NOTE 18 – EARNINGS PER SHARE

 

The Company reports earnings per share in accordance with the provisions of the FASB’s related accounting standard. This standard requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution, but includes vested restricted stocks and is computed by dividing income available to shareholders by the weighted average ordinary shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares.

 

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

 

   Years ended
December 31,
 
   2025   2024 
Net income attributable to the Greenland Technologies Holding Corporation and subsidiaries  $4,931,543   $14,066,972 
Weighted average basic and diluted computation shares outstanding:          
Weighted average shares used in basic computation   16,145,011    13,594,530 
Diluted effect of stock options and warrants   
    
 
Weighted average shares used in diluted computation   16,145,011    13,594,530 
Basic and diluted net income per share  $0.31   $1.03 

 

For the years ended December 31, 2025 and 2024, 4,530,000 shares underlying outstanding warrants to an investor were excluded from the calculation of diluted loss per share as the warrants were anti-dilutive. The exercise price of the warrants is higher than the average price of ordinary shares during the periods, so the warrants is “out-of-the-money” and result in an anti-dilutive effect on earnings per share.

Historical Timeline

Fiscal YearFiled
2025Mar 23, 2026Showing above
2024Mar 26, 2025
2023Apr 16, 2024
2022Mar 31, 2023
2021Mar 31, 2022
2020Mar 31, 2021
2019Apr 3, 2020

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.