Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 11, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Greenland Technologies Holding Corp. | |
Trading Symbol | GTEC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 11,371,171 | |
Amendment Flag | false | |
Entity Central Index Key | 0001735041 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-38605 | |
Entity Incorporation, State or Country Code | D8 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 50 Millstone Road | |
Entity Address, Address Line Two | Building 400 Suite 130 | |
Entity Address, City or Town | East Windsor | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08512 | |
City Area Code | 1 (888) | |
Local Phone Number | 827-4832 | |
Title of 12(b) Security | Ordinary shares, no par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 10,756,968 | $ 7,159,015 |
Restricted cash | 9,767,210 | 2,244,038 |
Notes receivables | 33,113,729 | 30,803,772 |
Accounts receivable, net of allowance for doubtful accounts of $996,984 and $986,532, respectively | 20,519,818 | 12,408,548 |
Inventories | 17,731,415 | 15,380,063 |
Due from related parties-current | 38,946,503 | 38,535,171 |
Advance to suppliers | 732,019 | 447,901 |
Prepayments and other current assets | 542,882 | 664,926 |
Total Current Assets | 132,110,544 | 107,643,434 |
Non-current asset | ||
Property, plant, equipment and construction in progress, net | 19,534,056 | 20,135,339 |
Land use rights, net | 4,030,352 | 4,035,254 |
Other intangible assets | ||
Due from related parties – non-current | ||
Deferred tax assets | 158,698 | 158,455 |
Goodwill | 3,890 | 3,890 |
Other non-current assets | 41,860 | 158,455 |
Total non-current assets | 23,768,856 | 24,335,303 |
TOTAL ASSETS | 155,879,400 | 131,978,737 |
Current Liabilities | ||
Short-term bank loans | 11,899,452 | 18,487,356 |
Notes payable-bank acceptance notes | 38,202,952 | 25,889,067 |
Accounts payable | 28,300,234 | 22,005,260 |
Customer deposits | 163,435 | 366,029 |
Due to related parties | 7,904,430 | 9,051,119 |
Other current liabilities | 1,475,090 | 2,212,325 |
Long-term payable- current portion | 584,003 | 797,179 |
Total current liabilities | 88,529,596 | 78,808,335 |
Long-term liabilities | ||
Long-term payables | 166,292 | |
Other long-term liabilities | 2,240,949 | 2,342,648 |
Total long-term liabilities | 2,240,949 | 2,508,940 |
TOTAL LIABILITIES | 90,770,545 | 81,317,275 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Ordinary shares, no par value, unlimited shares authorized; 11,448,327 and 10,225,142 shares issued and outstanding as of June 30, 2021 and December 31, 2020. | ||
Additional paid-in capital | 21,983,495 | 1,370,739 |
Statutory reserves | 3,842,331 | 4,517,117 |
Retained earnings | 32,312,439 | 26,728,332 |
Accumulated other comprehensive loss | 339,456 | (62,925) |
Total shareholders’ equity | 58,477,721 | 44,889,922 |
Non-controlling interest | 6,631,134 | 5,771,540 |
TOTAL EQUITY | 65,108,855 | 50,661,462 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 155,879,400 | $ 131,978,737 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts (in Dollars) | $ 996,984 | $ 986,532 |
Ordinary shares, par value (in Dollars per share) | ||
Ordinary shares, authorized | Unlimited | Unlimited |
Ordinary shares, issued | 11,448,327 | 10,225,142 |
Ordinary shares, outstanding | 11,448,327 | 10,225,142 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
REVENUES | $ 28,204,307 | $ 16,576,345 | $ 52,815,201 | $ 26,448,412 |
COST OF GOODS SOLD | 22,499,138 | 13,694,235 | 42,005,645 | 21,642,354 |
GROSS PROFIT | 5,705,169 | 2,882,110 | 10,809,556 | 4,806,058 |
Selling expenses | 495,462 | 304,535 | 874,692 | 521,376 |
General and administrative expenses | 752,212 | 443,476 | 1,663,351 | 1,517,885 |
Research and development expenses | 1,005,296 | 475,649 | 1,964,841 | 1,039,947 |
Total operating expenses | 2,252,970 | 1,223,660 | 4,502,884 | 3,079,208 |
INCOME FROM OPERATIONS | 3,452,199 | 1,658,450 | 6,306,672 | 1,726,850 |
Interest income | 4,833 | 42,521 | 9,428 | 75,831 |
Interest expense | (221,664) | (389,072) | (401,853) | (710,764) |
Other income | 311,114 | 255,580 | 598,090 | 852,832 |
INCOME BEFORE INCOME TAX | 3,546,482 | 1,567,479 | 6,512,337 | 1,944,749 |
INCOME TAX | 394,159 | 95,971 | 916,775 | 145,158 |
NET INCOME | 3,152,323 | 1,471,508 | 5,595,562 | 1,799,591 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 371,570 | 212,411 | 686,241 | 283,830 |
NET INCOME ATTRIBUTABLE TO GREENLAND TECHNOLOGIES HOLDING CORPORATION AND SUBSIDIARIES | 2,780,753 | 1,259,097 | 4,909,321 | 1,515,761 |
OTHER COMPREHENSIVE INCOME (LOSS): | 833,963 | 58,835 | 575,734 | (1,246,925) |
Unrealized foreign currency translation income (loss) attributable to Greenland technologies holding corporation and subsidiaries | 591,484 | 45,180 | 402,381 | (559,814) |
Unrealized foreign currency translation income (loss) attributable to Noncontrolling interest | 242,479 | 13,655 | 173,353 | (687,111) |
Comprehensive income | 3,372,237 | 1,304,277 | 5,311,702 | 955,947 |
Noncontrolling interest | $ 614,049 | $ 226,066 | $ 859,594 | $ (403,281) |
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING: | ||||
Basic and diluted (in Shares) | 10,814,479 | 10,021,142 | 10,574,223 | 10,015,203 |
NET INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY: | ||||
Basic and diluted (in Dollars per share) | $ 0.26 | $ 0.13 | $ 0.46 | $ 0.15 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity (Unaudited) - USD ($) | Ordinary Shares No Par Value | Additional Paid-in Capital | Accumulated Other Comprehensive Income/(loss) | Statutory Reserve | Retained Earnings | Non-Controlling Interest | Total |
Balance at Dec. 31, 2019 | $ 15,226,685 | $ (360,981) | $ 3,866,574 | $ 19,863,600 | $ 8,366,246 | $ 46,962,124 | |
Balance (in Shares) at Dec. 31, 2019 | 10,006,142 | ||||||
Restricted stock grants | 42,800 | 42,800 | |||||
Restricted stock grants (in Shares) | 15,000 | ||||||
Net income | 256,664 | 71,419 | 328,083 | ||||
Transfer to statutory reserve | 60,253 | (60,253) | |||||
Foreign currency translation adjustment | (604,994) | (700,766) | (1,305,760) | ||||
Balance at Mar. 31, 2020 | 15,269,485 | (965,975) | 3,926,827 | 20,060,011 | 7,736,899 | 46,027,247 | |
Balance (in Shares) at Mar. 31, 2020 | 10,021,142 | ||||||
Net income | 1,259,097 | 212,411 | 1,471,508 | ||||
Transfer to statutory reserve | 195,723 | (195,723) | |||||
Dividend | (13,447) | (13,447) | |||||
Foreign currency translation adjustment | 45,180 | 13,655 | 58,835 | ||||
Balance at Jun. 30, 2020 | 15,269,485 | (920,795) | 4,122,550 | 21,109,938 | 7,962,965 | 47,544,143 | |
Balance (in Shares) at Jun. 30, 2020 | 10,021,142 | ||||||
Balance at Dec. 31, 2020 | 13,707,398 | (62,925) | 4,517,117 | 26,728,332 | 5,771,540 | 50,661,462 | |
Balance (in Shares) at Dec. 31, 2020 | 10,225,142 | ||||||
Restricted stock grants | 51,000 | 51,000 | |||||
Restricted stock grants (in Shares) | 51,000 | ||||||
Sale of stock and warrants | 1,858,841 | 1,858,841 | |||||
Sale of stock and warrants (in Shares) | 221,985 | ||||||
Net income | 2,128,568 | 314,671 | 2,443,239 | ||||
Foreign currency translation adjustment | (189,103) | (69,126) | (258,229) | ||||
Balance at Mar. 31, 2021 | 15,617,239 | (252,028) | 4,517,117 | 28,856,900 | 6,017,085 | 54,756,313 | |
Balance (in Shares) at Mar. 31, 2021 | 10,498,127 | ||||||
Sale of stock and warrants | 6,366,256 | 6,366,256 | |||||
Sale of stock and warrants (in Shares) | 950,200 | ||||||
Net income | 2,780,753 | 371,570 | 3,152,323 | ||||
Transfer to statutory reserve | (674,786) | 674,786 | |||||
Foreign currency translation adjustment | 591,484 | 242,479 | 833,963 | ||||
Balance at Jun. 30, 2021 | $ 21,983,495 | $ 339,456 | $ 3,842,331 | $ 32,312,439 | $ 6,631,134 | $ 65,108,855 | |
Balance (in Shares) at Jun. 30, 2021 | 11,448,327 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 5,595,562 | $ 1,799,591 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,248,256 | 1,163,894 |
Loss on disposal of property and equipment | (959) | |
Increase in allowance for doubtful accounts | 127,667 | |
Increase (Decrease) in allowance for notes receivable | (11,226) | |
Increase (Decrease) in provision for inventory | (44,440) | |
Deferred tax assets | 1,433 | (27,502) |
Stock based compensation expense | 51,000 | 42,800 |
Loss on prepayment of financing lease obligations | 52,684 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,966,860) | (2,869,276) |
Notes receivable | (1,980,407) | (76,376) |
Inventories | (2,184,865) | (33,550) |
Advance to suppliers | (278,919) | (15,617) |
Other current and noncurrent assets | 128,879 | 105,609 |
Increase (Decrease) In: | ||
Accounts payable | 6,052,012 | 3,738,130 |
Customer deposits | (206,136) | 248,949 |
Other current liabilities | (604,808) | 121,777 |
Income tax payable | 118,934 | |
Due to related parties | (391,343) | 316,779 |
Long-term payables-unamortized deferred financing costs | (2,470) | 185,556 |
Other long-term liabilities | (248,796) | (116,086) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (778,421) | 4,828,297 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of Long term assets | (425,860) | (439,871) |
Proceeds from government grants for construction | 122,485 | 242,955 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (303,375) | (196,916) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term bank loans | 773,144 | 3,263,569 |
Repayments of short-term bank loans | (7,545,885) | |
Repayments of long-term bank loans | ||
Notes payable | 12,020,074 | (3,641,089) |
Proceeds from related parties | 422,324 | 625,719 |
Repayment of loans from related parties | (1,284,631) | (496,630) |
Repayment of loans from third parties | (309,258) | (4,965,961) |
Proceeds from third parties | 154,629 | 4,331,829 |
Dividend paid | (13,447) | |
Proceeds received from financing lease obligation | 1,418,943 | |
Prepayment of lease-financing obligations | (2,276,612) | |
Payment of principal on financing lease obligation | (386,572) | (1,306,408) |
Proceeds from equity and debt finaning | 8,225,097 | |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 12,068,922 | (3,060,087) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 10,987,126 | 1,571,294 |
Effect of exchange rate changes on cash | 133,999 | (574,058) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 9,403,053 | 5,717,207 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 20,524,178 | 6,714,443 |
Bank balances and cash | 10,756,968 | 4,527,402 |
Bank balances and cash included in assets classified as restricted cash | 9,767,210 | 2,187,041 |
Supplemental Disclosure of Cash Flow Information | ||
Income taxes paid | 782,596 | 209,777 |
Interest paid | $ 408,582 | $ 638,213 |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES Greenland Technologies Holding Corporation, formerly known as Greenland Acquisition Corporation (“Greenland” or the “Company”), was incorporated on December 28, 2017 as a British Virgin Islands Company with limited liability. The Company was incorporated as a blank check Company for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more target businesses. On October 24, 2019, the Company acquired all of the outstanding shares of Zhongchai Holding (Hong Kong) Limited via a reverse capitalization and changed its name from Greenland Acquisition Corporation to Greenland Technologies Holding Corporation. Greenland serves as the parent Company for the primary operating Company, Zhongchai Holding (Hong Kong) Limited, a holding Company formed under the laws of Hong Kong on April 23, 2009 (“Zhongchai Holding”). Through Zhongchai Holding and other subsidiaries, Greenland develops and manufactures traditional transmission products for material handling machineries in PRC. Greenland, through its subsidiaries, is: ● a leading developer and manufacturer of transmission products for material handling machineries in China; and ● since December 2020, a developer of electric industrial vehicles, and has launched its 1.8 tons electric loader vehicle (GEL1800), GEX-8000 electric excavator and GEF-series lithium powered electric vehicle forklift truck. Greenland’s transmission products 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 logistics for many enterprises across different industries in the PRC and around the globe. Generally, industries with the largest demand for forklifts are transportation, warehousing logistics, electrical machinery, and automobile. Greenland has experienced increased demand for forklifts in the manufacturing industry in the PRC, as its revenue increased from approximately $26.45 million for the six months ended June 30, 2020 to approximately $52.82 million for the six months ended June 30, 2021. Since late March 2020, the Company’s business operations have gradually recovered from the negative impacts due to the lockdown as a result of the COVID-19 pandemic, and part of the Company’s backlogged orders were processed during the six months ended June 30, 2021, which contributed to an increase in its revenues for the six months ended June 30, 2021. 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 six months ended June 30, 2021 and 2020, Greenland sold 79,032 and 45,380 sets of transmission products, respectively, to more than 100 forklift manufacturers in aggregate in PRC. In December 2020, Greenland launched a new division to focus on the electric industrial vehicle market, a market that Greenland intends to develop to diversify its product offerings. Greenland has setup an assembly facility on the East Coast of the United States for final assembly of its newly developed electric vehicle. Greenland’s teams have completed full beta versions of the 1.8 tons electric loader vehicle (GEL1800), its first electric industry vehicle product, and its GEX-8000 electric excavator. Greenland expects to start deliveries of GEL 1800 and GEX-8000 electric excavator in the fourth quarter of 2021. Other models, such as electric loader vehicles with loading capacity of one and a half tons or five tons are currently under development. In July 2021, Greenland also launched an innovative new GEF-series lithium powered electric vehicle forklift truck, one of the industry’s first electric vehicle forklift trucks to use lithium power. Greenland will cooperate with global parts suppliers to utilize their matured supply chain, which will enable it to shorten its development cycle and make quicker market entrance. The COVID-19 pandemic has significantly affected business and manufacturing activities within China, including travel restrictions, widespread mandatory quarantines, and suspension of business activities within China. Effective February 3, 2020, the Company announced the temporary closure of its operating offices in Zhejiang Province, including suspension of its manufacturing activities in response to the emergency measures imposed by the local government. The Company’s operating subsidiaries were temporary shut down until the end of February 2020. Moreover, pandemic has significantly limited suppliers’ ability to provide low-cost, high-quality parts and materials to the Company on a timely basis. Zhejiang Province, where we conduct a substantial part of our business, is one of the most affected areas in China. As of the date of this report, Chinese industries have gradually resumed businesses as government officials started to ease the restrictive measures since April 2020. However, we remain cautious and prudent when assessing the future impact of COVID-19 on our business due to the current ongoing global pandemic. The Company’s Shareholders As of June 30, 2021, Cenntro Holding Limited owns 69.60% of Greenland’s outstanding ordinary shares. Cenntro Holding Limited is controlled and beneficially owned by Mr. Peter Zuguang Wang, chairman of the board of directors of the Company. The Company’s Subsidiaries Zhongchai Holding, the 100% owned subsidiary of the Company, owns 89.47% of Zhejiang Zhongchai Machinery Co., Ltd. (“Zhejiang Zhongchai”), 62.5% of Shanghai Hengyu Enterprise Management Consulting Co., Ltd. (“Hengyu”) and 100% of Hangzhou Greenland Energy Technologies Co., Ltd. (“Hangzhou Greenland”). Zhejiang Zhongchai, the subsidiary of the Company, is the sole shareholder of Zhejiang Shengte Transmission Co., Ltd. (“Shengte”). It also owned 62.5% of Hengyu until transferred its ownership to Zhongchai Holding on July 15, 2019. Zhejiang Zhongchai Zhejiang Zhongchai, a limited liability Company registered on November 21, 2005, is the direct operating subsidiary of Zhongchai Holding in PRC. On April 5, 2007, Usunco Automotive Limited (“Usunco”), a British Virgin Islands limited liability Company incorporated on April 24, 2006, invested $8,000,000 USD into Zhejiang Zhongchai for its approximately 75.47% interest. On December 16, 2009, Usunco agreed to transfer its 75.47% interest in Zhejiang Zhongchai to Zhongchai Holding. On April 26, 2010, Xinchang County Keyi Machinery Co., Ltd. transferred all its 24.528% interest in Zhejiang Zhongchai to Zhongchai Holding for a consideration of US$2.6 million. On November 1, 2017, Xinchang County Jiuxin Investment Management Partnership (LP) (“Jiuxin”), an entity controlled and beneficially owned by Mr. He Mengxing, president of Zhejiang Zhongchai, closed its investment of approximately RMB31,590,000 in Zhejiang Zhongchai for 10.53% of its interest. As of June 30, 2021, Zhongchai Holding owns approximately 89.47% of Zhejiang Zhongchai and Jiuxin owns approximately 10.53% of Zhejiang Zhongchai. Through Zhejiang Zhongchai, the Company has been engaging in the manufacture and sale 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 the 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, PRC and are sold to both domestic and oversea markets. The Company has moved to its new factory in Meizhu, Xinchang, Zhejiang Province, PRC, in October of 2019. Hengyu Hengyu is a limited liability Company registered on September 10, 2015 in Shanghai Free Trade Zone, Shanghai, and PRC. Hengyu holds no assets other than an account receivable owed by Cenntro Holding Limited. Main business of Hengyu are investment management and consulting services. Hangzhou Greenland Hangzhou Greenland is a limited liability Company registered on August 9, 2019 in Hangzhou Sunking Plaza, Zhejiang, PRC. Hangzhou Greenland engages in the business of trading. Greenland Tech Greenland Technologies Corporation was incorporated in the state of Delaware on January 14, 2020 as a wholly owned subsidiary of Greenland (“Greenland Tech”). The Company aims to use it as its U.S. operation site for the assembly, marketing and sales of electric industrial vehicles for the North American market. Details of the Company’s subsidiaries, which are included in these unaudited consolidated financial statements as of June 30, 2021, are as follows: Name Domicile and Date Paid-in Capital Percentage of Principal Activities Zhongchai Holding (Hong Kong) Limited Hong Kong HKD 10,000 100 % Holding Zhejiang Zhongchai Machinery Co., Ltd. PRC RMB 20,000,000 89.47 % Manufacture, sale of various transmission boxes. Shanghai Hengyu Enterprise Management Consulting Co., Ltd. PRC RMB 251,500,000 62.5 % Investment management and consulting services. Hangzhou Greenland Energy Technologies Co., Ltd. PRC RMB 4,794,242 100 % Trading. Greenland Technologies Corporation Delaware, USA USD 6,363,557 100 % US operation and distribution of electric industrial vehicles for North American market |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Principles of Consolidation The consolidated financial statements include the accounts of Greenland Technologies Holding Corporation and its subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Intercompany accounts and transactions have been eliminated upon consolidation. Certain reclassifications to previously reported financial information have been made to conform to the current period presentation. The Business Combination was accounted for as a reverse recapitalization (the “Recapitalization Transaction”) in accordance with Accounting Standard Codification (“ASC”) 805, Business Combinations. For accounting and financial reporting purposes, Zhongchai Holding is considered the acquirer based on facts and circumstances, including the following: ● Zhongchai Holding’s operations comprise the ongoing operations of the combined entity; ● The officers of the newly combined company consist of Zhongchai Holding’s executives, including the Chief Executive Officer, Chief Financial Officer and General Counsel; and, ● The former shareholders of Zhongchai Holding own a majority voting interests in the combined entity. As a result of Zhongchai Holding being the accounting acquirer, the financial reports filed with the SEC by the Company subsequent to the Business Combination are prepared “as if” Zhongchai Holding is the predecessor and legal successor to the Company. The historical operations of Zhongchai Holding are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Zhongchai Holding prior to the Business Combination; (ii) the combined results of the Company and Zhongchai Holding following the Business Combination in October 24, 2019; (iii) the assets and liabilities of Zhongchai Holding at their historical cost, and (iv) Greenland’s equity structure for all periods presented. Zhongchai Holding received 7,500,000 shares of Greenland in exchange for all the share capital, which is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods. No step-up basis of intangible assets or goodwill was recorded in the Business Combination transaction consistent with the treatment of the transaction as a reverse capitalization of Zhongchai Holding. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. Actual results could differ from those estimates. Significant estimates in the six months ended June 30, 2021 and 2020 include allowance for doubtful accounts, reserve for inventories, useful life of property, plant and equipment, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets and accruals for taxes due. Non-controlling Interest Non-controlling interests in the Company’s subsidiaries are recorded in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 810 Consolidation (“ASC 810”) and are reported as a component of equity, separate from the parent’s equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollars (“US$” or “$”). The functional currency of the Company is Renminbi (“RMB”). Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of operations. For the six months ended 2021 2020 Period end RMB: US$ exchange rate 6.4566 7.0851 Period average RMB: US$ exchange rate 6.4671 7.0307 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 original maturity of three months or less to be cash equivalents. The Company maintains no bank account in the United States of America. The Company maintains its bank accounts in PRC and Hong Kong Special Administrative Region (“SAR”). Balances at financial institutions or state-owned banks within PRC and Hong Kong SAR are not covered by insurance. Restricted Cash Restricted cash represents amounts held by a bank as security for bank acceptance bills, as well as the financial product secured for the short-term bank loan and therefore is not available for the Company’s use until such time as the bank acceptance notes and bank loans have been fulfilled or expired, normally within a twelve-month period. Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements and Disclosures ● Level 1—defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; ● Level 2—defined as inputs other than quoted prices in active markets, that are either directly or indirectly observable; and ● Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, accounts payable, other payables and accrued liabilities, short-term bank loans, and notes payable. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other current assets and liabilities approximate fair value because of the short-term nature of these items. The estimated fair values of short-term bank loans were not materially different from their carrying value as presented due to the short maturities and that the interest rates on the borrowing approximate those that would have been available for loans of similar remaining maturity and risk profile. As the carrying amounts are reasonable estimates of the fair value, these financial instruments are classified within Level 1 of the fair value hierarchy. Accounts Receivable Accounts receivable are carried at net realizable value. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, its current creditworthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. The Company only grants credit terms to established customers who are deemed to be financially responsible. Credit periods to customers are within 60 days after customers received the purchased goods. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. Balance of allowance of doubtful accounts was $1.00 million and $1.08 million as of June 30, 2021 and December 31, 2020, respectively. Inventories Inventories are stated at the lower of cost or net realizable value, which is based on estimated selling prices less any further costs expected to be incurred for completion and disposal. Cost of raw materials is calculated using the weighted average method and is based on purchase cost. Work-in-progress and finished goods costs are determined using the weighted average method and comprise direct materials, direct labor and an appropriate proportion of overhead. As of June 30, 2021 and December 31, 2020, the Company had reserves for inventories of $0 million and $0 million, respectively. The Company records inventory reserves for excess or obsolete inventories based upon assumptions about our current and future demand forecasts. Advance to Suppliers Advance to suppliers represents interest-free cash paid in advance to suppliers for purchases of parts and/or raw materials. The balance of advance to suppliers was $0.73 million and $0.45 million as of June 30, 2021 and December 31, 2020. Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation, and include expenditure that substantially increases the useful lives of existing assets. Expenditures for repairs and maintenance, which do not extend the useful life of the assets, are expensed as incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives are as follows: Plant, buildings and improvements 20 years Machinery and equipment 2~10 years Motor vehicles 4 years Office equipment 3~5 years Fixtures and decorations 5 years When assets are sold or retired, their costs and accumulated depreciation are eliminated from the consolidated financial statements and any gain or loss resulting from their disposal is recognized in the period of disposition as an element of other income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. Land Use Rights According to the PRC laws, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government. The land use rights granted to the Company are being amortized using the straight-line method over the lease term of fifty years. Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance with FASB ASC 360, “Property, Plant and Equipment”. In evaluating long-lived assets for recoverability, the Company uses its best estimate of future cash flows expected to result from the use of the asset and eventual disposition in accordance with FASB ASC 360-10-15. To the extent that estimated future, undiscounted cash inflows attributable to the asset, less estimated future, undiscounted cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan of disposal, whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell. There was no impairment loss recognized for the six months ended June 30, 2021 and 2020. Lease ASC 842 supersedes the lease requirements in ASC 840 “Leases”, and generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. Leases that transfer substantially all of the benefits and risks incidental to the ownership of assets are accounted for as finance leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. A sale-leaseback transaction occurs when an entity sells an asset it owns and immediately leases the asset back from the buyer. The seller then becomes the lessee and the buyer becomes the lessor. under ASC 842, both parties must assess whether the buyer-lessor has obtained control of the asset and a sale has occurred. The Company has determined that the leaseback transaction that it newly entered in current year fails to qualify as a sale because control is not transferred to the buyer-lessor. Therefore, the Company has classified the lease portion of the transaction as a finance lease whereby the Company continues to depreciate the assets and recorded a financing obligation for the consideration received from the buyer-lessor, with an implicit interest rate of 4.0038%. 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) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A wholly-owned foreign enterprise is required to allocate at least 10% of its annual after-tax profit to the General Reserve Fund until the balance of such fund has reached 50% of its respective registered capital. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. Appropriations to the Enterprise Expansion Fund and Staff Welfare and Bonus Fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Revenue Recognition In accordance with ASC Topic 606, “Revenue from Contracts with Customers”, the Company recognizes revenues when goods or services are transferred to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. In determining when and how revenues are recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customer; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations and (v) recognition of revenues when (or as) the Company satisfies each performance obligation. The Company derives revenues from the processing, distribution and sale of its products. The Company recognizes its revenues net of value-added taxes (“VAT”). The Company is subject to VAT which had been levied at the rate of 17% on the invoiced value of sales until April 30, 2018, after which date the rate was reduced to 16%. VAT rate was further reduced to 13% starting from April 1, 2019. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales. Revenues are recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the performance obligation is fulfilled, usually at the time of customers’ acceptance or consumption, at the net sales price (transaction price) and each of the criteria under ASC 606 have been met. Contract terms may require the Company to deliver the finished goods to the customers’ location or the customer may pick up the finished goods at the Company’s factory. International sales are recognized when shipment clears customs and leaves the port. The Company has adopted ASC 606 on January 1, 2018, using the transition method of Modified-Retrospective Method (“MRM”). The adoption of ASC 606 had no impact on the Company’s beginning balance of retained earnings. The Company’s contracts are all short-term in nature with a contract term of one year or less. Receivables are recorded when the Company has an unconditional right to consideration. Contracts do not offer any price protection, but allow for the return of certain goods if quality problem, which is standard warranty. The Company product returns and recorded reserve for sales returns were minimal for the six months ended June 30, 2021 and 2020. The total rebates amount is accounting for around 0.19% and 0.43% of the total revenue of Greenland. The following table sets forth disaggregation of revenue: For the three months ended For the six months ended Major Product 2021 2020 2021 2020 Transmission boxes for Forklift 24,844,007 14,489,369 46,393,363 24,361,426 Transmission boxes for Non-Forklift (EV, etc.) and parts of transmission boxes 3,360,300 2,086,976 6,421,838 2,086,986 Total 28,204,307 16,576,345 52,815,201 26,448,412 Cost of Goods Sold Cost of goods sold consists primarily of material costs, freight charges, purchasing and receiving costs, inspection costs, internal transfer costs, wages, employee compensation, amortization, depreciation and related costs, which are directly attributable to the production of products. Write-down of inventory to lower of cost or net realizable value is also recorded in cost of goods sold. Selling Expenses Selling expenses include operating expenses such as payroll and traveling and transportation expenses. General and Administrative Expenses General and administrative expenses include management and office salaries and employee benefits, depreciation for office facility and office equipment, travel and entertainment, legal and accounting, consulting fees and other office expenses. Research and Development Research and development costs are expensed as incurred and totaled approximately $1,005,296 and $475,649 for the three months ended June 30, 2021 and 2020, respectively. Research and development costs are expensed as incurred and totaled approximately $1,964,841 and $1,039,947 for the six months ended June 30, 2021 and 2020, respectively. 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 $2.24 million and $2.34 million at June 30, 2021 and December 31, 2020, respectively. Income Taxes The Company accounts for income taxes following the liability method pursuant to FASB ASC 740 “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in income in the period that includes the enactment date. The Company also follows FASB ASC 740, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of June 30, 2021 and December 31, 2020, the Company did not have a liability for unrecognized tax benefits. It is the Company’s policy to include penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary. The Company’s historical tax years will remain open for examination by the local authorities until the statute of limitations has passed. Value-Added Tax Enterprises or individuals, who sell commodities, engage in repair and maintenance or import or export goods in the PRC are subject to a value added tax in accordance with PRC Laws. The VAT standard rate had been 17% of the gross sale price until April 30, 2018, after which date the rate was reduced to 16%. VAT rate was further reduced to 13% starting from April 1, 2019. A credit is available whereby VAT paid on the purchases of semi-finished products or raw materials used in the production of the Company’s finished products can be used to offset the VAT due on the sales of the finished products. Statutory Reserve In accordance with the PRC Regulations on Enterprises with Foreign Investment, an enterprise established in the PRC with foreign investment is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A wholly-owned foreign enterprise is required to allocate at least 10% of its annual after-tax profit to the General Reserve Fund until the balance of such fund has reached 50% of its respective registered capital. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. Appropriations to the Enterprise Expansion Fund and Staff Welfare and Bonus Fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during the year from transactions and other events, excluding the changes resulting from investments by owners and distributions to owners, and is not included in the computation of income tax expense or benefit. Accumulated comprehensive income consists of foreign currency translation. The Company presents comprehensive income (loss) consists in accordance with ASC Topic 220, “Comprehensive Income”. Earnings per share The Company calculates earnings per share in accordance with ASC Topic 260 “Earnings per Share.” Basic earnings per share is computed by dividing the net income by the weighted average number of common 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 common shares that would have been outstanding if the potential ordinary shares equivalents had been issued and if the additional common shares were dilutive. On October 24, 2019, the Company completed a reverse merger with Greenland Acquisition Corporation whereby the Company received 7,500,000 shares in exchange for all the share capital, which is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods. The per share amounts have been updated to show the effect of the exchange on earnings per share as if the exchange occurred at the beginning of both years for the annual financial statements of the Company. The impact of the stock exchange is also shown on the Company’s Statements of Shareholders’ Equity. Pursuant to the Service Agreement entered into and by the Company and Chineseinvestors.com, Inc., an Indiana corporation (“CIIX”) on August 21, 2019 (the “Service Agreement”), CIIX were to provide certain investor relations services to the Company for a period of three months beginning on August 21, 2019. And later on February 24, 2020, the Company and CIIX entered into a termination agreement (the “CIIX Termination Agreement”) to terminate their respective obligations under the Service Agreement. Pursuant to the CIIX Termination Agreement, the Company agreed to issue 5,000 restricted ordinary shares, no par value (the “CIIX Termination Shares”) to CIIX. Pursuant to the Investor Relations Consulting Agreement entered into and by the Company and Skyline Corporate Communication Group, LLC, a Massachusetts limited liability Company (“SCCG”) on August 15, 2019 (the “Consulting Agreement”), SCCG were to provide certain investor relations services to the Company for a period of twelve months beginning on August 15, 2019. And later on February 25, 2020, the Company and SCCG entered into a termination agreement (the “SCCG Termination Agreement”) to terminate their respective obligations under the Consulting Agreement. Pursuant to the SCCG Termination Agreement, the Company agreed to issue 10,000 restricted ordinary shares, no par value (the “SCCG Termination Shares”) to SCCG. Pursuant to the CIIX Termination Agreement and the SCCG Termination Agreement, 5,000 and 10,000 restricted ordinary shares, no par value, were issued to CIIX and SCCG on March 12, 2020 and March 13, 2020, respectively, and will be utilized for calculating earnings per share for the six months ended June 30, 2021. Segments and Related Information ASC 280 “Segment reporting” establishes standards for reporting information on operating segments in interim and annual financial statements. All of the Company’s operations are considered by the chief operating decision maker to be aggregated in one reportable operating segment. The Company is engaged in the business of manufacturing and selling various transmission boxes. The Company’s manufacturing process is essentially the same for the entire Company and is performed in-house at the Company’s facilities in PRC. The Company’s customers primarily consist of entities in the automotive, construction machinery or warehousing equipment industries. The distribution of the Company’s products is consistent across the entire Company. In addition, the economic characteristics of each customer arrangement are similar in that the Company maintains policies at the corporate level. Commitments and contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and environmental claims arising out of the normal course of businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals for such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management may consider many factors in making these assessments including past history, scientific evidence and the specifics of each matter. The Company’s management has evaluated all such proceedings and claims that existed as of June 30, 2021 and December 31, 2020. 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 June 30, 2021 and December 31, 2020. Related Party In general, related parties exist when there is a relationship that offers the potential for transactions at less than arm’s-length, favorable treatment, or the ability to influence the outcome of events different from that which might result in the absence of that relationship. A related party may be any of the following: a) an affiliate, which is a party that directly or indirectly controls, is controlled by, or is under common control with another party; b) a principle owner, owner of record or known beneficial owner of more than 10% of the voting interest of an entity; c) management, which are persons having responsibility for achieving objectives of the entity and requisite authority to make decision; d) immediate family of management or principal owners; e) a parent Company and its subsidiaries; and f) other parties that have ability to significant influence the management or operating policies of the entity. The Company discloses all significant related party transactions. Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. All of the Company’s cash is maintained with state-owned banks within the PRC, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose abilities to pay are dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk Exchange Risk The Company cannot guarantee that the current exchange rate will remain steady. Therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and yet, because of a fluctuating exchange rates, record higher or lower profit depending on exchange rate of PRC Renminbi (RMB) converted to U.S. dollars on the relevant dates. The exchange rate could fluctuate depending on changes in the political and economic environment without notice. Recently Issued Accounting Pronouncements Recent accounting pronouncements that the Company has adopted or may be required to adopt in the future are summarized below: In June 2016, the FASB issued ASU 2016-13,” Measurement of Credit Losses on Financial Instruments”, to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. Subsequently, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financia |
Concentration on Revenues and C
Concentration on Revenues and Cost of Goods Sold | 6 Months Ended |
Jun. 30, 2021 | |
Concentration on Revenues and Cost of Goods Sold [Abstract] | |
CONCENTRATION ON REVENUES AND COST OF GOODS SOLD | NOTE 3 – CONCENTRATION ON REVENUES AND COST OF GOODS SOLD Concentration of major customers and suppliers: For the six months ended June 30, 2021 2020 Major customers representing more than 10% of the Company’s revenues Company A $ 8,881,037 16.82 % $ 6,166,754 23.32 % Company B 6,593,104 12.48 % - - Total Revenues $ 15,474,141 29.30 % $ 6,166,754 23.32 % As of June 30, December 31, Major customers of the Company’s accounts receivable Company A 1,990,033 9.70 % 2,002,275 14.95 % Company B 1,498,188 7.30 % 1,955,113 14.60 % Company C 1,456,398 7.10 % 1,359,607 10.15 % Total $ 4,944,619 24.10 % $ 5,316,995 39.69 % Accounts receivable from the Company’s major customers accounted for 24.10% and 39.69% of total accounts receivable balances as of June 30, 2021 and December 31, 2020, respectively. There were no suppliers representing more than 10% of the Company’s total purchases for the six months ended June 30, 2021 and 2020, respectively. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2021 | |
Accounts Receivable [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 4 – ACCOUNTS RECEIVABLE Accounts receivable is net of allowance for doubtful accounts. As of June 30, December 31, Accounts receivable $ 21,516,802 $ 13,395,080 Less: allowance for doubtful accounts (996,984 ) (986,532 ) Accounts receivable, net $ 20,519,818 $ 12,408,548 Changes in the allowance for doubtful accounts are as follows: For the three months ended 2021 2020 Beginning balance $ 986,532 $ 1,037,797 Provision for doubtful accounts 10,452 111,947 Ending balance $ 996,984 $ 1,149,744 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5 – INVENTORIES As of June 30, December 31, Raw materials $ 6,789,961 $ 5,682,382 Revolving material 928,567 742,437 Consigned processing material 62,249 51,290 Work-in-progress 2,226,541 2,015,677 Finished goods 7,724,097 6,888,277 Inventories, net $ 17,731,415 $ 15,380,063 |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2021 | |
Notes Receivable Disclosure [Abstract] | |
NOTES RECEIVABLE | NOTE 6 – NOTES RECEIVABLE As of June 30, December 31, Bank notes receivable: $ 33,088,948 $ 30,803,772 Commercial notes receivable 24,781 - Total $ 33,113,729 $ 30,803,772 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 issuer at maturity, which bears no interest and generally ranges from three to six months from the date of issuance. As of June 30, 2021, the Company pledged notes receivable for an aggregate amount of $21.83 million to Bank of Communications and Bank of Hangzhou as a means of security for issuance of bank acceptance notes for an aggregate amount of $26.49 million. As of December 31, 2020, the Company pledged notes receivable for an aggregate amount of $26.53 million to Bank of Communications as a means of security for issuance of bank acceptance notes for an aggregate amount of $23.70 million. The Company expects collection of notes receivable within 6 months. |
Property, Plant and Equipment a
Property, Plant and Equipment and Construction in Progress | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS | NOTE 7 – PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS (a) As of June 30, 2021 and December 31, 2020, property, plant and equipment consisted of the following: As of June 30, December 31, Buildings $ 14,412,596 $ 12,453,285 Machinery 19,723,416 20,907,623 Motor vehicles 329,302 325,850 Electronic equipment 201,991 198,955 Total property plant and equipment, at cost 34,667,305 33,885,713 Less: accumulated depreciation (15,227,047 ) (13,843,189 ) Property, plant and equipment, net $ 19,440,258 $ 20,042,524 Construction in process 93,798 92,815 Total $ 19,534,056 $ 20,135,339 For the six months ended June 30, 2021 and 2020, depreciation expense amounted to $1.20 million and $0.95 million, respectively, of which $0.77 million and $0.68 million, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, research and development expenses, and other expenses. For the six months ended June 30, 2021 and 2020, $0 and $430,581 of construction in progress were converted into fixed assets. Restricted assets consist of the following: As of June 30, December 31, Buildings, net $ 11,167,710 $ 11,050,641 Machinery, net 2,173,063 2,150,284 Total 13,340,773 13,200,925 As of June 30, 2021, the Company pledged its ownership in buildings for net book value of RMB72.11 million ($11.01 million) as security with ABC Xinchang and Rural commercial bank, for its loan facility with maximum exposure of RMB94.63 million. As of December 31, 2020, the Company pledged its ownership in buildings for net book value of RMB72.11 million ($11.05 million) as security with ABC Xinchang and Rural commercial bank, for its loan facility with maximum exposure of RMB104.63 million. On January 3, 2019, the Company sold a set of manufacturing equipment to third parties for aggregate proceeds of $3.08 million (RMB21.25 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 3 years. On May 12, 2020, the Company prepaid the financing lease obligations for aggregate payment of $1.34 million. On April 26, 2019, the Company sold various equipment including the general assembly line and the differential assembly line to third parties for aggregate proceeds of $2.12 million (RMB14.66 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 2 years. On April 30, 2020, the Company prepaid the financing lease obligations for aggregate payment of $0.94 million. On May 27, 2020, the Company sold various equipment including the general assembly line and the differential assembly line to third parties for aggregate proceeds of $1.42 million (RMB10.00 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 2 years. The Company determined that it did not relinquish control of the assets to the buyer-lessor. Therefore, the Company accounted for the transactions as failed sale-leaseback whereby the Company continues to depreciate the assets and recorded a financing obligation for the consideration received from the buyer-lessor. |
Land Use Rights
Land Use Rights | 6 Months Ended |
Jun. 30, 2021 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS | NOTE 8 – LAND USE RIGHTS Land use rights consisted of the following: As of June 30, December 31, Land use rights, cost $ 4,765,140 $ 4,715,188 Less: Accumulated amortization (734,788 ) (679,934 ) Land use rights, net $ 4,030,352 $ 4,035,254 As of June 30, 2021, there was land use rights with net book value of $4.03 million, which approximately were used as collateral for the Company’s short-term bank loans. As of December 31, 2020, there was land use rights with net book value of $4.04 million, which approximately were used as collateral for the Company’s short-term bank loans. Estimated future amortization expense is as follows as of June 30, 2021: Years ending June 30, Amortization expense 2022 $ 95,148 2023 95,148 2024 95,148 2025 95,148 2026 95,148 Thereafter 3,554,612 Total $ 4,030,352 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 9 – NOTES PAYABLE As of June 30, December 31, Bank acceptance notes $ 38,202,952 $ 25,889,067 Total $ 38,202,952 $ 25,889,067 The interest-free notes payable, ranging from nine months to one year from the date of issuance, were secured by $9.77 million and $2.24 million restricted cash, $33.11 million and $26.53 million notes receivable, and $4.03 million and $4.04 million land use rights, as of June 30, 2021 and December 31, 2020, respectively. All the notes payable are subject to bank charges of 0.05% of the principal amount as commission, included in the financial expenses in the statement of operations, on each loan transaction. The interest charge of notes payable is free. |
Accounts Payable
Accounts Payable | 6 Months Ended |
Jun. 30, 2021 | |
Accounts Payable [Abstract] | |
ACCOUNTS PAYABLE | NOTE 10 – ACCOUNTS PAYABLE Accounts payable are summarized as follow: As of June 30, December 31, Procurement of Materials $ 26,746,255 $ 21,140,063 Infrastructure & Equipment 1,404,610 717,053 Freight fee 149,369 148,144 Total $ 28,300,234 $ 22,005,260 |
Short Term Bank Loans
Short Term Bank Loans | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
SHORT TERM BANK LOANS | NOTE 11 – SHORT TERM BANK LOANS Short-term loans are summarized as follow: As of June 30, December 31, Collateralized bank loans $ 11,125,051 $ 17,261,302 Guaranteed bank loans 774,401 1,226,054 Total $ 11,899,452 $ 18,487,356 Short-term loans as of June 30, 2021 are as follow: Maturity Date Type Bank Name Interest June 30, Sep.01, 2021 Operating Loans Agricultural bank of PRC 4.44 $ 6,014,002 Sep.16, 2021 Operating Loans Rural commercial bank of Xinchang 5.30 $ 1,239,042 Sep.22, 2021 Operating Loans Rural commercial bank of Xinchang 4.35 $ 1,239,042 Sep.26, 2021 Operating Loans Rural commercial bank of Xinchang 4.35 $ 2,632,965 Jan.21, 2022 Operating Loans Rural commercial bank of Xinchang 5.30 $ 774,401 Total $ 11,899,452 Short-term loans as of December 31, 2020 are as follow: Maturity Date Type Bank Name Interest December 31, Sep.01, 2021 Operating Loans Agricultural bank of PRC 4.44 $ 5,950,958 Sep.06, 2021 Operating Loans Agricultural bank of PRC 4.44 $ 6,252,874 Sep.16, 2021 Operating Loans Rural commercial bank of Xinchang 5.30 $ 1,226,053 Sep.22, 2021 Operating Loans Rural commercial bank of Xinchang 4.35 $ 1,226,053 Sep.26, 2021 Operating Loans Rural commercial bank of Xinchang 4.35 $ 2,605,364 Nov.11, 2021 Operating Loans SPD Rural Bank of Xinchang 5.50 1,226,054 Total $ 18,487,356 All short-term bank loans are obtained from local banks in PRC and are repayable within one year. The average annual interest rate of the short-term bank loans was 4.5547% and 4.7467% for the six months ended June 30, 2021 and 2020, respectively. The Company was in compliance with its loan financial covenants at June 30, 2021 and December 31, 2020, respectively. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Other Current Liabilities [Abstract] | |
OTHER CURRENT LIABILITIES | NOTE 12 – OTHER CURRENT LIABILITIES Other current liabilities are summarized as follow: As of June 30, December 31, Employee payables 135,782 483,922 Other tax payables 1,078,166 1,208,323 Borrowing from third party 261,142 520,080 Total $ 1,475,090 $ 2,212,325 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Other Longterm Liabilities Disclosure [Abstract] | |
OTHER LONG-TERM LIABILITIES | NOTE 13 – OTHER LONG-TERM LIABILITIES Other long-term liabilities are summarized as follow: As of June 30, December 31, Subsidy 2,240,949 2,342,648 Total $ 2,240,949 $ 2,342,648 The 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 June 30, 2021, grant income decreased by $0.10 million, as compared to December 31, 2020. The change was mainly due to timing of incurring qualifying expenses. |
Long Term Payables
Long Term Payables | 6 Months Ended |
Jun. 30, 2021 | |
Long Term Payables [Abstract] | |
LONG TERM PAYABLES | NOTE 14 – LONG TERM PAYABLES As of June 30, December 31, Long-term payables current portion $ 584,003 $ 797,179 Long-term payables– non-current portion - 166,292 Total $ 584,003 $ 963,471 On January 3, 2019, the Company sold a set of manufacturing equipment to third parties for aggregate proceeds of $3.08 million (RMB21.25 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 3 years. On May 12, 2020, the Company prepaid the financing lease obligations for aggregate payment of $1.34 million. On April 26, 2019, the Company sold various equipment including the general assembly line and the differential assembly line to third parties for aggregate proceeds of $2.12 million (RMB14.66 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 2 years. On April 30, 2020, the Company prepaid the financing lease obligations for aggregate payment of $0.94 million. On May 27, 2020, the Company sold various equipment including its general assembly line and the differential assembly line to third parties for aggregate proceeds of $1.42 million (RMB10.00 million). The Company also entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 2 years. The Company determined that it did not relinquish control of the assets to the buyer-lessor. Therefore, the sale of the equipment does not qualify for sale-leaseback accounting. As a result, the aggregate proceeds have been recorded as a financing obligation and the assets related to the sold and leased manufacturing equipment remain on the Company’s Consolidated Balance Sheet and continue to be depreciated. The current and long-term portions of the financing obligation are included within long-term payables-current portion and long-term payables-non-current portion, respectively. |
Stockholder's Equity
Stockholder's Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDER'S EQUITY | NOTE 15 – STOCKHOLDER’S EQUITY Preferred Shares Ordinary Shares On July 27, 2018, the Company consummated its initial public offering of 4,400,000 units, including a partial exercise by the underwriters of their over-allotment option in the amount of 400,000 units. Each unit consists of one ordinary share, no par value, one warrant to purchase one-half of one ordinary share and one right to receive one-tenth of one ordinary share upon the consummation of its initial business combination. Simultaneously with the consummation of its initial public offering, the Company completed a private placement of 282,000 units, issued to Greenland Asset Management Corporation (the “Sponsor”) and Chardan Capital Markets, LLC (“Chardan”). In 2019, in connection with the Business Combination 3,875,458 redeemable shares have been redeemed and 81,400 redeemable shares have been converted into ordinary shares, 1,906,542 ordinary shares left upon consummation of the reverse recapitalization. Pursuant to the Share Exchange Agreement, Greenland acquired from the Seller 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, issued to the Seller (the “Exchange Shares”). As a result, the Seller became the controlling shareholder of Greenland, and Zhongchai Holding became a directly and wholly owned subsidiary of Greenland. The Business Combination was accounted for as a reverse merger effected by a share exchange, wherein Zhongchai Holding is considered the acquirer for accounting and financial reporting purposes. The recapitalization of the number of shares of ordinary shares attributable to the purchase of Zhongchai Holding in connection with the Business Combination is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods presented. The impact of the stock exchange is also shown on the Company’s Statements of Stockholders’ Equity. Pursuant to certain Finder Agreement with Hanyi Zhou, dated May 29, 2019, 50,000 newly issued ordinary shares were issued to Zhou Hanyi as the finder fee for the business combination. In connection with the Business Combination, all the outstanding rights of the Company were converted into 468,200 ordinary shares on a one-tenth (1/10) ordinary share per right basis if holders of the rights elected to convert their rights into the underlying ordinary shares. Pursuant to the Service Agreement entered into and by The Company and Chineseinvestors.com, Inc., an Indiana corporation (“CIIX”) on August 21, 2019 (the “Service Agreement”), CIIX were to provide certain investor relations services to the Company for a period of three months beginning on August 21, 2019. Pursuant to the Service Agreement, the Company were to pay CIIX fees consisting of three equal monthly instalments of $12,000 and 5,000 restricted ordinary shares, no par value, of the Company on a quarterly basis during the term of the Consulting Agreement. On February 24, 2020, Greenland and CIIX entered into a termination agreement (the “CIIX Termination Agreement”) to terminate their respective obligations under the Service Agreement. Pursuant to the CIIX Termination Agreement, the Company agreed to issue 5,000 restricted ordinary shares, no par value (the “CIIX Termination Shares”) to CIIX. Upon CIIX’s receipt of the CIIX Termination Shares, the Company will have fully satisfied its payment obligations under the Service Agreement. Pursuant to the Investor Relations Consulting Agreement entered into and by The Company and Skyline Corporate Communication Group, LLC, a Massachusetts limited liability Company (“SCCG”) on August 15, 2019 (the “Consulting Agreement”), SCCG were to provide certain investor relations services to the Company for a period of twelve months beginning on August 15, 2019. Pursuant to the Consulting Agreement, the Company were to pay SCCG fees consisting of $5,000 per month and 1,250 restricted ordinary shares, no par value, of the Company on a quarterly basis during the term of the Consulting Agreement. On February 25, 2020, Greenland and SCCG entered into a termination agreement (the “SCCG Termination Agreement”) to terminate their respective obligations under the Consulting Agreement. Pursuant to the SCCG Termination Agreement, the Company agreed to issue 10,000 restricted ordinary shares, no par value (the “SCCG Termination Shares”) to SCCG. Upon SCCG’s receipt of the SCCG Termination Shares, the Company will have fully satisfied its payment obligations under the Consulting Agreement. On November 10, 2020, the Company granted a total of 135,000 restricted ordinary shares to JING JIN. On December 30, 2020, the Company granted a total of 69,000 restricted ordinary shares to RAYMOND Z. WANG. On February 8, 2021, the Company granted a total of 51,000 restricted ordinary shares to RAYMOND Z. WANG. Rights As of June 30, 2021, all of the existing Rights were converted into 468,200 ordinary shares as a result of the Business Combination. Warrants — The Company may call the warrants for redemption (excluding the private warrants), in whole and not in part, at a price of $0.01 per warrant: ● At any time while the Public Warrants are exercisable, ● Upon not less than 30 days’ prior written notice of redemption to each Public Warrant holder, ● If, and only if, the reported last sale price of the ordinary shares equals or exceeds $16.50 per share, for any 20 trading days within a 30-trading-day period ending on the third trading day prior to the notice of redemption to Public Warrant holders, and ● If, and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of ordinary shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. Accordingly, the warrants may expire worthless. Private warrants include (i) the 282,000 warrants underlying the units issued to the Sponsor and Chardan in a private placement in connection with our initial public offering (“Private Unit Warrants”), and (ii) 120,000 warrants held by Chardan upon the exercise of its unit purchase option to purchase 120,000 units in March 2021 (“Option Warrants”, together with Private Unit Warrants, the “Private Warrants”). The Private Warrants are identical to the Public Warrants underlying the units sold in the Initial Public Offering, except that the Private Warrants and the ordinary shares issuable upon the exercise of the Private Warrants are not transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable on a cashless basis and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. As of June 30, 2021 there were total 4,682,000 Warrants outstanding, including 4,621,985 Public Warrants held by CEDE & CO, and 22,000 and 260,000 Private Warrants held by Chardan and the Sponsor, respectively. Certain warrants were exercised in February of 2021 for the issuance of 221,985 newly issued ordinary shares. The Company received cash proceeds of $1,858,841 from the exercise of these warrants. Unit Purchase Option On July 27, 2018, the Company sold to Chardan (and its designees), for $100, an option to purchase up to 240,000 Units exercisable at $11.50 per Unit (or an aggregate exercise price of $2,760,000) commencing on the later of July 24, 2019 and the consummation of a Business Combination. The unit purchase option may be exercised for cash or on a cashless basis, at the holder’s option, and expires July 24, 2023. The units issuable upon exercise of the option are identical to those offered in the initial public offering. The Company accounted for the unit purchase option, inclusive of the receipt of $100 cash payment, as an expense of the initial public offering resulting in a charge directly to shareholders’ equity. The option and such units purchased pursuant to the option, as well as the ordinary shares underlying such units, the rights included in such units, the ordinary shares that are issuable for the rights included in such units, the warrants included in such units, and the shares underlying such warrants, have been deemed compensation by FINRA and are therefore subject to a 180-day lock-up pursuant to Rule 5110(g) (1) of FINRA’s Nasdaq Conduct Rules. Additionally, the option may not be sold, transferred, assigned, pledged or hypothecated for a one-year period (including the foregoing 180-day period) following the date of initial public offering except to any underwriter and selected dealer participating in the initial public offering and their bona fide officers or partners. The option grants to holders demand and “piggy back” rights for periods of five and seven years, respectively, from the effective date of the registration statement with respect to the registration under the Securities Act of 1933, as amended, of the securities directly and indirectly issuable upon exercise of the option. The Company will bear all fees and expenses attendant to registering the securities, other than underwriting commissions which will be paid for by the holders themselves. The exercise price and number of units issuable upon exercise of the option may be adjusted in certain circumstances including in the event of a stock dividend, or the Company’s recapitalization, reorganization, merger or consolidation. However, the option will not be adjusted for issuances of ordinary shares at a price below its exercise price. As of June 30, 2021, there was a unit purchase option outstanding to purchase 120,000 units. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 16 – EARNINGS PER SHARE The Company reports earnings per share in accordance with the provisions of the FASB’s related accounting standard. This standard requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution, but includes vested restricted stocks and is computed by dividing income available to shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. On October 24, 2019, the Company completed a reverse merger with Zhongchai Holding. The recapitalization of the number of shares of ordinary shares attributable to the purchase of Zhongchai Holding in connection with the Business Combination is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods presented. Pursuant to the CIIX Termination Agreement and the SCCG Termination Agreement, 5,000 and 10,000 restricted ordinary shares, no par value, were issued to CIIX and SCCG on March 12, 2020 and March 13, 2020 respectively. The following is a reconciliation of the basic and diluted earnings per share computation: For the three months ended For the six months ended 2021 2020 2021 2020 Net income attributable to the Greenland Corporation and subsidiaries $ 2,780,753 $ 1,259,097 $ 4,909,321 $ 1,515,761 Weighted average basic and diluted computation shares outstanding: Shares issued in reverse recapitalization 10,498,127 10,006,142 10,225,142 10,006,142 Weighted average shares of restricted grants - 15,000 - 15,000 Weighted average shares issued for exercise of warrants 950,200 - 1,223,185 - Weighted average ordinary shares of common stock 10,814,479 10,021,142 10,574,223 10,015,203 Dilutive effect of stock options — — — — Restricted stock vested not issued — — — — ordinary shares and ordinary shares equivalents 10,814,479 10,021,142 10,574,223 10,015,203 Basic and diluted net income per share $ 0.26 $ 0.13 0.46 0.15 |
Geographical Sales and Segments
Geographical Sales and Segments | 6 Months Ended |
Jun. 30, 2021 | |
Geographical Sales And Segments [Abstract] | |
GEOGRAPHICAL SALES AND SEGMENTS | NOTE 17 – 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 and six months ended June 30, 2021 and 2020 are as follows: For the three months ended For the six months ended 2021 2020 2021 2020 Domestic Sales $ 28,106,861 $ 16,510,295 $ 52,607,900 $ 26,374,148 International Sales 97,446 66,050 207,301 74,264 Total $ 28,204,307 $ 16,576,345 $ 52,815,201 $ 26,448,412 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 18 – 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 six months ended June 30, 2021 was 14.08%. The effective tax rate for the six months ended June 30, 2021 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 six months ended June 30, 2020 was 7.46%. The effective tax rate for the six months ended June 30, 2020 was lower than the PRC tax rate of 25.0% primarily due to the China Super R&D deduction. The effective tax rate is based on forecasted annual results and these amounts may fluctuate significantly through the rest of the year as a result of the unpredictable impact of COVID-19 on its operating activities. The Company has recorded $0 unrecognized benefit as of June 30, 2021. On the information currently available, the Company does not anticipate a significant increase or decrease to its unrecognized benefit within the next 12 months. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 19 – COMMITMENTS AND CONTINGENCIES Guarantees and pledged collateral for bank loans to other parties: (1) Pledged collateral for bank loans On December 6, 2019, Zhejiang Zhongchai signed a maximum amount pledge contract with Agricultural Bank of PRC Co., Ltd. Xinchang County Sub-Branch (“ABC Xinchang”), pledging its land use rights for original book value of RMB11.08 million and property ownership for original book value of RMB35.12 million as security with ABC Xinchang, for its loan facility with maximum exposure of RMB48.83 million during the period from December 6, 2019 to May 21, 2022. As of June 30, 2021 and December 31, 2020, outstanding amount of the short-term bank loan under this pledge contract was RMB38.83 million and RMB38.83 million. On November 28, 2019, Zhejiang Zhongchai signed a maximum amount pledge contract with ABC Xinchang, pledging its land use rights for original book value of RMB9.84 million and property ownership for original book value of RMB27.82 million, as security with ABC Xinchang, for its loan facility with maximum exposure of RMB40.80 million during the period from November 28, 2019 to December 26, 2022. As of June 30, 2021 and December 31, 2020, outstanding amount of the short-term bank loan under this pledge contract was RMB0 million and RMB40.80 million. On December 17, 2019, Zhejiang Zhongchai signed a maximum amount pledge contract with Rural Commercial Bank of PRC Co., Ltd., pledging its land use rights for original book value of RMB4.75 million and property ownership for original book value of RMB11.28 million as security, for its loan facility with maximum exposure of RMB16.95 million during the period from December 16, 2019 to December 15, 2024. As of June 30, 2021 and December 31, 2020, outstanding amount of the short-term bank loan under this pledge contract was RMB17.00 million and RMB17.00 million. On December 18, 2019, Zhejiang Zhongchai signed a maximum amount pledge contract with Rural Commercial Bank of PRC Co., Ltd., pledging its land use rights for original book value of RMB4.17 million as security, for its loan facility with maximum exposure of RMB8.00 million during the period from December 16, 2019 to December 15, 2024. As of June 30, 2021 and December 31, 2020, outstanding amount of the short-term bank loan under this Pledge Contract was RMB8.00 million and RMB8.00 million. (2) Litigation On September 19, 2019, a purported class action challenging the Business Combination was filed in the United States District Court for the District of Delaware (the “District Court”), captioned Wheby v. Greenland Acquisition Corporation, et al., Case No. 19-1758-MN (D. Del.) (the “Action”). The Action alleged certain violations of the Securities Exchange Act of 1934, as amended, and sought, among other things, to enjoin the Business Combination from closing (or, if consummated, to rescind the Business Combination or award rescissory damages), to require the Company to issue a separate proxy statement, and to receive an award of attorneys’ fees and costs. On October 14, 2019, the plaintiff, the Company and all other named defendants entered into a confidential memorandum of understanding (the “MOU”), pursuant to which a Stipulation and Order of Dismissal (“Stipulation of Dismissal”) of the Action was filed on October 14, 2019. The Stipulation of Dismissal was approved and entered by the District Court on October 15, 2019. Among other things, the Stipulation of Dismissal acknowledged that the Definitive Proxy Statement mooted the plaintiff’s claims regarding the sufficiency of disclosures, dismissed all claims asserted in the Action, with prejudice as to the plaintiff only, permits the plaintiff to seek an award of attorneys’ fees in connection with the mooted claims, and reserves the defendants’ rights to oppose such an award, if appropriate. Pursuant to the MOU, the parties have engaged in discussions regarding the amount of attorneys’ fees, if any, to which the plaintiff’s counsel is entitled in connection with the Action. As of January 25, 2021, we have been settled with our counter party which paid into in total $65,000. As of June 30, 2021, those discussions have been completed. Facility Leases The Company entered into a failed sale-leaseback transaction on January 3, 2019 and April 26, 2019. See further discussion in NOTE 14 –LONG TERM PAYABLES. Rent expense is recognized on a straight-line basis over the terms of the operating leases accordingly and the Company records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. The following are the aggregate non-cancellable future minimum lease payments under operating and financing leases as of June 30, 2021: Years ending June 30, Amount 2022 584,003 2023 - Total $ 584,003 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 20 – RELATED PARTY TRANSACTIONS (a) Names and Relationship of Related Parties: Existing Relationship with the Company Sinomachinery Holding Limited Under common control of Peter Zuguang Wang Cenntro Holding Limited Controlling shareholder of the Company Zhejiang Kangchen Biotechnology Co., Ltd. Under common control of Peter Zuguang Wang Cenntro Smart Manufacturing Tech. Co., Ltd. Under common control of Peter Zuguang Wang Zhejiang Zhonggong Machinery Co., Ltd. Under common control of Peter Zuguang Wang Zhejiang Zhonggong Agricultural Equipment Co., Ltd. Under common control of Peter Zuguang Wang Jiuxin Investment Management Partnership (LP) Under control of Mr. Mengxing He, the General Manger and one of the directors of Zhejiang Zhongchai Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) Under common control of Peter Zuguang Wang Hangzhou Cenntro Autotech Co., Limited Under common control of Peter Zuguang Wang Peter Zuguang Wang Chairman of the Company Greenland Asset Management Corporation Shareholder of the Company Hangzhou Jiuru Economic Information Consulting Co. Ltd One of the directors of Hengyu (b) Summary of Balances with Related Parties: As of June 30, December 31, Due to related parties: Sinomachinery Holding Limited 1 $ 1,775,869 $ 1,775,869 Zhejiang Kangchen Biotechnology Co., Ltd 2 - 64,505 Zhejiang Zhonggong Machinery Co., Ltd. 3 481,915 538,166 Zhejiang Zhonggong Agricultural Equipment Co., Ltd. 4 - - Cenntro Smart Manufacturing Tech. Co., Ltd. 5 2,866 3,602 Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 6 242,508 514,365 Cenntro Holding Limited⁷ 1,591,627 1,591,627 Peter Zuguang Wang⁷ - 25,000 Greenland Asset Management Corporation 7 - - Xinchang County Jiuxin Investment Management Partnership (LP) 7 3,619,645 4,347,985 Hangzhou Jiuru Economic Information Consulting Co. Ltd 7 190,000 190,000 Total $ 7,904,430 $ 9,051,119 The balance of due to related parties as of June 30, 2021 and December 31, 2020 consisted of: 1 Advance from Sinomachinery Holding Limited for certain purchase order; 2 Temporary borrowings from Zhejiang Kangchen Biotechnology Co., Ltd.; 3 Unpaid balances for purchasing of materials and equipment and temporary borrowing from Zhejiang Zhonggong Machinery Co., Ltd.; 4 Unpaid balances for purchasing of materials from Zhejiang Zhonggong Agricultural Equipment Co., Ltd.; 5 Prepayment from Cenntro Smart Manufacturing Tech. Co., Ltd.; 6 Temporary borrowings from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership); and 7 Borrowings from related parties As of June 30, December 31, Due from related parties-current: Cenntro Holding Limited $ 38,943,406 $ 38,535,171 Cenntro Smart Manufacturing Tech. Co., Ltd. 3,097 - Total $ 38,946,503 $ 38,535,171 The balance of Due from related parties as of June 30, 2021 and December 31, 2020 consisted of: Other receivable from Cenntro Holding Limited was $38.9 million and $38.5 million as of June 30, 2021 and December 31, 2020, respectively. The Company expects the amount due from its equity holder, Cenntro Holding will be paid back on April 27, 2022, as the Company and Cenntro Holding Limited mutually agreed to an extension of repayment from the end of October 2020,the original maturity date. (c) Summary of Related Party Funds Lending: A summary of funds lending with related parties for the six months ended June 30, 2021 and 2020 are listed below: Withdraw funds from related parties: For the six months ended 2021 2020 Zhejiang Zhonggong Machinery Co., Ltd. 77,314 354,736 Cenntro Smart Manufacturing Tech. Co., Ltd. 33,091 - Peter Zuguang Wang 25,000 - Xinchang County Jiuxin Investment Management Partnership (LP) - 255,410 Cenntro Holding Limited 251,973 - Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 34,946 15,573 Total 422,324 625,719 Deposit funds with related parties: Zhejiang Zhonggong Machinery Co., Ltd. 77,314 496,630 Xinchang County Jiuxin Investment Management Partnership (LP) 773,144 - Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 310,804 - Cenntro Smart Manufacturing Tech. Co., Ltd. 33,864 - Zhejiang Kangchen Biotechnology Co., Ltd 64,505 - Peter Zuguang Wang 25,000 - Total 1,284,631 496,630 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 21 – SUBSEQUENT EVENTS The management has evaluated subsequent events through the date of the report, and there was no material subsequent event requiring adjustments to the financial statements or disclosure. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Greenland Technologies Holding Corporation and its subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Intercompany accounts and transactions have been eliminated upon consolidation. Certain reclassifications to previously reported financial information have been made to conform to the current period presentation. The Business Combination was accounted for as a reverse recapitalization (the “Recapitalization Transaction”) in accordance with Accounting Standard Codification (“ASC”) 805, Business Combinations. For accounting and financial reporting purposes, Zhongchai Holding is considered the acquirer based on facts and circumstances, including the following: ● Zhongchai Holding’s operations comprise the ongoing operations of the combined entity; ● The officers of the newly combined company consist of Zhongchai Holding’s executives, including the Chief Executive Officer, Chief Financial Officer and General Counsel; and, ● The former shareholders of Zhongchai Holding own a majority voting interests in the combined entity. As a result of Zhongchai Holding being the accounting acquirer, the financial reports filed with the SEC by the Company subsequent to the Business Combination are prepared “as if” Zhongchai Holding is the predecessor and legal successor to the Company. The historical operations of Zhongchai Holding are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Zhongchai Holding prior to the Business Combination; (ii) the combined results of the Company and Zhongchai Holding following the Business Combination in October 24, 2019; (iii) the assets and liabilities of Zhongchai Holding at their historical cost, and (iv) Greenland’s equity structure for all periods presented. Zhongchai Holding received 7,500,000 shares of Greenland in exchange for all the share capital, which is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods. No step-up basis of intangible assets or goodwill was recorded in the Business Combination transaction consistent with the treatment of the transaction as a reverse capitalization of Zhongchai Holding. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. Actual results could differ from those estimates. Significant estimates in the six months ended June 30, 2021 and 2020 include allowance for doubtful accounts, reserve for inventories, useful life of property, plant and equipment, assumptions used in assessing impairment of long-term assets and valuation of deferred tax assets and accruals for taxes due. |
Non-controlling Interest | Non-controlling Interest Non-controlling interests in the Company’s subsidiaries are recorded in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 810 Consolidation (“ASC 810”) and are reported as a component of equity, separate from the parent’s equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. |
Foreign Currency Translation | Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollars (“US$” or “$”). The functional currency of the Company is Renminbi (“RMB”). Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of operations. For the six months ended 2021 2020 Period end RMB: US$ exchange rate 6.4566 7.0851 Period average RMB: US$ exchange rate 6.4671 7.0307 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents For financial reporting purposes, the Company considers all highly liquid investments purchased with original maturity of three months or less to be cash equivalents. The Company maintains no bank account in the United States of America. The Company maintains its bank accounts in PRC and Hong Kong Special Administrative Region (“SAR”). Balances at financial institutions or state-owned banks within PRC and Hong Kong SAR are not covered by insurance. |
Restricted Cash | Restricted Cash Restricted cash represents amounts held by a bank as security for bank acceptance bills, as well as the financial product secured for the short-term bank loan and therefore is not available for the Company’s use until such time as the bank acceptance notes and bank loans have been fulfilled or expired, normally within a twelve-month period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements and Disclosures ● Level 1—defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; ● Level 2—defined as inputs other than quoted prices in active markets, that are either directly or indirectly observable; and ● Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, accounts payable, other payables and accrued liabilities, short-term bank loans, and notes payable. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other current assets and liabilities approximate fair value because of the short-term nature of these items. The estimated fair values of short-term bank loans were not materially different from their carrying value as presented due to the short maturities and that the interest rates on the borrowing approximate those that would have been available for loans of similar remaining maturity and risk profile. As the carrying amounts are reasonable estimates of the fair value, these financial instruments are classified within Level 1 of the fair value hierarchy. |
Accounts Receivable | Accounts Receivable Accounts receivable are carried at net realizable value. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s historical payment history, its current creditworthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. The Company only grants credit terms to established customers who are deemed to be financially responsible. Credit periods to customers are within 60 days after customers received the purchased goods. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. Balance of allowance of doubtful accounts was $1.00 million and $1.08 million as of June 30, 2021 and December 31, 2020, respectively. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, which is based on estimated selling prices less any further costs expected to be incurred for completion and disposal. Cost of raw materials is calculated using the weighted average method and is based on purchase cost. Work-in-progress and finished goods costs are determined using the weighted average method and comprise direct materials, direct labor and an appropriate proportion of overhead. As of June 30, 2021 and December 31, 2020, the Company had reserves for inventories of $0 million and $0 million, respectively. The Company records inventory reserves for excess or obsolete inventories based upon assumptions about our current and future demand forecasts. |
Advance to Suppliers | Advance to Suppliers Advance to suppliers represents interest-free cash paid in advance to suppliers for purchases of parts and/or raw materials. The balance of advance to suppliers was $0.73 million and $0.45 million as of June 30, 2021 and December 31, 2020. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation, and include expenditure that substantially increases the useful lives of existing assets. Expenditures for repairs and maintenance, which do not extend the useful life of the assets, are expensed as incurred. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives are as follows: Plant, buildings and improvements 20 years Machinery and equipment 2~10 years Motor vehicles 4 years Office equipment 3~5 years Fixtures and decorations 5 years When assets are sold or retired, their costs and accumulated depreciation are eliminated from the consolidated financial statements and any gain or loss resulting from their disposal is recognized in the period of disposition as an element of other income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. |
Land Use Rights | Land Use Rights According to the PRC laws, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government. The land use rights granted to the Company are being amortized using the straight-line method over the lease term of fifty years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance with FASB ASC 360, “Property, Plant and Equipment”. In evaluating long-lived assets for recoverability, the Company uses its best estimate of future cash flows expected to result from the use of the asset and eventual disposition in accordance with FASB ASC 360-10-15. To the extent that estimated future, undiscounted cash inflows attributable to the asset, less estimated future, undiscounted cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan of disposal, whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell. There was no impairment loss recognized for the six months ended June 30, 2021 and 2020. |
Lease | Lease ASC 842 supersedes the lease requirements in ASC 840 “Leases”, and generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. Leases that transfer substantially all of the benefits and risks incidental to the ownership of assets are accounted for as finance leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. A sale-leaseback transaction occurs when an entity sells an asset it owns and immediately leases the asset back from the buyer. The seller then becomes the lessee and the buyer becomes the lessor. under ASC 842, both parties must assess whether the buyer-lessor has obtained control of the asset and a sale has occurred. The Company has determined that the leaseback transaction that it newly entered in current year fails to qualify as a sale because control is not transferred to the buyer-lessor. Therefore, the Company has classified the lease portion of the transaction as a finance lease whereby the Company continues to depreciate the assets and recorded a financing obligation for the consideration received from the buyer-lessor, with an implicit interest rate of 4.0038%. |
Revenue Recognition | Revenue Recognition In accordance with ASC Topic 606, “Revenue from Contracts with Customers”, the Company recognizes revenues when goods or services are transferred to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. In determining when and how revenues are recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customer; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations and (v) recognition of revenues when (or as) the Company satisfies each performance obligation. The Company derives revenues from the processing, distribution and sale of its products. The Company recognizes its revenues net of value-added taxes (“VAT”). The Company is subject to VAT which had been levied at the rate of 17% on the invoiced value of sales until April 30, 2018, after which date the rate was reduced to 16%. VAT rate was further reduced to 13% starting from April 1, 2019. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales. Revenues are recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the performance obligation is fulfilled, usually at the time of customers’ acceptance or consumption, at the net sales price (transaction price) and each of the criteria under ASC 606 have been met. Contract terms may require the Company to deliver the finished goods to the customers’ location or the customer may pick up the finished goods at the Company’s factory. International sales are recognized when shipment clears customs and leaves the port. The Company has adopted ASC 606 on January 1, 2018, using the transition method of Modified-Retrospective Method (“MRM”). The adoption of ASC 606 had no impact on the Company’s beginning balance of retained earnings. The Company’s contracts are all short-term in nature with a contract term of one year or less. Receivables are recorded when the Company has an unconditional right to consideration. Contracts do not offer any price protection, but allow for the return of certain goods if quality problem, which is standard warranty. The Company product returns and recorded reserve for sales returns were minimal for the six months ended June 30, 2021 and 2020. The total rebates amount is accounting for around 0.19% and 0.43% of the total revenue of Greenland. The following table sets forth disaggregation of revenue: For the three months ended For the six months ended Major Product 2021 2020 2021 2020 Transmission boxes for Forklift 24,844,007 14,489,369 46,393,363 24,361,426 Transmission boxes for Non-Forklift (EV, etc.) and parts of transmission boxes 3,360,300 2,086,976 6,421,838 2,086,986 Total 28,204,307 16,576,345 52,815,201 26,448,412 |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold consists primarily of material costs, freight charges, purchasing and receiving costs, inspection costs, internal transfer costs, wages, employee compensation, amortization, depreciation and related costs, which are directly attributable to the production of products. Write-down of inventory to lower of cost or net realizable value is also recorded in cost of goods sold. |
Selling Expenses | Selling Expenses Selling expenses include operating expenses such as payroll and traveling and transportation expenses. |
General and Administrative Expenses | General and Administrative Expenses General and administrative expenses include management and office salaries and employee benefits, depreciation for office facility and office equipment, travel and entertainment, legal and accounting, consulting fees and other office expenses. |
Research and Development | Research and Development Research and development costs are expensed as incurred and totaled approximately $1,005,296 and $475,649 for the three months ended June 30, 2021 and 2020, respectively. Research and development costs are expensed as incurred and totaled approximately $1,964,841 and $1,039,947 for the six months ended June 30, 2021 and 2020, respectively. |
Government subsidies | Government subsidies Government subsidies are recognized when there is reasonable assurance that the subsidy will be received and all attaching conditions will be complied with. When the subsidy relates to an expense item, it is recognized as income over the periods necessary to match the subsidy on a systematic basis to the costs that it is intended to compensate. Where the subsidy relates to an asset, it is recognized as other long-term liabilities and is released to the statement of operations over the expected useful life in a consistent manner with the depreciation method for the relevant asset. Total government subsidies recorded in the other long-term liabilities were $2.24 million and $2.34 million at June 30, 2021 and December 31, 2020, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes following the liability method pursuant to FASB ASC 740 “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in income in the period that includes the enactment date. The Company also follows FASB ASC 740, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of June 30, 2021 and December 31, 2020, the Company did not have a liability for unrecognized tax benefits. It is the Company’s policy to include penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary. The Company’s historical tax years will remain open for examination by the local authorities until the statute of limitations has passed. |
Value-Added Tax | Value-Added Tax Enterprises or individuals, who sell commodities, engage in repair and maintenance or import or export goods in the PRC are subject to a value added tax in accordance with PRC Laws. The VAT standard rate had been 17% of the gross sale price until April 30, 2018, after which date the rate was reduced to 16%. VAT rate was further reduced to 13% starting from April 1, 2019. A credit is available whereby VAT paid on the purchases of semi-finished products or raw materials used in the production of the Company’s finished products can be used to offset the VAT due on the sales of the finished products. |
Statutory Reserve | Statutory Reserve In accordance with the PRC Regulations on Enterprises with Foreign Investment, an enterprise established in the PRC with foreign investment is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A wholly-owned foreign enterprise is required to allocate at least 10% of its annual after-tax profit to the General Reserve Fund until the balance of such fund has reached 50% of its respective registered capital. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. Appropriations to the Enterprise Expansion Fund and Staff Welfare and Bonus Fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during the year from transactions and other events, excluding the changes resulting from investments by owners and distributions to owners, and is not included in the computation of income tax expense or benefit. Accumulated comprehensive income consists of foreign currency translation. The Company presents comprehensive income (loss) consists in accordance with ASC Topic 220, “Comprehensive Income”. |
Earnings per share | Earnings per share The Company calculates earnings per share in accordance with ASC Topic 260 “Earnings per Share.” Basic earnings per share is computed by dividing the net income by the weighted average number of common 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 common shares that would have been outstanding if the potential ordinary shares equivalents had been issued and if the additional common shares were dilutive. On October 24, 2019, the Company completed a reverse merger with Greenland Acquisition Corporation whereby the Company received 7,500,000 shares in exchange for all the share capital, which is reflected retroactively to December 31, 2017 and will be utilized for calculating earnings per share in all prior periods. The per share amounts have been updated to show the effect of the exchange on earnings per share as if the exchange occurred at the beginning of both years for the annual financial statements of the Company. The impact of the stock exchange is also shown on the Company’s Statements of Shareholders’ Equity. Pursuant to the Service Agreement entered into and by the Company and Chineseinvestors.com, Inc., an Indiana corporation (“CIIX”) on August 21, 2019 (the “Service Agreement”), CIIX were to provide certain investor relations services to the Company for a period of three months beginning on August 21, 2019. And later on February 24, 2020, the Company and CIIX entered into a termination agreement (the “CIIX Termination Agreement”) to terminate their respective obligations under the Service Agreement. Pursuant to the CIIX Termination Agreement, the Company agreed to issue 5,000 restricted ordinary shares, no par value (the “CIIX Termination Shares”) to CIIX. Pursuant to the Investor Relations Consulting Agreement entered into and by the Company and Skyline Corporate Communication Group, LLC, a Massachusetts limited liability Company (“SCCG”) on August 15, 2019 (the “Consulting Agreement”), SCCG were to provide certain investor relations services to the Company for a period of twelve months beginning on August 15, 2019. And later on February 25, 2020, the Company and SCCG entered into a termination agreement (the “SCCG Termination Agreement”) to terminate their respective obligations under the Consulting Agreement. Pursuant to the SCCG Termination Agreement, the Company agreed to issue 10,000 restricted ordinary shares, no par value (the “SCCG Termination Shares”) to SCCG. Pursuant to the CIIX Termination Agreement and the SCCG Termination Agreement, 5,000 and 10,000 restricted ordinary shares, no par value, were issued to CIIX and SCCG on March 12, 2020 and March 13, 2020, respectively, and will be utilized for calculating earnings per share for the six months ended June 30, 2021. |
Segments and Related Information | Segments and Related Information ASC 280 “Segment reporting” establishes standards for reporting information on operating segments in interim and annual financial statements. All of the Company’s operations are considered by the chief operating decision maker to be aggregated in one reportable operating segment. The Company is engaged in the business of manufacturing and selling various transmission boxes. The Company’s manufacturing process is essentially the same for the entire Company and is performed in-house at the Company’s facilities in PRC. The Company’s customers primarily consist of entities in the automotive, construction machinery or warehousing equipment industries. The distribution of the Company’s products is consistent across the entire Company. In addition, the economic characteristics of each customer arrangement are similar in that the Company maintains policies at the corporate level. |
Commitments and contingencies | Commitments and contingencies |
Related Party | Related Party In general, related parties exist when there is a relationship that offers the potential for transactions at less than arm’s-length, favorable treatment, or the ability to influence the outcome of events different from that which might result in the absence of that relationship. A related party may be any of the following: a) an affiliate, which is a party that directly or indirectly controls, is controlled by, or is under common control with another party; b) a principle owner, owner of record or known beneficial owner of more than 10% of the voting interest of an entity; c) management, which are persons having responsibility for achieving objectives of the entity and requisite authority to make decision; d) immediate family of management or principal owners; e) a parent Company and its subsidiaries; and f) other parties that have ability to significant influence the management or operating policies of the entity. The Company discloses all significant related party transactions. |
Economic and Political Risks | Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. All of the Company’s cash is maintained with state-owned banks within the PRC, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts. A portion of the Company’s sales are credit sales which are primarily to customers whose abilities to pay are dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk |
Exchange Risk | Exchange Risk The Company cannot guarantee that the current exchange rate will remain steady. Therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and yet, because of a fluctuating exchange rates, record higher or lower profit depending on exchange rate of PRC Renminbi (RMB) converted to U.S. dollars on the relevant dates. The exchange rate could fluctuate depending on changes in the political and economic environment without notice. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recent accounting pronouncements that the Company has adopted or may be required to adopt in the future are summarized below: In June 2016, the FASB issued ASU 2016-13,” Measurement of Credit Losses on Financial Instruments”, to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. Subsequently, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, in April 2019. To clarify that receivables arising from operating leases are within the scope of lease accounting standards. In October 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842), which defers the effective date for public filers that are considered small reporting companies as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is a smaller reporting company, implementation is not needed until January 1, 2023. Adoption of the standard requires using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align existing credit loss methodology with the new standard. The Company is evaluating the impact of this standard on its consolidated financial statements, including accounting policies, processes, and systems, and expects the standard will have a minor impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 (Topic 350) Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment, which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. As amended by ASU 2019-10, this ASU will be applied on a prospective basis and is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted for any impairment tests performed after January 1, 2017. The Company is evaluating the impact of the application of this standard and does not expect that the adoption of the ASU 2017-04 will have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds, and modifies certain disclosure requirements for fair value measurements under ASC 820. This ASU is to be applied on a prospective basis for certain modified or new disclosure requirements, and all other amendments in the standard are to be applied on a retrospective basis. The new standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted Topic 820 on January 1, 2020. The adoption of the ASU 2018-13 did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company does not expect that the requirements of ASU 2019-12 will have a material impact on its consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of subsidiary of limited liability company | Name Domicile and Date Paid-in Capital Percentage of Principal Activities Zhongchai Holding (Hong Kong) Limited Hong Kong HKD 10,000 100 % Holding Zhejiang Zhongchai Machinery Co., Ltd. PRC RMB 20,000,000 89.47 % Manufacture, sale of various transmission boxes. Shanghai Hengyu Enterprise Management Consulting Co., Ltd. PRC RMB 251,500,000 62.5 % Investment management and consulting services. Hangzhou Greenland Energy Technologies Co., Ltd. PRC RMB 4,794,242 100 % Trading. Greenland Technologies Corporation Delaware, USA USD 6,363,557 100 % US operation and distribution of electric industrial vehicles for North American market |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of gain or loss on foreign currency transaction | For the six months ended 2021 2020 Period end RMB: US$ exchange rate 6.4566 7.0851 Period average RMB: US$ exchange rate 6.4671 7.0307 |
Schedule of estimated useful lives | Plant, buildings and improvements 20 years Machinery and equipment 2~10 years Motor vehicles 4 years Office equipment 3~5 years Fixtures and decorations 5 years |
Schedule of sets forth disaggregation of revenue | For the three months ended For the six months ended Major Product 2021 2020 2021 2020 Transmission boxes for Forklift 24,844,007 14,489,369 46,393,363 24,361,426 Transmission boxes for Non-Forklift (EV, etc.) and parts of transmission boxes 3,360,300 2,086,976 6,421,838 2,086,986 Total 28,204,307 16,576,345 52,815,201 26,448,412 |
Concentration on Revenues and_2
Concentration on Revenues and Cost of Goods Sold (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Concentration on Revenues and Cost of Goods Sold [Abstract] | |
Schedule of concentration of major customers and suppliers | For the six months ended June 30, 2021 2020 Major customers representing more than 10% of the Company’s revenues Company A $ 8,881,037 16.82 % $ 6,166,754 23.32 % Company B 6,593,104 12.48 % - - Total Revenues $ 15,474,141 29.30 % $ 6,166,754 23.32 % |
Schedule of major customers of accounts receivable | As of June 30, December 31, Major customers of the Company’s accounts receivable Company A 1,990,033 9.70 % 2,002,275 14.95 % Company B 1,498,188 7.30 % 1,955,113 14.60 % Company C 1,456,398 7.10 % 1,359,607 10.15 % Total $ 4,944,619 24.10 % $ 5,316,995 39.69 % |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounts Receivable [Abstract] | |
Schedule of accounts receivable net | As of June 30, December 31, Accounts receivable $ 21,516,802 $ 13,395,080 Less: allowance for doubtful accounts (996,984 ) (986,532 ) Accounts receivable, net $ 20,519,818 $ 12,408,548 |
Schedule of allowance for doubtful accounts | For the three months ended 2021 2020 Beginning balance $ 986,532 $ 1,037,797 Provision for doubtful accounts 10,452 111,947 Ending balance $ 996,984 $ 1,149,744 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | As of June 30, December 31, Raw materials $ 6,789,961 $ 5,682,382 Revolving material 928,567 742,437 Consigned processing material 62,249 51,290 Work-in-progress 2,226,541 2,015,677 Finished goods 7,724,097 6,888,277 Inventories, net $ 17,731,415 $ 15,380,063 |
Notes Receivable (Tables)
Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Receivable Disclosure [Abstract] | |
Schedule of notes receivable | As of June 30, December 31, Bank notes receivable: $ 33,088,948 $ 30,803,772 Commercial notes receivable 24,781 - Total $ 33,113,729 $ 30,803,772 |
Property, Plant and Equipment_2
Property, Plant and Equipment and Construction in Progress (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | As of June 30, December 31, Buildings $ 14,412,596 $ 12,453,285 Machinery 19,723,416 20,907,623 Motor vehicles 329,302 325,850 Electronic equipment 201,991 198,955 Total property plant and equipment, at cost 34,667,305 33,885,713 Less: accumulated depreciation (15,227,047 ) (13,843,189 ) Property, plant and equipment, net $ 19,440,258 $ 20,042,524 Construction in process 93,798 92,815 Total $ 19,534,056 $ 20,135,339 |
Schedule of restricted assets | As of June 30, December 31, Buildings, net $ 11,167,710 $ 11,050,641 Machinery, net 2,173,063 2,150,284 Total 13,340,773 13,200,925 |
Land Use Rights (Tables)
Land Use Rights (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Land Use Rights [Abstract] | |
Schedule of land use rights | As of June 30, December 31, Land use rights, cost $ 4,765,140 $ 4,715,188 Less: Accumulated amortization (734,788 ) (679,934 ) Land use rights, net $ 4,030,352 $ 4,035,254 |
Schedule of estimated future amortization expense | Years ending June 30, Amortization expense 2022 $ 95,148 2023 95,148 2024 95,148 2025 95,148 2026 95,148 Thereafter 3,554,612 Total $ 4,030,352 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable Disclosure [Abstract] | |
Schedule of notes payable | As of June 30, December 31, Bank acceptance notes $ 38,202,952 $ 25,889,067 Total $ 38,202,952 $ 25,889,067 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounts Payable [Abstract] | |
Schedule of accounts Payable | As of June 30, December 31, Procurement of Materials $ 26,746,255 $ 21,140,063 Infrastructure & Equipment 1,404,610 717,053 Freight fee 149,369 148,144 Total $ 28,300,234 $ 22,005,260 |
Short Term Bank Loans (Tables)
Short Term Bank Loans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of short term bank loans | As of June 30, December 31, Collateralized bank loans $ 11,125,051 $ 17,261,302 Guaranteed bank loans 774,401 1,226,054 Total $ 11,899,452 $ 18,487,356 |
Schedule of short term loans | Maturity Date Type Bank Name Interest June 30, Sep.01, 2021 Operating Loans Agricultural bank of PRC 4.44 $ 6,014,002 Sep.16, 2021 Operating Loans Rural commercial bank of Xinchang 5.30 $ 1,239,042 Sep.22, 2021 Operating Loans Rural commercial bank of Xinchang 4.35 $ 1,239,042 Sep.26, 2021 Operating Loans Rural commercial bank of Xinchang 4.35 $ 2,632,965 Jan.21, 2022 Operating Loans Rural commercial bank of Xinchang 5.30 $ 774,401 Total $ 11,899,452 Maturity Date Type Bank Name Interest December 31, Sep.01, 2021 Operating Loans Agricultural bank of PRC 4.44 $ 5,950,958 Sep.06, 2021 Operating Loans Agricultural bank of PRC 4.44 $ 6,252,874 Sep.16, 2021 Operating Loans Rural commercial bank of Xinchang 5.30 $ 1,226,053 Sep.22, 2021 Operating Loans Rural commercial bank of Xinchang 4.35 $ 1,226,053 Sep.26, 2021 Operating Loans Rural commercial bank of Xinchang 4.35 $ 2,605,364 Nov.11, 2021 Operating Loans SPD Rural Bank of Xinchang 5.50 1,226,054 Total $ 18,487,356 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Current Liabilities [Abstract] | |
Schedule of other current liabilities | As of June 30, December 31, Employee payables 135,782 483,922 Other tax payables 1,078,166 1,208,323 Borrowing from third party 261,142 520,080 Total $ 1,475,090 $ 2,212,325 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Longterm Liabilities Disclosure [Abstract] | |
Schedule of Other long-term liabilities | As of June 30, December 31, Subsidy 2,240,949 2,342,648 Total $ 2,240,949 $ 2,342,648 |
Long Term Payables (Tables)
Long Term Payables (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Long Term Payables [Abstract] | |
Schedule of long term payables | As of June 30, December 31, Long-term payables current portion $ 584,003 $ 797,179 Long-term payables– non-current portion - 166,292 Total $ 584,003 $ 963,471 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share computation | For the three months ended For the six months ended 2021 2020 2021 2020 Net income attributable to the Greenland Corporation and subsidiaries $ 2,780,753 $ 1,259,097 $ 4,909,321 $ 1,515,761 Weighted average basic and diluted computation shares outstanding: Shares issued in reverse recapitalization 10,498,127 10,006,142 10,225,142 10,006,142 Weighted average shares of restricted grants - 15,000 - 15,000 Weighted average shares issued for exercise of warrants 950,200 - 1,223,185 - Weighted average ordinary shares of common stock 10,814,479 10,021,142 10,574,223 10,015,203 Dilutive effect of stock options — — — — Restricted stock vested not issued — — — — ordinary shares and ordinary shares equivalents 10,814,479 10,021,142 10,574,223 10,015,203 Basic and diluted net income per share $ 0.26 $ 0.13 0.46 0.15 |
Geographical Sales and Segmen_2
Geographical Sales and Segments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Geographical Sales And Segments [Abstract] | |
Schedule of revenues by major geographical area | For the three months ended For the six months ended 2021 2020 2021 2020 Domestic Sales $ 28,106,861 $ 16,510,295 $ 52,607,900 $ 26,374,148 International Sales 97,446 66,050 207,301 74,264 Total $ 28,204,307 $ 16,576,345 $ 52,815,201 $ 26,448,412 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of non-cancellable future minimum lease payments | Years ending June 30, Amount 2022 584,003 2023 - Total $ 584,003 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of names and relationship of related parties | Existing Relationship with the Company Sinomachinery Holding Limited Under common control of Peter Zuguang Wang Cenntro Holding Limited Controlling shareholder of the Company Zhejiang Kangchen Biotechnology Co., Ltd. Under common control of Peter Zuguang Wang Cenntro Smart Manufacturing Tech. Co., Ltd. Under common control of Peter Zuguang Wang Zhejiang Zhonggong Machinery Co., Ltd. Under common control of Peter Zuguang Wang Zhejiang Zhonggong Agricultural Equipment Co., Ltd. Under common control of Peter Zuguang Wang Jiuxin Investment Management Partnership (LP) Under control of Mr. Mengxing He, the General Manger and one of the directors of Zhejiang Zhongchai Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) Under common control of Peter Zuguang Wang Hangzhou Cenntro Autotech Co., Limited Under common control of Peter Zuguang Wang Peter Zuguang Wang Chairman of the Company Greenland Asset Management Corporation Shareholder of the Company Hangzhou Jiuru Economic Information Consulting Co. Ltd One of the directors of Hengyu |
Schedule of due to related parties | As of June 30, December 31, Due to related parties: Sinomachinery Holding Limited 1 $ 1,775,869 $ 1,775,869 Zhejiang Kangchen Biotechnology Co., Ltd 2 - 64,505 Zhejiang Zhonggong Machinery Co., Ltd. 3 481,915 538,166 Zhejiang Zhonggong Agricultural Equipment Co., Ltd. 4 - - Cenntro Smart Manufacturing Tech. Co., Ltd. 5 2,866 3,602 Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 6 242,508 514,365 Cenntro Holding Limited⁷ 1,591,627 1,591,627 Peter Zuguang Wang⁷ - 25,000 Greenland Asset Management Corporation 7 - - Xinchang County Jiuxin Investment Management Partnership (LP) 7 3,619,645 4,347,985 Hangzhou Jiuru Economic Information Consulting Co. Ltd 7 190,000 190,000 Total $ 7,904,430 $ 9,051,119 1 Advance from Sinomachinery Holding Limited for certain purchase order; 2 Temporary borrowings from Zhejiang Kangchen Biotechnology Co., Ltd.; 3 Unpaid balances for purchasing of materials and equipment and temporary borrowing from Zhejiang Zhonggong Machinery Co., Ltd.; 4 Unpaid balances for purchasing of materials from Zhejiang Zhonggong Agricultural Equipment Co., Ltd.; 5 Prepayment from Cenntro Smart Manufacturing Tech. Co., Ltd.; 6 Temporary borrowings from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership); and 7 Borrowings from related parties |
Schedule of due from related parties | As of June 30, December 31, Due from related parties-current: Cenntro Holding Limited $ 38,943,406 $ 38,535,171 Cenntro Smart Manufacturing Tech. Co., Ltd. 3,097 - Total $ 38,946,503 $ 38,535,171 |
Schedule of related party funds lending | Withdraw funds from related parties: For the six months ended 2021 2020 Zhejiang Zhonggong Machinery Co., Ltd. 77,314 354,736 Cenntro Smart Manufacturing Tech. Co., Ltd. 33,091 - Peter Zuguang Wang 25,000 - Xinchang County Jiuxin Investment Management Partnership (LP) - 255,410 Cenntro Holding Limited 251,973 - Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 34,946 15,573 Total 422,324 625,719 Deposit funds with related parties: Zhejiang Zhonggong Machinery Co., Ltd. 77,314 496,630 Xinchang County Jiuxin Investment Management Partnership (LP) 773,144 - Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) 310,804 - Cenntro Smart Manufacturing Tech. Co., Ltd. 33,864 - Zhejiang Kangchen Biotechnology Co., Ltd 64,505 - Peter Zuguang Wang 25,000 - Total 1,284,631 496,630 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jul. 15, 2019 | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Organization and Principal Activities (Details) [Line Items] | |||
increased revenue amount (in Dollars) | $ 52,820 | $ 26,450 | |
Transmission product sale of sets | 79,032 | 45,380 | |
Percentage of outstanding ordinary shares | 69.60% | ||
Zhongchai Holding [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Percentage of outstanding ordinary shares | 62.50% | 100.00% | |
Zhejiang Zhongchai Machinery Co., Ltd. [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Percentage of outstanding ordinary shares | 89.47% | ||
Subsidiaries, description | Company registered on November 21, 2005, is the direct operating subsidiary of Zhongchai Holding in PRC. On April 5, 2007, Usunco Automotive Limited (“Usunco”), a British Virgin Islands limited liability Company incorporated on April 24, 2006, invested $8,000,000 USD into Zhejiang Zhongchai for its approximately 75.47% interest. On December 16, 2009, Usunco agreed to transfer its 75.47% interest in Zhejiang Zhongchai to Zhongchai Holding. On April 26, 2010, Xinchang County Keyi Machinery Co., Ltd. transferred all its 24.528% interest in Zhejiang Zhongchai to Zhongchai Holding for a consideration of US$2.6 million. On November 1, 2017, Xinchang County Jiuxin Investment Management Partnership (LP) (“Jiuxin”), an entity controlled and beneficially owned by Mr. He Mengxing, president of Zhejiang Zhongchai, closed its investment of approximately RMB31,590,000 in Zhejiang Zhongchai for 10.53% of its interest. As of June 30, 2021, Zhongchai Holding owns approximately 89.47% of Zhejiang Zhongchai and Jiuxin owns approximately 10.53% of Zhejiang Zhongchai | ||
Shanghai Hengyu Enterprise Management Consulting Co., Ltd. [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Percentage of outstanding ordinary shares | 62.50% | ||
Hangzhou Greenland [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Percentage of outstanding ordinary shares | 100.00% |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of subsidiary of limited liability company | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2021HKD ($) | Jun. 30, 2021CNY (¥) | |
Zhongchai Holding (Hong Kong) Limited [Member] | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
Domicile and Date of Incorporation | Hong Kong April 23, 2009 | ||
Paid-in Capital | $ | $ 10,000 | ||
Percentage of Effective Ownership | 100.00% | 100.00% | 100.00% |
Principal Activities | Holding | ||
Paid-in Capital, Currency | HKD | ||
Zhejiang Zhongchai Machinery Co., Ltd. [Member] | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
Domicile and Date of Incorporation | PRC November 21, 2005 | ||
Paid-in Capital | ¥ 20,000,000 | ||
Percentage of Effective Ownership | 89.47% | 89.47% | 89.47% |
Principal Activities | Manufacture, sale of various transmission boxes. | ||
Paid-in Capital, Currency | RMB | ||
Shanghai Hengyu Enterprise Management Consulting Co., Ltd. [Member] | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
Domicile and Date of Incorporation | PRC September 10, 2015 | ||
Paid-in Capital | ¥ 251,500,000 | ||
Percentage of Effective Ownership | 62.50% | 62.50% | 62.50% |
Principal Activities | Investment management and consulting services. | ||
Paid-in Capital, Currency | RMB | ||
Hangzhou Greenland Robotic Technologies Co., Ltd. [Member] | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
Domicile and Date of Incorporation | PRC August 9, 2019 | ||
Paid-in Capital | ¥ 4,794,242 | ||
Percentage of Effective Ownership | 100.00% | 100.00% | 100.00% |
Principal Activities | Trading. | ||
Paid-in Capital, Currency | RMB | ||
Greenland Technologies Corporation (Member) | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
Domicile and Date of Incorporation | Delaware, USA January 14, 2020 | ||
Paid-in Capital | $ | $ 6,363,557 | ||
Percentage of Effective Ownership | 100.00% | 100.00% | 100.00% |
Principal Activities | US operation and distribution of electric industrial vehicles for North American market | ||
Paid-in Capital, Currency | USD |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | Mar. 13, 2020 | Mar. 12, 2020 | Feb. 25, 2020 | Feb. 24, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Oct. 24, 2019 | Dec. 31, 2017 |
Summary of Significant Accounting Policies (Textual) | |||||||||||
Shares received (in Shares) | 7,500,000 | ||||||||||
Allowance of doubtful accounts | $ 1,000,000 | $ 1,000,000 | $ 1,080,000 | ||||||||
Reserves for inventories | 0 | 0 | 0 | ||||||||
Advance to suppliers | 730,000 | $ 730,000 | 450,000 | ||||||||
Implicit interest rate | 4.0038% | ||||||||||
Owned foreign enterprise percentage | 10.00% | ||||||||||
Registered capital percentage | 50.00% | ||||||||||
Value added tax description | The Company derives revenues from the processing, distribution and sale of its products. The Company recognizes its revenues net of value-added taxes (“VAT”). The Company is subject to VAT which had been levied at the rate of 17% on the invoiced value of sales until April 30, 2018, after which date the rate was reduced to 16%. VAT rate was further reduced to 13% starting from April 1, 2019. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales.Revenues are recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the performance obligation is fulfilled, usually at the time of customers’ acceptance or consumption, at the net sales price (transaction price) and each of the criteria under ASC 606 have been met. Contract terms may require the Company to deliver the finished goods to the customers’ location or the customer may pick up the finished goods at the Company’s factory. International sales are recognized when shipment clears customs and leaves the port. The Company has adopted ASC 606 on January 1, 2018, using the transition method of Modified-Retrospective Method (“MRM”). The adoption of ASC 606 had no impact on the Company’s beginning balance of retained earnings. The Company’s contracts are all short-term in nature with a contract term of one year or less. Receivables are recorded when the Company has an unconditional right to consideration. Contracts do not offer any price protection, but allow for the return of certain goods if quality problem, which is standard warranty. The Company product returns and recorded reserve for sales returns were minimal for the six months ended June 30, 2021 and 2020. The total rebates amount is accounting for around 0.19% and 0.43% of the total revenue of Greenland. The following table sets forth disaggregation of revenue: For the three months ended June 30, For the six months ended June 30, Major Product 2021 2020 2021 2020 Transmission boxes for Forklift 24,844,007 14,489,369 46,393,363 24,361,426 Transmission boxes for Non-Forklift (EV, etc.) and parts of transmission boxes 3,360,300 2,086,976 6,421,838 2,086,986 Total 28,204,307 16,576,345 52,815,201 26,448,412 Cost of Goods Sold Cost of goods sold consists primarily of material costs, freight charges, purchasing and receiving costs, inspection costs, internal transfer costs, wages, employee compensation, amortization, depreciation and related costs, which are directly attributable to the production of products. Write-down of inventory to lower of cost or net realizable value is also recorded in cost of goods sold. Selling Expenses Selling expenses include operating expenses such as payroll and traveling and transportation expenses. General and Administrative Expenses General and administrative expenses include management and office salaries and employee benefits, depreciation for office facility and office equipment, travel and entertainment, legal and accounting, consulting fees and other office expenses. Research and Development Research and development costs are expensed as incurred and totaled approximately $1,005,296 and $475,649 for the three months ended June 30, 2021 and 2020, respectively. Research and development costs are expensed as incurred and totaled approximately $1,964,841 and $1,039,947 for the six months ended June 30, 2021 and 2020, respectively. 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 $2.24 million and $2.34 million at June 30, 2021 and December 31, 2020, respectively. Income Taxes The Company accounts for income taxes following the liability method pursuant to FASB ASC 740 “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in income in the period that includes the enactment date. The Company also follows FASB ASC 740, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of June 30, 2021 and December 31, 2020, the Company did not have a liability for unrecognized tax benefits. It is the Company’s policy to include penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary. The Company’s historical tax years will remain open for examination by the local authorities until the statute of limitations has passed. Value-Added Tax Enterprises or individuals, who sell commodities, engage in repair and maintenance or import or export goods in the PRC are subject to a value added tax in accordance with PRC Laws. The VAT standard rate had been 17% of the gross sale price until April 30, 2018, after which date the rate was reduced to 16%. VAT rate was further reduced to 13% starting from April 1, 2019. | ||||||||||
Total sales return, percentage | 0.19% | ||||||||||
Total revenue of Greenland | 0.43% | ||||||||||
Research and development costs | 1,005,296 | $ 475,649 | $ 1,964,841 | $ 1,039,947 | |||||||
Other long-term liabilities | $ 2,240,000 | $ 2,240,000 | $ 2,340,000 | ||||||||
Restricted ordinary shares (in Shares) | 10,000 | 5,000 | |||||||||
Ownership percentage | 10.00% | ||||||||||
PRC [Member] | |||||||||||
Summary of Significant Accounting Policies (Textual) | |||||||||||
Value added tax description | The VAT standard rate had been 17% of the gross sale price until April 30, 2018, after which date the rate was reduced to 16%. VAT rate was further reduced to 13% starting from April 1, 2019. | ||||||||||
Zhongchai Holding [Member] | |||||||||||
Summary of Significant Accounting Policies (Textual) | |||||||||||
Shares received (in Shares) | 7,500,000 | ||||||||||
Chineseinvestors.com, Inc. [Member] | |||||||||||
Summary of Significant Accounting Policies (Textual) | |||||||||||
Restricted ordinary shares (in Shares) | 5,000 | ||||||||||
Skyline Corporate Communication Group, LLC [Member] | |||||||||||
Summary of Significant Accounting Policies (Textual) | |||||||||||
Restricted ordinary shares (in Shares) | 10,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of gain or loss on foreign currency transaction | Jun. 30, 2021 | Jun. 30, 2020 |
Foreign Currency Translation [Abstract] | ||
Period end RMB: US$ exchange rate | 6.4566 | 7.0851 |
Period average RMB: US$ exchange rate | 6.4671 | 7.0307 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 6 Months Ended |
Jun. 30, 2021 | |
Plant, buildings and improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 20 years |
Motor vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 4 years |
Fixtures and decorations [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 5 years |
Minimum [Member] | Machinery and equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 2 years |
Minimum [Member] | Office equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 3 years |
Maximum [Member] | Machinery and equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 10 years |
Maximum [Member] | Office equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of sets forth disaggregation of revenue - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 28,204,307 | $ 16,576,345 | $ 52,815,201 | $ 26,448,412 |
Transmission boxes for Forklift [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 24,844,007 | 14,489,369 | 46,393,363 | 24,361,426 |
Transmission boxes for Non-Forklift (EV, etc.) [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 3,360,300 | $ 2,086,976 | $ 6,421,838 | $ 2,086,986 |
Concentration on Revenues and_3
Concentration on Revenues and Cost of Goods Sold (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Accounts Receivable [Member] | |||
Concentration on Revenues and Cost of Goods Sold (Details) [Line Items] | |||
Concentration risk, percentage | 24.10% | 39.69% | |
Supplier [Member] | |||
Concentration on Revenues and Cost of Goods Sold (Details) [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% |
Concentration on Revenues and_4
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of concentration of major customers and suppliers - Revenues [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue, Major Customer [Line Items] | ||
Total Revenues | $ 15,474,141 | $ 6,166,754 |
Customer percentage | 29.30% | 23.32% |
Company A [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenues | $ 8,881,037 | $ 6,166,754 |
Customer percentage | 16.82% | 23.32% |
Company B [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenues | $ 6,593,104 | |
Customer percentage | 12.48% |
Concentration on Revenues and_5
Concentration on Revenues and Cost of Goods Sold (Details) - Schedule of major customers of accounts receivable - Accounts Receivable [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | ||
Accounts receivable, net | $ 4,944,619 | $ 5,316,995 |
Percentage of Accounts receivable, net | 24.10% | 39.69% |
Company A [Member] | ||
Concentration Risk [Line Items] | ||
Accounts receivable, net | $ 1,990,033 | $ 2,002,275 |
Percentage of Accounts receivable, net | 9.70% | 14.95% |
Company B [Member] | ||
Concentration Risk [Line Items] | ||
Accounts receivable, net | $ 1,498,188 | $ 1,955,113 |
Percentage of Accounts receivable, net | 7.30% | 14.60% |
Company C [Member] | ||
Concentration Risk [Line Items] | ||
Accounts receivable, net | $ 1,456,398 | $ 1,359,607 |
Percentage of Accounts receivable, net | 7.10% | 10.15% |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable net - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of accounts receivable net [Abstract] | ||
Accounts receivable | $ 21,516,802 | $ 13,395,080 |
Less: allowance for doubtful accounts | (996,984) | (986,532) |
Accounts receivable, net | $ 20,519,818 | $ 12,408,548 |
Accounts Receivable (Details)_2
Accounts Receivable (Details) - Schedule of allowance for doubtful accounts - USD ($) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of allowance for doubtful accounts [Abstract] | ||
Beginning balance | $ 986,532 | $ 1,037,797 |
Provision for doubtful accounts | 10,452 | 111,947 |
Ending balance | $ 996,984 | $ 1,149,744 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 6,789,961 | $ 5,682,382 |
Revolving material | 928,567 | 742,437 |
Consigned processing material | 62,249 | 51,290 |
Work-in-progress | 2,226,541 | 2,015,677 |
Finished goods | 7,724,097 | 6,888,277 |
Inventories, net | $ 17,731,415 | $ 15,380,063 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Notes Receivable Disclosure [Abstract] | ||
Notes receivable | $ 21,830 | $ 26,530 |
Security for issuance | $ 26,490 | $ 23,700 |
Notes receivable term | 6 months |
Notes Receivable (Details) - Sc
Notes Receivable (Details) - Schedule of notes receivable - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of notes receivable [Abstract] | ||
Bank notes receivable: | $ 33,088,948 | $ 30,803,772 |
Commercial notes receivable | 24,781 | |
Total | $ 33,113,729 | $ 30,803,772 |
Property, Plant and Equipment_3
Property, Plant and Equipment and Construction in Progress (Details) ¥ in Thousands | Jan. 03, 2019USD ($) | Jan. 03, 2019CNY (¥) | May 27, 2020USD ($) | May 27, 2020CNY (¥) | Apr. 26, 2019USD ($) | Apr. 26, 2019CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | May 12, 2020USD ($) | Apr. 30, 2020USD ($) |
Property, Plant and Equipment and Construction in Progress (Details) [Line Items] | |||||||||||||
Ownership of buildings for net book value | $ 11,010,000 | ¥ 72,110 | $ 11,050,000 | ¥ 72,110 | |||||||||
Loan facility with maximum exposure (in Yuan Renminbi) | ¥ | ¥ 94,630 | ¥ 104,630 | |||||||||||
Aggregate proceeds | $ 3,080,000 | ¥ 21,250 | $ 1,420,000 | ¥ 10,000 | $ 2,120,000 | ¥ 14,660 | |||||||
Initial term | 3 years | 3 years | 2 years | 2 years | 2 years | 2 years | |||||||
Financial lease obligation | $ 1,340,000 | $ 940,000 | |||||||||||
Property, Plant and Equipment [Member] | |||||||||||||
Property, Plant and Equipment and Construction in Progress (Details) [Line Items] | |||||||||||||
Depreciation expense amount | 1,200,000 | $ 950,000 | |||||||||||
Cost of revenue and inventories | 770,000 | 680,000 | |||||||||||
Construction in progress fixed assets | $ 0 | $ 430,581 |
Property, Plant and Equipment_4
Property, Plant and Equipment and Construction in Progress (Details) - Schedule of property, plant and equipment - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of property, plant and equipment [Abstract] | ||
Buildings | $ 14,412,596 | $ 12,453,285 |
Machinery | 19,723,416 | 20,907,623 |
Motor vehicles | 329,302 | 325,850 |
Electronic equipment | 201,991 | 198,955 |
Total property plant and equipment, at cost | 34,667,305 | 33,885,713 |
Less: accumulated depreciation | (15,227,047) | (13,843,189) |
Property, plant and equipment, net | 19,440,258 | 20,042,524 |
Construction in process | 93,798 | 92,815 |
Total | $ 19,534,056 | $ 20,135,339 |
Property, Plant and Equipment_5
Property, Plant and Equipment and Construction in Progress (Details) - Schedule of restricted assets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of restricted assets [Abstract] | ||
Buildings, net | $ 11,167,710 | $ 11,050,641 |
Machinery, net | 2,173,063 | 2,150,284 |
Total | $ 13,340,773 | $ 13,200,925 |
Land Use Rights (Details)
Land Use Rights (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Land Use Rights [Abstract] | ||
Land use rights, net | $ 4,030 | $ 4,040 |
Land Use Rights (Details) - Sch
Land Use Rights (Details) - Schedule of land use rights - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of land use rights [Abstract] | ||
Land use rights, cost | $ 4,765,140 | $ 4,715,188 |
Less: Accumulated amortization | (734,788) | (679,934) |
Land use rights, net | $ 4,030,352 | $ 4,035,254 |
Land Use Rights (Details) - S_2
Land Use Rights (Details) - Schedule of estimated future amortization expense | Jun. 30, 2021USD ($) |
Schedule of estimated future amortization expense [Abstract] | |
2022 | $ 95,148 |
2023 | 95,148 |
2024 | 95,148 |
2025 | 95,148 |
2026 | 95,148 |
Thereafter | 3,554,612 |
Total | $ 4,030,352 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Notes Payable (Details) [Line Items] | ||
Interest-free notes payable, Term | 6 months | |
Restricted cash | $ 9,770 | $ 2,240 |
Notes receivable | 33,110 | 26,530 |
Land use rights | $ 4,030 | $ 4,040 |
Percentage of bank charges | 0.05% | |
Minimum [Member] | ||
Notes Payable (Details) [Line Items] | ||
Interest-free notes payable, Term | 9 months | |
Maximum [Member] | ||
Notes Payable (Details) [Line Items] | ||
Interest-free notes payable, Term | 1 year |
Notes Payable (Details) - Sched
Notes Payable (Details) - Schedule of notes payable - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of notes payable [Abstract] | ||
Bank acceptance notes | $ 38,202,952 | $ 25,889,067 |
Total | $ 38,202,952 | $ 25,889,067 |
Accounts Payable (Details) - Sc
Accounts Payable (Details) - Schedule of accounts Payable - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts Payable (Details) - Schedule of accounts Payable [Line Items] | ||
Accounts payable | $ 28,300,234 | $ 22,005,260 |
Procurement of materials [Member] | ||
Accounts Payable (Details) - Schedule of accounts Payable [Line Items] | ||
Accounts payable | 26,746,255 | 21,140,063 |
Infrastructure & Equipment [Member] | ||
Accounts Payable (Details) - Schedule of accounts Payable [Line Items] | ||
Accounts payable | 1,404,610 | 717,053 |
Freight fee [Member] | ||
Accounts Payable (Details) - Schedule of accounts Payable [Line Items] | ||
Accounts payable | $ 149,369 | $ 148,144 |
Short Term Bank Loans (Details)
Short Term Bank Loans (Details) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||
Average annual interest rate | 4.5547% | 4.7467% |
Short Term Bank Loans (Detail_2
Short Term Bank Loans (Details) - Schedule of short term bank loans - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of short term bank loans [Abstract] | ||
Collateralized bank loans | $ 11,125,051 | $ 17,261,302 |
Guaranteed bank loans | 774,401 | 1,226,054 |
Total | $ 11,899,452 | $ 18,487,356 |
Short Term Bank Loans (Detail_3
Short Term Bank Loans (Details) - Schedule of short term loans - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | Total | Total |
Total | $ 11,899,452 | $ 18,487,356 |
Operating Loans [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | Sep.01, 2021 | Sep.01, 2021 |
Bank Name | Agricultural bank of PRC | Agricultural bank of PRC |
Interest Rate per Annum (%) | 4.44% | 4.44% |
Total | $ 6,014,002 | $ 5,950,958 |
Operating Loans One [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | Sep.16, 2021 | Sep.16, 2021 |
Bank Name | Rural commercial bank of Xinchang | Rural commercial bank of Xinchang |
Interest Rate per Annum (%) | 5.30% | 5.30% |
Total | $ 1,239,042 | $ 1,226,053 |
Operating Loans Two [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | Sep.22, 2021 | Sep.22, 2021 |
Bank Name | Rural commercial bank of Xinchang | Rural commercial bank of Xinchang |
Interest Rate per Annum (%) | 4.35% | 4.35% |
Total | $ 1,239,042 | $ 1,226,053 |
Operating Loans Three [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | Sep.26, 2021 | Sep.26, 2021 |
Bank Name | Rural commercial bank of Xinchang | Rural commercial bank of Xinchang |
Interest Rate per Annum (%) | 4.35% | 4.35% |
Total | $ 2,632,965 | $ 2,605,364 |
Operating Loans Four [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | Jan.21, 2022 | Nov.11, 2021 |
Bank Name | Rural commercial bank of Xinchang | SPD Rural Bank of Xinchang |
Interest Rate per Annum (%) | 5.30% | 5.50% |
Total | $ 774,401 | $ 1,226,054 |
Operating Loans Five [Member] | ||
Short Term Bank Loans (Details) - Schedule of short term loans [Line Items] | ||
Maturity Date | Sep.06, 2021 | |
Bank Name | Agricultural bank of PRC | |
Interest Rate per Annum (%) | 4.44% | |
Total | $ 6,252,874 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - Schedule of other current liabilities - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of other current liabilities [Abstract] | ||
Employee payables | $ 135,782 | $ 483,922 |
Other tax payables | 1,078,166 | 1,208,323 |
Borrowing from third party | 261,142 | 520,080 |
Total | $ 1,475,090 | $ 2,212,325 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Other Longterm Liabilities Disclosure [Abstract] | |
Grant income decreased | $ 100 |
Other Long-Term Liabilities (_2
Other Long-Term Liabilities (Details) - Schedule of Other long-term liabilities - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Other long-term liabilities [Abstract] | ||
Subsidy | $ 2,240,949 | $ 2,342,648 |
Total | $ 2,240,949 | $ 2,342,648 |
Long Term Payables (Details)
Long Term Payables (Details) ¥ in Thousands, $ in Thousands | Jan. 03, 2019USD ($) | Jan. 03, 2019CNY (¥) | May 27, 2020USD ($) | May 27, 2020CNY (¥) | Apr. 26, 2019USD ($) | Apr. 26, 2019CNY (¥) | May 12, 2020USD ($) | Apr. 30, 2020USD ($) |
Debt Disclosure [Abstract] | ||||||||
Aggregate proceeds | $ 3,080 | ¥ 21,250 | $ 1,420 | ¥ 10,000 | $ 2,120 | ¥ 14,660 | ||
Initial term | 3 years | 3 years | 2 years | 2 years | 2 years | 2 years | ||
Financing lease obligations | $ 1,340 | $ 940 |
Long Term Payables (Details) -
Long Term Payables (Details) - Schedule of long term payables - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of long term payables [Abstract] | ||
Long-term payables current portion | $ 584,003 | $ 797,179 |
Long-term payables– non-current portion | 166,292 | |
Total | $ 584,003 | $ 963,471 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - USD ($) | Feb. 08, 2021 | Nov. 10, 2020 | Aug. 15, 2019 | Feb. 28, 2021 | Dec. 30, 2020 | Aug. 21, 2019 | May 29, 2019 | Jul. 27, 2018 | Jun. 30, 2021 | Dec. 31, 2020 | Feb. 25, 2020 | Feb. 24, 2020 |
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Ordinary shares, issued | 11,448,327 | 10,225,142 | ||||||||||
Ordinary shares, outstanding | 11,448,327 | 10,225,142 | ||||||||||
Newly issued ordinary shares | 221,985 | |||||||||||
Ordinary shares, description | In connection with the Business Combination, all the outstanding rights of the Company were converted into 468,200 ordinary shares on a one-tenth (1/10) ordinary share per right basis if holders of the rights elected to convert their rights into the underlying ordinary shares. | |||||||||||
Service fees (in Dollars) | $ 12,000 | |||||||||||
Private units warrants, description | (i) the 282,000 warrants underlying the units issued to the Sponsor and Chardan in a private placement in connection with our initial public offering (“Private Unit Warrants”), and (ii) 120,000 warrants held by Chardan upon the exercise of its unit purchase option to purchase 120,000 units in March 2021 (“Option Warrants”, together with Private Unit Warrants, the “Private Warrants”). | |||||||||||
Warrants outstanding | 4,682,000 | |||||||||||
Cash proceeds from exercise of warrants (in Dollars) | $ 1,858,841 | |||||||||||
Cash payment (in Dollars) | $ 100 | |||||||||||
Purchase units | 120,000 | |||||||||||
Restricted Stock [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Ordinary shares, issued | 5,000 | |||||||||||
Newly issued ordinary shares | 5,000 | |||||||||||
Greenland Asset Management Corporation [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Issuance of private placement shares | 282,000 | |||||||||||
Zhongchai Holding [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Newly issued ordinary shares | 7,500,000 | |||||||||||
Zhou Hanyi [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Newly issued ordinary shares | 50,000 | |||||||||||
JING JIN [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Number of shares of restricted common stock | 135,000 | |||||||||||
RAYMOND Z. WANG [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Number of shares of restricted common stock | 51,000 | 69,000 | ||||||||||
Chardan Capital Markets, LLC [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Sale of unit purchase option price (in Dollars) | $ 100 | |||||||||||
Option to purchase shares exercisable | 240,000 | |||||||||||
Unit exercise price (in Dollars per share) | $ 11.50 | |||||||||||
Aggregate exercise price (in Dollars) | $ 2,760,000 | |||||||||||
Consulting Agreement [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Consulting fees per month (in Dollars) | $ 5,000 | |||||||||||
Consulting Agreement [Member] | Restricted Stock [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Ordinary shares, issued | 1,250 | |||||||||||
Termination Agreement [Member] | Restricted Stock [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Ordinary shares, issued | 10,000 | |||||||||||
IPO [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Initial public offering | 4,400,000 | |||||||||||
Over-allotment option amount | 400,000 | |||||||||||
Ordinary shares redeemed, description | In 2019, in connection with the Business Combination 3,875,458 redeemable shares have been redeemed and 81,400 redeemable shares have been converted into ordinary shares, 1,906,542 ordinary shares left upon consummation of the reverse recapitalization. | |||||||||||
Private Warrants [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Description of warrant redemption | The Company may call the warrants for redemption (excluding the private warrants), in whole and not in part, at a price of $0.01 per warrant: ● At any time while the Public Warrants are exercisable, ● Upon not less than 30 days’ prior written notice of redemption to each Public Warrant holder, ● If, and only if, the reported last sale price of the ordinary shares equals or exceeds $16.50 per share, for any 20 trading days within a 30-trading-day period ending on the third trading day prior to the notice of redemption to Public Warrant holders, and ●If, and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. | |||||||||||
Private Warrants [Member] | Greenland Asset Management Corporation [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Warrants outstanding | 260,000 | |||||||||||
Private Warrants [Member] | Chardan Capital Markets, LLC [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Warrants outstanding | 22,000 | |||||||||||
Public Warrants [Member] | CEDE & CO [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Warrants outstanding | 4,621,985 | |||||||||||
Common Stock [Member] | ||||||||||||
Stockholder's Equity (Details) [Line Items] | ||||||||||||
Existing ordinary shares were converted | 468,200 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | Mar. 13, 2020 | Mar. 12, 2020 |
CIIX Termination Agreement [Member] | ||
Earnings Per Share (Details) [Line Items] | ||
Restricted ordinary shares | 5,000 | |
SCCG Termination Agreement [Member] | ||
Earnings Per Share (Details) [Line Items] | ||
Restricted ordinary shares | 10,000 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of basic and diluted earnings per share computation - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of basic and diluted earnings per share computation [Abstract] | ||||
Net income attributable to the Greenland Corporation and subsidiaries | $ 2,780,753 | $ 1,259,097 | $ 4,909,321 | $ 1,515,761 |
Weighted average basic and diluted computation shares outstanding: | ||||
Shares issued in reverse recapitalization | 10,498,127 | 10,006,142 | 10,225,142 | 10,006,142 |
Weighted average shares of restricted grants | 15,000 | 15,000 | ||
Weighted average shares issued for exercise of warrants | 950,200 | 1,223,185 | ||
Weighted average ordinary shares of common stock | 10,814,479 | 10,021,142 | 10,574,223 | 10,015,203 |
Dilutive effect of stock options | ||||
Restricted stock vested not issued | ||||
ordinary shares and ordinary shares equivalents | $ 10,814,479 | $ 10,021,142 | $ 10,574,223 | $ 10,015,203 |
Basic and diluted net income per share (in Dollars per share) | $ 0.26 | $ 0.13 | $ 0.46 | $ 0.15 |
Geographical Sales and Segmen_3
Geographical Sales and Segments (Details) - Schedule of revenues by major geographical area - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Geographical Sales and Segments (Details) - Schedule of revenues by major geographical area [Line Items] | ||||
Total | $ 28,204,307 | $ 16,576,345 | $ 52,815,201 | $ 26,448,412 |
Domestic Sales [Member] | ||||
Geographical Sales and Segments (Details) - Schedule of revenues by major geographical area [Line Items] | ||||
Total | 28,106,861 | 16,510,295 | 52,607,900 | 26,374,148 |
International Sales [Member] | ||||
Geographical Sales and Segments (Details) - Schedule of revenues by major geographical area [Line Items] | ||||
Total | $ 97,446 | $ 66,050 | $ 207,301 | $ 74,264 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 14.08% | 7.46% |
PRC standard income tax rate | 25.00% | 25.00% |
Unrecognized tax benefits (in Dollars) | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) ¥ in Thousands | Dec. 06, 2019CNY (¥) | Jan. 25, 2021USD ($) | Dec. 18, 2019CNY (¥) | Dec. 17, 2019CNY (¥) | Nov. 28, 2019CNY (¥) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) |
Commitments and Contingencies (Details) [Line Items] | |||||||
Settlement to counter party (in Dollars) | $ | $ 65,000 | ||||||
Agricultural Bank of PRC Co., Ltd. Xinchang [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Pledging land use rights for original book value | ¥ 11,080 | ||||||
Property ownership for original book value | ¥ 35,120 | ||||||
Outstanding amount of short-term bank loan under pledge contract | ¥ 38,830 | ¥ 38,830 | |||||
Agricultural Bank of PRC Co., Ltd. Xinchang [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Loan facility, description | loan facility with maximum exposure of RMB48.83 million during the period from December 6, 2019 to May 21, 2022. | loan facility with maximum exposure of RMB40.80 million during the period from November 28, 2019 to December 26, 2022. | |||||
Outstanding amount of short-term bank loan under pledge contract | 0 | 40,800 | |||||
Agricultural Bank of PRC Co., Ltd. Xinchang [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Pledging land use rights for original book value | ¥ 9,840 | ||||||
Property ownership for original book value | ¥ 27,820 | ||||||
Rural Commercial Bank of PRC Co., Ltd. [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Pledging land use rights for original book value | ¥ 4,170 | ¥ 4,750 | |||||
Property ownership for original book value | ¥ 11,280 | ||||||
Loan facility, description | loan facility with maximum exposure of RMB16.95 million during the period from December 16, 2019 to December 15, 2024. | ||||||
Outstanding amount of short-term bank loan under pledge contract | 17,000 | 17,000 | |||||
Rural Commercial Bank of PRC Co., Ltd. [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Loan facility, description | loan facility with maximum exposure of RMB8.00 million during the period from December 16, 2019 to December 15, 2024. | ||||||
Outstanding amount of short-term bank loan under pledge contract | ¥ 8,000 | ¥ 8,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of non-cancellable future minimum lease payments | Jun. 30, 2021USD ($) |
Schedule of non-cancellable future minimum lease payments [Abstract] | |
2022 | $ 584,003 |
2023 | |
Total | $ 584,003 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Related Party Transactions [Abstract] | ||
Other receivables | $ 38.9 | $ 38.5 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of names and relationship of related parties | 6 Months Ended |
Jun. 30, 2021 | |
Sinomachinery Holding Limited [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Cenntro Holding Limited [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Controlling shareholder of the Company |
Zhejiang Kangchen Biotechnology Co., Ltd. [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Cenntro Smart Manufacturing Tech. Co., Ltd. [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Zhejiang Zhonggong Machinery Co., Ltd. [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Zhejiang Zhonggong Agricultural Equipment Co., Ltd. [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Jiuxin Investment Management Partnership (LP) [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under control of Mr. Mengxing He, the General Manger and one of the directors of Zhejiang Zhongchai |
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Hangzhou Cenntro Autotech Co., Limited [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Under common control of Peter Zuguang Wang |
Peter Zuguang Wang [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Chairman of the Company |
Greenland Asset Management Corporation [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | Shareholder of the Company |
Hangzhou Jiuru Economic Information Consulting Co. Ltd [Member] | |
Related Party Transactions (Details) - Schedule of names and relationship of related parties [Line Items] | |
Existing Relationship with the Company | One of the directors of Hengyu |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of due to related parties - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | ||
Due to related parties: | |||
Total | $ 7,904,430 | $ 9,051,119 | |
Sinomachinery Holding Limited [Member] | |||
Due to related parties: | |||
Total | [1] | 1,775,869 | 1,775,869 |
Zhejiang Kangchen Biotechnology Co., Ltd. [Member] | |||
Due to related parties: | |||
Total | [2] | 64,505 | |
Zhejiang Zhonggong Machinery Co., Ltd. [Member] | |||
Due to related parties: | |||
Total | [3] | 481,915 | 538,166 |
Zhejiang Zhonggong Agricultural Equipment Co., Ltd. [Member] | |||
Due to related parties: | |||
Total | [4] | ||
Cenntro Smart Manufacturing Tech. Co., Ltd. [Member] | |||
Due to related parties: | |||
Total | [5] | 2,866 | 3,602 |
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) [Member] | |||
Due to related parties: | |||
Total | [6] | 242,508 | 514,365 |
Cenntro Holding Limited [Member] | |||
Due to related parties: | |||
Total | [7] | 1,591,627 | 1,591,627 |
Peter Zuguang Wang [Member] | |||
Due to related parties: | |||
Total | [7] | 25,000 | |
Greenland Asset Management Corporation [Member] | |||
Due to related parties: | |||
Total | [7] | ||
Xinchang County Jiuxin Investment Management Partnership (LP) [Member] | |||
Due to related parties: | |||
Total | [7] | 3,619,645 | 4,347,985 |
Hangzhou Jiuru Economic Information Consulting Co. Ltd [Member] | |||
Due to related parties: | |||
Total | [7] | $ 190,000 | $ 190,000 |
[1] | Advance from Sinomachinery Holding Limited for certain purchase order; | ||
[2] | Temporary borrowings from Zhejiang Kangchen Biotechnology Co., Ltd.; | ||
[3] | Unpaid balances for purchasing of materials and equipment and temporary borrowing from Zhejiang Zhonggong Machinery Co., Ltd.; | ||
[4] | Unpaid balances for purchasing of materials from Zhejiang Zhonggong Agricultural Equipment Co., Ltd.; | ||
[5] | Prepayment from Cenntro Smart Manufacturing Tech. Co., Ltd.; | ||
[6] | Temporary borrowings from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership); and | ||
[7] | Borrowings from related parties |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of due from related parties - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Due from related parties-current: | ||
Total | $ 38,946,503 | $ 38,535,171 |
Cenntro Holding Limited [Member] | ||
Due from related parties-current: | ||
Total | 38,943,406 | 38,535,171 |
Cenntro Smart Manufacturing Tech. Co., Ltd. [Member] | ||
Due from related parties-current: | ||
Total | $ 3,097 |
Related Party Transactions (D_5
Related Party Transactions (Details) - Schedule of related party funds lending - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | $ 422,324 | $ 625,719 |
Deposit funds with related parties: | ||
Deposit funds with related parties | 1,284,631 | 496,630 |
Zhejiang Zhonggong Machinery Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | 77,314 | 354,736 |
Deposit funds with related parties: | ||
Deposit funds with related parties | 77,314 | 496,630 |
Cenntro Smart Manufacturing Tech. Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | 33,091 | |
Deposit funds with related parties: | ||
Deposit funds with related parties | 33,864 | |
Peter Zuguang Wang [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | 25,000 | |
Deposit funds with related parties: | ||
Deposit funds with related parties | 25,000 | |
Xinchang County Jiuxin Investment Management Partnership (LP) [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | 255,410 | |
Deposit funds with related parties: | ||
Deposit funds with related parties | 773,144 | |
Cenntro Holding Limited [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | 251,973 | |
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) [Member] | ||
Variable Interest Entity [Line Items] | ||
Withdraw funds from related parties | 34,946 | 15,573 |
Deposit funds with related parties: | ||
Deposit funds with related parties | 310,804 | |
Zhejiang Kangchen Biotechnology Co., Ltd. [Member] | ||
Deposit funds with related parties: | ||
Deposit funds with related parties | $ 64,505 |