Greenland Technologies Holding Corporation (GTEC): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Greenland Technologies Holding Corporation (GTEC) and honestly, the story isn't just about making parts; it's about a sharp, two-pronged strategy that defines their current state. As an analyst who's seen a few cycles, what stands out is how they balance high-margin drivetrain sales to Chinese OEMs-where their top five customers still make up 41.27% of Q1 2025 revenue-with the aggressive, zero-emission push of their HEVI electric vehicles in North America. They are clearly focused on efficiency, slashing operating expenses by 50.2% in that same quarter, so you need to see the full picture of how these two worlds connect across their key resources and revenue streams. Dive in below to see the full Business Model Canvas breakdown.

Greenland Technologies Holding Corporation (GTEC) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Greenland Technologies Holding Corporation (GTEC) relies on to execute its strategy, especially as it pivots toward higher-margin electric industrial vehicles (HEVI) while maintaining its legacy drivetrain business. These partnerships are essential for development, sales, and service coverage across North America.

The structure of these alliances is key to understanding GTEC's operational leverage and market reach.

Strategic Development and Manufacturing Alliances

A significant partnership exists with Lonking Holdings Limited to drive the development of heavy electric machinery specifically for the U.S. market under the HEVI brand. This collaboration merges GTEC's electric vehicle technology expertise with Lonking's established heavy machinery manufacturing scale. Lonking Holdings Limited reported full-year 2023 sales of approximately US$1.5 billion,,. This joint effort is designed to introduce a new line of electric-powered heavy machinery tailored for U.S. construction and industrial demands.

Major Customer Concentration

Customer relationships form a vital part of the partnership structure, though they also introduce concentration risk. Hangcha Group is noted as a single largest customer. For the first quarter of 2025, this customer accounted for 17.77% of Greenland Technologies Holding Corporation's total revenue, which was reported at approximately $21.68 million for Q1 2025,,.

Here is a snapshot of the customer concentration based on the Q1 2025 revenue:

North American Service and Support Network

To support the growing HEVI electric industrial vehicle line in North America, Greenland Technologies Holding Corporation is building out its Authorized Service Provider (ASP) network. This network is crucial for providing maintenance and warranty repairs, which builds customer confidence in the new EV offerings. Recent additions to this network include established service providers:

• Amerit Fleet Solutions, which brings a footprint of over 1,800 service locations and more than 2,200 trained technicians.
• Power Tech Equipment Repair, a trusted service provider in Maryland.
• Expansion into North Carolina with a local service partner.

Global Supply Chain Dependencies

Greenland Technologies Holding Corporation relies on a network of global partners for raw materials and components to support its manufacturing operations, which are largely situated in China through its subsidiary, Zhejiang Zhongchai Machinery Co. The company has previously acknowledged the sensitivity of this area, noting uncertainty regarding the impact of global supply chains on operations. For instance, in 2021, the company entered an agreement with Fujian South China Heavy Machinery Manufacture Co. Ltd. (SOCMA) to leverage its supply chain and technologies for U.S. production efforts.

The sales volume of transmission products for the nine months ended September 30, 2025, reached 123,856 sets, up from 114,075 sets in the prior year period, showing the scale these supply chain partners must support.

Greenland Technologies Holding Corporation (GTEC) - Canvas Business Model: Key Activities

Greenland Technologies Holding Corporation (GTEC)'s key activities center on manufacturing, innovation, and aggressively building out its North American electric vehicle support structure. The core business remains the design, development, and manufacturing of drivetrain systems for material handling machinery, alongside the growing electric industrial vehicle (EV) segment under the HEVI brand.

The company's operational execution in early 2025 demonstrated a strong focus on profitability through cost discipline. This was a deliberate shift toward higher-value, more sophisticated products. For the first quarter of 2025, Greenland Technologies Holding Corporation (GTEC) reported total revenue of $21.68 million, a 4.6% decrease year-over-year, but this was offset by significant margin expansion and cost control. The decline in revenue was primarily attributed to a decrease of approximately $0.84 million in transmission product sales volume for the period ended March 31, 2025.

The manufacturing and sales of transmission and drivetrain systems, which form the legacy base, still contribute the bulk of the business. For the nine months ended September 30, 2025, the revenue from transmission boxes for forklifts was $64.68 million, while revenue from non-forklift electric vehicles was $2.11 million. During this nine-month period, Greenland Technologies Holding Corporation (GTEC) sold an aggregate of 123,856 sets of transmission products.

The commitment to disciplined cost control is a major activity driving financial performance. Management executed a significant reduction in operating expenses in Q1 2025. This activity is quantified as follows:

Research and development (R&D) of new electric vehicle (EV) technologies is a necessary, though sometimes fluctuating, activity. For the first quarter of 2025, the company reported that research and development expenses were significantly down, decreasing by 91.8% compared to the prior year period, which supported the overall operating expense reduction. Still, the strategic pivot toward higher-value products suggests ongoing, albeit cost-managed, innovation efforts.

North American distribution and aggressive dealer network expansion for HEVI is a critical forward-looking activity. This involves transitioning the support structure to meet growing demand for the electric industrial vehicle line. Greenland Technologies Holding Corporation (GTEC) announced a transition to a more aggressive dealer model starting in late 2024 to better capture sales opportunities across the U.S. Key additions to the support network include:

• Addition of Correlli Incorporated to the HEVI Authorized Service Provider (ASP) national network program (announced February 2024).
• Expansion of the ASP national network program to North Carolina with the addition of Truck and Auto Repair (announced April 2024).

This dealer model builds upon the existing Authorized Service Provider (ASP) program, aiming to hold dealers to a higher standard of accountability and service quality.

Greenland Technologies Holding Corporation (GTEC) - Canvas Business Model: Key Resources

The Key Resources for Greenland Technologies Holding Corporation center on its proprietary technology, established manufacturing footprint, and financial stability to support operations and growth in the electric industrial vehicle and drivetrain sectors.

Intellectual property (IP) and patents on drivetrain systems form a critical foundation, stemming from Greenland Technologies Holding Corporation's research and development track record. The company developed an integrated electric drivetrain system designed for electric forklifts, which merges the transmission, driving axle, electric motor, and lithium battery power source into one efficient unit. This innovation is key to supporting OEM forklift manufacturers in developing next-generation electric forklifts with lower development time and cost. Greenland Technologies Holding Corporation continues to invest in innovation in clean energy technology to maintain its competitive edge.

The company's physical assets are strategically split between its U.S. base for final assembly and distribution and its established manufacturing base in China for core components. Here's a look at those key operational sites:

The Baltimore, Maryland, assembly and distribution site for HEVI is a 54,000 square foot industrial electric vehicle assembly site, which formally launched in August 2022. This location supports local services, assembly, and distribution of the electric industrial heavy equipment product line, including the HEVI GEL-5000 all-electric front loader. This U.S. presence is central to Greenland Technologies Holding Corporation's strategy for North American market expansion.

For core components, Greenland Technologies Holding Corporation relies on its manufacturing facilities in China. These state-of-the-art facilities are responsible for producing the company's transmission and drivetrain systems. For instance, the new integrated drivetrain system for electric forklift trucks, which incorporates lithium batteries, is manufactured in the company's advanced facility in China.

Financial resources are vital for sustaining operations and scaling production. Greenland Technologies Holding Corporation reported working capital of approximately $37.29 million as of March 31, 2025. This represented an increase from the approximately $35.11 million reported as of December 31, 2024. The increase was primarily attributed to a rise in accounts receivable.

To give you a fuller picture of the financial context supporting these resources as of early to late 2025, here are some other key figures:

• Gross Margins for the three months ended March 31, 2025, were approximately 30.7%.
• Total operating expenses were reduced by over 50.2% in the first quarter of 2025 compared to the first quarter of 2024, reaching $1.85 million.
• Revenues for the nine months ended September 30, 2025, were $66.80 million.
• The company sold an aggregate of 123,856 sets of transmission products in the nine months ended September 30, 2025.
• Return on Capital Employed (ROCE) was reported at 14% based on trailing twelve months to June 2025 data.

Greenland Technologies Holding Corporation (GTEC) - Canvas Business Model: Value Propositions

High-quality, sophisticated drivetrain components for material handling OEMs.

Greenland Technologies Holding Corporation's core value proposition centers on providing transmission systems and integrated powertrains for material handling machinery, particularly electric forklift trucks. For the nine months ended September 30, 2025, the revenue generated specifically from transmission boxes for forklifts reached $64.68 million out of a total revenue of $66.80 million for that period. The company delivered an aggregate of 123,856 sets of transmission products in those nine months. This focus on sophisticated components is financially validated by the gross margin expansion; for the first quarter of 2025, the gross margin expanded by 580 basis points year-over-year, which management attributed to the shift toward higher value and more sophisticated products.

Zero-emission, quieter electric industrial vehicles (HEVI) for sustainability mandates.

The company, through its HEVI Corp. subsidiary, offers all-electric clean and sustainable alternatives to heavy-emission systems in the industrial heavy equipment industry. While the core revenue remains in traditional components, the non-forklift product line, which includes HEVI, generated revenue of $2.11 million for the nine months ended September 30, 2025. Greenland Technologies Holding Corporation operates a 54,000 square foot industrial electric vehicle assembly site in Baltimore, Maryland, established in August 2022 to support local services and distribution of these electric industrial heavy equipment products.

Integrated drivetrain systems that reduce OEM development time and costs.

The value proposition of integrated systems is reflected in the company's improved operational leverage and cost discipline. Management highlighted a deliberate shift toward higher-value, higher-margin products, which supported significant bottom-line execution. This strategic focus resulted in operating expenses decreasing by 50.2% year-over-year in Q1 2025, dropping to $1.85 million. Consequently, income from operations for Q1 2025 surged by 149.6% year-over-year to $4.81 million. The company distributes its equipment and components in more than 20 countries.

Lower total cost of ownership via reduced maintenance for HEVI equipment.

While direct maintenance savings figures aren't explicitly quantified in recent reports, the financial success of the strategic pivot signals customer acceptance of the total value proposition, which includes lower operational costs. The overall financial performance for the first half of 2025 showed a total revenue of $43.40 million and a net income of $1.80 million. The company's Q3 2025 reported Earnings Per Share (EPS) was $0.33, beating the analyst estimate of $0.29 by 13.79%.

Here's a quick look at the recent revenue segmentation for the nine months ended September 30, 2025:

The shift in profitability is a key indicator of the value being delivered across the portfolio, as shown by the Q1 2025 performance metrics:

• Gross Margin: 30.7%
• Operating Income Growth YoY: 149.6%
• Operating Expense Reduction YoY: 50.2%
• Basic and Diluted EPS: $0.29

Greenland Technologies Holding Corporation (GTEC) - Canvas Business Model: Customer Relationships

You're looking at how Greenland Technologies Holding Corporation (GTEC) manages its connections with the buyers of its drivetrain systems and electric industrial vehicles. It's not one-size-fits-all; the approach clearly splits between its established Chinese manufacturing base and its growing North American EV push.

Dedicated B2B sales and support for major Chinese OEM customers.

The core relationship structure remains heavily weighted toward large Original Equipment Manufacturers (OEMs) in China, who are the primary buyers of the transmission systems. This is where the bulk of the revenue originates. For the nine months ended September 30, 2025, the domestic sales in China accounted for the majority of the company's revenue, hitting $65.49 million. This figure underscores the deep, established B2B partnerships driving the traditional business segment. Support here is integrated, focusing on high-volume, consistent supply chain integration with these major partners.

Here's a quick look at the revenue mix for the nine months ended September 30, 2025, which shows the customer base concentration:

The math shows that forklift transmissions, sold primarily to Chinese OEMs, represent about 96.8% of the total revenue for that nine-month period. That's a very focused customer relationship.

Dealer-supported sales model for HEVI end-users in North America.

For the HEVI electric industrial vehicles in North America, GTEC uses a channel strategy. Back in October 2024, HEVI Corp., the wholly owned subsidiary, announced a transition to a more aggressive dealer model to handle strong customer demand across the U.S. This shift means GTEC relies on these dealers to interface directly with the end-users. The goal is to capture increased revenue opportunities by having local, motivated partners selling the new H65L and H55L electric loaders. This model is designed to scale sales faster than a direct approach might allow in a new market.

Authorized Service Provider (ASP) network for post-sale support and warranty.

The dealer model is explicitly built upon the foundation of the existing Authorized Service Provider (ASP) program. This is crucial for maintaining customer trust in new, high-value electric equipment. The dealers, under the new structure, must provide comprehensive warranty coverage and knowledgeable support. This network handles the post-sale relationship, which is key for adoption in construction and industrial settings where uptime matters. You want to see the number of certified ASPs growing steadily, though I don't have a specific count for late 2025.

• Dealers get direct access to Original Equipment Manufacturer (OEM) parts.
• HEVI holds dealers to a higher accountability standard.
• This supports the end-to-end customer experience.

Direct engagement with end-users in logistics, construction, and agriculture.

While the sales execution is channeled through dealers, the product development and strategic alignment require direct engagement with the end-user industries. GTEC's products-drivetrain systems and HEVI equipment-target the logistics, construction, and agriculture sectors. Direct engagement, likely led by the HEVI team, involves gathering feedback on performance metrics like zero emissions capability and reduced maintenance costs compared to diesel counterparts. This feedback loop informs future product iterations, ensuring the dealer network is selling equipment that solves real-world problems for these specific industrial customers. Finance: draft 13-week cash view by Friday.

Greenland Technologies Holding Corporation (GTEC) - Canvas Business Model: Channels

You're looking at how Greenland Technologies Holding Corporation moves its products to the customer as of late 2025. The channels are clearly split between the established Chinese drivetrain business and the newer U.S.-focused electric vehicle segment.

The core business, selling transmission products to Chinese forklift manufacturers (OEMs), is overwhelmingly dominant based on the latest figures. For the nine months ended September 30, 2025, domestic sales in China accounted for $65.49 million of the total $66.80 million in revenue. This strongly suggests a direct sales force interaction with these large Chinese original equipment manufacturers.

The North American channel is centered on the HEVI electric industrial vehicles subsidiary. Following a transition to a more aggressive dealer model announced in October 2024, the focus is on building out this network to serve the U.S. market. International sales for the nine-month period were only $1.31 million, which captures the HEVI segment's current scale relative to the core business.

The physical infrastructure supporting the U.S. channel is the Baltimore, MD, assembly and distribution center. While specific capacity or utilization numbers for this center as of late 2025 aren't public, its existence supports the distribution of HEVI products into the U.S. market, which is a key strategic focus following partnerships like the one with Lonking Holdings Limited announced in July 2024.

For HEVI product visibility, the strategy relies on an online presence and participation in trade shows. This is the primary way the company builds brand awareness for its electric industrial vehicles outside of direct dealer interactions. The company is committed to innovation, with Research and Development expenses rising 28.0% to about $0.56 million for Q3 2025, which supports the product line being promoted through these visibility channels.

Here's a quick look at the revenue breakdown that dictates the channel focus for the nine months ended September 30, 2025:

The company moved 123,856 sets of transmission products in that nine-month period.

The HEVI segment is clearly in a growth and build-out phase for its U.S. channel strategy. You can see the difference in scale when comparing the Q3 2025 revenue of $23.4 million to the nine-month total.

The sales force structure for the core business involves:

• Direct engagement with Chinese forklift OEMs.
• Focus on higher-value, more sophisticated products, which drove gross margin expansion to 32.4% in Q3 2025.

For HEVI, the channel strategy relies on:

• An aggressive dealer model for U.S. sales and service.
• Direct dealer access to Original Equipment Manufacturer parts.
• Focus on new models like the H65L and H55L front wheel loaders.

Finance: draft 13-week cash view by Friday.

Greenland Technologies Holding Corporation (GTEC) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Greenland Technologies Holding Corporation as of late 2025, which is clearly bifurcated between the established transmission business in China and the emerging electric vehicle segment, HEVI, primarily targeting North America.

The primary customer base for the core transmission business remains Chinese forklift and material handling Original Equipment Manufacturers (OEMs). For the first quarter ended March 31, 2025, Greenland Technologies Holding Corporation sold an aggregate of 38,734 sets of transmission products directly to more than 100 forklift manufacturers in China. This segment is the volume driver for the company's drivetrain systems, which are key components for 1-ton to 15-ton forklift trucks used in manufacturing and logistic applications.

A key strategic focus for Greenland Technologies Holding Corporation is serving customers seeking higher-value, higher-margin hydraulic transmission products. This shift is evident in the financial results; for the first quarter of 2025, the gross margin expanded by 580 basis points to 30.7%, which the company attributed to the focus on these more sophisticated products.

The North American industrial end-users for the HEVI electric industrial vehicle line include construction, logistics, and agriculture sectors. Greenland Technologies Holding Corporation is actively expanding this segment, having established an assembly facility outside Baltimore, Maryland, to better serve the U.S. market. This subsidiary focuses on electric heavy equipment like the H65L and H55L electric wheel loaders.

A significant risk factor within the customer base is the high concentration in the legacy business. Investors should note that in the first quarter of 2025, the top five customers accounted for 41.27% of revenues. The loss of any of these key accounts could materially hurt GTEC's volume.

Here is a breakdown of the revenue mix based on the nine months ended September 30, 2025, which shows the dominance of the core transmission business:

The concentration risk is further detailed by the largest individual customers in Q1 2025:

• Single largest customer (Hangcha Group) accounted for 17.77% of Q1 2025 total revenues.
• Second largest customer (Longgong Forklift Truck) accounted for 9.48% of Q1 2025 total revenues.
• Top five customers represented 41.27% of Q1 2025 revenues.

For the first quarter of 2025, the revenue was approximately $21.68 million. The net income for that same quarter was about $4.56 million.

Greenland Technologies Holding Corporation (GTEC) - Canvas Business Model: Cost Structure

You're looking at the cost side of Greenland Technologies Holding Corporation's (GTEC) operations as of late 2025. The numbers show a clear push for profitability through cost control, even as revenue mix shifts.

The Cost of Goods Sold (COGS) is best viewed over the longer nine-month period ending September 30, 2025, to capture a fuller picture of manufacturing costs for their drivetrain systems. For the nine months ended September 30, 2025, total revenue was $66.8 million, and the Gross Profit was $19.99 million.

Here's the quick math for the cost of revenue (COGS) based on that period:

Breaking down the revenue sources helps understand where these costs are generated. The forklift transmission boxes remain the dominant revenue driver.

• Revenue from transmission boxes for forklifts (9M 2025): $64.68 million.
• Revenue from transmission boxes for non-forklift EVs (9M 2025): $2.11 million.

Investment in Research and Development (R&D) is a critical cost component, especially given the focus on EV technology. For the first quarter of 2025, the company reported a significant pullback in this area, which management noted as a potential concern for future innovation.

The data shows R&D expenses were significantly down by 91.8% in Q1 2025 compared to the prior year period. This sharp reduction contributed to the overall drop in operating expenses for the quarter.

Sales, General, and Administrative (SG&A) expenses, along with R&D, fall under the broader category of Operating Expenses, which saw a deliberate and substantial reduction in Q1 2025. Total operating expenses for Q1 2025 were $1.85 million. This figure represents a 50.2% reduction year-over-year from the $3.72 million reported in Q1 2024. This tightening of the cost structure helped push Income from Operations up by 149.6% to $4.81 million in Q1 2025, despite a 4.6% revenue decline.

The costs associated with the North American dealer and service network expansion are more historical in the latest filings, reflecting plans set in motion earlier. Greenland Technologies Holding Corporation announced a planned major U.S. manufacturing expansion back in March 2021, intending to establish a footprint and increase worldwide capacity, possibly with a new facility up to 50,000 square feet on the East Coast. While specific 2025 capital expenditure figures for this network are not detailed in the Q3 2025 10-Q, the strategic shift toward a dealer model was mentioned in late 2024, suggesting ongoing operational costs related to establishing and supporting that network.

To be fair, the cost control in Q1 2025 was dramatic:

• Operating Expenses (Q1 2025): $1.85 million.
• Year-over-Year Reduction: 50.2%.
• R&D Expense Change (Q1 2025): Down 91.8%.

Finance: draft 13-week cash view by Friday.

Greenland Technologies Holding Corporation (GTEC) - Canvas Business Model: Revenue Streams

You're looking at how Greenland Technologies Holding Corporation (GTEC) brings in its money as of late 2025. The revenue streams are heavily concentrated in their core component business, but the newer electric vehicle segment is definitely a factor to watch.

The primary engine for revenue remains the sale of transmission and drivetrain systems. For the nine months ended September 30, 2025, this segment generated a solid $64.68 million. This figure is based on shipping an aggregate of 123,856 sets of transmission products during that nine-month period. Honestly, that volume shows the ongoing demand for their core components in the material handling space.

The secondary, but growing, stream involves the sale of all-electric industrial vehicles (HEVI) and related products. This is captured within the non-forklift product category. For the same nine months ending September 30, 2025, revenue from these non-forklift products totaled $2.11 million. The company has a forecast that suggests the full-year 2025 revenue should land at approximately $140 million, so you see a significant portion of that expected revenue is still to be realized in the final quarter.

Here's a quick look at the revenue breakdown for the first nine months of 2025, which gives you a clearer picture of where the money is actually coming from:

Geographically, the revenue concentration is quite clear, which is an important risk factor to note. For the nine months ended September 30, 2025, the split was:

• Domestic sales in China accounted for $65.49 million.
• International sales contributed $1.31 million.

You can see that the vast majority of the reported revenue is tied to the Chinese domestic market. The total sales for the nine months ended September 30, 2025, reached $66.80 million, which is an increase from the $64.57 million recorded in the same period of 2024. Finance: draft 13-week cash view by Friday.