Greenland Technologies Holding Corp. Revenue Disclosure
NOTE 14 – DEFERRED REVENUE
Deferred revenue is summarized as follow:
| As of | ||||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Subsidy | 1,083,784 | 1,263,180 | ||||||
| Total | $ | 1,083,784 | $ | 1,263,180 | ||||
Changes in the deferred revenue are as follows:
For the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Beginning balance | $ | 1,263,180 | $ | 1,529,831 | ||||
| Recognized as revenue during the year | (228,357 | ) | (228,097 | ) | ||||
| Effect of foreign exchange change | 48,961 | (38,554 | ) | |||||
| Ending balance | $ | 1,083,784 | $ | 1,263,180 | ||||
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 December 31, 2025, grant income decreased by $0.18 million, as compared to December 31, 2024. The change was mainly due to timing of incurring qualifying expenses.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Apr 16, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Apr 3, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.