Greenland Technologies Holding Corporation

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Greenland Technologies' second quarter of 2021 earnings conference call. Currently, all participants are in the listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the call over to Julia Kyon, Managing Director of the Blue Shred Group Asia. Ms. Kyon, please proceed.

Thank you, Operator, and hello, everyone. Welcome to Greenland Tech Knowledge second quarter of 2021 earnings conference call. Joining us today are Mr. Raymond Huang, Chief Executive Officer, and Mr. Jing Jing, Chief Financial Officer. We released the result early today. The press release is available on the company's IR website as well as from the Newswire services. A replay of this call will also be available on our IR website in a few hours. Before we continue, please note that today's discussions were content forward-looking statements made under the Steve Harper provisions of the U.S. Privacy Security Litigation Reform Act of 1997. forward-looking statement involves inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filing with SEC. The company does not assume any obligation to update any forward-looking statement except as required under applicable law. Also, please note that unless otherwise it stays, all the figures mentioned during this conference call are in U.S. dollars. With that, let me now turn the call over to our CEO, Mr. Raymond Huang. Go ahead, Mr. Huang.

Thank you very much, Julia. And good morning, everyone. Thank you so much for joining us today. So this call is a continuation of our commitment to provide greater communication and transparency into our business for shareholders, investors, and interested parties. And since this is our second ever earnings call, I just wanted to start with a quick overview of our business. So founded in 2006, Greenland Technologies Holding Corporation is the market leader in the development and manufacture of transmissions and drivetrain components for material handling vehicles with a focus on forklift trucks. Operating out of a 650,000-square-foot manufacturing facility in Shaoxing, China, we are the largest independent drivetrain supplier for forklift OEMs in China, with over 40% market share and a clientele that includes all of the Tier 1 forklift manufacturers, such as Lindy, Heli, Hansa, and Dusan, just to name a few. Now, with a focus and commitment on developing high-quality, innovative products we announced the expansion of our product line with our own brand of all electric industrial vehicles including lithium powered electric forklifts and industrial sized electric front loaders and excavators for commercial sale by the end of this year and here at Greenland we have a proven history of strong fundamentals and consistent positive profit generation and once again we have achieved a record quarter with $28.2 million in revenue and 42,046 transmissions sold and delivered, representing a 70.1% and 43.6% year-over-year growth respectively. This is the highest revenue and transmission sold within a single quarter in the history of our company. And to all of the hardworking individuals at Greenland, Thank you very much for an amazing job and continuing to strive for the success of the company. These results are attributed to three key factors. Strong global growth for forklifts and other material handling vehicles, our established supply chain, and improved efficiency with our production facility. Now, first, Strong growth in the global logistics and warehousing industries have continued to drive sales of forklifts, trucks, and other material handling vehicles. Particularly in markets outside of China, we have been seeing significant momentum in the second quarter. Some of our clients have reported their vehicle exports outside of China have nearly doubled in the second quarter, which is a positive indicator to our business. Secondly, This demand requires the production capability and supply chain to support the growth, and our teams have been working hard to overcome any volume challenges to continue to deliver for our clients. And because of our industry reputation and long-term relationships with our suppliers, we have mitigated supply chain impacts that others in the industry have struggled throughout this year with. And as a result, we have produced and delivered a record number of drivetrains within a single quarter. And lastly, our production facility has benefited with the increased sales volume. Our 650,000 square foot facility has the capability to support the increased production needs, and the increased production has led to improved economies of scale within our site. This resulted in an increase to our gross margins by 2.8% year over year and represents a significant milestone in our mission for operational excellence as we continue to deliver for our clients and shareholders. And this is during a time factoring in an increase in raw material costs and other increases in supply chain expenses. Now, as our Electric industrial vehicles. We announced our own line of lithium-powered electrical forklifts known as the GEF series. There will be three models initially with rated load capabilities ranging from 1.8 ton to 3.5 ton. These vehicles utilize our integrated drivetrain specifically designed to support lithium-powered forklifts. Now the first batch has already completed production They're loaded into containers and ready to be shipped over to the United States for sale. They will arrive by next month and be available for commercial sale out to the East Coast region of the United States. Moving on to our GEL1800, the electric wheeled front loader. This has also completed production. It's finalizing the last steps of quality assurance before beginning preparations for shipments over to the United States. Our investor deck does include images taken of the GEL1800 during assembly, especially showcasing our 141-kilowatt lithium battery that is the power horse behind this unit. It will arrive in October of this year, and it will be followed shortly by the GEX8000, which is our 8-ton electric excavator. That will be arriving shortly by the end of this year in December. Production on the excavator is progressing as planned and we're excited to showcase both of these vehicles to the North American markets when they arrive. Our strategy is to have these vehicles assembled in the United States at modest assembly facilities. In addition to assembly, these sites will also offer sales, distribution, and support to the local area. We are still in discussions with various locations and states and have not yet decided on the final location for our first assembly site. However, our list of potential locations continues to get shorter and we have been pleased with the cooperation and support from state and local governments as we continue our search. And to finance the expansion of our business and our new line of electric industrial vehicles, Greenland recently filed an S3 registration of $155 million in shares and worked with Aegis Capital to raise about $7 million in a follow-on offering. These funds are allocated to finance the establishment of our first assembly site, marketing, product development, and other business expenses. Now, developing innovative solutions to meet market trends is a core element of our culture at Greenland. and we are happy to be investing more in our research and development efforts. In June, we entered a strategic research partnership with Zhongcai Heavy Industry Machinery to develop new systems in lithium-powered electric forklifts that will improve the efficiency, operation time, and power of these vehicles. And this R&D will lead to the next stage of lithium-powered forklifts and enhance our efforts to become a market leader in the North American region. And this record quarter continues to showcase the strength of our business, which will be bolstered as we expand to the global market with our new product line of electric industrial vehicles. I'm extremely proud of our results for the first half of the year. There is a lot to be excited about here at Greenland Technologies. And I wish to thank our team members and partners working hard every day to deliver results. And to our investors and shareholders for their faith and support in our company's success. Now with that, let me just turn the call over to our CFO, Mr. Jingjing, who will provide more insight into our financial performance. JJ, go ahead.