **NET INEREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH** | $**2777318** | $**(1222914)** |
| Effect of exchange rate changes on cash | (17011) | 157967 |
| **CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD** | **7846870** | **8611795** |
| **CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD** | $**10607177** | $**7546848** |
| Bank balances and cash | 10392136 | 5403254 |
| Bank balances and cash included in assets classified as restricted cash | 215041 | 2143594 |
| **Supplemental Disclosure of Cash Flow Information** |  |  |
| Income taxes paid | 1116442 | 997153 |
| Interest paid | 17730 | - |

---

The accompanying notes are an integral part of the unaudited consolidated financial statements.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES**

Greenland Technologies Holding Corporation (the "Company" or "Greenland") designs, develops, manufactures and sells components and products for the global material handling industries.

Through its subsidiaries in the People's Republic of China (the "PRC" or "China"), 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 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. In the three months ended March 31, 2026 and 2025, Greenland sold an aggregate of 46,027 and 38,734 sets of transmission products, respectively, to more than 100 forklift manufacturers in the PRC.

Greenland is the parent company of HEVI and Greenland Holding Enterprises Inc. ("Greenland Holding"), a holding company formed in the State of Delaware on August 28, 2023, which in turn acts as the holding company for Zhongchai Holding (Hong Kong) Limited, a holding company formed under the laws of the Hong Kong Special Administrative Region of the PRC ("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 PRC in 2005 ("Zhejiang Zhongchai"), Hangzhou Greenland Energy Technologies Co., Ltd. ("Hangzhou Greenland"), an operating company formed under the laws of the PRC in 2019, and Hengyu Capital Limited, a company formed in Hong Kong on August 16, 2022 ("Hengyu Capital"). Through Zhongchai Holding and its subsidiaries, Greenland develops and manufactures traditional transmission products for material handling machinery in the PRC.

Greenland was incorporated on December 28, 2017 as a British Virgin Islands business company with limited liability. 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.

**The Company's Shareholders**

As of March 31, 2026, Trendway Capital Limited owned 100.0% of Greenland's outstanding Class B ordinary shares. Trendway Capital Limited is controlled and beneficially owned by Mr. Peter Zuguang Wang, the chairman of the board of directors of the Company. As a result, Mr. Wang, through Trendway Capital Limited, holds approximately 88.0% of the total voting power of the Company (based on 20,532,482 Class A ordinary shares entitled to one vote per share and 6,011,740 Class B ordinary shares entitled to twenty-five votes per share outstanding as of March 31, 2026).

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)**

**The Company's Subsidiaries**

Zhongchai Holding, the indirect wholly owned subsidiary of the Company, owns 89.47% of the equity interests in Zhejiang Zhongchai, 100% of the equity interests in Hangzhou Greenland and 62.5% of the equity interests in Hengyu Capital. HEVI is a wholly owned subsidiary of Greenland. Greenland Holding is a wholly owned subsidiary of the Company and holds 100% of the equity interests in Zhongchai Holding.

*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 75.4717% equity interest of Zhejiang Zhongchai. On December 16, 2009, Usunco agreed to transfer its 75.4717% interest in Zhejiang Zhongchai to Zhongchai Holding. On April 26, 2010, Xinchang County Keyi Machinery Co., Ltd. transferred 24.5283% 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, completed its investment of approximately RMB31,590,000 in Zhejiang Zhongchai for a 10.53% 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, completed its investment of approximately RMB34,300,000 in Zhejiang Zhongchai for a 20.00% interest. On November 25, 2024, Jiuhe withdrew its investment in Zhejiang Zhongchai. As a result, the equity interests in Zhejiang Zhongchai was redistributed between Zhongchai Holding and Jiuxin. As of March 31, 2026, Zhongchai Holding owned approximately 89.47% of the equity interests, and Jiuxin owned approximately 10.53% 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.

*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 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.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)**

*Greenland Holding Enterprises Inc.*

 

Greenland Holding Enterprises Inc. is a holding company registered on August 28, 2023 in the State of Delaware with no operations.

Details of the Company's subsidiaries, which are included in these unaudited consolidated financial statements as of March 31, 2026, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Domicile and<br> Date of <br> Incorporation** | **Paid-in <br> Capital** | **Paid-in <br> Capital** | **Ownership<br> Percentage** | **Principal Activities** |
| Zhongchai Holding (Hong Kong) Limited | Hong Kong <br> April 23, 2009 | HKD | 10000 | 100% | Holding |
| Zhejiang Zhongchai Machinery Co., Ltd. | PRC <br> November 21, 2005 | RMB | 20000000 | 89.47% | Manufacture, sale of various transmission boxes |
| Hangzhou Greenland Energy Technologies Co., Ltd. | PRC <br> August 9, 2019 | RMB | 8669482 | 100% | Trading |
| HEVI Corp. | Delaware <br> January 14, 2020 | USD | 6363557 | 100% | U.S. operation and distribution of electric industrial vehicles for North American market |
| Hengyu Capital, Ltd | Hong Kong <br> August 16, 2022 | HKD | 10000 | 62.5% | Investment management and consulting services |
| Greenland Holding Enterprises Inc. | Delaware <br> August 28, 2023 | USD | 1 | 100% | Holding |

---

**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") for information pursuant to the rules and regulations of the U.S. Securities and Exchange Commission.

**Principles of Consolidation**

The unaudited consolidated financial statements are prepared in accordance with U.S. GAAP. The unaudited consolidated financial statements include the consolidated financial statements of the Company and its subsidiaries, which include Hong Kong-registered entities and PRC-registered entities directly or indirectly owned by the Company. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. The results of subsidiaries acquired or disposed of are recorded in the consolidated income statements from the effective date of acquisition or up to the effective date of disposal, as appropriate.

A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meetings of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

**Use of Estimates**

The preparation of unaudited 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, disclosures of contingent assets and liabilities as of the date of the unaudited consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions in light of currently available information. In accordance with ASC 250, changes in estimates resulting from changes in facts and circumstances are recognized in the period in which such changes occur. The Company bases its estimates on past experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates are used when accounting for matters including, but not limited to, allowances for expected credit losses, inventory provisions, useful lives and impairment of long-lived assets, and valuation allowances for deferred tax assets.

**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**

Since the Company operates primarily in the PRC, the Company's functional currency is the Renminbi ("RMB"). The Company's consolidated financial statements have been translated into the reporting currency of the United States Dollar ("USD", "US$" or "$"). Assets and liabilities of the Company are translated at the exchange rate at each reporting period end date. Equity is translated at the historical exchange rate when the transaction occurs. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income (loss). Gains and losses resulting from the translation of foreign currency transactions and balances are reflected in the results of operations.

The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the audited consolidated financial statements or otherwise disclosed in this report were as follows

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2026** | **December 31,<br> 2025** |
| Period end RMB: US$ exchange rate | 6.8980 | 6.9931 |

---

---

| | | |
|:---|:---|:---|
|  | **For the three months ended <br> March 31,** | **For the three months ended <br> March 31,** |
|  | **2026** | **2025** |
| Period average RMB: US$ exchange rate | 6.9218 | 7.2728 |

---

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 with various financial institutions primarily in mainland China and the U.S. The Company has not experienced any losses in bank accounts.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

**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.

The following represents a reconciliation of cash and cash equivalents in the consolidated balance sheets to total cash, cash equivalents and restricted cash in the consolidated statements of cash flows as of March 31, 2026 and December 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31, <br> 2026** | **December 31, <br> 2025** |
| Cash and cash equivalents | $10392136 | $7775330 |
| Restricted cash | 215041 | 71540 |
| Cash, cash equivalents and restricted cash | $10607177 | $7846870 |

---

**Fair Value of Financial Instruments**

The Company applies the provisions of ASC 820, *Fair Value Measurements and Disclosures*, to the financial instruments that are required to be carried at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company uses a three-tier fair value hierarchy based upon observable and non-observable inputs that prioritizes the information used to develop our assumptions regarding fair value. Fair value measurements are separately disclosed by level within the fair value hierarchy.

● 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 considers the carrying amounts of its financial assets and liabilities, which consist primarily of cash and cash equivalents, short-term investments, accounts receivable, notes receivable, amounts due from/to a related party, other receivables, fixed deposits, accounts payable, other payables, and warrant liability, to approximate the fair values of the respective assets and liabilities as of March 31, 2026 and December 31, 2025, owing to their short-term nature or present value characteristics. For note payable-bank acceptance notes, fair value approximates their carrying value at year-end, as fair value is estimated using discounted cash flows in which the interest rates used to discount the host contracts approximate market rates. For the three months ended March 31, 2026 and 2025, there were no transfers between different levels of inputs used to measure fair value.

The following table summarizes the fair value measurements of assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(amount in absolute value)** | **Active Market<br> for Identical<br> Assets<br> (Level 1)** | **Observable<br> Inputs<br> (Level 2)** | **Unobservable<br> Inputs<br> (Level 3)** | **Total<br> Carrying<br> Value** |
| Short term investment | $&nbsp;&nbsp;&nbsp;&nbsp; - | 20831283 |  | $20831283 |
| Warrants liability | - | 123837 |  | 123837 |
| Total | $- | 20955120 |  | $20955120 |

---

**Accounts Receivable and Allowance for Expected Credit Losses**

Accounts receivable are recorded at the gross billing amount less an allowance for expected credit losses from the customers. Accounts receivable do not bear interest.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

Effective January 1, 2023, the Company adopted Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), using the modified retrospective transition method. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, resulting in more timely recognition of credit losses. Upon adoption, the Company changed its impairment model to utilize a forward-looking current expected credit losses ("CECL") model in place of the incurred loss methodology for financial instruments measured at amortized cost and receivables resulting from the application of ASC 606, including contract assets.

The Company maintains an allowance for credit losses in accordance with ASC Topic 326, Credit Losses ("ASC 326"), and records the allowance for credit losses as an offset to accounts receivable and contract assets, with the estimated credit losses charged to the allowance in the consolidated statements of operations and comprehensive income (loss). The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on similar business lines, services, or product offerings, and on an individual basis when the Company identifies specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the accounts receivable balances and contract asset balances, credit quality of the Company's customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company's ability to collect from customers.

**Inventories**

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method and includes all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present location and condition. Costs of purchase consist of the purchase price, import duties, freight, handling, and other directly attributable costs, less trade discounts, rebates, and other similar items. Costs of conversion include direct labor and a systematic allocation of fixed and variable production overheads incurred in converting raw materials into finished goods. Other costs are included only to the extent they are incurred in bringing the inventories to their present location and condition. Net realizable value is based on estimated selling prices in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale. 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.

**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 $0.08 million as of March 31, 2026 and December 31, 2025.

**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:

---

| | |
|:---|:---|
| Buildings | 20 years |
| Machinery | 2~10 years |
| Motor vehicles | 4 years |
| Electronic equipment | 3~5 years |

---

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the combined statements of income and comprehensive income (loss). Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances indicate a change in estimates of useful lives. No such events were identified for the three months ended March 31, 2026 and 2025.

**Construction in process**

Property, plant, and equipment that are purchased or constructed which require a period of time before the assets are ready for their intended use are accounted for as construction-in-progress. Construction-in-progress is recorded at acquisition cost, including installation costs. Construction-in-progress is transferred to specific property and equipment accounts and commences depreciation when these assets are ready for their intended use.

**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, 2026 and 2025.

**Operating leases**

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is effective for annual reporting periods (including interim periods) beginning after December 15, 2018. The Company adopted the Topic 842 on January 1, 2020 using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered after, the beginning of the earliest comparative period presented in the consolidated financial statements.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

The Company, through its subsidiary, leases its assembly site, which are classified as operating leases in accordance with Topic 842. Operating leases are required to be recorded on the balance sheet as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date, and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company elected the short-term lease exemption for the lease terms that are 12 months or less.

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Company assesses whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The right-of-use assets and related lease liabilities are recognized at the lease commencement date. The Company recognizes operating lease expenses on a straight-line basis over the lease term and had no finance leases for any of the periods stated herein.

The right-of-use of asset is initially measured at cost, which comprises the initial amount of the lease liabilities adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. All right-of-use assets are reviewed for impairment annually. There was no impairment for right-of-use lease assets as of March 31, 2026 and December 31, 2025.

**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 a contract with a 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.

Principal versus Agent Considerations

The Company acts as a principal, rather than as an agent, in its revenue transactions. This determination is based on the Company's assessment of control pursuant to ASC 606-10-55-36 through 55-40. The Company controls each specified good before it is transferred to the customer, as evidenced by the following indicators:

Primary responsibility for fulfillment: The Company is primarily responsible for fulfilling the promise to provide products to customers, including with respect to product quality, delivery, and acceptance. The Company handles all customer inquiries, complaints, returns, and warranty claims directly with customers.

Inventory risk: The Company bears inventory risk prior to the transfer of goods to customers, including the risk of obsolescence, damage, and loss. The Company purchases raw materials, manufactures finished goods, and holds inventory at its own facilities prior to the receipt of customer orders.

Pricing discretion: The Company has sole discretion in establishing the prices charged to customers. Prices are determined based on the Company's own cost structure, market conditions, and pricing strategies, independently of any third-party suppliers.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

No intermediary role: The Company manufactures its own products through its subsidiaries and sells them directly to customers. There are no arrangements pursuant to which another party provides goods or services to the customer on the Company's behalf.

Accordingly, the Company recognizes revenue on a gross basis, presenting the full transaction price as revenue and the corresponding cost of goods sold as a separate line item in the statements of operations.

Contracts with Customers and Performance Obligations

The Company's contracts with customers are primarily purchase orders for the sale of its transmission products. These contracts have commercial substance and are short-term in nature, with a contract term of one year or less. The transaction price in these contracts is fixed, based on the agreed-upon unit price and quantity. Payment is typically due within two months after the customer's acceptance of the goods. The Company has concluded that the promise to transfer each unit of product is the only performance obligation in these contracts. This promise is distinct, as the customer can benefit from the product either on its own or together with other readily available resources, and the Company's promise to transfer the goods is separately identifiable from any other promises in the contract, pursuant to ASC 606-10-25-19. The Company's standard warranty is not assessed as a separate performance obligation as it does not provide a service beyond assuring that the product complies with agreed-upon specifications.

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that remains conditional upon factors other than the passage of time. The Company does not have contract assets for the years presented.

Contract liabilities

Contract liabilities represent consideration received by the Company for which the related performance obligations have not yet been satisfied. Contract liabilities primarily consist of payments received for the sale of products in advance of revenue recognition and deferred revenue related to government subsidies received prior to the satisfaction of the associated qualifying conditions

The following table summarizes the movement in contract liabilities during the three months ended March 31, 2026:

---

| | | | |
|:---|:---|:---|:---|
|  | **Contract<br> Liabilities** | **Deferred<br> Revenue** | **Total<br> Contract<br> Liabilities** |
| Beginning balance | $93698 | 1083784 | $1177482 |
| Additions | 247174 | - | 247174 |
| Recognized as revenue during the period | (219361) | (59281) | (278642) |
| Effect of foreign exchange change | 1264 | 14738 | 16002 |
| Ending balance | $122775 | 1039241 | $1162016 |

---

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

Contract liabilities increased during the three months ended March 31, 2026, primarily due to an increase in advance payments received from customers for orders not yet delivered. The remaining balance of $122,775 as of March 31, 2026 represents deposits received for orders not yet delivered and is expected to be recognized as revenue within the next twelve (12) months. The decrease in deferred revenue is primarily attributable to the recognition of grant income upon satisfaction of the associated qualifying conditions during the period.

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 at a rate of 13%. 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. Revenue is recognized only upon the customer's formal acknowledgement of receipt, as evidenced by a signed delivery acceptance document, at which point the risks and rewards of goods are transferred to customers. International sales are recognized when shipment clears customs and leaves the port. Payments due within two months after customers' acceptance or consumption.

The Company adopted ASC 606 on January 1, 2018, using the transition method of Modified-Retrospective Method. 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 there is a 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, 2026 and 2025. The total sales return amount accounted for around 0.07% and 0.06% of the total revenue for the three months ended March 31, 2026 and 2025.The total amount of warrant expenditures accounted for around 0.09% and 0.41% of the total revenue for the three months ended March 31, 2026 and 2025, respectively.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

The following table sets forth disaggregation of revenue:

---

| | | |
|:---|:---|:---|
|  | **For the three months ended<br> March 31,** | **For the three months ended<br> March 31,** |
|  | **2026** | **2025** |
| Major Product |  |  |
| Transmission boxes for Forklift | $24916044 | $20929412 |
| Transmission boxes for Non-Forklift (EV, etc.) | 622301 | 748152 |
| Total | $**25538345** | $**21677564** |

---

**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 $0.78 million and $0.08 million for the three months ended March 31, 2026 and 2025, 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 $1.04 million and $1.08 million as of March 31, 2026 and December 31, 2025, respectively.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

**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 consolidated 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 consolidated 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, 2026 and December 31, 2025, 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 standard VAT rate is 13%. 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 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".

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

**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(loss) attributable to Greenland Technologies Holding Corporation, 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.

**Segments and Related Information**

An operating segment is a component of the Company that engages in business activities from which it may earn revenue and incur expenses, and is identified on the basis of internal financial reports provided to and regularly reviewed by the Company's chief operating decision maker in order to allocate resources and assess the performance of the segment.

In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM"), in deciding how to allocate resources and in assessing performance. The Company's revenue segments have similar economic characteristics and they are managed as a single business unit. The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The Company's CODM has been identified as the chief executive officer (the "CEO"), who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company has determined that there is only one reportable operating segment.

**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, 2026 and December 31, 2025. 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, 2026 and December 31, 2025.

**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 outcome 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; f) other parties that have ability to significant influence the management or operating policies of the entity; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its or their own separate interests. The Company discloses all significant related party transactions

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

**Warrants**

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and applicable authoritative guidance in the ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815, Derivatives and Hedging ("ASC 815"). Management's assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, whether they meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own ordinary shares and whether the warrant holders could potentially require "net cash settlement" in a circumstance outside of the Company's control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period-end date while the warrants are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, they are recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, they are recorded as warrant liability at their initial fair value on the date of issuance and subject to remeasurement each balance sheet date with changes in the estimated fair value of the warrants to be recognized as a non-cash gain or loss in the statement of operations and comprehensive income.

**Uncertainty and Risks**

Credit Risk

Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of such assets to credit risk is their carrying amount as at the balance sheet dates. As of March 31, 2026, cash and cash equivalents of $40,412,787 were deposited in financial institutions in the PRC, and each bank account is insured by the PRC government with the maximum limit of RMB500,000 (equivalent $69,800). To limit exposure to credit risk relating to deposits, the Company primarily places cash and cash equivalent with large financial institutions in China which management believes are of high credit quality and the Company also continually monitors their credit worthiness.

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 environments in the PRC as well as by the general state of the PRC's economy. In addition, the Company's business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, rates and methods of taxation among other factors.

Currency 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.

Concentration risks

Accounts receivable are typically unsecured and derived from goods sold to customers that are located primarily in China, thereby exposed to credit risk. The risk is mitigated by the Company's assessment of customers' creditworthiness and its ongoing monitoring of outstanding balances. The Company has a concentration of its receivables with specific customers. As of March 31, 2026, one customer accounted for 16.44% of the Company's total accounts receivable. As of December 31, 2025, three customers accounted for 11.24%, 10.24% and 10.12% of the Company's total accounts receivable, respectively. No other customers accounted for more than 10% of the Company's total accounts receivable as of March 31, 2026 and December 31, 2025.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

For the three months ended March 31, 2026, one customer accounted for 16.69% of the Company's total revenue. For the three months ended March 31, 2025, one customer accounted for 17.77% of the Company's total revenue. No other customers accounted for more than 10% of the Company's total revenue for the three months ended March 31, 2026 and 2025.

There were no suppliers representing more than 10% of the Company's total purchases for the three months ended March 31, 2026 and 2025.

**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 November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires incremental disclosures about specific expense categories, including purchases of inventory, employee compensation, depreciation, amortization, and selling expenses. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted, and the amendments may be applied either prospectively or retrospectively. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). The FASB issued ASU 2024-03 on November 4, 2024. ASU 2024-03 states that the amendments are effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Following the issuance of ASU 2024-03, the FASB was asked to clarify the initial effective date for entities that do not have an annual reporting period that ends on December 31 (referred to as non-calendar year-end entities). Because of how the effective date guidance was written, a non-calendar year-end entity may have concluded that it would be required to initially adopt the disclosure requirements in ASU 2024-03 in an interim reporting period, rather than in an annual reporting period. The FASB's intent in the basis for conclusions of ASU 2024-03 is clear that all public business entities should initially adopt the disclosure requirements in the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027.

In February 2025, the FASB issued ASU 2025-02, Liabilities (Topic 405): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 122 ("ASU 2025-02"), which amends the Accounting Standards Codification to remove the text of SEC Staff Accounting Bulletin ("SAB") 121, "Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for its Platform Users," as it has been rescinded by the issuance of SAB 122. ASU 2025-02 is effective immediately and is not expected to have a material impact on the Company's consolidated financial statements.

In April 2025, the FASB issued ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer, which revises the definition of "performance condition" for share-based consideration payable to a customer, eliminates the forfeiture policy election for awards granted to customers (unless granted in exchange for a distinct good or service), and clarifies the applicability of the variable consideration constraint. The amendments are effective for annual reporting periods (including interim periods within annual reporting periods) beginning after December 15, 2026, for all entities. Early adoption is permitted for both interim and annual consolidated financial statements that have not yet been issued. The Company is currently evaluating the impact of the adoption of this guidance.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which introduces a practical expedient for all entities and an accounting policy election for entities other than public business entities to simplify the estimation of expected credit losses for current accounts receivable and current contract assets arising from revenue contracts under Topic 606. The practical expedient allows entities to assume that current conditions as of the balance sheet date remain unchanged for the remaining life of the asset, thereby reducing the need for complex macroeconomic forecasts. The amendments are effective for annual periods beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"). ASU 2025-06 modernizes the accounting for internal-use software costs by removing all references to prescriptive software development stages and introducing a single capitalization threshold based on management's authorization of and commitment to fund the project and the probability of its completion. The amendments also incorporate website development cost guidance into Subtopic 350-40 and clarify the related disclosure requirements. The new guidance is effective for annual periods beginning after December 15, 2027, with early adoption permitted. Entities may apply the amendments prospectively, retrospectively, or using a modified transition approach. The Company is currently evaluating the impact of the adoption of ASU 2025-06 on its financial statements and disclosures.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans ("ASU 2025-08"), which expands the gross-up approach to most acquired loans. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2025-08 on its consolidated financial statements and disclosures.

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities ("ASU 2025-10"). The amendments are effective for fiscal years beginning after December 15, 2029, and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2025-10 on its consolidated financial statements and disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements ("ASU 2025-11"). The amendments are effective for interim periods within fiscal years beginning after December 15, 2028. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2025-11 on its consolidated financial statements and disclosures.

In December 2025, the FASB issued ASU 2025-13, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract ("ASU 2025-13"). The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2025-13 on its consolidated financial statements and disclosures.

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on, or are unrelated to, its consolidated financial condition, results of operations, cash flows or disclosures.

**NOTE 3 – SHORT TERM INVESTMENT**

As of March 31, 2026 and December 31, 2025, the Company's short-term investment amounted to $20,831,283 and $24,454,701, respectively. During the three months ended March 31, 2026, the Company purchased bank management products in a total amount of $20,399,318 (RMB141,200,000). As of March 31, 2026, the fair value of the Company's bank management products was $20,831,283(RMB143,694,193).

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 4 – CONCENTRATION ON REVENUES AND COST OF GOODS SOLD**

Concentration of major customers and suppliers:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2026** | **2026** | **2025** | **2025** |
| Major customers representing more than 10% of the Company's revenues |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Company A | $4261930 | 16.69% | $3852468 | 17.77% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Revenues** | $**4261930** | **16.69%** | $3852468 | 17.77% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** |
|  | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| Major customers of the Company's accounts receivable, net |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Company A | 4256213 | 16.44% | 1745719 | 10.12% |
| &nbsp;&nbsp;&nbsp;Company B | 2045479 | 7.90% | 1939540 | 11.24% |
| &nbsp;&nbsp;&nbsp;Company C | 1329210 | 5.14% | 592957 | 3.44% |
| &nbsp;&nbsp;&nbsp;Company D | 1251819 | 4.84% | 681865 | 3.95% |
| &nbsp;&nbsp;&nbsp;Company E | 1192724 | 4.61% | 1380095 | 8.00% |
| &nbsp;&nbsp;&nbsp;Company F | 938393 | 3.63% | 723683 | 4.19% |
| &nbsp;&nbsp;&nbsp;Company G | 877115 | 3.39% | 1766799 | 10.24% |
| **Total** | $**11890953** | 45.95% | $**8830658** | 51.18% |

---

Accounts receivable from the Company's major customers accounted for 45.95% and 51.18% of total accounts receivable balances as of March 31, 2026 and December 31, 2025, respectively.

There were no suppliers representing more than 10% of the Company's total purchases for the three months ended March 31, 2026 and 2025, respectively.

**NOTE 5 – ACCOUNTS RECEIVABLE, NET**

Accounts receivable is net of allowance for expected credit losses.

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2026** | **December 31,<br> 2025** |
| Accounts receivable | $25901491 | $17272509 |
| Less: allowance for expected credit losses | (16251) | (16030) |
| **Accounts receivable, net** | $**25885240** | $**17256479** |

---

Changes in the allowance for expected credit losses are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the<br> three months**<br> **ended March 31,<br> 2026** | **For the<br> Year Ended**<br> **December 31,**<br> **2025** |
| Beginning balance | $16030 | $- |
| Additional provision charged to expense | - | 15596 |
| Effect of foreign exchange change | 221 | 434 |
| **Ending balance** | $**16251** | $**16030** |

---

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 6 – INVENTORIES, NET**

As of March 31, 2026 and December 31, 2025, inventories consisted of the following

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2026** | **December 31,<br> 2025** |
| Raw materials | $10490073 | $10165798 |
| Revolving material | 1218866 | 1172449 |
| Consigned processing material | 54744 | 28671 |
| Work-in-progress | 2599322 | 2334681 |
| Finished goods | 12968469 | 12290156 |
| Less: inventory impairment | (1628118) | (1614719) |
| **Inventories, net** | $**25703356** | $**24377036** |

---

Changes in the inventory reserves are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the<br> three months<br> ended<br> March 31,<br> 2026** | **For the<br> Year Ended<br> December 31,<br> 2025** |
| Beginning balance | $1614719 | $541421 |
| Inventory write-downs | - | 1042942 |
| Effect of foreign exchange change | 13399 | 30356 |
| **Ending balance** | $1628118 | $1614719 |

---

**NOTE 7 – NOTES RECEIVABLE**

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31, 2026** | **December 31,<br> 2025** |
| Bank notes receivable: | $17391123 | $12547551 |
| Commercial notes receivable | 1342246 | 2156528 |
| **Total** | $**18733369** | $**14704079** |

---

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 nine months from the date of issuance. As of March 31, 2026, the Company pledged notes receivable for an aggregate amount of $5.88 million to Bank of Hangzhou as a means of security for issuance of bank acceptance notes in an aggregate amount of $2.50 million. As of December 31, 2025, the Company pledged notes receivable for an aggregate amount of $3.43 million to Bank of Hangzhou as a means of security for issuance of bank acceptance notes in an aggregate amount of $2.47 million. The Company expects to collect notes receivable within 6 months after the issuance date of bank acceptance notes. All notes receivable outstanding as of March 31, 2026 have been or are expected to be collected in full prior to their respective maturity dates.

Due to the short term, high-quality credit rating of these commercial banks and no losses have occurred in history, for the three months ended March 31, 2026 and 2025, the Company had no allowance for expected credit losses for notes receivable.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 8 – PROPERTY, PLANT AND EQUIPMENT, NET**

(a) As of March 31, 2026 and December 31, 2025, property, plant and equipment consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31, 2026** | **December 31,<br> 2025** |
| Buildings | $11779891 | $11619695 |
| Machinery | 23965309 | 23471775 |
| Motor vehicles | 347658 | 342931 |
| Electronic equipment | 294970 | 289246 |
| Total property plant and equipment, at cost | **36387828** | **35723647** |
| Less: accumulated depreciation | (24641585) | (23834500) |
| Property, plant and equipment, net | $**11746243** | $**11889147** |

---

For the three months ended March 31, 2026 and 2025, depreciation expense amounted to $0.48 million and $0.47 million, respectively, of which $0.31 million and $0.27 million, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

For the three months ended March 31, 2026 and 2025, nil and nil of construction-in-progress was converted into property, plant and equipment.

**NOTE 9 – LAND USE RIGHTS**

Land use rights consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31, 2026** | **December 31,<br> 2025** |
| Land use rights, cost | $4460221 | $4399566 |
| Less: Accumulated amortization | (1111491) | (1074378) |
| **Land use rights, net** | $**3348730** | $**3325188** |

---

Estimated future amortization expense is as follows as of March 31, 2026:

---

| | |
|:---|:---|
| **Years ending March 31,** | **Amortization<br> expense** |
| 2027 | $88898 |
| 2028 | 88898 |
| 2029 | 88898 |
| 2030 | 88898 |
| 2031 | 88898 |
| Thereafter | 2904240 |
| **Total** | $**3348730** |

---

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 10 – FIXED DEPOSIT**

As of March 31, 2026 and December 31, 2025, fixed deposit consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31, 2026** | **December 31,<br> 2025** |
| Three-year bank deposit-current | $1500264 | $2966386 |
| Three-year bank deposit-non current | 7474063 | 4421828 |
| **Total** | $**8974327** | $**7388214** |

---

All fixed deposits were deposited in local banks in the PRC, each with a deposit term of three years. As of March 31, 2026, the Company had four outstanding term deposits with the following maturity dates and annual interest rates:

(1) approximately $1.47 million with China Zheshang Bank, maturing on December 5, 2028, bearing interest at 1.90% per annum;

(2) approximately $1.52 million with China Zheshang Bank, maturing on June 27, 2027, bearing interest at 2.60% per annum;

(3) approximately $3.03 million with China Zheshang Bank, maturing on September 27, 2027, bearing interest at 2.40% per annum;

(4) approximately $1.50 million with Bank of Ningbo, maturing on September 21, 2026, bearing interest at 3.00% per annum.

(5) approximately $1.46 million with Bank of Ningbo, maturing on January 15, 2029, bearing interest at 3.00% per annum.

**NOTE 11 – NOTES PAYABLE**

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2026** | **December 31,<br> 2025** |
| Bank acceptance notes | $16440997 | $12759720 |
| **Total** | $**16440997** | $**12759720** |

---

The interest-free notes payable, ranging from six months to one year from the date of issuance, were secured by $0.22 million and $0.07 million restricted cash, and $5.88 million and $3.43 million notes receivable, as of March 31, 2026 and December 31, 2025, 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 notes payable bears no interests.

**NOTE 12 – ACCOUNTS PAYABLE**

Accounts payable are summarized as follow:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2026** | **December 31,<br> 2025** |
| Procurement of Materials | $33029726 | $25213713 |
| Infrastructure& Equipment | 211605 | 113793 |
| Freight fee | 324085 | 277411 |
| **Total** | $**33565416** | $**25604917** |

---

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 13 – OTHER CURRENT LIABILITIES**

Other current liabilities are summarized as follow:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31, 2026** | **December 31,<br> 2025** |
| Employee payables | 102842 | 909168 |
| Other tax payables | 433113 | 178399 |
| Other payable\* | 404095 | 248565 |
| Accrued expenses | 177566 | 301134 |
| Accrued after-sales service fee | 398726 | 1304605 |
| **Total** | $**1516342** | $**2941871** |

---

\* Other payables mainly consist of utility expenses and consulting fee.

**NOTE 14 – DEFERRED REVENUE**

Deferred revenue is summarized as follow:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31, 2026** | **December 31,<br> 2025** |
| Subsidy | 1039241 | 1083784 |
| **Total** | $**1039241** | $**1083784** |

---

Changes in the deferred revenue are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the<br> three months <br> ended<br> March 31,<br> 2026** | **For the<br> Year Ended <br> December 31,<br> 2025** |
| Beginning balance | $1083784 | $1263180 |
| Recognized as revenue during the year | (59281) | (228357) |
| Effect of foreign exchange change | 14738 | 48961 |
| **Ending balance** | $1039241 | $1083784 |

---

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, 2026, grant income decreased by $0.22 million, as compared to December 31, 2025. The change was mainly due to timing of incurring qualifying expenses.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 15 – WARRANT LIABILITY**

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and applicable authoritative guidance in FASBASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own ordinary shares and whether the warrant holders could potentially require "net cash settlement" in a circumstance outside of the Company's control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations.

In connection with the registered direct offering closed on July 27, 2022, the Company issued to an investor a warrant to purchase up to 4,530,000 ordinary shares at an exercise price of $4.49 per share. The warrant became exercisable on January 27, 2023 and will expire on January 26, 2028.

The warrants meet the definition of a derivative under FASB ASC 815, as the Company cannot avoid a net cash settlement under certain circumstances. The fair value of the warrant liabilities was measured using a Black–Scholes model. Significant inputs into the model as of the reporting period begin remeasurement dates, and as of the reporting period end remeasurement dates are as follows:

---

| | | |
|:---|:---|:---|
|  | **Ordinary Share<br> Warrants**<br>**March 31,<br> 2026** | **Ordinary Share<br> Warrants**<br>**December 31,<br> 2025** |
| Share price | $0.70 | $0.61 |
| Exercise price | $4.49 | $4.49 |
| Expected term (years) | 0.91 | 1.04 |
| Risk-free interest rate | 34% | 3.5% |
| Expected volatility | 110.00% | 100.00% |

---

The warrants outstanding and fair values at each of the respective valuation dates are summarized below:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2026** | **December 31,<br> 2025** |
| Number of ordinary share warrants | 4530000 | 4530000 |
| Fair value of the warrants | $123837 | $70910 |

---

The fair value of the warrants was classified as a liability of $70,910 as of December 31, 2025. For the three months ended March 31, 2026, the Company recognized a loss of $52,927 for the investor warrant from the change in fair value of the warrant liability. As a result, the warrant liability is carried on the consolidated balance sheets at the fair value of $123,837 for the investor warrant, collectively, as of March 31, 2026.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 16 – SHAREHOLDER'S EQUITY**

***Preferred Shares*** — The Company is authorized to issue an unlimited number of no par value preferred shares, divided into five classes, Class A through Class E, each with such designation, rights and preferences as may be determined by a resolution of the Company's board of directors to amend the Memorandum and Articles of Association to create such designations, rights and preferences. The Company has five classes of preferred shares to give the Company flexibility as to the terms on which each class is issued. All shares of a single class must be issued with the same rights and obligations. Accordingly, starting with five classes of preferred shares will allow the Company to issue shares at different times on different terms. As of March 31, 2026 and December 31, 2025, there were no preferred shares designated, issued or outstanding.

***Ordinary Shares*** — The Company is authorized to issue an unlimited number of ordinary shares of no par value, divided into two classes: Class A Ordinary Shares, each carrying one vote per share, and Class B Ordinary Shares, each carrying twenty-five votes per share. As of March 31, 2026, there were 20,532,482 Class A ordinary shares and 6,011,740 Class B ordinary shares issued and outstanding. Accordingly, the total voting power of the Company as of March 31, 2026 was 170,826,982 votes. Trendway Capital Limited, which is controlled and beneficially owned by Mr. Peter Zuguang Wang, the chairman of the Company's board of directors, held 100% of the outstanding Class B ordinary shares, representing 150,293,500 votes, or approximately 88.0% of the total voting power of the Company. As a result, Mr. Wang has the ability to control the outcome of matters submitted to a vote of the Company's shareholders, including the election of directors and significant corporate transactions, without the consent of the holders of Class A ordinary shares.

On January 28, 2026, the Company entered into an underwriting agreement with Joseph Stone Capital, LLC, as sole underwriter, pursuant to which the Company agreed to sell 5,083,330 units (the "Units") at a public offering price of $1.20 per Unit. Each Unit consisted of one ordinary share of the Company and four-fifths of one warrant (each, a "January 2026 Warrant"), with each whole January 2026 Warrant exercisable for one ordinary share at an exercise price of $1.20 per share, or by means of a zero price exercise, and expiring three years from the date of issuance. The ordinary shares and January 2026 Warrants included in the Units were immediately separable and were issued separately. The offering closed on January 29, 2026, and the Company received gross proceeds of approximately $6.1 million, before deducting underwriting discounts and other offering expenses.

On January 30, 2026, the Company re-convened its 2025 annual general meeting of shareholders (the "2025 Annual General Meeting"). At the 2025 Annual General Meeting, the shareholders of the Company approved, among other matters: (i) the adoption of amended and restated Memorandum and Articles of Association; (ii) the implementation of a dual class share structure, pursuant to which the ordinary shares of the Company were re-designated into Class A ordinary shares of no par value, carrying one vote per share, and Class B ordinary shares of no par value, carrying 25 votes per share; and (iii) the reclassification of each of the issued and outstanding ordinary shares held by Trendway Capital Limited as Class B ordinary shares, and the reclassification of all remaining issued and outstanding ordinary shares as Class A ordinary shares. On February 24, 2026, the dual-class share structure became effective on the Nasdaq Capital Market.

*Rights*

Each Class A Ordinary Share confers upon the holder one vote at a meeting of the Members or on any Resolution of Members, while each Class B Ordinary Share confers upon the holder twenty-five votes. Both classes of Ordinary Shares have identical economic rights, entitling the holder to an equal share with each other Ordinary Share in any dividend paid by the Company and in the distribution of the surplus assets of the Company on its liquidation.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 16 – SHAREHOLDER'S EQUITY (CONTINUED)**

*Conversion*

In accordance with the Memorandum of Association, Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstance, while each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof, and upon any sale, transfer, assignment or disposition of any Class B Ordinary Shares by a holder thereof to any person who is not an affiliate of such holder, each of such Class B Ordinary Shares will be automatically and immediately converted into one Class A Ordinary Share. Class A Ordinary Shares are freely transferable.

***Warrants —*** Redeemable warrants sold as part of the units in the Company's initial public offering, or the Public Warrants (together with the Private Warrants (as defined below), the "Warrants") may only be exercised for a whole number of shares. No fractional shares were issued upon exercise of the Public Warrants. The Public Warrants were exercisable from October 24, 2019 to October 24, 2024, a total of five years from the consummation of the Business Combination.

Private warrants included (i) the 282,000 warrants underlying the units issued to Greenland Asset Management Corporation (the "Sponsor") and Chardan Capital Markets, LLC ("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 were 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 were held by someone other than the initial purchasers or their permitted transferees, the Private Warrants would be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Private Warrants expired concurrently with the Public Warrants on October 24, 2024, and accordingly no Private Warrants remain outstanding.

On January 28, 2026, the Company entered into an underwriting agreement with Joseph Stone Capital, LLC, as sole underwriter, pursuant to which the Company agreed to sell 5,083,330 units (the "Units") at a public offering price of $1.20 per Unit. Each Unit consisted of one ordinary share of the Company and four-fifths of one warrant (each, a "January 2026 Warrant"), with each whole January 2026 Warrant exercisable for one ordinary share at an exercise price of $1.20 per share, or by means of a zero price exercise, and expiring three years from the date of issuance. The ordinary shares and January 2026 Warrants included in the Units were immediately separable and were issued separately. The offering closed on January 29, 2026, and the Company received gross proceeds of approximately $6.1 million, before deducting underwriting discounts and other offering expenses.

As of March 31, 2026, there were no warrants outstanding.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**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 ordinary 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.

The following is a reconciliation of the basic and diluted earnings per share computation:

---

| | | |
|:---|:---|:---|
|  | **For the three months ended<br> March 31,** | **For the three months ended<br> March 31,** |
|  | **2026** | **2025** |
| Net income attributable to Greenland Technologies Holding Corporation and subsidiaries | $5000480 | $4003783 |
| Weighted average basic and diluted computation shares outstanding: |  |  |
| **Weighted average shares used in basic computation** | **21753958** | **13594530** |
| Diluted effect of stock options and warrants |  |  |
| **Weighted average shares used in diluted computation** | **21753958** | **13594530** |
| Basic and diluted net income per share | $0.23 | $0.29 |

---

For the three months ended March 31, 2026 and 2025, 4,530,000 shares underlying outstanding warrants to an investor were excluded from the calculation of diluted loss per share as the warrants were anti-dilutive. The exercise price of the warrants is higher than the average price of ordinary shares during the periods, so the warrants is "out-of-the-money" and result in an anti-dilutive effect on earnings per share.

**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, 2026 and 2025 is as follows:

---

| | | |
|:---|:---|:---|
|  | **For three months ended<br> March 31,** | **For three months ended<br> March 31,** |
|  | **2026** | **2025** |
| Domestic Sales | $25184187 | $21184973 |
| International Sales | 354158 | 492591 |
| **Total** | $**25538345** | $**21677564** |

---

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**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, 2026 was 14.87%. The effective tax rate for the three months ended March 31, 2026 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, 2025 was 16.14%. The effective tax rate for the three months ended March 31, 2025 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, 2026 and December 31, 2025, 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.

**NOTE 20 – COMMITMENTS AND CONTINGENCIES** 

**Lease Commitments**

The following are the aggregate non-cancellable future minimum lease payments under operating leases as of March 31, 2026:

---

| | |
|:---|:---|
| **For the year ending March 31,** | **Operating <br> Leases** |
| 2027 | $3864 |
| &nbsp;&nbsp;&nbsp;Total lease payments | $**3864** |

---

**Contingencies**

From time to time, the Company is involved in various claims, legal proceedings, and other matters arising in the ordinary course of business. As of March 31, 2026, management is not aware of any pending or threatened litigation, claims, or assessments that would have a material adverse effect on the Company's financial position, results of operations, or cash flows. The Company has no material contingent liabilities, including guarantees, letters of credit, or legal disputes that require accrual or disclosure under ASC 450, Contingencies.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 21 – RELATED PARTY TRANSACTIONS**

**(a) Names and Relationship of Related Parties:**

---

| | |
|:---|:---|
|  | **Existing Relationship with the Company** |
| Cenntro Holding Limited | Under common control of Peter Zuguang Wang |
| Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) | Under common control of Peter Zuguang Wang |
| Peter Zuguang Wang | Chairman of the Board of Directors of the Company |
| Xinchang County Jiuxin Investment Management Partnership (LP) | Under control of Mr. Mengxing He, the General Manager and one of the directors of Zhejiang Zhongchai/Non-controlling interest of Zhejiang Zhongchai |
| Raymond Z. Wang | Chief Executive Officer and President |
| Cenntro Inc. | Under common control of Peter Zuguang Wang |
| Cenntro Enterprise Limited | Under common control of Peter Zuguang Wang |

---

**(b) Summary of Balances with Related Parties:**

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2026** | **December 31,<br> 2025** |
| **Due to related parties:** | | |
| Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership)<sup>1</sup> | $- | $94442 |
| Cenntro Holding Limited<sup>2</sup> | 1341627 | 1341627 |
| Peter Zuguang Wang<sup>3</sup> | 2392961 | 2392961 |
| Xinchang County Jiuxin Investment Management Partnership (LP)<sup>4</sup> | - | 1429981 |
| Raymond Z. Wang<sup>5</sup> | 16000 | 16000 |
| **Total** | $**3750588** | $**5275011** |

---

All balances of due to related parties as of March 31, 2026 and December 31, 2025 were unsecured, interest-free and had no fixed terms of repayments.

The balance of due to related parties as of March 31, 2026 and December 31, 2025 consisted of:

1 Temporary borrowings from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership);

---

| | |
|:---|:---|
| 2 | Total dividend payment of $7.6 million declared by Zhongchai Holding to Cenntro Holding Limited. As of December 31, 2019, the balance was $1.34 million, and no further payments had been made since then; |

---

3 Payable to Peter Zuguang Wang for capital reduction due to the dissolution of Shanghai Hengyu Business Management Consulting Co., Ltd. on July 10, 2023;

---

| | |
|:---|:---|
| 4 | Total dividend payment of $1.43 million declared by Zhejiang Zhongchai to Xinchang County Jiuxin Investment Management Partnership (LP). As of March 31, 2026, the balance was nil; and |

---

5 Temporary borrowings from Raymond Z. Wang.

**GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 21 – RELATED PARTY TRANSACTIONS (CONTINUED)**

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| **Due from related parties-current:** |  |  |
| Cenntro Inc. | 490000 | 840000 |
| Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) | - | 245017 |
| Cenntro Enterprise Limited | 21400 | 21400 |
| **Total** | $**511400** | $**1106417** |

---

The balance of due from related parties as of March 31, 2026 and December 31, 2025 consisted of:

Due from Cenntro Inc. was $0.49 million and $0.84 million as of March 31, 2026 and December 31, 2025, respectively. The amount of due from this related party represents a loan with an annual interest rate of 7.5% and matured on April 14, 2026. Pursuant to a supplementary agreement between the parties, the period before April 15, 2025 was an interest-free period for the advanced funds. On April 14, 2026, the Company (through its subsidiary, Zhongchai Holding (Hong Kong) Limited) and Cenntro Inc. entered into an Extension Agreement (the "Extension Agreement"), pursuant to which the maturity date of the loan was extended from April 14, 2026 to October 14, 2026. As of the date of the Extension Agreement, the outstanding principal balance was approximately $0.55 million. During the extension period, interest accrues at 10% per annum (increased from the original 7.5%), payable no later than the extended maturity date.

Due from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) was nil and $0.25 million as of March 31, 2026 and December 31, 2025, respectively. The amount of due from this related party represents a loan with annual interest rate of 4.785%.

Due from Cenntro Enterprise limited was $0.02 million and $0.02 million as of March 31, 2026 and December 31, 2025, respectively. The amount of due from this related party represents expenses paid on behalf of the related party.

**(b) Summary of Related Party dividend payment:**

A summary of dividend payment declared by Zhejiang Zhongchai to related parties for the three months ended March 31, 2026 and 2025 are listed below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months<br> ended March 31,** | **For the three months<br> ended March 31,** | **For the three months<br> ended March 31,** | **For the three months<br> ended March 31,** |
|  | **2026** | **2026** | **2025** | **2025** |
| **Dividend payment to related parties:** | | | | |
| Xinchang County Jiuxin Investment Management Partnership (LP) |  | 1444711 |  | 188222 |

---

**NOTE 22 – SUBSEQUENT EVENTS**

Management has evaluated subsequent events through the date that the financial statements were available to be issued, which is May 13, 2026. All subsequent events requiring recognition as of March 31, 2026 have been incorporated into these financial statements and there are no other subsequent events that require disclosure in accordance with FASB ASC Topic 855.

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION**

**Overview**

Greenland designs, develops, manufactures and sells components and products for the global material handling industries.

Through its subsidiaries in the PRC, 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 transportation, warehousing logistics, electrical machinery, and automobile industries. Greenland's revenue increased from approximately $21.68 million for the three months ended March 31, 2025 to $25.54 million for the three months ended March 31, 2026. The increase in revenue was primarily the result of an increase of approximately $3.99 million in the Company's sales volume of transmission products for the three months ended March 31, 2026. Based on its revenues for the three months ended March 31, 2026 and 2025, 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, 2026 and 2025, Greenland sold an aggregate of 46,027 and 38,734 sets of transmission products, respectively, to more than 100 forklift manufacturers in the PRC.

Greenland is the parent company of HEVI and Greenland Holding Enterprises Inc. ("Greenland Holding"), a holding company formed in the State of Delaware on August 28, 2023, which in turn acts as the holding company for Zhongchai Holding (Hong Kong) Limited, a holding company formed under the laws of 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 PRC in 2005, Hangzhou Greenland Energy Technologies Co., Ltd. ("Hangzhou Greenland"), an operating company formed under the laws of the PRC in 2019, and Hengyu Capital Limited, a company formed in Hong Kong on August 16, 2022 ("Hengyu Capital"). Through Zhongchai Holding and its subsidiaries, Greenland develops and manufactures traditional transmission products for material handling machinery in the PRC.

Greenland was incorporated on December 28, 2017 as a British Virgin Islands business company with limited liability. 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.

**Results of Operations**

 ****

***For the three months ended March 31, 2026 and 2025***

 

*Overview*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended March 31** | **For the three months ended March 31** | **For the three months ended March 31** | **For the three months ended March 31** |
|  | **2026** | **2025** | **Change** | **Variance** |
| Revenues | $25538345 | $21677564 | $3860781 | 17.8% |
| Cost of Goods Sold | 16779083 | 15016614 | 1762469 | 11.7% |
| **Gross Profit** | **8759262** | **6660950** | **2098312** | 31.5% |
| Selling expenses | 419014 | 331809 | 87205 | 26.3% |
| General and administrative expenses | 1842428 | 1438988 | 403440 | 28.0% |
| Research and development expenses | 778219 | 81457 | 696762 | 855.4% |
| &nbsp;&nbsp;&nbsp;**Total Operating Expenses** | **3039661** | **1852254** | **1187407** | 64.1% |
| **Income from operations** | **5719601** | **4808696** | **910905** | 18.9% |
| Interest income | 519843 | 141040 | 378803 | 268.6% |
| Interest expenses | (33380) |  | (33380) | (100.0)% |
| Change in fair value of the warrant liability | (52927) | 209294 | (262221) | 125.3% |
| Other income | 599189 | 282081 | 317108 | 112.4% |
| **Income before income tax** | **6752326** | **5441111** | **1311215** | 24.1% |
| Income tax expense | 1003895 | 878275 | 125620 | 14.3% |
| **Net income** | **5748431** | **4562836** | **1185595** | 26.0% |

---

*Components of Results of Operations*

 

---

| | | |
|:---|:---|:---|
| | **For the three months ended March 31** | **For the three months ended March 31** |
| <br>**Component of Results of Operations** | **2026** | **2025** |
| Revenues | $25538345 | $21677564 |
| Cost of Goods Sold | 16779083 | 15016614 |
| Gross Profit | **8759262** | **6660950** |
| Operating Expenses | 3039661 | 1852254 |
| Net Income | **5748431** | **4562836** |

---

 

 

*Revenue*

Greenland's revenue was approximately $25.54 million for the three months ended March 31, 2026, representing an increase of approximately $3.86 million, or 17.8%, as compared to that of approximately $21.68 million for the three months ended March 31, 2025. The increase in revenue was primarily a result of the increase of approximately $3.99 million in the Company's sales volume of transmission products for the three months ended March 31, 2026. For the three months ended March 31, 2026, the Company sold an aggregate of 46,027 sets of transmission products, compared to 38,734 sets sold in the three months ended March 31, 2025. This represents an increase of approximately 7,293 units, or approximately 18.8%. The sales volume growth was driven by sustained demand from the Company's customer base in the material handling sector.

 

*Cost of Goods Sold*

Greenland's 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 Company's manufacturing activities. The write down of inventory using the net realizable value impairment test is also recorded in cost of goods sold. The total cost of goods sold was approximately $16.78 million for the three months ended March 31, 2026, representing an increase of approximately $1.76 million, or 11.7%, as compared to that of approximately $15.02 million for the three months ended March 31, 2025. Cost of goods sold increased due to the increase in our sales volume.

 

*Gross Profit*

Greenland's gross profit was approximately $8.76 million for the three months ended March 31, 2026, representing an increase of approximately $2.10 million, or 31.5%, as compared to that of approximately $6.66 million for the three months ended March 31, 2025. For the three months ended March 31, 2026 and 2025, Greenland's gross margins were approximately 34.3% and 30.7%, respectively. The increase in gross profit in the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily due to the increase in our sales volume and a shift in Greenland's product mix towards higher value and more sophisticated products, such as hydraulic transmission products.

 

*Operating Expenses*

Greenland's operating expenses consist of selling expenses, general and administrative expenses and research and development expenses.

 

<u>Selling Expenses</u>

Selling expenses mainly comprise of operating expenses such as sales staff payroll, traveling expenses, and transportation expenses. Our selling expenses were approximately $0.42 million for the three months ended March 31, 2026, representing an increase of approximately $0.09 million, or 26.3%, as compared to approximately $0.33 million for the three months ended March 31, 2025. The increase in selling expenses was mainly due to an increase in the shipping expenses for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

 

<u>General and Administrative Expenses</u>

General and administrative expenses comprise of management and staff salaries, employee benefits, depreciation for office facility and office furniture and equipment, travel and entertainment expenses, legal and accounting fees, financial consulting fees, and other office expenses. General and administrative expenses were approximately $1.84 million for the three months ended March 31, 2026, representing an increase of approximately $0.40 million, or 28.0%, as compared to that of approximately $1.44 million for the three months ended March 31, 2025. The increase in general and administrative expenses was mainly due to an increase of approximately $0.53 million in consultancy fees offset by a decrease of approximately $0.09 million in employee salary for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025.

 

 

<u>Research and Development (R&D) Expenses</u>

R&D expenses consist of R&D personnel compensation, costs of materials used in R&D projects, and depreciation costs for research-related equipment. R&D expenses were approximately $0.78 million for the three months ended March 31, 2026, representing an increase of approximately $0.70 million, or 855.4%, as compared to that of approximately $0.08 million for the three months ended March 31, 2025. Such increase was primarily attributable to a significant increase in the Company's R&D activities during the three months ended March 31, 2026.

 

*Income from Operations*

Income from operations for the three months ended March 31, 2026 was approximately $5.72 million, representing an increase of approximately $0.91 million, as compared to that of approximately $4.81 million for the three months ended March 31, 2025.

 

*Interest Income and Interest Expenses*

Greenland's interest income was approximately $0.52 million for the three months ended March 31, 2026, representing an increase of approximately $0.38 million, or 268.6%, as compared to that of approximately $0.14 million for the three months ended March 31, 2025. The increase in interest income was because more cash was deposited in banks during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.

Greenland's interest expenses were approximately $0.03 million for the three months ended March 31, 2026, representing an increase of approximately $0.03 million, or 100.0%, as compared to nil for the three months ended March 31, 2025. The increase was primarily due to an increase in interest expense on the discounted note for the three months ended March 31, 2026, compared to those for the three months ended March 31, 2025.

 

*Other Income*

Greenland's other income was approximately $0.60 million for the three months ended March 31, 2026, representing an increase of approximately $0.32 million, or 112.4%, as compared to approximately $0.28 million for the three months ended March 31, 2025. The increase was primarily due to an increase in grant income for the three months ended March 31, 2026, compared to those for the three months ended March 31, 2025.

*Income Taxes*

Greenland's income tax was approximately $1.00 million for the three months ended March 31, 2026, as compared to that of approximately $0.88 million for the three months ended March 31, 2025.

Zhejiang Zhongchai obtained a "high-tech enterprise" status near the end of the fiscal year of 2022. Such status allows Zhejiang Zhongchai to enjoy a reduced statutory income tax rate of 15%, rather than the standard PRC corporate income tax rate of 25%. Income tax for the three months ended March 31, 2026 and 2025 were calculated based on a rate of 15%. The "high-tech enterprise" status is reevaluated by relevant Chinese government agencies every three years. Zhejiang Zhongchai's current "high-tech enterprise" status will be reevaluated near the end of 2028.

Greenland's other PRC subsidiaries are subject to different income tax rates. Hangzhou Greenland, the wholly owned subsidiary of Zhongchai Holding, is subject to the 25% standard income tax rate. Greenland is a holding company registered in the British Virgin Islands and is not subject to tax on income or capital gains under the current British Virgin Islands law. In addition, upon payment of dividends to its shareholders, the Company will not be subject to any British Virgin Islands withholding tax.

On January 14, 2020, Greenland established HEVI, its wholly owned subsidiary in the state of Delaware. HEVI promotes sales of sustainable alternative products for the heavy industrial equipment industry, including electric industrial vehicles, in the North American market. On December 22, 2017, the U.S. federal government enacted the 2017 Tax Act. The 2017 Tax Act includes a number of changes in existing tax law impacting businesses, including the transition tax, a one-time deemed repatriation of cumulative undistributed foreign earnings and a permanent reduction in the U.S. federal statutory rate from 35% to 21%, effective on January 1, 2018. ASC 740 requires companies to recognize the effect of tax law changes in the period of enactment, and accordingly, the effects must be recognized on companies' calendar year-end financial statements, even though the effective date for most provisions is January 1, 2018. Since HEVI was established in 2020, the one-time transition tax did not have any impact on the Company's tax provision and there was no undistributed accumulated earnings and profits as of March 31, 2026.

On March 26, 2024, the Company entered into a share exchange agreement with Greenland Holding Enterprises Inc. and Zhongchai Holding (the "2024 Share Exchange Agreement"). Pursuant to the 2024 Share Exchange Agreement, Greenland Holding Enterprises Inc. issued 100 shares of common stock to the Company, par value $0.01 per share, representing all issued and outstanding share capital of Greenland Holding Enterprises Inc., in exchange for 100% of the equity interest of Zhongchai Holding. Greenland Holding Enterprises Inc. is a holding company registered on August 28, 2023 in the State of Delaware with no material operations. Since Greenland Holding Enterprises Inc. was established in 2023, the one-time transition tax did not have any impact on the Company's tax provision and there was no undistributed accumulated earnings and profits as of as of March 31, 2026.

*Net Income*

Our net income was approximately $5.75 million for the three months ended March 31, 2026, representing an increase of approximately $1.19 million, as compared to that of approximately $4.56 million for the three months ended March 31, 2025.

**Liquidity and Capital Resources**

Greenland is a holding company incorporated in the British Virgin Islands. Current PRC regulations permit our PRC subsidiaries to pay dividends to us only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, our PRC subsidiaries are required to set aside at least 10% of their respective accumulated profits each year, if any, to fund certain reserve funds until the total amount set aside reaches 50% of their respective registered capital. Our PRC subsidiaries may also allocate a portion of their after-tax profits based on PRC accounting standards to employee welfare and bonus funds at their discretion. These reserves are not distributable as cash dividends.

We have funded working capital and other capital requirements primarily by equity contributions, cash flow from operations, short-term bank loans and bank acceptance notes, and long-term bank loans. Cash is required primarily to purchase raw materials, repay debts and pay salaries, office expenses, income taxes and other operating expenses.

For the three months ended March 31, 2026, our PRC subsidiary, Zhejiang Zhongchai, paid approximately $1.44 million in dividends, extended approximately $4.00 million in loans to third parties, and maintained approximately $10.61 million in cash on hand. We plan to maintain the current debt structure and rely on government-supported loans at lower cost, if necessary.

Government subsidies mainly consist of an incentive granted by the Chinese government to encourage transformation of fixed assets in China and other miscellaneous subsidies from the Chinese government. Government subsidies are recognized when there is reasonable assurance that the subsidy will be received, and all conditions be completed. Total government subsidies recorded under long-term liabilities were $1.04 million and $1.08 million as of March 31, 2026 and December 31, 2025, respectively.

The Company currently plans to fund its operations mainly through cash flow from its operations, renewal of bank borrowings, additional equity financing, and continuation of financial support from its shareholders and affiliates controlled by its principal shareholders, if necessary. The Company might implement a stricter policy on sales to less creditworthy customers and plans to continue to improve its collection efforts on accounts with outstanding balances. The Company is actively working with customers and suppliers and expects to fully collect the remaining balance.

We believe that the Company has sufficient cash, even with uncertainty in the Company's manufacturing and sale of electric industrial heavy equipment in the future and potential fluctuations in demand for our transmission products. We believe our existing funding sources will be sufficient to fund our operations for the next 12 months. We remain confident and expect to continue to generate positive cash flow from our operations.

We may need additional cash resources in the future, if the Company experiences failure in collecting account receivables, changes in business conditions, changes in financial conditions, or other developments. We may also need additional cash resources, if the Company wishes to pursue opportunities for investment, acquisition, strategic cooperation, or other similar actions. If the Company's management and its board of directors determine that the cash required for specific corporate activities exceed Greenland's cash and cash equivalents on hand, the Company may issue debt or equity securities to raise cash.

Historically, we have expended considerable resources on building a new factory and paid off a considerable amount of debt, resulting in less available cash. However, we anticipate that our cash flow will continue to improve for the remainder of fiscal year 2026. More specifically, Zhejiang Zhongchai can pledge the deed of its factory as a collateral to banks in order to obtain loans, refinance expiring loans, restructure short-term loans, and fund other working capital needs upon acceptable terms to Greenland.

 ****

***Cash and Cash Equivalents***

Cash equivalents refer to all highly liquid investments purchased with original maturity of three months or less. As of March 31, 2026, Greenland had approximately $10.39 million of cash and cash equivalents, representing an increase of approximately $2.62 million, or 33.66%, as compared to approximately $7.78 million as of December 31, 2025. The increase of cash and cash equivalents was mainly due to a decrease in short-term investment, as compared to that as of December 31, 2025.

 ****

***Restricted Cash***

Restricted cash represents the amount held by a bank as security for bank acceptance notes and therefore is not available for use until the bank acceptance notes are fulfilled or expired, which typically takes less than twelve months. As of March 31, 2026, Greenland had approximately $0.22 million of restricted cash, representing an increase of approximately $0.14 million, or 200.59%, as compared to that of approximately $0.07 million as of December 31, 2025. The increase in restricted cash was due to an increase in notes payable collateralized by cash.

 ****

***Accounts Receivable***

As of March 31, 2026, Greenland had approximately $25.89 million of accounts receivables, an increase of approximately $8.63 million, or 50.00%, as compared to approximately $17.26 million as of December 31, 2025. The increase in accounts receivable was due to the increase in our sales volume and our slowed-down efforts in receivables collections.

Greenland recorded approximately $0.02 million and $0.02 million of allowance for expected credit losses as of March 31, 2026 and December 31, 2025, respectively. Greenland conducted an aging analysis of each customer's delinquent payments to determine whether allowance for expected credit losses is adequate. In establishing the allowance for expected credit losses, Greenland considers historical experience, economic environment, and expected collectability of past due receivables. An estimate of expected credit losses is recorded when collection of the full amount is no longer probable. When bad debts are identified, such debts are written off against the allowance for expected credit losses. Greenland will continuously assess its expected credit losses based on the credit history of and relationships with its customers on a regular basis to determine whether its allowance for expected credit losses on its accounts receivable is adequate. Greenland believes that its collection policies are generally in line with the transmissions industry's standard in the PRC.

 ****

***Due from Related Parties***

Due from related parties was $0.51 million and $1.11 million as of March 31, 2026 and December 31, 2025, respectively. The balance of due from related parties as of March 31, 2026 and December 31, 2025 consisted primarily of the following: (i) other receivable from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) of nil and $0.25 million as of March 31, 2026 and December 31, 2025, respectively, representing a loan with an annual interest rate of 4.785%; (ii) other receivable from Cenntro Inc. was $0.49 million and $0.84 million as of March 31, 2026 and December 31, 2025, respectively, representing a loan with an annual interest rate of 7.5% that will mature before April 14, 2026; and (iii) other receivable from Cenntro Enterprise Limited was $0.02 million and $0.02 million as of March 31, 2026 and December 31, 2025, respectively, representing expenses paid on behalf of the related party.

***Notes Receivable***

As of March 31, 2026, Greenland had approximately $18.73 million of notes receivable, which Greenland expects to collect within the next twelve months. The increase was approximately $4.03 million, or 27.40%, as compared to approximately $14.70 million as of December 31, 2025.

 ****

***Working Capital***

Our working capital was approximately $56.08 million as of March 31, 2026, as compared to $46.97 million as of December 31, 2025. The increase in working capital of $9.11 million was primarily attributable to an increase in accounts receivable and prepayments and other current assets.

 ****

***Cash Flow***

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| | | |
|:---|:---|:---|
|  | **For the Three Months Ended<br> March 31,** | **For the Three Months Ended<br> March 31,** |
|  | **2026** | **2025** |
| Net cash (used in) provided by operating activities | $(1186337) | $1244666 |
| Net cash used in investing activities | $(4172528) | $(701864) |
| Net cash provided by(used in) financing activities | $8136183 | $(1765716) |
| Net decrease in cash and cash equivalents and restricted cash | $**2777318** | $**(1222914)** |
| Effect of exchange rate changes on cash and cash equivalents | $(17011) | $157967 |
| Cash and cash equivalents and restricted cash at beginning of period | $7846870 | $8611795 |
| Cash and cash equivalents and restricted cash at end of period | $**10607177** | $**7546848** |

---

 

*Operating Activities*

Net cash used in operating activities for the three months ended March 31, 2026 was approximately $1.19 million, resulting primarily from net income of approximately $5.75 million, adjusted for non-cash item of depreciation and amortization expenses of approximately $0.52 million, change in fair value of warrant liability of approximately $0.05 million, change in accrued expense of approximately $(1.82) million and changes in operating assets and liabilities including: (i) an increase of approximately $8.36 million in accounts receivable due to the increase in our sales volume, (ii) an increase of approximately $3.81 million in notes receivables, and (iii) an increase of approximately $7.58 million in accounts payable because we extended the payment cycle.

Net cash provided by operating activities for the three months ended March 31, 2025 was approximately $1.24 million, primarily attributable to net income of approximately $4.56 million, adjusted for non-cash item of depreciation and amortization expenses of approximately $0.52 million, change in fair value of warrant liability of approximately $(0.21) million, change in accrued expense of approximately $(2.59) million and changes in operating assets and liabilities including: (i) an increase of approximately $6.06 million in accounts payable because we extended the payment cycle, (ii) an increase of approximately $5.53 million in accounts receivable due to our slowed-down efforts in receivables collections, (iii) a decrease of approximately $2.18 million in notes receivables because we prioritized collecting cash rather than accepting notes receivables, and (ⅳ) a decrease of approximately $5.22 million due to related parties.

 

*Investing Activities*

Net cash used in investing activities resulted in cash outflow of approximately $4.17 million for the three months ended March 31, 2026. Cash used in investing activities for the three months ended March 31, 2026 was mainly due to approximately $0.17 million used for purchases of long-term assets and approximately $4.00 million loaned to third parties.

Net cash used in investing activities resulted in cash outflow of approximately $0.70 million for the three months ended March 31, 2025. Cash used in investing activities for the three months ended March 31, 2025 was mainly due to approximately $0.01 million used for purchases of long-term assets and approximately $0.69 million loaned to third parties.

*Financing Activities*

Net cash provided by financing activities resulted in a cash inflow of approximately $8.14 million for the three months ended March 31, 2026, which was mainly attributable to approximately $3.49 million change in notes payable and approximately $5.59 million proceeds from equity and debt financing offset by approximately $1.44 million in dividend.

Net cash used in financing activities resulted in a cash outflow of approximately $1.77 million for the three months ended March 31, 2025, which was mainly attributable to approximately $1.00 million in repayment of loans from related parties and approximately $0.58 million change in notes payable.

 ****

***Credit Risk***

Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of such assets to credit risk is their carrying amount as at the balance sheet dates. As of March 31, 2026, cash and cash equivalents of $40,412,787 were deposited in financial institutions in the PRC, and each bank account is insured by the PRC government with the maximum limit of RMB500,000 (equivalent to $69,800). To limit exposure to credit risk relating to deposits, the Company primarily places cash and cash equivalent with large financial institutions in China which management believes are of high credit quality and the Company also continually monitors their credit worthiness.

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 environments in the PRC as well as by the general state of the PRC's economy. In addition, the Company's business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, rates and methods of taxation among other factors.

***Currency 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.

***Concentration risks***

Accounts receivable are typically unsecured and derived from goods sold to customers that are located primarily in China, thereby exposed to credit risk. The risk is mitigated by the Company's assessment of customers' creditworthiness and its ongoing monitoring of outstanding balances. The Company has a concentration of its receivables with specific customers. As of March 31, 2026, one customer accounted for 16.44% of total accounts receivable. As of December 31, 2025, three customers accounted for 11.24%, 10.24% and 10.12% of total accounts receivable, respectively. No other customers accounted for more than 10% of the Company's total accounts receivable as of March 31, 2026 and December 31, 2025.

For the three months ended March 31, 2026, one customer accounted for 16.69% of total revenue. For the three months ended March 31, 2025, one customer accounted for 17.77% of total revenue. No other customers accounted for more than 10% of the Company's total revenue for the three months ended March 31, 2026 and 2025.

There were no suppliers representing more than 10% of the Company's total purchases for the three months ended March 31, 2026 and 2025, respectively.

**Critical Accounting Policies and Estimates**

We prepare our consolidated financial statements in accordance with U.S. GAAP. In applying accounting principles, it is often required to use estimates. These estimates consider the facts, circumstances and information available, and may be based on subjective inputs, assumptions and information known and unknown to us. Material changes in certain of the estimates that we use could potentially affect, by a material amount, our consolidated financial position and results of operations. Although results may vary, we believe our estimates are reasonable and appropriate. See Note 2 to our consolidated financial statements included in "Item 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" for a summary of our significant accounting policies. The following describes certain of our significant accounting policies that involve more subjective and complex judgments where the effect on our consolidated financial position and operating performance could be material.

**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 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. 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.

**Business Combination**

On October 24, 2019, we consummated our Business Combination with Zhongchai Holding following a special meeting of the shareholders, where the shareholders of Greenland considered and approved, among other matters, a proposal to adopt and entered into the Share Exchange Agreement, dated as of July 12, 2019, 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.

Pursuant to the Share Exchange Agreement, Greenland acquired from Cenntro Holding Limited all of the issued and outstanding equity interests of Zhongchai Holding in exchange for 7,500,000 newly issued ordinary shares, no par value of Greenland, to Cenntro Holding Limited. As a result, Cenntro Holding Limited became the then 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.

Pursuant to that certain finder agreement with Hanyi Zhou dated May 29, 2019, 50,000 newly issued ordinary shares issued to Hanyi Zhou as a finder fee for the Business Combination.

**Inventories**

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method and includes all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present location and condition. Costs of purchase consist of the purchase price, import duties, freight, handling, and other directly attributable costs, less trade discounts, rebates, and other similar items. Costs of conversion include direct labor and a systematic allocation of fixed and variable production overheads incurred in converting raw materials into finished goods. Other costs are included only to the extent they are incurred in bringing the inventories to their present location and condition. Net realizable value is based on estimated selling prices in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale. 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.

**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, 2026, the Company did not have any 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.

**Off Balance Sheet Arrangements**

None.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

The Company is not required to provide the information required by this item as it is a smaller reporting company.

**ITEM 4. CONTROLS AND PROCEDURES.**

Disclosure controls, as defined under Rule 13a-15(e) and 15d-15(e) promulgated under the Exchange Act, are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this Quarterly Report, is recorded, processed, summarized, and reported within the time specified in the SEC's rules and forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

**Evaluation of Disclosure Controls and Procedures**

As of March 31, 2026, we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended. Based upon such evaluation, our chief executive officer and chief financial officer concluded that, as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures were ineffective. Such conclusion is based on the presence of the following material weakness in internal control over financial reporting as of March 31, 2026:

*<u>Accounting and Financial Reporting Personnel Material Weakness</u>* - As noted in Item 9A of our annual report on Form 10-K for the preceding fiscal year, management concluded that in light of a lack of sufficient and competent financial reporting and accounting personnel with appropriate knowledge of U.S. GAAP and SEC reporting requirements to prepare consolidated financial statements and related disclosures in accordance with U.S. GAAP and SEC reporting requirements, we did not maintain effective controls and did not implement adequate and proper supervisory review to ensure that significant internal control deficiencies can be detected or prevented.

As a result, the Company has developed a remedial plan to strengthen its accounting and financial reporting functions. To strengthen the Company's internal control over financial reporting, the Company expects to implement the following remedial actions during fiscal year ending December 31, 2026:

● developing and formalizing of key accounting and financial reporting policies and procedures;

● recruiting more financial reporting and accounting personnel who have adequate U.S. GAAP knowledge;

● initiating a targeted training program for key accounting personnel, focusing on complex U.S. GAAP topics and SEC disclosure requirements;

● planning to acquire additional resources to strengthen the financial reporting function and set up a financial and system control framework; and

● implementing a new review protocol requiring that all non-recurring or complex transactions be reviewed by both management and the external consultants prior to finalization, to ensure proper accounting treatment and disclosure in accordance with U.S. GAAP.

**Inherent limitation on the effectiveness of internal control**

The effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, any system of internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable, not absolute assurances. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business, but cannot assure you that such improvements will be sufficient to provide us with effective internal control over financial reporting.

Notwithstanding the material weakness in our internal control over financial reporting, the consolidated unaudited financial statements included in this Quarterly Report fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America.

*Changes in Internal Control Over Financial Reporting*

During the most recently completed fiscal quarter, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**PART II - OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS.**

Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

**ITEM 1A. RISK FACTORS.**

**Summary of Risk Factors**

An investment in our Class A ordinary shares is subject to a number of risks, including risks related to our business and industry, risks related to our corporate structure, risks related to doing business in China and risks related to our Class A ordinary shares. You should carefully consider all of the information in this Quarterly Report before making an investment in the Class A ordinary shares. The following list summarizes some, but not all, of these risks. Please read the information in this section for a more thorough description of these and other risks.

***Risks Related to Our Business and Industry***

For more detailed discussions of the following risks, see "Risk Factors—Risks Related to our Business and Industry" on pages 17 through 24.

● Our subsidiaries' business operations are cash intensive, and our subsidiaries' business could be adversely affected if we fail to maintain sufficient levels of liquidity and working capital;

● We grant relatively long payment terms for accounts receivable which can adversely affect our cash flow;

● Our subsidiaries face short lead-times for delivery of products to customers. Failure to meet delivery deadlines could result in the loss of customers and damage to our reputation and goodwill;

● Our subsidiaries face intense competition, and if we are unable to compete effectively, we may not be able to maintain profitability;

● Our revenues are highly dependent on a limited number of customers and the loss of any one of our subsidiaries' major customers could materially and adversely affect our growth and revenues;

● As our subsidiaries expand their operations, they may need to establish a more diverse supplier network for raw materials. The failure to secure a more diverse supplier network could have an adverse effect on our financial condition;

● To remain competitive, our subsidiaries are introducing new lines of business, including the production and sale of electric industrial heavy equipment. If these efforts are not successful, our results of operations may be materially and adversely affected;

● New lines of business, including the production and sale of electric industrial heavy equipment, may subject us and our subsidiaries to additional risks;

● Tariffs and other trade barriers imposed on Chinese goods, including components manufactured in the PRC and assembled in the United States by HEVI, could materially and adversely affect our business, financial condition, and results of operations;

● Volatile steel prices can cause significant fluctuations in our operating results. Our revenues and operating income could decrease if steel prices increase or if our subsidiaries are unable to pass price increases on to their customers;

● We are subject to various risks and uncertainties that may affect our subsidiaries' ability to procure raw materials; and

● Geopolitical conflicts involving Iran, military actions in the Middle East, and the war in Ukraine may adversely affect economic conditions in the U.S., China and globally, and cause significant volatility in the trading price of our Class A ordinary shares.

***Risks Related to Doing Business in China***

For more detailed discussions of the following risks, see "Risk Factors—Risks Related to Doing Business in China" on pages 25 through 34.

● Changes in China's economic, political or social conditions or government policies could have a material adverse effect on our business and operations;

● Uncertainties arising from the legal system in China, including uncertainties regarding the interpretation and enforcement of PRC laws and the possibility that regulations and rules can change quickly with little advance notice, could hinder our ability to offer or continue to offer our securities, result in a material adverse change to our business operations, and damage our reputation, which could materially and adversely affect our financial condition and results of operations and cause our securities to significantly decline in value or become worthless. See "Risk Factors—Risks Related to Doing Business in China—The PRC government exerts substantial influence over the manner in which we must conduct our business activities. If the Chinese government significantly regulates the business operations of our PRC subsidiaries in the future and our PRC subsidiaries are not able to substantially comply with such regulations, our business operations may be materially adversely affected and the value of our Class A ordinary shares may significantly decrease" and "Risk Factors—Risks Related to Doing Business in China—Uncertainties with respect to the PRC legal system could adversely affect us and our PRC subsidiaries";

● The Chinese government may intervene or influence our operations at any time or may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers. Any actions by the Chinese government to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or become worthless. See "Risk Factors—Risks Related to Doing Business in China—The PRC government exerts substantial influence over the manner in which we must conduct our business activities. If the Chinese government significantly regulates the business operations of our PRC subsidiaries in the future and our PRC subsidiaries are not able to substantially comply with such regulations, our business operations may be materially adversely affected and the value of our Class A ordinary shares may significantly decrease";

● Our future offerings will need to be filed with the CSRC, along with compliance with any other applicable PRC rules, policies and regulations, in connection with any future offering of our securities. Any failure to filing, or delay in filing, or failure to complying with any other applicable PRC requirements for an offering, may subject us to sanctions imposed by the relevant PRC regulatory authority. In addition, if applicable laws, regulations, or interpretations change such that we are required to obtain approval in the future and we fail to obtain such approvals, we may be subject to an investigation by competent regulators, fines or penalties, or an order prohibiting us from conducting an offering, and these risks could result in a material adverse change in our operations and the value of our Class A ordinary shares, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless. See "Risk Factors—Risks Related to Doing Business in China—We are required under PRC laws to submit filings to CSRC for our future offerings. However, we believe that we are not currently required to obtain the approval and/or comply with other requirements of the CSRC, the CAC, or other PRC governmental authorities under PRC rules, regulations or policies in connection with our continued listing on Nasdaq. In the event that any such approval is required or that there are other requirements we are obligated to comply with, we cannot predict whether or how soon we will be able to obtain such approvals and/or comply with such requirements." and "Risk Factors—Risks Related to Doing Business in China—We may be liable for improper use or appropriation of personal information provided by our customers and any failure to comply with PRC laws and regulations over data security could result in materially adverse impact on our business, results of operations, and our continued listing on Nasdaq";

● Our subsidiaries may be liable for improper use or appropriation of personal information provided by their customers and any failure to comply with PRC laws and regulations over data security could result in materially adverse impact on our business, results of operations, and our continued listing on Nasdaq;

● You may have difficulty enforcing judgments against us;

● Under the PRC Enterprise Income Tax Law, we may be classified as a "Resident Enterprise" of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC shareholders;

● PRC regulation of loans to, and direct investments in, PRC entities by offshore holding companies may delay or prevent us from using proceeds from our future financing activities to make loans or additional capital contributions to our PRC subsidiaries;

● We may rely on dividends paid by our subsidiaries for our cash needs, and any limitation on the ability of our subsidiaries to make payments to us could have a material adverse effect on our ability to conduct business;

● Governmental control of currency conversion may limit our ability to utilize our revenues effectively and affect the value of your investment;

● U.S. regulatory bodies may be limited in their ability to conduct investigations or inspections of our operations in China; and

● Our securities may be delisted and prohibited from being traded under the Holding Foreign Companies Accountable Act if the PCAOB is unable to inspect our auditor in the future. Any future delisting and cessation of trading of our securities, or the threat of their being delisted and prohibited from being traded, may materially and adversely affect the value of your investment. Additionally, any inability of the PCAOB to conduct inspections of our auditor in the future would deprive our investors of the benefits of such inspections. See "Risk Factors—Risks Related to Doing Business in China—Our Class A ordinary shares may be delisted and prohibited from being traded under the Holding Foreign Companies Accountable Act if the PCAOB is unable to inspect our auditors. The delisting and the cessation of trading of our Class A ordinary shares, or the threat of their being delisted and prohibited from being traded, may materially and adversely affect the value of your investment. Additionally, any inability of the PCAOB to conduct inspections deprives our investors with the benefits of such inspections."

***Risks Related to Our Class A Ordinary Shares***

For more detailed discussions of the following risks, see "Risk Factors—Risks Related to Our Class A Ordinary Shares" on pages 35 through 39.

● Nasdaq has recently adopted and proposed new listing rules that could result in the accelerated delisting of our Class A ordinary shares.

● Our dual-class share structure with different voting rights will limit your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders of our Class A ordinary shares may view as beneficial;

● The dual-class structure of our ordinary shares may adversely affect the trading market for the Class A ordinary shares;

● Future sales of our Class A ordinary shares, whether by us or our shareholders, could cause the price of our Class A ordinary shares to decline;

● Because we do not expect to pay dividends in the foreseeable future, you must rely on the price appreciation of our Class A ordinary shares for return on your investment; and

● Techniques employed by short sellers may drive down the market price of our Class A ordinary shares.

**Risks Related to our Business and Industry**

***Our subsidiaries' business operations are cash intensive, and our subsidiaries' business could be adversely affected if we fail to maintain sufficient levels of liquidity and working capital.***

As of March 31, 2026, we had approximately $10.61 million of cash and cash equivalents. Historically, we have spent a significant amount of cash on our operational activities, principally to procure raw materials for our subsidiaries' products. Our short-term loans are from Chinese banks and are generally secured by a portion of our fixed assets, land use rights and/or guarantees by related parties. Certain of these loans are secured against a portion of the shares of our PRC subsidiaries. The term of a majority of such loans is one year. Historically, we rolled over such loans on an annual basis. However, we may not have sufficient funds available to pay all of our borrowings upon maturity in the future. Failure to roll over our short-term borrowings at maturity or to service our debt could result in a transfer of the ownership of a portion of the shares of our PRC subsidiaries to secured lenders, the imposition of penalties, including increases in interest rates, legal actions against us by our creditors, and even insolvency.

Although we have been able to maintain adequate working capital primarily through cash from operations and short-term and long-term borrowings, any failure by our customers to settle outstanding accounts receivable, or our inability to borrow sufficient capital from local banks in the future could materially and adversely affect our cash flow, financial condition and results of operations.

***We grant relatively long payment terms for accounts receivable which can adversely affect our cash flow.***

As is customary in China, for competitive reasons, we grant relatively long payment terms to most of our subsidiaries' customers. The allowances we establish for our receivables may not be adequate. We are subject to the risk that we may be unable to collect accounts receivable in a timely manner. If the accounts receivable cannot be collected in time, or at all, a significant amount of expected credit losses will occur, and our business, financial condition and results of operation will likely be materially and adversely affected.

***Our subsidiaries face short lead-times for delivery of products to customers. Failure to meet delivery deadlines could result in the loss of customers and damage to our reputation and goodwill.***

Most of our subsidiaries' customers are large manufacturers, who generally place large orders for our subsidiaries' products and require prompt delivery. Our subsidiaries' product sale agreements typically contain short lead-times for the delivery of products and tight production and manufacturer supply schedules that can reduce our profit margins on the products procured from our subsidiaries' suppliers. Our subsidiaries' suppliers may lack sufficient capacity at any given time to meet all of the demands from our subsidiaries' customers if orders exceed their production capacity. Our subsidiaries strive for rapid response to customer demands, which can lead to reduced purchasing efficiency, increased procurement costs and low profit margins. If our subsidiaries are unable to meet the customer demands, they may lose customers. Moreover, failure to meet customer demands may damage our reputation and goodwill.

***Our subsidiaries face intense competition, and, if our subsidiaries are unable to compete effectively, we may not be able to maintain profitability.***

Our subsidiaries compete with many other companies located in the PRC and internationally that manufacture similar products. Many of our subsidiaries' competitors are larger companies with greater financial resources. Intense competition in a challenging economic environment in the PRC has, in the past, put pressure on our margins and may adversely affect our future financial performance. Moreover, intense competition may result in potential or actual litigation between our subsidiaries and their competitors relating to such activities as competitive sales practices, relationships with key suppliers and customers or other matters.

It is likely that our subsidiaries' competitors will seek to develop similar competing products in the near future. Some of our subsidiaries' competitors may have more resources than our subsidiaries do, operate in greater scale, be more capitalized than our subsidiaries are, have access to cheaper raw materials than our subsidiaries do, or offer products at a more competitive price. There can be no assurance that our initial competitive advantage will be retained and that one or more competitors will not develop products that are equal or superior in quality and are better priced than our subsidiaries' products. If our subsidiaries are unable to compete effectively, our results of operations and financial position may be materially and adversely affected.

***Our revenues are highly dependent on a limited number of customers and the loss of any one of our subsidiaries' major customers could materially and adversely affect our growth and revenues.***

During the three months ended March 31, 2026 and 2025, our subsidiaries' five largest customers contributed 39.79% and 41.27% of our revenues, respectively. For the three months ended March 31, 2026 and 2025, Greenland's single largest customer, Hangcha Group, accounted for 16.69% and 17.77%, respectively, of Greenland's total revenue. Other than Hangcha Group, no other single customer individually contributed to more than 10% of our total revenue for the three months ended March 31, 2026 and 2025.

As a result of our subsidiaries' reliance on a limited number of customers, our subsidiaries may face pricing and other competitive pressures, which may have a material adverse effect on our profits and our revenues. The volume of products sold for specific customers varies from year to year, especially since our subsidiaries are not the exclusive provider for any customers. In addition, there are a number of factors that could cause the loss of a customer or a substantial reduction in the products that our subsidiaries provide to any customer that may not be predictable. For example, our subsidiaries' customers may decide to reduce spending on our subsidiaries' products or a customer may no longer need our subsidiaries' products following the completion of a project. The loss of any one of our subsidiaries' major customers, a decrease in the volume of sales to our subsidiaries' customers or a decrease in the price at which our subsidiaries sell their products to customers could materially and adversely affect our profits and revenues.

In addition, this customer concentration may subject our subsidiaries to perceived or actual leverage that our subsidiaries' customers may have in negotiations, given their relative size and importance to our subsidiaries. If our subsidiaries' customers seek to negotiate their agreements on terms less favorable to our subsidiaries and our subsidiaries accept such terms, such unfavorable terms may have a material adverse effect on our subsidiaries' business and our financial condition and results of operations. Accordingly, unless and until our subsidiaries diversify and expand their customer base, our future success will significantly depend upon the timing and volume of business from our subsidiaries' largest customers and the financial and operational success of these customers.

 ****

***As our subsidiaries expand their operations, they may need to establish a more diverse supplier network for raw materials. The failure to secure a more diverse supplier network could have an adverse effect on our financial condition.***

In the event that our subsidiaries need to diversify their supplier network, our subsidiaries may not be able to procure a sufficient supply of raw materials at a competitive price, which could have an adverse effect on our results of operations, financial condition and cash flows. Furthermore, despite our subsidiaries' efforts to control their supply of raw materials and maintain good relationships with their existing suppliers, our subsidiaries could lose one or more of their existing suppliers at any time. The loss of one or more key suppliers could increase our subsidiaries' reliance on higher costs or lower quality supplies, which could negatively affect our profitability. Any interruptions to, or decline in, the amount or quality of our subsidiaries' raw materials supply could materially disrupt our subsidiaries' production and adversely affect our subsidiaries' business and our financial condition and financial prospects.

***Our efforts to diversify into electric industrial heavy equipment may not be successful, and the suspension of substantially all of HEVI's operations due to tariff uncertainty could materially and adversely affect our business, results of operations, and financial condition.***

To remain competitive, we have sought to diversify our product offerings beyond our traditional transmission systems and integrated powertrains for material handling machinery by expanding into the production and sale of electric industrial heavy equipment. Prior to December 2020, through Zhongchai Holding and its PRC subsidiaries, our products primarily consisted of transmission systems and integrated powertrains for material handling machinery, particularly electric forklift trucks. In December 2020, through our subsidiary HEVI, we launched a new division that focused on the production and sale of electric industrial heavy equipment as part of our strategy to diversify our business.

HEVI's electric industrial heavy equipment product portfolio includes lithium-powered electric forklifts, electric wheeled loaders, electric excavators, and related charging solutions, which have been marketed primarily in the United States. HEVI also established an assembly and distribution facility in Maryland and entered into strategic partnerships intended to support the development and commercialization of electric heavy machinery for the U.S. market. Despite these efforts, this line of business remains at an early stage and has not yet demonstrated sustained commercial success.

Our expansion into electric industrial heavy equipment involves significant risks and uncertainties. We have limited operating history and experience in this segment, which differs materially from our legacy business. We may encounter difficulties in product development, manufacturing, supply chain management, regulatory compliance, distribution, customer adoption, and after-sales service. Our products may not achieve market acceptance, may face strong competition from established manufacturers, or may not be cost-competitive. As a result, we may be unable to generate sufficient revenue to recover our investment or achieve profitability.

In addition, substantially all of HEVI's business operations have been suspended since 2025 due to uncertainty regarding tariff policy, which has adversely affected our ability to manufacture, import, distribute, and sell electric industrial heavy equipment. This suspension has limited HEVI's revenue-generating activities and may continue for an extended period. Although HEVI intends to resume operations once the policy environment stabilizes, there can be no assurance as to when, or whether, such stabilization will occur, or whether HEVI will be able to successfully restart operations on commercially reasonable terms.

If the suspension of HEVI's operations continues, or if we are unable to successfully resume or scale this business following a resumption of operations, our transition into electric industrial heavy equipment may be delayed or unsuccessful. During this transition period, our revenues may remain limited, our operating losses may increase, and our results of operations, financial condition, cash flows, and business prospects could be materially and adversely affected.

 ****

***Tariffs and other trade barriers imposed on Chinese goods, including components manufactured in the PRC and assembled in the United States by HEVI, could materially and adversely affect our business, financial condition, and results of operations.***

Our business is subject to significant risks arising from the trade policies of the United States government with respect to Chinese goods, and the broader relationship between the United States and the PRC. HEVI's electric industrial heavy equipment products are manufactured using components sourced from and manufactured in the PRC, which are then assembled into finished products in the United States. As a result, U.S. tariff policies on Chinese goods have a direct and material impact on HEVI's cost structure and business operations. In February 2025, President Donald J. Trump declared a national emergency under the International Emergency Economic Powers Act ("IEEPA") and announced the imposition of a 10% tariff on all imports from China, citing concerns related to trade imbalances and national security. These tariffs were subsequently lifted following the U.S. Supreme Court's ruling in Learning Resources in February 2026. A temporary 10% global tariff on imports was separately imposed under Section 122 of the Trade Act of 1974. Tariffs imposed under Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962 remain unaffected by the Supreme Court's ruling and continue to apply to Chinese goods. As of May 2026, average U.S. tariff rates on Chinese goods remained to be over 30%, excluding exemptions and Section 232 actions, further increasing the cost burden on U.S. importers of PRC-manufactured components and potentially affecting demand for products sourced from the PRC.

The imposition of these tariffs, and any future escalation thereof, significantly increases the landed cost of PRC-manufactured components imported by HEVI for assembly in the United States, potentially rendering HEVI's finished products less competitive relative to domestically produced alternatives or products sourced from non-tariffed jurisdictions. Our operating subsidiaries, including HEVI, may be unable to pass increased costs through to their customers, whether due to competitive pricing pressures, contractual constraints, or prevailing market conditions, which would compress margins and adversely affect profitability.

The business operations of HEVI have been suspended since 2025 due to the uncertainty surrounding U.S. tariff policy and the broader trade war between the United States and the PRC, as described elsewhere in this Report. Because HEVI's products rely on components manufactured in the PRC, the imposition of tariffs on Chinese goods has materially disrupted HEVI's ability to import components at commercially viable costs, thereby rendering its assembly and distribution operations in the United States economically unviable under current tariff conditions. To the extent that HEVI's suspension is prolonged or becomes permanent, the practical impact of tariffs on HEVI's near-term operations may be limited; however, any future resumption of HEVI's business activities would require the continued importation of PRC-manufactured components into the United States, which would be subject to the full scope of applicable tariff regimes. The costs and uncertainties associated with those tariffs could impede or delay any such resumption. Additionally, the continued application of tariffs affects the broader competitive and cost environment in which our other subsidiaries operate.

More broadly, any deterioration in the relationship between the United States and the PRC, whether arising from tariff disputes, geopolitical tensions, sanctions, export controls, or other trade-related measures, could further increase the costs associated with importing PRC-manufactured components into the United States or limit our ability to source such components altogether. Given HEVI's dependence on PRC-manufactured components for its assembly operations in the United States, any such deterioration would have a particularly direct and adverse impact on HEVI's operations and cost structure. If existing tariffs remain in place, are further escalated, or if new tariff regimes are introduced targeting Chinese goods or components, our business, financial condition, and results of operations could be materially and adversely affected.

***Volatile steel prices can cause significant fluctuations in our operating results. Our revenues and operating income could decrease if steel prices increase or if our subsidiaries are unable to pass price increases on to their customers.***

Our subsidiaries' principal raw materials are processed metal parts and components which are made of carburizing steel. The steel industry as a whole is cyclical and, at times, pricing and availability of steel can be volatile due to numerous factors beyond our subsidiaries' control, including general domestic and international economic conditions, labor costs, sales levels, competition, levels of inventory, consolidation of steel producers, higher raw material costs for steel producers, import duties and tariffs and currency exchange rates. This volatility can significantly affect the availability and cost of raw materials.

Our subsidiaries' suppliers, like many other processed metal parts and components manufacturers, maintain substantial inventories of steel to accommodate the short lead times and just-in-time delivery requirements of customers. Accordingly, our subsidiaries' suppliers purchase steel in an effort to maintain their inventory at levels that they believe to be appropriate to satisfy the anticipated needs of customers based upon historic buying practices, supply agreements with customers and market conditions. When steel prices increase, competitive conditions will influence how much of the price increase suppliers would pass on to our subsidiaries and how much our subsidiaries can pass on to their customers. To the extent our subsidiaries are unable to pass on future price increases in raw materials to their customers, the revenues and profitability of our business could be adversely affected.

***We are subject to various risks and uncertainties that might affect our subsidiaries' ability to procure raw materials*.**

Our performance depends upon our subsidiaries' ability to procure low cost, high quality raw materials on a timely basis from their suppliers. Our subsidiaries' suppliers are subject to certain risks, including the availability of raw materials, labor disputes, inclement weather, natural disasters, and general economic and political conditions, which might limit the ability of our subsidiaries' suppliers to provide low-cost, high-quality merchandise on a timely basis. Furthermore, for these or other reasons, one or more of our subsidiaries' suppliers might not adhere to our subsidiaries' quality control standards, and our subsidiaries might not identify the deficiency. Any failure by our subsidiaries' suppliers to supply quality materials at a reasonable cost on a timely basis could reduce our net sales or profits, damage our reputation and have an adverse effect on our financial condition.

***Our subsidiaries may lose their competitive advantage, and their operations may suffer, if they fail to prevent the loss or misappropriation of, or disputes over, their intellectual property.***

Our subsidiaries rely on a combination of patents, trademarks, trade secrets and confidentiality agreements to protect their intellectual property rights. While our subsidiaries are not currently aware of any infringement on their intellectual property rights, our subsidiaries' ability to compete successfully and to achieve future revenue growth will depend, in significant part, on their ability to protect their proprietary technology. Despite many laws and regulations promulgated, as well as other efforts made, by China over the past several years in an attempt to protect intellectual property rights, intellectual property rights are not as certain in China as they would be in many Western countries, including the United States. Furthermore, enforcement of such laws and regulations in China has not been fully developed. Neither the administrative agencies nor the court systems in China are as equipped as their counterparts in developed countries to deal with violations or handle the nuances and complexities between compliant technological innovation and non-compliant infringement.

Our subsidiaries' transmission technology is protected through a combination of patents, trade secrets, confidentiality agreements and other methods. However, our subsidiaries' competitors may independently develop similar proprietary methodologies or duplicate our products, or develop alternatives, which could have a material adverse effect on our subsidiaries' business and our results of operations and financial condition. The misappropriation or duplication of our subsidiaries' intellectual property could disrupt their ongoing business, distract our management and employees, reduce our revenues and increase our expenses. Our subsidiaries may need to litigate to enforce their intellectual property rights. Any such litigation could be time-consuming and costly, and the outcome of any such litigation cannot be guaranteed.

***Our PRC subsidiaries have limited insurance coverage for their operations in China and may incur losses resulting from product liability claims, business interruption or natural disasters.***

Our PRC subsidiaries have limited insurance coverage for their operations in China, and our PRC subsidiaries are therefore exposed to risks associated with product liability claims against our PRC subsidiaries or otherwise against their operations in the PRC in the event that the use of our PRC subsidiaries' products results in property damage or personal injury. Since our subsidiaries' transmission products are ultimately incorporated into forklifts, it is possible that users of forklifts or people installing these products could be injured or killed, whether as a result of defects, improper installation or other causes. We are unable to predict whether product liability claims will be brought against our PRC subsidiaries in the future or to predict the impact of any resulting adverse publicity on our PRC subsidiaries' business. The successful assertion of product liability claims against our PRC subsidiaries could result in potentially significant monetary damages and require us to make significant payments. Our subsidiaries do not carry product liability insurance and may not have adequate resources to satisfy a judgment in the event of a successful claim against us. In addition, our subsidiaries do not currently, and may not in the future, maintain business interruption insurance coverage. As such, our subsidiaries may suffer losses that result from interruptions in their operations as a result of inability to operate or failures of equipment and infrastructure at our subsidiaries' facilities. Our subsidiaries also do not currently maintain catastrophe insurance. As such, any natural disaster or man-made disaster could result in substantial losses and diversion of our subsidiaries' resources to address the effects of such an occurrence, which could materially and adversely affect our subsidiaries' business and our financial condition and results of operations.

***Failure to make adequate contributions to various employee benefit plans as required by PRC regulations may subject us to penalties.***

Our PRC subsidiaries are required under PRC laws to participate in various government sponsored employee benefit plans, including social security insurance, housing funds and other welfare-oriented payments, and contribute to the plans in amounts equal to certain percentages of salaries, including bonuses and allowances, of their employees up to a maximum amount specified by the local government from time to time at locations where our PRC subsidiaries operate their businesses. Our PRC subsidiaries have not made adequate employee benefit payments to the social security insurance and the housing fund. As a result, they may be required to make up the contributions for these plans within a stipulated period of time. In addition, our PRC subsidiaries may be required to pay late fees equal to 0.05% of the shortage of the contributions to the social security fund for each day our PRC subsidiaries fail to make up the contributions and may be imposed fines up to three times of such shortage if our PRC subsidiaries fail to make up the difference within the time frame prescribed by relevant government authorities. The maximum amount of such penalties that we anticipate could be imposed on our PRC subsidiaries with respect such employee benefits payments is approximately US$200,000. If our PRC subsidiaries are subject to late fees or fines in relation to the underpaid employee benefits, our financial condition and results of operations may be adversely affected. As of the date of this Report, our PRC subsidiaries have not been ordered to pay outstanding contributions or related penalties.

***If labor costs in the PRC increase substantially, our PRC subsidiaries' business and our costs of operations may be adversely affected.***

In recent years, the Chinese economy has experienced inflation and labor cost increases. Average wages are projected to continue to increase. Further, under PRC law an employer is required to pay various statutory employee benefits, including pensions, housing funds, medical insurance, work-related injury insurance, unemployment insurance and maternity insurance to designated government agencies for the benefit of its employees. The relevant government agencies may examine whether an employer has made adequate payments to the statutory employee benefits, and those employers who fail to make adequate payments may be subject to late payment fees, fines and/or other penalties. We expect that our labor costs, including wages and employee benefits, will continue to increase based on the past trends. If we are unable to control our labor costs or pass such increased labor costs on to our subsidiaries' customers, our financial condition and results of operations may be adversely affected.

***We may not be able to effectively protect our intellectual property from unauthorized use by others.***

Through its subsidiaries, we hold patents, trademarks and other intellectual properties that are critical to our business in the PRC. Any of our intellectual property rights could be challenged, invalidated, circumvented or misappropriated, or such intellectual property may not be sufficient to provide us with competitive advantages. We cannot assure you that (i) all of the intellectual property rights we owned will be adequately protected, or (ii) our intellectual property rights will not be challenged by third parties or found by a judicial authority to be invalid or unenforceable. Moreover, there can be no assurance that we will obtain such trademarks and any other trademarks that are crucial to our business in the future. Thus, third parties may also take the position that we are infringing their rights, and we may not be successful in defending these claims. Additionally, we may not be able to enforce and defend its proprietary rights or prevent infringement or misappropriation, without incurring substantial expenses to us and a significant diversion of management time and attention from our business strategy.

To protect our parents, trademarks and other proprietary rights, we rely on and expect to continue to rely on a combination of physical and electronic security measures and trademark, patent and trade secret protection laws. If the measures we have taken to protect our proprietary rights are inadequate to prevent the use or misappropriation by third parties or such rights are diminished due to successful challenges, the value of our brand and other intangible assets may be diminished and our ability to attract and retain customers may be adversely affected.

***Competition for our and our subsidiaries' employees is intense, and we and our subsidiaries may not be able to attract and retain the highly skilled employees needed to support our subsidiaries' business.***

As we continue to experience growth, our future success depends on our and our subsidiaries' ability to attract, develop, motivate and retain highly qualified and skilled employees, including engineers, financial personnel and marketing professionals. Competition for highly skilled engineering, sales, technical and financial personnel is extremely intense. We and our subsidiaries may not be able to hire and retain these personnel at compensation levels consistent with our existing compensation and salary structure. Many of the companies with which we and our subsidiaries compete for experienced employees have greater resources than we and our subsidiaries have and may be able to offer more attractive terms of employment.

In addition, we and our subsidiaries invest significant time and expense in training our employees, which increases their value to competitors who may seek to recruit them. If we and our subsidiaries fail to retain our employees, we could incur significant expenses in hiring and training their replacements, and the quality of our products could decrease, resulting in a material adverse effect on our subsidiaries' business.

***Our business depends on the continued efforts of our senior management. If one or more of our key executives were unable or unwilling to continue in their present positions, our business may be severely disrupted.***

Our business operations depend on the continuing services of our senior management. While we have provided different incentives to our management, we cannot assure you that we can continue to retain their services. If one or more of our key executives were unable or unwilling to continue in their present positions, we may not be able to replace them easily or at all, our future growth may be constrained, business may be severely disrupted and our financial condition and results of operations may be materially and adversely affected, and we may incur additional expenses to recruit, train and retain qualified personnel. In addition, although we have entered into a non-competition agreement with Mr. Peter Zuguang Wang, the chairman of our board of directors, there is no assurance that Mr. Wang will not join our competitors or form a competing business. If any dispute arises between us and Mr. Wang, we may incur substantial costs and expenses in order to enforce the non-competition agreement in China, and we may be unable to enforce it at all.

***We do not maintain "key person" insurance, and as a result, we may incur losses if any of our directors, executive officers, senior manager or other key employees chooses to terminate his or her services with us.***

We do not maintain "key person" insurance for our directors, executive officers, senior management or other key employees. If any of our key employees terminate his or her services or otherwise becomes unable to provide continuous services to us, our business, financial condition and results of operations may be materially and adversely affected and we may incur additional expenses to recruit, train and retain qualified personnel. If any of our executive officers or key employees joins a competitor or forms a competing company, we may lose customers, operational know-how and key professionals and staff members.

***Geopolitical conflicts involving Iran, military actions in the Middle East, and the war in Ukraine may adversely affect economic conditions in the U.S., China and globally, and cause significant volatility in the trading price of our Class A ordinary shares.***

U.S. and global markets are experiencing volatility and disruption as a result of the outbreak or escalation of wars including Russia's launch of a full-scale military invasion of Ukraine, conflicts between Israel and Hamas. Although the length and impact of these ongoing conflicts are highly unpredictable, these conflicts have led to market disruptions, including significant volatility in commodity prices, credit, and capital markets. In addition, as a result of the ongoing conflicts around the world, we may experience other risks, difficulties and challenges in the way we conduct our business and operations generally. For example, the conflict could adversely affect supply chains and impact our ability to control raw material costs. A protracted conflict between Ukraine and Russia or between Israel and Hamas, any escalation of either conflict, and the wider global economy and market conditions could, in turn, have a material adverse impact on our business, financial condition, cash flows and results of operations and could cause the market value of our Class A ordinary shares to decline.

The heightened military conflict involving the United States, Israel, and Iran, which escalated significantly in February 2026, has led to profound instability in global financial and energy markets. These events, including the closure of strategic airspaces and critical maritime routes such as the Strait of Hormuz and the Red Sea, have contributed to a dramatic increase in the price of oil and gas and created widespread market uncertainty. China is particularly exposed to these developments, as it is the largest purchaser of Iranian crude oil, having absorbed nearly 90% of Iran's total crude exports as of early 2026. Any sustained disruption to Iranian oil exports, whether resulting from military action, the imposition of additional sanctions, or the closure of key maritime transit routes, could materially reduce the supply of crude oil available to China, drive up domestic energy costs, and exert significant downward pressure on China's broader economy. The ongoing disruptions caused by these military actions, and the potential for further escalation, could result in protracted and severe damage to the global economy and investment climate, with disproportionate consequences for China-based businesses such as us.

Furthermore, the continuing war in Ukraine and the resulting sanctions levied by the United States, the European Union, and other nations against Russia continue to impact global financial markets. The extent and duration of these military actions in the Middle East and Eastern Europe, as well as the resulting sanctions and market disruptions, are impossible to predict but are expected to remain substantial. The cumulative effect of these geopolitical pressures, including elevated global energy prices, supply chain disruptions, and reduced international trade flows, may weigh materially on China's economic growth, consumer spending, and business investment, each of which is relevant to our ability to sustain and grow our business operations China.

Such geopolitical instability often leads to broad sell-offs in the equity markets and heightened investor sensitivity to risk. To the extent that disruptions to Iranian oil exports or other geopolitical developments adversely affect China's energy supply, increase domestic production costs, or dampen consumer confidence and economic activity within China, our business, financial condition, and results of operations could be materially and adversely affected. Consequently, these developments may also materially and adversely affect the market price of our Class A ordinary shares, regardless of our actual operating performance. We cannot predict the ultimate progress or outcome of these situations, and any prolonged unrest or intensified military activities could have a material adverse effect on the global economy and, in particular, on economic conditions in China, which in turn could negatively impact our financial condition and the value of our securities.

 ****

***High inflation rates may adversely affect us by increasing costs beyond what we can recover through price increases and limit our ability to enter into future traditional debt financing.***

Inflation can adversely affect us by increasing costs of critical materials, equipment, labor, and other services. In addition, inflation is often accompanied by higher interest rates. Continued inflationary pressures could impact our profitability. Inflation may also affect our ability to enter into future traditional debt financing, as high inflation may result in an increase in cost.

***The outcome of litigation, inquiries, investigations, examinations, or other legal proceedings in which we are involved, in which we may become involved, or in which our clients or competitors are involved could distract management, increase our expenses, or subject us to significant monetary damages or restrictions on our ability to do business.***

From time to time, we are subject to litigations or legal proceedings in connection with our business operations. The scope and outcome of these proceedings is often difficult to assess or quantify. Plaintiffs in lawsuits may seek recovery of large amounts, and the cost to defend such litigation may be significant.

Any negative outcomes from above material litigation or any other regulatory actions or litigation or claims, including monetary penalties or damages or injunctive provisions regulating or restricting how we conduct our business could have a material adverse effect on our business, financial condition, results of operations and reputation. Regardless of whether any current or future claims in which we are involved have merit, or whether we are ultimately held liable or subject to payment of penalties, such investigations and claims have been and may continue to be expensive to defend, may divert management's time away from our operations and may result in changes to our business practices that adversely affect our results of operations.

**Risks Related to Doing Business in China**

***Changes in China's economic, political or social conditions or government policies could have a material adverse effect on our business and operations.***

A substantial majority of our assets and operations are located in China. Accordingly, our business, financial condition, results of operations and prospects may be influenced to a significant degree by political, economic and social conditions in China generally. The PRC economy differs from the economies of most developed countries in many respects, including with regard to the level of government involvement, level of development, growth rate, control of foreign exchange and allocation of resources. Although the PRC government has implemented measures emphasizing the utilization of market forces for economic reform, the reduction of state ownership of productive assets, and the establishment of improved corporate governance in business enterprises, a substantial portion of productive assets in China is still owned by the government. In addition, the PRC government continues to play a significant role in regulating industry development by imposing industrial policies.

The PRC government also exercises significant control over China's economic growth through allocating resources, controlling payment of foreign currency-denominated obligations, setting monetary policy, and providing preferential treatment to particular industries or companies.

While the PRC economy has experienced significant growth over the past decades, growth has been uneven, both geographically and among various sectors of the economy, and the rate of growth has been slowing since 2012. Any adverse changes in economic conditions in China, in the policies of the PRC government or in the laws and regulations in China could have a material adverse effect on the overall economic growth of China. Such developments could adversely affect our business and operating results, lead to reduction in demand for our subsidiaries' products and adversely affect our subsidiaries' competitive position. The PRC government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit the overall PRC economy, but may have a negative effect on us and our subsidiaries. For example, our financial condition and results of operations may be adversely affected by government control over capital investments or changes in tax regulations. In addition, in the past the PRC government has implemented certain measures, including interest rate adjustment, to control the pace of economic growth. These measures may cause decreased economic activity in China, which may adversely affect our business and operating results.

***Uncertainties with respect to the PRC legal system could adversely affect us and our PRC subsidiaries.***

The PRC legal system is a civil law system based on written statutes. Unlike the common law system, prior court decisions under the civil law system may be cited for reference but have limited precedential value. Since these laws and regulations are relatively new and the PRC legal system continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and the enforcement of these laws, regulations and rules involves uncertainties.

In addition, we and our PRC subsidiaries are subject to risks and uncertainties of the interpretations and applications of PRC laws and regulations, including, but not limited to, limitations on foreign ownership in the industry our PRC subsidiaries operate. We and our PRC subsidiaries are also subject to the risks and uncertainties about any future actions of the PRC government. If any future actions of the PRC government result in a material change in our operations, and the value of our Class A ordinary shares may depreciate significantly or become worthless.

***The PRC government exerts substantial influence over the manner in which our PRC subsidiaries must conduct their business activities. If the Chinese government significantly regulates the business operations of our PRC subsidiaries in the future and our PRC subsidiaries are not able to substantially comply with such regulations, the business operations of our PRC subsidiaries may be materially and adversely affected and the value of our Class A ordinary shares may significantly decrease.***

The PRC government has exercised, and continues to exercise, substantial control over virtually every sector of the Chinese economy through regulation and state ownership, including steel sector where our PRC subsidiaries have been doing their business. Any government decisions or actions to change the way steel production is regulated, or any decisions the government might make to cut spending, could adversely impact our PRC subsidiaries' business and our results of operations. In addition, the ability of our PRC subsidiaries to operate in China may be harmed by changes in PRC laws and regulations, including those relating to taxation, environmental conditions, land use rights, property and other matters. The central or local governments of these jurisdictions may impose new, stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance with such regulations or interpretations. Accordingly, government actions in the future, including regional or local variations in the implementation of economic policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require us to divest ourselves of any interest we then hold in Chinese properties.

We believe that our PRC subsidiaries' operations in China are in material compliance with all applicable legal and regulatory requirements. However, the central or local governments of the jurisdictions in which our PRC subsidiaries operate may impose new, stricter regulations or interpretations of existing regulations with little advance notice that would require additional expenditures and efforts on their part to ensure our subsidiaries' compliance with such regulations or interpretations.

Our PRC subsidiaries may incur increased costs necessary to comply with existing and newly adopted laws and regulations or penalties for any failure to comply. In the event that our PRC subsidiaries are not able to substantially comply with any existing or newly adopted laws and regulations, our business operations may be materially adversely affected and the value of our Class A ordinary shares may significantly decrease.

Furthermore, the PRC government authorities may strengthen oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers like us. Such actions taken by the PRC government authorities may intervene or influence the operations of our PRC subsidiaries at any time, which may be beyond our control. Therefore, any such action may adversely affect the operations of our PRC subsidiaries and substantially limit or hinder our ability to offer or continue to offer securities to you and significantly reduce the value of such securities or cause the value of such securities to be completely worthless.

***We are required under PRC laws to submit filings to CSRC for our future offerings. However, we believe that we and our PRC subsidiaries are not currently required to obtain the approval and/or comply with other requirements of the CSRC, the CAC, or other PRC governmental authorities under PRC rules, regulations or policies in connection with our continued listing on Nasdaq. In the event that any such approval is required or that there are other requirements we and/or our PRC subsidiaries are obligated to comply with, we cannot predict whether or how soon we and/or our PRC subsidiaries will be able to obtain such approvals and/or comply with such requirements.***

The PRC government authorities may strengthen future oversight over offerings that are conducted overseas. For instance, on July 6, 2021, the relevant PRC governmental authorities promulgated the Opinions on Strictly Cracking Down on Illegal Securities Activities, which emphasized the need to strengthen the PRC government's supervision over overseas listings by PRC companies. Pursuant to the Opinions, effective measures, such as promoting the construction of relevant regulatory systems, are to be taken to deal with the risks of China-based overseas-listed companies, cybersecurity and data privacy protection requirements and similar matters. The Cybersecurity Review Measures (Decree No. 8 of the Cybersecurity Administration of the PRC), or the revised Cybersecurity Review Measures, enacted on December 28, 2021 and came into effect on February 15, 2022, also require online platform operators holding over one million users' personal information to apply for a cybersecurity review before any public offering on a foreign stock exchange. These statements and regulations are recently issued, and there remain substantial uncertainties about their interpretation and implementation. See also "—Our PRC subsidiaries may be liable for improper use or appropriation of personal information provided by their customers and any failure to comply with PRC laws and regulations over data security could result in materially adverse impact on our business, results of operations, and our continued listing on Nasdaq."

On February 17, 2023, the CSRC published the Regulations of Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (the "Trial Measures") and its accompanying guidelines and instructions, which came into effect on March 31, 2023, and will apply if a domestic enterprise issues shares, depositary receipts, corporate bonds convertible into shares, or other securities of an equity nature outside of the PRC, or lists its securities for trading outside of the PRC. According to such regulations, a domestic enterprise that issues and lists its securities outside of the PRC shall comply with the filing procedures and report the relevant information to the CSRC. A domestic enterprise shall not be listed on an overseas stock exchange if any of the following circumstances exists: (i) where such securities offering and listing is explicitly prohibited by provisions in laws, administrative regulations and relevant state rules; (ii) where the intended securities offering and listing may endanger national security as reviewed and determined by competent authorities under the State Council in accordance with law; (iii) where the domestic company intending to make the securities offering and listing, or its controlling shareholders and the actual controller, have committed crimes such as corruption, bribery, embezzlement, misappropriation of property or undermining the order of the socialist market economy during the latest three years; (iv) where the domestic company intending to make the securities offering and listing is suspected of committing crimes or major violations of laws and regulations, and is under investigation according to law, and no conclusion has yet been made thereof; (v) where there are material ownership disputes over equity held by the domestic company's controlling shareholder or by other shareholders that are controlled by the controlling shareholder and/or actual controller. The Trial Measures changes the management of licensing to record management, strengthen the supervision in the aftermath, create a more transparent and predictable institutional environment, and support the standardized development of enterprises using the overseas capital market.

According to the Notice on Filing Management Arrangements for Overseas Listings of Domestic Enterprises issued and implemented by the CSRC on February 17, 2023, since the date of effectiveness of the Trial Measures, the domestic enterprises falling within the scope of filing that have been listed overseas or met the following circumstances are existing enterprises: Before the effectiveness of the Trial Measures, the application for indirect overseas issuance and listing has been agreed by the overseas regulators or overseas stock exchanges (such as having passed the hearing on the Hong Kong market or registration become effective as agreed on the U.S. market, etc.), and it is not required to perform issuance and listing supervision procedures of the overseas regulators or overseas stock exchanges (such as rehearing on the Hong Kong market, etc.), and the overseas issuance and listing shall have been completed by September 30, 2023. According to the above regulations, the Company is an existing enterprise, which do not be required to file immediately, and filing should be made as required if they involve refinancing and other filing matters.

As of the date of this Quarterly Report, we believe we and our PRC subsidiaries are not required to obtain any permission from PRC authorities (including the CSRC and the CAC) to operate our PRC subsidiaries' business as presently conducted or continue being listed on Nasdaq. Therefore, as of the date of this Quarterly Report, we and our PRC subsidiaries have not applied for any permission or approval from any PRC governmental authority in connection with our offshore listing and, as such, no such permission or approval has been granted or denied. However, if it fails to comply with the Trial Measures during future issuance of securities or listing on other stock exchanges outside of China, we may be subjected sanctions imposed by the PRC regulatory authorities, and our reputation, financial condition, and results of operations may be materially and adversely affected.

***To the extent cash in the business is in the mainland China/Hong Kong or a mainland China/Hong Kong entity, the funds may not be available to fund operations or for other use outside of the mainland China/Hong Kong due to interventions in or the imposition of restrictions and limitations on the ability of our Company or our subsidiaries by the PRC government to transfer cash.***

Relevant mainland PRC laws and regulations permit companies in mainland China to pay dividends only out of their respective retained earnings, if any, as determined in accordance with mainland China accounting standards and regulations. Additionally, each of the companies in mainland China are required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. These reserves are not distributable as cash dividends. Furthermore, in order for us to pay dividends to our shareholders, we may rely on payments made from our mainland PRC subsidiaries to their respective shareholders and then to our Company. If these entities incur debt on their own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments to us.

Our cash dividends, if any, will be paid in U.S. dollars. If we are considered a tax resident enterprise of mainland China for tax purposes, any dividends we pay to our overseas shareholders may be regarded as mainland China-sourced income and as a result may be subject to mainland PRC withholding tax. See "— Risks Related to Doing Business in China — Under the PRC Enterprise Income Tax Law, we may be classified as a 'Resident Enterprise' of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC shareholders." The PRC government also imposes controls on the convertibility of Renminbi into foreign currencies and, in certain cases, the remittance of currency out of mainland China. Shortages in foreign currencies may restrict our ability to pay dividends or other payments, or otherwise satisfy our foreign currency denominated obligations, if any. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and expenditures from trade-related transactions, can be made in foreign currencies without prior approval from the State Administration of Foreign Exchange as long as certain procedural requirements are met. Approval from appropriate government authorities is required if Renminbi is converted into foreign currency and remitted out of mainland China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may, at its discretion, impose restrictions on access to foreign currencies for current account transactions and if this occurs in the future, we may not be able to pay dividends in foreign currencies to our shareholders.

As of the date of this Quarterly Report, there are no restrictions or limitations imposed by the Hong Kong government on the transfer of capital within, into, and out of Hong Kong (including funds from Hong Kong to mainland China), except for the transfer of funds involving money laundering and criminal activities. However, there is no guarantee that the Hong Kong government will not promulgate new laws or regulations that may impose such restrictions in the future. If there is a significant change to current political arrangements between mainland China and Hong Kong, or the applicable laws, regulations, or interpretations change, our Hong Kong subsidiary may become subject to PRC laws or authorities. As a result, our Hong Kong subsidiary could be subject to similar government controls on the convertibility of foreign currency and the remittance of currency out of Hong Kong as described above.

As a result of the above, to the extent cash in the business is in the mainland China/Hong Kong or a mainland China/Hong Kong entity, such funds or assets may not be available to fund operations or for other use outside of the mainland China/Hong Kong, due to interventions in or the imposition of restrictions and limitations on the ability of us or our subsidiaries by the competent government to the transfer of cash.

***Our PRC subsidiaries may be liable for improper use or appropriation of personal information provided by their customers and any failure to comply with PRC laws and regulations over data security could result in materially adverse impact on our business, results of operations, and our continued listing on Nasdaq.***

Our PRC subsidiaries' business involves collecting and retaining certain internal and customer data. Our PRC subsidiaries also maintain information about various aspects of their operations. The integrity and protection of customer and company data is critical to our business. Our subsidiaries' customers expect that our subsidiaries will adequately protect their personal information. Our PRC subsidiaries are required by applicable laws to keep strictly confidential the personal information that they collect, and to take adequate security measures to safeguard such information.

The PRC Criminal Law, as amended by its Amendment 7 (effective on February 28, 2009) and Amendment 9 (effective on November 1, 2015), prohibits institutions, companies and their employees from selling or otherwise illegally disclosing a citizen's personal information obtained in performing duties or providing services or obtaining such information through theft or other illegal ways. On November 7, 2016, the Standing Committee of the PRC National People's Congress issued the Cyber Security Law of the PRC, or Cyber Security Law, which became effective on June 1, 2017. Pursuant to the Cyber Security Law, network operators must not, without users' consent, collect their personal information, and may only collect users' personal information necessary to provide their services. Providers are also obliged to provide security maintenance for their products and services and shall comply with provisions regarding the protection of personal information as stipulated under the relevant laws and regulations.

The Civil Code of the PRC (issued by the PRC National People's Congress on May 28, 2020 and effective from January 1, 2021) provides the legal basis for privacy and personal information infringement claims under the Chinese civil laws. PRC regulators, including the CAC, the Ministry of Industry and Information Technology, and the Ministry of Public Security, have been increasingly focused on regulation in data security and data protection.

The PRC regulatory requirements regarding cybersecurity are evolving. For instance, various regulatory bodies in China, including the CAC, the Ministry of Public Security and the State Administration for Market Regulation, have enforced data privacy and protection laws and regulations with varying and evolving standards and interpretations. In April 2020, the Chinese government promulgated Cybersecurity Review Measures, which came into effect on June 1, 2020. According to the Cybersecurity Review Measures, operators of critical information infrastructure must pass a cybersecurity review when purchasing network products and services which do or may affect national security.

In December 2021, the CAC and other related authorities promulgated the revised Cybersecurity Review Measures, which came into effect on February 15, 2022. The revised Cybersecurity Review Measures propose the following key changes:

● online platform operators who are engaged in data processing are also subject to the regulatory scope;

● the CSRC is included as one of the regulatory authorities for purposes of jointly establishing the state cybersecurity review working mechanism;

● the online platform operators holding more than one million users' individual information and seeking a listing outside China shall file for cybersecurity review with the Cybersecurity Review Office; and

● the risks of core data, material data or large amounts of personal information being stolen, leaked, destroyed, damaged, illegally used or transmitted to overseas parties and the risks of critical information infrastructure, core data, material data or large amounts of personal information being influenced, controlled or used maliciously shall be collectively taken into consideration during the cybersecurity review process.

Certain internet platforms in China have reportedly become subject to heightened regulatory scrutiny in relation to cybersecurity matters. As of the date of this Quarterly Report, we have not been included within the definition of "operator of critical information infrastructure" by a competent authority, nor have we been informed by any PRC governmental authority of any requirement that we file for a cybersecurity review. However, if we are deemed to be a critical information infrastructure operator or an online platform operator that is engaged in data processing and holds personal information of more than one million users, we could be subject to PRC cybersecurity review in the future.

As there remains significant uncertainty in the interpretation and enforcement of relevant PRC cybersecurity laws and regulations, we could be subject to cybersecurity review. In addition, we could become subject to enhanced cybersecurity review or investigations launched by PRC regulators in the future. Any failure or delay in the completion of the cybersecurity review procedures or any other non-compliance with the related laws and regulations may result in fines or other penalties, including suspension of business, website closure and revocation of prerequisite licenses, as well as reputational damage or legal proceedings or actions against us and/or our PRC subsidiaries, which may have material adverse effect on our business, financial condition or results of operations. As of the date of this Quarterly Report, we and our PRC subsidiaries have not been involved in any investigations on cybersecurity review initiated by the CAC or related governmental regulatory authorities, and we and our PRC subsidiaries have not received any inquiry, notice, warning, or sanction in such respect.

On June 10, 2021, the Standing Committee of the National People's Congress of China promulgated the PRC Data Security Law, which took effect in September 2021. The PRC Data Security Law imposes data security and privacy obligations on entities and individuals carrying out data activities, and introduces a data classification and hierarchical protection system based on the importance of data in economic and social development, and the degree of harm it will cause to national security, public interests, or legitimate rights and interests of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired or used. The PRC Data Security Law also provides for a national security review procedure for data activities that may affect national security and imposes export restrictions on certain data and information.

As of the date of this Quarterly Report, we do not expect that the current PRC laws on cybersecurity or data security would have a material adverse impact on our business operations. However, as the scope of the PRC Data Security Law is broad and includes the collection, storage, use, processing, transmission, availability and disclosure of data, among others, and uncertainties remain regarding the interpretation and implementation of these laws and regulations, we cannot assure you that we and our PRC subsidiaries will comply with such regulations in all respects and we and/or our PRC subsidiaries may be ordered to rectify or terminate any actions that are deemed illegal by regulatory authorities. Any directly liable person within our Company for violations or alleged violations of the PRC Data Security Law may become subject to fines. We and/or our PRC subsidiaries may also become subject to fines and/or other sanctions that may have material adverse effect on our business, operations and financial condition.

On September 24, 2024, the CAC released the Administrative Regulations on the Network Data Security, or the Data Security Regulations, which became effective on January 1, 2025. The Data Security Regulations may apply to the use of networks to carry out data processing activities and the supervision and administration of network data security within the territory of the PRC and apply to activities outside the territory of the PRC to process personal information of any natural persons within the territory of the PRC under any of the following circumstances: (i) for the purpose of providing products or services to domestic natural persons; (ii) analyze and evaluate the behavior of domestic natural persons; and (iii) other circumstances stipulated by laws and administrative regulations. The Data Security Regulations further stipulate that where it is indeed necessary to transfer "important data" collected and generated by a network data processor during its operation within the territory of the PRC to overseas parties, it shall pass the security assessment for cross-border data transfer organized by the CAC. Network data processors should identify and declare "important data" in accordance with the relevant provisions, but they are not required to conduct security assessment for outbound data transfer for data that has not been notified or published as "important data" by relevant departments or regions. In addition, the Data Security Regulations provides that data processors that process "important data" must conduct an annual data security assessment with regard to the data process activities, and submit the assessment report to relevant competent authorities at or above the provincial level. Since the Data Security Regulations is newly promulgated, there remains uncertainty as to how it will be implemented and interpreted by the competent authorities and whether the PRC regulatory agencies, including the CAC, will adopt new laws, regulations, rules, or detailed implementation and interpretation related to security assessment. We cannot predict the impact of the Data Security Regulations on us, if any, at this stage, and we will closely monitor and assess any development in the implementation and interpretation of the Data Security Regulations. Even though we do not believe our business activities fall under the scope of Data Security Regulations, in the event that a competent PRC governmental authority concludes otherwise, we face uncertainties as to whether such clearance can be timely obtained, or at all.

***A severe or prolonged downturn in the PRC or global economy could materially and adversely affect our business and our financial condition.***

The global macroeconomic environment is facing challenges. There is considerable uncertainty over the long-term effects of the expansionary monetary and fiscal policies adopted by the central banks and financial authorities of some of the world's leading economies, including the United States and China. Geopolitical conflicts involving Iran, current military actions in the Middle East, as well as the conflicts involving Ukraine, Syria, Russia and North Korea may result in volatility and disruptions to the economy in the U.S., China, and globally. In particular, the ongoing conflict involving Iran poses significant risks to regional and global economic stability. Iran is a major producer of crude oil, and any escalation of conflicts in Iran, including potential disruptions to oil production, export infrastructure, or transit routes through the Strait of Hormuz, have resulted in and could continue to result in significant increases in global crude oil prices. Elevated energy costs could, in turn, contribute to inflationary pressures, increased production and transportation costs, reduced consumer spending, and a broader economic slowdown across major economies, including China and the United States. Such developments could materially and adversely affect the demand for our products, increase our operating costs, and negatively impact our results of operations and financial condition. See also "— Risks Related to our Business and Industry — Geopolitical conflicts involving Iran, military actions in the Middle East, and the war in Ukraine may adversely affect economic conditions in the U.S., China and globally, and cause significant volatility in the trading price of our Class A ordinary shares." There have also been concerns on the relationship among China and other Asian countries, which may result in, or intensify potential conflicts in relation to, territorial disputes, and the trade disputes between China and other countries. It is unclear whether these challenges and uncertainties will be contained or resolved, and what effects they may have on the global political and economic conditions in the long term.

Economic conditions in China are sensitive to global economic conditions, changes in domestic economic and political policies and the expected or perceived overall economic growth rate in China. While the economy in China has grown significantly over the past decades, growth has been uneven, both geographically and among various sectors of the economy, and the rate of growth has been slowing in recent years. Although growth of China's economy remained relatively stable, there is a possibility that China's economic growth may materially decline in the near future. Any severe or prolonged slowdown in the global or PRC economy may materially and adversely affect our business, results of operations and financial condition.

***You may have difficulty enforcing judgments against us.***

A significant portion of our assets are located, and a substantial amount of our subsidiaries' operations are conducted, in the PRC. In addition, some of our directors and officers are nationals or residents of the PRC, including our acting chief financial officer, Ms. Chenyang Wang, and independent directors, Mr. Ming Zhao and Mr. Zheng He, and a substantial majority of their assets are located outside the United States. As a result, it may be difficult to effect service of process within the United States upon these persons. In addition, there is uncertainty as to whether the courts of the PRC would recognize or enforce judgments of U.S. courts because China does not have any treaties or other arrangements that provide for the reciprocal recognition and enforcement of foreign judgments with the United States. In addition, according to the PRC Civil Procedures Law, courts in the PRC will not enforce a foreign judgment against us or our directors and officers if they decide that the judgment violates basic principles of PRC law or national sovereignty, security, or the public interest.

***Under the PRC Enterprise Income Tax Law, we may be classified as a "Resident Enterprise" of China. Any classification as such will likely result in unfavorable tax consequences to us and our non-PRC shareholders.***

Under the PRC EIT Law, an enterprise established outside of China with "de facto management bodies" within China is considered a "resident enterprise," meaning that it can be subject to an enterprise income tax, or EIT, rate of 25.0% on its global income. In April 2009, the SAT promulgated a circular, known as Circular 82, and partially amended by Circular 9 promulgated in January 2014, to clarify the certain criteria for the determination of the "de facto management bodies" for foreign enterprises controlled by PRC enterprises or PRC enterprise groups. Under Circular 82, a foreign enterprise is considered a PRC resident enterprise if all of the following apply: (1) the senior management and core management departments in charge of daily operations are located mainly within China; (2) decisions relating to the enterprise's financial and human resource matters are made or subject to approval by organizations or personnel in China; (3) the enterprise's primary assets, accounting books and records, company seals, and board and shareholders' meeting minutes are located or maintained in China; and (4) 50.0% or more of voting board members or senior executives of the enterprise habitually reside in China. Further to Circular 82, the SAT issued a bulletin, known as Bulletin 45, effective in September 2011 and amended on June 1, 2015 and October 1, 2016, to provide more guidance on the implementation of Circular 82 and clarify the reporting and filing obligations of such "Chinese controlled offshore incorporated resident enterprises." Bulletin 45 provides for, among other matters, procedures for the determination of resident status and administration of post-determination matters. Although Circular 82 and Bulletin 45 explicitly provide that the above standards apply to enterprises that are registered outside China and controlled by PRC enterprises or PRC enterprise groups, Circular 82 may reflect the SAT's criteria for determining the tax residence of foreign enterprises in general.

If the PRC tax authorities determine that we are a "resident enterprise" for PRC enterprise income tax purposes, a number of unfavorable PRC tax consequences could follow. First, we may be subject to the enterprise income tax at a rate of 25% on our worldwide taxable income as well as PRC enterprise income tax reporting obligations. In our case, this would mean that income such as non-China source income would be subject to PRC enterprise income tax at a rate of 25%. Second, under the PRC EIT Law, dividends paid to us from our PRC subsidiaries would be deemed as "qualified investment income between resident enterprises" and therefore qualify as "tax-exempt income" pursuant to the clause 26 of the PRC EIT Law. Finally, it is possible that future guidance issued with respect to the new "resident enterprise" classification could result in a situation in which the dividends we pay with respect to our Class A ordinary shares, or the gain our non-PRC shareholders may realize from the transfer of our Class A ordinary shares, may be treated as PRC-sourced income and may therefore be subject to a 10% PRC withholding tax. The PRC EIT Law is, however, relatively new and ambiguities exist with respect to the interpretation and identification of PRC-sourced income, and the application and assessment of withholding taxes. If we are required under the PRC EIT Law to withhold PRC income tax on dividends payable to our non-PRC shareholders, should there be a determination in the future to pay dividends, or if non-PRC shareholders are required to pay PRC income tax on gains on the transfer of their Class A ordinary shares, our business could be negatively impacted and the value of your investment may be materially reduced. Further, if we were treated as a "resident enterprise" by PRC tax authorities, we would be subject to taxation in both China and such countries in which we have taxable income, and our PRC tax may not be creditable against such other taxes.

***PRC regulation of loans to, and direct investments in, PRC entities by offshore holding companies may delay or prevent us from using proceeds from our future financing activities to make loans or additional capital contributions to our PRC subsidiaries.***

As an offshore holding company with PRC subsidiaries, we may transfer funds to our PRC subsidiaries or finance our PRC entities by means of loans or capital contributions. Any capital contributions or loans that we, as an offshore entity, make to our PRC subsidiaries, are subject to PRC regulations. Any loans to our PRC subsidiaries, which are foreign-invested enterprises, cannot exceed statutory limits based on the difference between the amount of our investments and registered capital in such subsidiaries, and shall be registered with State Administration of Foreign Exchange, or SAFE, or its local counterparts. Furthermore, any capital increase contributions we make to our PRC subsidiaries, which are foreign-invested enterprises, are subject to the requirement of making necessary reports in Foreign Investment Comprehensive Management Information System, and registration with other government authorities in China. We may not be able to obtain these government registrations or approvals on a timely basis, if at all. If we fail to obtain such approvals or make such registration, our ability to make equity contributions or provide loans to our PRC subsidiaries or to fund their operations may be negatively affected, which may adversely affect their liquidity and ability to fund their working capital and expansion projects and meet their obligations and commitments. As a result, our liquidity and our ability to fund and expand our business may be negatively affected.

***We may rely on dividends paid by our subsidiaries for our cash needs, and any limitation on the ability of our subsidiaries to make payments to us could have a material adverse effect on our ability to conduct business.***

As a holding company, we conduct a substantial amount of our business through our subsidiaries in China. We may rely on dividends paid by these PRC subsidiaries for our cash needs, including the funds necessary to pay any dividends and other cash distributions to our shareholders, to service any debt we may incur and to pay our operating expenses. The payment of dividends by entities established in China is subject to limitations. Regulations in China currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. In accordance with the Article 210, 214 of the Company Law of the PRC (Revised in 2023), each of our PRC subsidiaries is required to allocate 10% of their profits to their statutory common reserve when they distribute their after-tax profits for the current year. A company shall no longer be required to make allocations to their statutory common reserve once the aggregate amount of such reserve exceeds 50% of their registered capital. The statutory common reserve fund of a company may only be used to cover the losses of the company, expand the business and production of the company or be converted into additional capital. As a result, our PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to us in the form of dividends. In addition, if any of our PRC subsidiaries incurs debt on its own behalf in the future, the instruments governing the debt may restrict such subsidiary's ability to pay dividends or make other distributions to us. Any limitations on the ability of our PRC subsidiaries to transfer funds to us could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends and otherwise fund and conduct our business.

***You may be subject to PRC income tax on dividends from us or on any gain realized on the transfer of our Class A ordinary shares.***

Under the PRC EIT Law, subject to any applicable tax treaty or similar arrangement between the PRC and your jurisdiction of residence that provides for a different income tax arrangement, PRC withholding tax at the rate of 10.0% is normally applicable to dividends from PRC sources payable to investors that are non-PRC resident enterprises, which do not have an establishment or place of business in China, or which have such establishment or place of business if the relevant income is not effectively connected with the establishment or place of business. Any gain realized on the transfer of shares by such investors is subject to 10.0% PRC income tax if such gain is regarded as income derived from sources within China unless a treaty or similar arrangement otherwise provides. Under the Individual Income Tax Law of the PRC and its implementation rules, dividends from sources within China paid to foreign individual investors who are not PRC residents are generally subject to a PRC withholding tax at a rate of 20% and gains from PRC sources realized by such investors on the transfer of shares are generally subject to 20% PRC income tax, in each case, subject to any reduction or exemption set forth in applicable tax treaties and PRC laws.

There is a risk that we will be treated by the PRC tax authorities as a PRC tax resident enterprise. In that case, any dividends we pay to our shareholders may be regarded as income derived from sources within China and we may be required to withhold a 10.0% PRC withholding tax for the dividends we pay to our investors who are non-PRC corporate shareholders, or a 20.0% withholding tax for the dividends we pay to our investors who are non-PRC individual shareholders, including the holders of our Shares. In addition, our non-PRC shareholders may be subject to PRC tax on gains realized on the sale or other disposition of our Class A ordinary shares, if such income is treated as sourced from within China. It is unclear whether our non-PRC shareholders would be able to claim the benefits of any tax treaties between their tax residence and China in the event that we are considered as a PRC resident enterprise. If PRC income tax is imposed on gains realized through the transfer of our Class A ordinary shares or on dividends paid to our non-resident investors, should there be a determination in the future to pay dividends, the value of your investment in our Class A ordinary shares may be materially and adversely affected. Furthermore, our shareholders whose jurisdictions of residence have tax treaties or arrangements with China may not qualify for benefits under such tax treaties or arrangements.

***Fluctuations in exchange rates could have a material adverse impact on our results of operations and the value of your investment.***

The conversion of Renminbi into foreign currencies, including U.S. dollars, is based on rates set by the People's Bank of China. The Renminbi has fluctuated against the U.S. dollar, at times significantly and unpredictably. The value of the Renminbi against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions in China and by China's foreign exchange policies, among other things. We cannot assure you that Renminbi will not appreciate or depreciate significantly in value against the U.S. dollar in the future. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future.

Significant fluctuation of the Renminbi may have a material adverse effect on your investment. For example, to the extent that we need to convert U.S. dollars into Renminbi for our operations, appreciation of the Renminbi against the U.S. dollar would have an adverse effect on the Renminbi amount we would receive from the conversion. Conversely, if we decide to convert our Renminbi into U.S. dollars for the purpose of making payments for dividends on our Class A ordinary shares or for other business purposes, appreciation of the U.S. dollar against the Renminbi would have a negative effect on the U.S. dollar amount available to us.

Very limited hedging options are available in China to reduce our exposure to exchange rate fluctuations. As of the date of this Quarterly Report, we have not entered into any material hedging transactions in an effort to reduce our exposure to foreign currency exchange risk. While we may decide to enter into hedging transactions in the future, the availability and effectiveness of these hedges may be limited and we may not be able to adequately hedge our exposure or at all. In addition, our currency exchange losses may be magnified by PRC exchange control regulations that restrict our ability to convert Renminbi into foreign currency.

***Governmental control of currency conversion may limit our ability to utilize our revenues effectively and affect the value of your investment.***

The PRC government imposes controls on the convertibility of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China. We receive a significant portion of our revenues in Renminbi. Under our current corporate structure, our British Virgin Islands holding company may rely on dividend payments from our PRC subsidiaries to fund any cash and financing requirements we may have. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior approval of SAFE, by complying with certain procedural requirements. Specifically, under the existing exchange restrictions, without prior approval of SAFE, cash generated from the operations of our PRC subsidiaries in China may be used to pay dividends to our Company. However, approval from or registration with appropriate government authorities is required where Renminbi is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. As a result, we need to obtain SAFE approval to use cash generated from the operations of our PRC subsidiaries to pay off their respective debt in a currency other than Renminbi owed to entities outside China, or to make other capital expenditure payments outside China in a currency other than Renminbi. If such approval is withheld or the PRC government imposes other restrictions on the convertibility of Renminbi into foreign currencies, we may not be able to utilize our revenues effectively, and as a result, our business and results of operations may be materially adversely affected, and the value of our Class A ordinary shares may decrease.

***U.S. regulatory bodies may be limited in their ability to conduct investigations or inspections of our operations in China.***

The SEC, the U.S. Department of Justice and other U.S. authorities may also have difficulties in bringing and enforcing actions against us or our directors or executive officers in the PRC. The SEC has stated that there are significant legal and other obstacles to obtaining information needed for investigations or litigation in China. China has recently adopted a revised securities law that became effective on March 1, 2020, Article 177 of which provides, among other things, that no overseas securities regulator is allowed to directly conduct an investigation or evidence collection activities within the territory of the PRC. Accordingly, without governmental approval in China, no entity or individual in China may provide documents and information relating to securities business activities to overseas regulators when it is under direct investigation or evidence discovery conducted by overseas regulators, which could present significant legal and other obstacles to obtaining information needed for investigations and litigation conducted outside of China.

***Our Class A ordinary shares may be delisted and prohibited from being traded under the Holding Foreign Companies Accountable Act if the PCAOB is unable to inspect our auditors. The delisting and the cessation of trading of our Class A ordinary shares, or the threat of their being delisted and prohibited from being traded, may materially and adversely affect the value of your investment. Additionally, any inability of the PCAOB to conduct inspections deprives our investors with the benefits of such inspections.***

Pursuant to the Holding Foreign Companies Accountable Act, as amended by the Consolidated Appropriations Act 2023, if the SEC determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspections by the PCAOB for two consecutive years, the SEC will prohibit our Class A ordinary shares from being traded on a national securities exchange or in the over-the-counter trading market in the United States.

Our auditor, Enrome LLP, as an auditor of companies that are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards and was not identified in PCAOB's determination report as a firm subject to the PCAOB's determination. Enrome LLP is headquartered in Singapore and subject to inspect by the PCAOB.

If the PCAOB determines in the future that it no longer has full access to inspect and investigate completely accounting firms in mainland China and Hong Kong and we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed with the SEC, we would be identified as a Commission-Identified Issuer following the filing of the annual report on Form 10-K for the relevant fiscal year. In accordance with the Holding Foreign Companies Accountable Act, our securities would be prohibited from being traded on a national securities exchange or in the over-the-counter trading market in the United States if we are identified as a Commission-Identified Issuer for two consecutive years in the future. A prohibition of being able to trade in the United States would substantially impair or completely hinder your ability to sell or purchase our Class A ordinary shares when you wish to do so, and the risk and uncertainty associated with delisting would have a negative impact on the price of our Class A ordinary shares or render them worthless. Also, such a prohibition would significantly affect our ability to raise capital on terms acceptable to us, or at all, which would have a material adverse impact on our business, financial condition, and prospects.

Additionally, we cannot assure you whether the national securities exchange we are listed on or regulatory authorities would apply additional and more stringent criteria to us after considering the effectiveness of our auditor's audit procedures and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach, or experience as it relates to our audit.

**Risks Related to Our Ordinary Shares**

***Nasdaq has recently adopted and proposed new listing rules that could result in the accelerated delisting of our Class A ordinary shares.***

Nasdaq has recently adopted and proposed several new continued listing requirements that could subject our Class A ordinary shares to accelerated suspension and delisting proceedings, with limited or no opportunity to cure noncompliance.

 

*Amended Minimum Bid Price Rule (Effective January 19, 2026)*. Nasdaq amended its minimum bid price rules, effective January 19, 2026, such that if a listed security's closing bid price falls below $0.10 for ten consecutive trading days, Nasdaq will immediately issue a Staff Delisting Determination under Rule 5810 and the company will be ineligible for any compliance period that would otherwise be available. Prior to this amendment, an immediate delisting determination could only be issued after a company's security had already been non-compliant with the $1.00 minimum bid price requirement for 30 consecutive trading days. Nasdaq adopted this change on the basis that a rapid decline in a security's price to below $0.10 is indicative of deep financial or operational distress that is unlikely to be temporary.

On March 12, 2026, we received a notification letter (the "Bid Price Deficiency Letter") from the Listing Qualifications staff of Nasdaq notifying us that, for the last 30 consecutive business days, the closing bid price for our Class A ordinary shares had been below the minimum $1.00 per share required for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) ("Rule 5550(a)(2)"). The Bid Price Deficiency Letter constitutes a notice of deficiency only and does not currently affect the listing or trading of our Class A ordinary shares on The Nasdaq Capital Market.

Pursuant to the Bid Price Deficiency Letter, we have 180 days, or until September 8, 2026, to regain compliance with Rule 5550(a)(2) by maintaining a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days. We may also be eligible for an additional compliance period of 180 calendar days if, on September 8, 2026, we meet the continued listing requirement for market value of publicly held shares and all other applicable standards for initial listing on The Nasdaq Capital Market (with the exception of the closing bid price requirement) based on our then most recent public filings and market information, and we provide written notice to Nasdaq of our intent to cure the deficiency during such additional compliance period, including, without limitation, by effecting a share consolidation, if necessary.

We intend to monitor closely the closing bid price of our Class A ordinary shares and to consider plans for regaining compliance with Rule 5550(a)(2). While we plan to review all available options, there can be no assurance that we will be able to regain compliance with the applicable rules during the 180-day compliance period ending on September 8, 2026, any additional compliance period, or at all. Furthermore, in the event that the closing bid price of our Class A ordinary shares falls below $0.10 per share for ten consecutive trading days, Nasdaq will issue an immediate Staff Delisting Determination and we will be ineligible for any compliance period that would otherwise be available, which would result in the immediate delisting of our Class A ordinary shares from The Nasdaq Capital Market.

 

*Proposed Minimum Market Value Requirement (SR-NASDAQ-2026-004, Pending SEC Approval)*. Nasdaq has proposed a new rule that would require listed companies on the Nasdaq Global Market and Nasdaq Capital Market to maintain a minimum Market Value of Listed Securities of at least $5 million. Failure to satisfy this requirement for 30 consecutive business days would result in immediate suspension and delisting without a standard compliance period. Under the proposed rule, any automatic stay of suspension during an appeal would be eliminated, meaning our securities would likely trade over-the-counter while any appeal is pending.

*Proposed Discretionary Delisting Authority (SR-NASDAQ-2026-009, Pending SEC Approval)*. Nasdaq has also proposed granting itself discretionary authority to immediately delist securities if the SEC has suspended trading due to potential third-party misconduct.

If our Class A ordinary shares are delisted from Nasdaq for any reason, it could materially and adversely affect our business, financial condition, and results of operations. Delisting would likely cause the trading volume and liquidity of our Class A ordinary shares to decline significantly, as many institutional investors are prohibited by their investment mandates from holding securities that are not listed on a national securities exchange. Our Class A ordinary shares would likely be traded on the over-the-counter markets, where investors may find it more difficult to obtain timely and accurate information about our company and where the trading market may be significantly less liquid than Nasdaq. The reduction in liquidity could cause the trading price of our Class A ordinary shares to decline materially. In addition, delisting could impair our ability to raise capital through the issuance of equity or equity-linked securities, as investors and underwriters may be unwilling to participate in offerings of securities that are not listed on a national securities exchange. Delisting could also trigger defaults or acceleration provisions under any existing or future debt instruments or agreements, and could impair our ability to attract and retain employees, customers, and business partners who may view a Nasdaq listing as an indicator of our financial stability and credibility. Furthermore, the delisting of our Class A ordinary shares could result in negative publicity and erode investor confidence in our company, which could have a long-term adverse impact on our business prospects and the value of your investment.

 ****

***Our dual-class share structure with different voting rights will limit your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders of our Class A ordinary shares may view as beneficial.***

Under our dual-class share structure, our ordinary shares consist of Class A ordinary shares and Class B ordinary shares. In respect of matters requiring the votes of shareholders, holders of Class B ordinary shares are entitled to 25 votes per share, while holders of Class A ordinary shares are entitled to one vote per share based on our dual-class share structure. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof, while Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. Upon any sale, transfer, assignment, or disposition of any Class B ordinary shares by a holder thereof to a transferee who is not an affiliate of the transferor, such Class B ordinary shares are automatically and immediately converted into an equal number of Class A ordinary shares.

As of the date of this Report, Mr. Peter Zuguang Wang, the Chairman of our Board of Directors, beneficially owns all of our issued and outstanding Class B ordinary shares. These Class B ordinary shares constitute approximately 24.00% of our total issued and outstanding ordinary shares and 88.76% of the aggregate voting power of our total issued and outstanding ordinary shares, due to the disparate voting powers associated with our dual-class share structure. As a result of the dual-class share structure and the concentration of ownership, the holder of Class B ordinary shares will have considerable influence over matters such as decisions regarding mergers, consolidations, and the sale of all or substantially all of our assets, election of directors, and other significant corporate actions. The holder may take actions that are not in the best interest of us or our other shareholders. This concentration of ownership may discourage, delay, or prevent a change in control of our Company, which could have the effect of depriving our other shareholders of the opportunity to receive a premium for their shares as part of a sale of our Company and may reduce the price of the Class A ordinary shares. This concentrated control will limit your ability to influence corporate matters and could discourage others from pursuing any potential merger, takeover, or other change of control transactions that holders of Class A ordinary shares may view as beneficial.

 ****

 ****

***The dual-class structure of our ordinary shares may adversely affect the trading market for the Class A ordinary shares.***

S&P Dow Jones and FTSE Russell have announced changes to their eligibility criteria for inclusion of shares of public companies in certain indices, including the S&P 500, to exclude companies with multiple classes of shares and companies whose public shareholders hold no more than 5% of total voting power from being added to such indices. In addition, several shareholder advisory firms have announced their opposition to the use of multiple class capital structures. As a result, the dual class structure of our ordinary shares may prevent the inclusion of the Class A ordinary shares in such indices and may cause shareholder advisory firms to publish negative commentary about our corporate governance practices or otherwise seek to cause us to change our capital structure. Any such exclusion from indices could result in a less active trading market for the Class A ordinary shares. Any actions or publications by shareholder advisory firms critical of our corporate governance practices or capital structure could also adversely affect the value of the Class A ordinary shares

***Future sales of our Class A ordinary shares, whether by us or our shareholders, could cause the price of our Class A ordinary shares to decline.***

If our existing shareholders sell, or indicate an intent to sell, substantial amounts of our Class A ordinary shares in the public market, the trading price of our Class A ordinary shares could decline significantly. Similarly, the perception in the public market that our shareholders might sell our Class A ordinary shares could also depress the market price of our shares. A decline in the price of our Class A ordinary shares might impede our ability to raise capital through the issuance of additional Class A ordinary shares or other equity securities. In addition, the issuance and sale by us of additional Class A ordinary shares, or securities convertible into or exercisable for our Class A ordinary shares, or the perception that we will issue such securities, could reduce the trading price for our Class A ordinary shares as well as make future sales of equity securities by us less attractive or not feasible. The sale of Class A ordinary shares issued upon the exercise of our outstanding warrants could further dilute the holdings of our then existing shareholders.

***We do not know whether a market for the Class A ordinary shares will be sustained or what the trading price of the Class A ordinary shares will be and as a result it may be difficult for you to sell your Class A ordinary shares.***

Although our Class A ordinary shares trade on Nasdaq, an active trading market for the Class A ordinary shares may not be sustained. It may be difficult for you to sell your Class A ordinary shares without depressing the market price for the Class A ordinary shares. As a result of these and other factors, you may not be able to sell your Class A ordinary shares. Further, an inactive market may also impair our ability to raise capital by selling Class A ordinary shares, or may impair our ability to enter into strategic partnerships or acquire companies or products by using our Class A ordinary shares as consideration.

***Securities analysts may not cover our Class A ordinary shares and this may have a negative impact on the market price of our Class A ordinary shares.***

The trading market for our Class A ordinary shares will depend, in part, on the research and reports that securities or industry analysts publish about us or our business. We do not have any control over independent analysts (provided that we have engaged various non-independent analysts). We do not currently have and may never obtain research coverage by independent securities and industry analysts. If no independent securities or industry analysts commence coverage of us, the trading price for our Class A ordinary shares would be negatively impacted. If we obtain independent securities or industry analyst coverage and if one or more of the analysts who covers us downgrades our Class A ordinary shares, changes their opinion of our shares or publishes inaccurate or unfavorable research about our business, the price of our Class A ordinary shares would likely decline. If one or more of these analysts ceases coverage of us or fails to publish reports on us regularly, demand for our Class A ordinary shares could decrease and we could lose visibility in the financial markets, which could cause the price and trading volume of our Class A ordinary shares to decline.

***Because we do not expect to pay dividends in the foreseeable future, you must rely on the price appreciation of our Class A ordinary shares for a return on your investment.***

We currently intend to retain most, if not all, of our available funds and any future earnings to fund the development and growth of our business. As a result, we do not expect to pay any cash dividends in the foreseeable future. Therefore, you should not rely on an investment in our Class A ordinary shares as a source for any future dividend income.

Our board of directors has complete discretion as to whether to distribute dividends, subject to certain requirements of British Virgin Islands law. In addition, our shareholders may by ordinary resolution declare a dividend, but no dividend may exceed the amount recommended by our board of directors. Under British Virgin Islands law, a British Virgin Islands company may pay a dividend out of either profit or share premium account, provided that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts as they fall due in the ordinary course of business. Even if our board of directors decides to declare and pay dividends, the timing, amount and form of future dividends, if any, will depend on, among other things, our future results of operations and cash flow, our capital requirements and surplus, the amount of distributions, if any, received by us from our subsidiaries, our financial condition, contractual restrictions, and other factors deemed relevant by our board of directors. Accordingly, the return on your investment in our Class A ordinary shares will likely depend entirely upon any future price appreciation of our Class A ordinary shares. There is no guarantee that our Class A ordinary shares will appreciate in value or even maintain the price at which you purchased the Class A ordinary shares. You may not realize a return on your investment in our Class A ordinary shares and you may even lose your entire investment in our Class A ordinary shares.

***Techniques employed by short sellers may drive down the market price of our Class A ordinary shares.***

Short selling is the practice of selling securities that the seller does not own but rather has borrowed from a third party with the intention of buying identical securities back at a later date to return to the lender. The short seller hopes to profit from a decline in the value of the securities between the sale of the borrowed securities and the purchase of the replacement shares, as the short seller expects to pay less in that purchase than it received in the sale. As it is in the short seller's interest for the price of the security to decline, many short sellers publish, or arrange for the publication of, negative opinions regarding the relevant issuer and its business prospects in order to create negative market momentum and generate profits for themselves after selling a security short. These short attacks have, in the past, led to selling of shares in the market.

Other public companies listed in the United States that have substantial operations in China have been the subject of short selling. Much of the scrutiny and negative publicity has centered on allegations of a lack of effective internal control over financial reporting resulting in financial and accounting irregularities and mistakes, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud. As a result, many of these companies are now conducting internal and external investigations into the allegations and, in the interim, are subject to shareholder lawsuits and/or SEC enforcement actions.

We may in the future be the subject of unfavorable allegations made by short sellers. Any such allegations may be followed by periods of instability in the market price of our Class A ordinary shares and negative publicity. If and when we become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we could be required to expend a significant amount of resources to investigate such allegations and/or defend ourselves. While we would strongly defend against any such short seller attacks, we may be constrained in the manner in which we can proceed against the relevant short seller by principles of freedom of speech, applicable federal or state law or issues of commercial confidentiality. Such a situation could be costly and time- consuming and could distract our management from growing our business. Even if such allegations are ultimately proven to be groundless, allegations against us could severely impact our business operations and shareholder's equity, and the value of any investment in our Class A ordinary shares could be greatly reduced or rendered worthless.

***Our Class A ordinary shares may experience extreme price and volume fluctuations, which could lead to costly litigation for us and make an investment in us less appealing.***

The market price of our Class A ordinary shares may fluctuate substantially due to a variety of factors, including:

● our business strategy and plans;

● new regulatory pronouncements and changes in regulatory guidelines and timing of regulatory approvals;

● general and industry-specific economic conditions;

● variations in our quarterly financial and operating results, including the rate at which we incur negative cash flow in future periods;

● changes in market valuations of other companies that operate in our business segments or in our industry;

● lack of trading liquidity;

● changes in accounting principles; and

● general market conditions, economic and other external factors.

In addition, the stock market in general, and the market for shares of PRC-based issuers in particular, has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of individual companies. These broad market and industry fluctuations, as well as general economic, political, regulatory and market conditions, such as recessions, interest rate changes, inflation, public health crises, geopolitical instability or disruptions in global supply chains, could cause the market price of our Class A ordinary shares to decline materially, regardless of our actual operating performance or prospects. As a result, investors in our Class A ordinary shares may experience a significant decrease in the value of their investment and may be unable to resell their shares at or above the price paid.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.**

There were no unregistered sales of the Company's equity securities during the three months ended March 31, 2026 that were not previously disclosed in reports filed with the SEC.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES.**

No senior securities were issued and outstanding during the three-month period ended March 31, 2024.

**ITEM 4. MINE SAFETY DISCLOSURES.**

Not applicable.

**ITEM 5. OTHER INFORMATION.**

None.

**ITEM 6. EXHIBITS** 

(a) Exhibits

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| | |
|:---|:---|
| **Exhibit** | **Exhibit Description** |
| 3.1<sup>(2)</sup> | [Memorandum and Articles of Association.](https://www.sec.gov/Archives/edgar/data/1735041/000161577418006529/s111303_ex3-1.htm) |
| 3.2<sup>(2)</sup> | [Amended and Restated Articles of Association.](https://www.sec.gov/Archives/edgar/data/1735041/000161577418006529/s111303_ex3-2.htm) |
| 3.3<sup>(1)</sup> | [Second Amended and Restated Articles of Association.](https://www.sec.gov/Archives/edgar/data/1735041/000161577418007094/s111642_ex3-1.htm) |
| 3.4<sup>(3)</sup> | [Amended and Restated Memorandum and Articles of Association, effective on October 24, 2019.](https://www.sec.gov/Archives/edgar/data/1735041/000121390019021522/f8k102419ex3-1_greenland.htm) |
| 10.1<sup>(4)</sup> | [Employment Agreement, dated March 21, 2026 by and between the Company and Chenyang Wang](http://www.sec.gov/Archives/edgar/data/1735041/000121390026032928/ea028260501ex10-5.htm) |
| 10.2\* | [Extension Agreement, dated April 14, 2026, by and between Zhongchai Holding (Hong Kong) Limited and Cenntro Inc.](ea029013501ex10-2.htm) |
| 10.3\* | [Supplementary Agreement, dated January 1, 2025, by and between Zhejiang Zhongchai Machinery Co. Ltd. and Hangcha Group](ea029013501ex10-3.htm) |
| 31.1\* | [Certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ea029013501ex31-1.htm) |
| 31.2\* | [Certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ea029013501ex31-2.htm) |
| 32.1\*\* | [Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ea029013501ex32-1.htm) |
| 32.2\*\* | [Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ea029013501ex32-2.htm) |
| 101.INS | Inline XBRL Instance Document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

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(1) Incorporated by reference to the Company's Form 8-K, filed with the SEC on July 30, 2018.

(2) Incorporated by reference to the Company's Form S-1/A, filed with the SEC on July 16, 2018.

(3) Incorporated by reference to the Company's Form 8-K, filed with the SEC on October 30, 2019.

(4) Incorporated by reference to the Company's Form 10-K, filed with the SEC on March 23, 2026.

\* Filed herewith.

\*\* In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibits 32.1 and 32.2 herewith are deemed to accompany this Form 10-Q and will not be deemed filed for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filings under the Securities Act or the Exchange Act.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | |
|:---|:---|
|  | **Greenland Technologies Holding Corp.** |
| Date: May 13, 2026 | /s/ Raymond Z. Wang |
|  | Raymond Z. Wang |
|  | Chief Executive Officer and President |

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## Exhibit 10.2

**Exhibit 10.2**

**EXTENSION AGREEMENT**

**THIS EXTENSION AGREEMENT** (the "Agreement"), dated as of April 14, 2026, is by and between: **CENNTRO INC.**, a Nevada corporation with a principal office located at 33 Wood Avenue South, Suite 600, PMB #3572, Iselin, New Jersey (the "Borrower"), and **ZHONGCHAI HOLDING (HONG KONG) LIMITED**, a holding company formed under the laws of the Hong Kong Special Administrative Region with a principal office located at 11-F, Building #12, Sunking Plaza, Gaojiao Road Hangzhou, Zhejiang People's Republic of China 31112 (the "Lender"). The Lender and the Borrower are sometimes referred to herein individually as a "party" and, collectively, as the "parties".

&nbsp;&nbsp;&nbsp;&nbsp;A. The Borrower and the Lender entered into that certain Loan
Agreement dated as of April 15, 2025 (the "Loan Agreement");

&nbsp;&nbsp;&nbsp;&nbsp;B. In connection therewith, the Borrower issued that certain
Promissory Note dated April 15, 2025 (the "Note");

&nbsp;&nbsp;&nbsp;&nbsp;C. The Note has a maturity date of April 14, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;D. As of the date hereof, the Borrower has repaid an aggregate
principal and interest amount of $510,000, leaving an outstanding principal balance of $554,656.52 (the "Outstanding Principal")
under the Note;

&nbsp;&nbsp;&nbsp;&nbsp;E. The parties wish to extend the Maturity Date of the Note
solely with respect to the Outstanding Principal.

In consideration of the facts recited above and the mutual promises detailed below, the parties agree as follows:

1. EXTENSION OF MATURITY

1.1 The parties hereby agree that the Maturity Date of the Note is extended from April 14, 2026 to October 14, 2026.

1.2 All references to the "Maturity Date" in the Loan Agreement and the Note shall be deemed to refer to October 14, 2026.

2. INTEREST

During the extension period, interest shall accrue on the unpaid Principal Sum of the Promissory Note at a rate of 10% per annum computed on a basis of a 360-day year for the actual number of days elapsed. Interest shall be payable no later than the Extended Maturity Date.

3. AFFIRMATION OF LOAN DOCUMENTS

3.1 Except as expressly amended hereby, the Loan Agreement and the Note shall remain in full force and effect.

3.2 The Borrower acknowledges and confirms its obligations under the Loan Agreement and the Note.

4. MISCELLANEOUS

4.1 Amendments. This Agreement may be amended only in writing signed by the parties.

4.2 Governing Law. This Agreement shall be governed by the laws of the State of New York.

4.3 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

4.4 Counterparts. This Agreement may be executed in counterparts.

4.5 The notice provisions set forth in the Note shall remain unchanged and in full force and effect.

*[Signature Page Follows]*

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by a duly authorized officer as of the date set forth above.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **LENDER:** | **LENDER:** | **BORROWER:** | **BORROWER:** | **BORROWER:** |
| ZHONGCHAI HOLDING<br> (HONG KONG) LIMITED | ZHONGCHAI HOLDING<br> (HONG KONG) LIMITED | CENNTRO INC. | CENNTRO INC. | CENNTRO INC. |
| By: | /s/ Peter Wang Zuguang | By: | /s/ Ming He | /s/ Ming He |
| Name: | Peter Wang Zuguang |  | Name: | Ming He |
| Title: | Director |  | Title: | Treasurer |

---

## Exhibit 10.3

**Exhibit 10.3**

**Supplementary Agreement**

**Purchasing Unit: Hangcha Group Co., Ltd. (hereinafter referred to as Party A)**

**Supplying Unit: Zhejiang Zhongchai Machinery Co., Ltd. (hereinafter referred to as Party B)**

To strengthen the sense of responsibility of both Party A and Party B, clarify their respective rights and obligations, and ensure equal, mutually beneficial, and standardized cooperation, the following supplementary agreement is hereby entered into after full consultation between the parties:

**Article 1. The name, variety, and specifications of the product**

Product name, variety, and specifications: (See Appendix I)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| order number | &nbsp;&nbsp;name of material | specifications | unit | &nbsp;&nbsp;Price (RMB) | &nbsp;&nbsp;Annual <br> planned <br> volume |
| 1 |  |  | Table |  |  |
| 2 |  |  | Table |  |  |
| amount |  |  |  |  |  |

---

**Article 2. Technology and Quality of the Product**

The product's technical and quality requirements shall be implemented in accordance with the technical and quality agreements signed by both parties.

**Article 3. Agreements on the delivery deadline and quantity of the product**

1. The
annual product quantity agreed upon in the contract between Party A and Party B constitutes the intended quantity, which shall be implemented
in accordance with Party A's monthly valid procurement plan (signed by the responsible officer and stamped by Party A's Manufacturing
Department). Party A's monthly procurement plan shall be delivered to Party B by mail, delivery, fax, or other appropriate means. The
standard delivery cycle is (15) days (including transit time); in case of special circumstances with separate agreements, such agreements
shall prevail. If Party B disagrees with Party A's monthly procurement plan, it must notify Party A in writing within 24 hours of receiving
the procurement plan; otherwise, Party B shall be deemed to have accepted the terms specified therein.

2. The
specific delivery quantity of Party B shall be determined according to the quantity specified in Party A's procurement plan. Any delivery
exceeding or falling short of the agreed quantity requires Party A's prior approval; otherwise, it shall be deemed a breach of contract
by Party B, and all resulting losses shall be borne by Party B.

3. If
Party B delivers the goods ahead of schedule, Party A shall make payment according to the planned delivery time and the period stipulated
in the agreement after receiving the goods. In case of delayed delivery by Party B, Party B shall negotiate with Party A prior to shipment;
if Party A still requires the goods, Party B shall deliver the full quantity and pay a penalty of <u>1% to 5%</u> of the purchase price
for that batch; if Party A no longer requires the goods, both parties shall terminate the contract for that batch, but this shall not
exempt Party B from liability for breach of contract (a delivery time within ±12 hours of the agreed time shall be deemed on-time
delivery).

**Article 4. Product Pricing and Payment Settlement**

The product price shall be determined according to the purchase and sales contract price agreed upon by both parties. In the event of cost fluctuations, either party may adjust the price accordingly.

The reason and request for price adjustment must be submitted in writing to the other party. The new price may only be implemented after mutual consultation and agreement between both parties.

Party A shall settle the payment within 90 days after the goods from Party B pass inspection (the inspection shall be completed within 3 working days).

Upon termination of the cooperation between Party A and Party B, if the products supplied by Party B have not yet expired their three-year warranty period, Party A shall have the right to withhold a portion of the payment as a quality guarantee deposit, which will be paid in full only after the final batch of products supplied by Party B exceeds the warranty period. The specific amount of the quality guarantee deposit may be negotiated by both parties.

**Article 5. Control of Safety Stock Levels**

Due to significant fluctuations in market demand, maintaining an insufficient safety stock makes it difficult to meet market requirements. Excess inventory risks capital tie-up, warehouse space occupation, product obsolescence, and design modifications leading to product scrapping. Through mutual agreement, Party B's maximum inventory level for the aforementioned products is specified in Appendix 1. In cases where product obsolescence or design modifications result in product scrapping, Party A shall bear the corresponding scrapping losses based on the confirmed safety stock quantity; however, Party A shall not be liable for losses arising from Party B's overstocking.

**Article 6: Three Guarantees Period and After-Sales Service**

1. The
three-year warranty period for products supplied by Party B to Party A shall be <u>15</u> months from the date of delivery of the complete
unit. For products supplied for export forklifts, the warranty period shall be extended to <u>24</u> months (any components in Party
B's supply that do not qualify for the 24-month warranty may be listed separately). During the warranty period, Party B shall provide
replacement parts based on photos, fax documents, We Chat messages, or emails from Party A. If Party B requires the original product
from Party A, Party B shall bear all transportation costs; however, if both parties confirm that the returned item is not defective due
to Party B's fault, the shipping costs shall be covered by Party A's warranty department. Party A shall request spare parts
from Party B, which Party B must provide within <u>3</u> days. For domestic customers with bidding requirements or large orders necessitating
an extended warranty period, both parties may mutually agree to extend the warranty to 24 months. Where the separately agreed warranty
period exceeds that specified in this contract, the separate warranty agreement shall prevail.

Due to quality issues with Party B's products, Party B must dispatch personnel for after-sales service: staff in the Jiangsu-Zhejiang-Shanghai region must arrive within <u>12</u> hours, while staff in other regions must arrive within <u>24</u> hours. The three-warranty service for overseas products is currently the responsibility of Party A; however, if a product replacement is required, Party B must arrange the replacement based on product photos, fax documents, or emails provided by Party A's agent. If Party B genuinely requires the original product from Party A, Party B shall bear all associated transportation costs.

Party B shall provide Party A with a list of product repair kits and the prices of the listed components.

**Article 7. Disposal of Non-Conforming Products**

For products deemed non-compliant by Party A's Inspection Department (with detailed explanations attached), upon return to Party B, Party B must submit a written analysis of the reasons and corrective measures within 5 working days. Any objections to the determination must be submitted in writing within <u>6</u> working days; otherwise, it shall be deemed acceptance of Party A's judgment.

**Article 8. Technical Confidentiality and Product Patents**

Products jointly developed or independently developed by Party A and Party B shall not be supplied to third parties (including spare parts) without the consent of the other party, nor shall their technical content be disclosed to third parties. In case of breach, either party shall have the right to terminate the cooperation and pursue liability for the breach.

Products manufactured by Party B using Party A's technical drawings may only be supplied to Party A or a third party designated by Party A. Party B shall not directly sell any future accessories for these products to Party A's sales companies, business departments, or sales outlets. For customers using Party A's complete vehicles in the market, Party B is prohibited from providing after-sales services; Party A retains exclusive after-sales sales rights for such customers. Upon receiving inquiry requests for parts for Party A's vehicle models, Party B must immediately forward them to the designated contact person of Party A and shall not make direct sales offers.

**Article 9. Product Packaging and Delivery Location**

The products from Party B shall be delivered to Party A's factory and packaged using foam and cardboard boxes.

**Appendix: Service Terms Requirements:**

**I.** **In-Warranty Service Requirements** 

&nbsp;&nbsp;&nbsp;&nbsp;1. The
supplier shall provide a warranty period commitment for the accompanying components, with the warranty period commencing from the date
of purchase by Hangcha's sales client.

&nbsp;&nbsp;&nbsp;&nbsp;2. Key
component suppliers must possess corresponding supporting service capabilities and technical support capabilities;

&nbsp;&nbsp;&nbsp;&nbsp;3. Corresponding
component manuals (electronic materials) must be provided for key components;

&nbsp;&nbsp;&nbsp;&nbsp;4. If
the timeliness of the warranty service fails to meet Hangcha's service commitment requirements, Party A reserves the right to impose
corresponding penalties.

&nbsp;&nbsp;&nbsp;&nbsp;5. All
supplied components must bear clearly visible Hancha logos and Hancha part numbers; no markings indicating the supplier's address or
contact information are permitted.

&nbsp;&nbsp;&nbsp;&nbsp;6. The
supplier shall designate after-sales contact personnel and their contact information; any changes shall be communicated in writing immediately.

Inform Hangcha of the face type;

After-sales contact: Yu Jianbo Phone: 13567511851

**II. Accessory Supply**

&nbsp;&nbsp;&nbsp;&nbsp;1. For
the assemblies supplied under the procurement agreement, a parts manual and the ex-tax prices of each component must be provided.

&nbsp;&nbsp;&nbsp;&nbsp;2. Provide
the contact person and contact information for accessory supply;

&nbsp;&nbsp;&nbsp;&nbsp;3. In
the event of termination of the supply due to design modifications required for the fork or issues raised by the supplier, all accompanying
components and sub parts supplied for the fork shall maintain a 10-year supply cycle. Failure to meet this requirement shall entitle
the Supplier to impose corresponding penalties on the Customer.

&nbsp;&nbsp;&nbsp;&nbsp;4. Suppliers
shall not supply any components bearing the Hangcha logo or the term "Hangcha" to external parties. In case of such unauthorized
supply, Party A reserves the right to impose corresponding penalties.

Accessories Contact: He Xiaodong Phone: 18305852125

**Article 10. Comply with national and local laws and regulations pertaining to environmental protection and occupational health.**

The production, storage, and transportation of products supplied by Party B must comply with relevant national and local environmental regulations. The transportation of petroleum products and fuel materials requires specialized vehicles. Any petroleum products or fuel materials requiring recycling shall be collected by Party B and processed in accordance with applicable national laws and regulations. The company's production and operations must adhere to national occupational health regulations. Should Party B violate these laws or regulations, Party A reserves the right to terminate the supply agreement.

**Article 11. Product Change**

If any modifications to the products supplied by Party B are required for its own reasons, Party B must submit a written application to Party A's procurement department. Such modifications may only be implemented upon obtaining Party A's written approval. Where the modified content differs from the original drawings or technical specifications, the modifications shall only be permitted after receiving the updated drawings or technical requirements. The scope of modification applications includes, but is not limited to, changes to production facilities, equipment, processes, materials, and appearance. Should Party B implement modifications without obtaining such approval, thereby affecting Party A, Party A reserves the right to suspend supply or claim compensation for actual losses incurred.

**Article 12. Force Manure**

If either Party A or Party B is unable to perform the contract due to force majeure, it shall promptly notify the other party of the reasons for such inability or incomplete performance. Upon obtaining relevant evidence, the party may extend the performance deadline, perform the contract partially, or refrain from performance altogether, and may be partially or fully exempted from liability for breach of contract as appropriate.

**Article 13. Other Agreements**

This Agreement shall come into force on <u>January 1, 2025</u>, and shall remain valid for two years. During the term of this Agreement, both Party A and Party B shall arbitrarily alter or terminate it. Any matters not covered herein shall be settled through consultation between both parties, and supplementary provisions shall be made. Such supplementary provisions shall have the same legal effect as this Agreement.

---

| |
|:---|
| Party A (Seal): |
| Hangcha Group Co., Ltd. |
| Representative (Signature): |
| Date: Year / Month / Day |
| Party B (Seal): |
| Zhejiang Zhongchai Machine Co., Ltd. |
| Representative (Signature): |
| Date: February 15, 2025 |

---

## Exhibit 31.1

**Exhibit 31.1**

**Certification by the Principal Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a) and<br> 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Raymond Z. Wang, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Greenland Technologies Holding Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the company's internal control over financial reporting that occurred during the company's most recent fiscal quarter (the company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | May 13, 2026 |
|  | /s/ Raymond Z. Wang |
| Name: | Raymond Z. Wang |
| Title: | Chief Executive Officer<br> *(Principal Executive Officer)* |

---

## Exhibit 31.2

**Exhibit 31.2**

**Certification by the Principal Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and<br> 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Chenyang Wang, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Greenland Technologies Holding Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the company's internal control over financial reporting that occurred during the company's most recent fiscal quarter (the company's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | May 13, 2026 |
|  | /s/ Chenyang Wang |
| Name: | Chenyang Wang |
| Title: | Acting Chief Financial Officer<br> (*Principal Financial Officer*) |

---

## Exhibit 32.1

**Exhibit 32.1**

**Certification by the Principal Executive Officer**

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

Pursuant to U.S.C. Section 1350 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), I, Raymond Z. Wang, Chief Executive Officer of Greenland Technologies Holding Corporation (the "Company"), hereby certify to my knowledge that:

The quarterly report on Form 10-Q for the quarter ended March 31, 2026 of the Company fully complies, in all material respects, with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 13, 2026

---

| |
|:---|
| /s/ Raymond Z. Wang |
| Raymond Z. Wang |
| Chief Executive Officer<br> (Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**Certification by the Principal Financial Officer**

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

Pursuant to U.S.C. Section 1350 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), I, Chenyang Wang, Acting Chief Financial Officer of Greenland Technologies Holding Corporation (the "Company"), hereby certify to my knowledge that:

The quarterly report on Form 10-Q for the quarter ended March 31, 2026 of the Company fully complies, in all material respects, with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 13, 2026

---

| |
|:---|
| /s/ Chenyang Wang |
| Chenyang Wang |
| Acting Chief Financial Officer<br> (Principal Financial Officer) |

---