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spk06: 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.
spk05: 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.
spk02: 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.
spk04: Thank you, Raymond. And thank you, everyone, for joining our call today. I will now go over our key financial results for the second quarter of 2021. For the full details of our financial results, please refer to our earnings press release. Our stellar financial performance in the second quarter has defined our market leading position to counter to growing demand for high quality transmission products and our ability to navigate the supply chain challenges. The number of our transmission products sold increased 48.5% to 42,046 units from 28,305 units in the second quarter of 2020. We generate a record revenue of $28.2 million, an increase of 70.1% year over year. The increase was primarily due to the significant increase in our sales volume followed by the continually increasing demand in 2021. In addition, we successfully captured the opportunity of boosting our suppliers and revenue generation while some of our peers met challenges in handling material shortage and were unable to deliver. The cost of goods sold was $22.5 million, an increase of 64.3% from $13.7 million in the second quarter of 2020. The increase was primarily due to the increased volume of the transmission product sold and the increase in raw material prices. Compared to the 70.1% of the revenue growth, we generate a positive operating leverage of 5.8%. We were content with these results, and the material shortage and supply chain constraints. Driven by higher sales volume and the continual focus in cost management, Our profitability was increased. Gross profit was 5.7 million U.S. dollars, an increase of 98% from 2.9 million U.S. dollars in the second quarter of 2020. Our gross margin also increased by 280 basis points year-over-year to 20.2% as the result of the product mixed towards to the higher volume. Most of skated products like hydration, of transmission products. Material cost was well managed through strategic partnership and long-term sustainable demand. The total operating expenses were 2.3 million U.S. dollars up 84.1% from 1.2 million U.S. dollars in the second quarter of 2020. Our operating expenses as a percentage of total revenue was 8%. up only 6.0 percentage points, compared to the 7.4% in the second quarter of 2020, primarily due to the increase in sales and the labor cost year-over-year. The selling expense in the second quarter was $0.5 million, $02 million higher than the prior year. The general and administrative expenses were $0.75 million. up 69.6% from the second quarter of 2020 due to the expiration of the Chinese government policy related to the COVID-19 relief. Moreover, as we continue to increase investment in the new product development, e.g. commercial EV, the research and development expenses rose 111.4% year-over-year to $1 million in the second quarter of 2020. which is the 3.5% of the total revenue that we generate. We are further advancing our products and solution in the pursuit of the further growth in electrification area and convincing our market leadership in the transmission and the driver transactionals. Fueled by the rapid growth in the revenue, we were able to generate a record net income of 3.2 million US dollars An increase of 114.2% from the previous year. Last but not least, let me update our financial guidance for the 2021. We reached our revenue guidance range to $19 million to $100 million from the original range of $80 million to $19 million. The updated guidance range represents an increase of 35% to 49% year-over-year. So that concludes our propeller remarks. So let's open the call for questions. Operator, please go ahead.
spk06: As a reminder, to ask a question, you will need to press star 1 on your telephone. To withdraw your question, press the pound or hash key. Once again, if you wish to ask a question, please press star 1 on your telephone. Your first question comes from the line of Romel Dionisha of AJ's Capital. Please ask your question.
spk03: Good morning. Thanks for taking my question. I just was hoping to delve a little more into the core growth, the core revenue growth in the quarter. I mean, the 70% growth, it's obviously stellar performance. I see your comments about, you know, improvement in the market and some of the difficulties that your peers face, but I wonder, could you delve into, you know, how much of this is also market share gains? You know, it seems like you're really driving significant outperformance relative to the market in China. I wonder if you could just provide a little more color on what's really driving that. Is it new products? Is it getting deeper with existing customers? Is it new customers? Just maybe some additional color there, please. Thanks.
spk02: Yes, of course. So from a market share growth, though we have experienced a lot of success during the global pandemic, which is definitely something that's always unfortunate to say, success during a pandemic, However, it was a very difficult time for the industry from both a supply standpoint, a labor standpoint to be able to deliver for clients. However, we have been able to during that time period, and that did attribute to our growth and increase in sales. However, a lot of our gross margin increases is more attributed to the efficiencies that we are gaining from a manufacturing production standpoint through economies of scale, but also an increase in adoption for some of our newer component products like our integrated drivetrain that produce a higher margin to our business. And this fails through existing clientele that we already have on the books as they look to electrify their fleet. So that's what I would attribute the increase to growth margin towards. JJ, do you want to add anything else to that?
spk04: Yeah, and in addition, you can look at our account receivable for some of the various new products. We also softened a little bit our account receivable for them. So, yeah, that also gives us the boost for the revenue.
spk03: Excuse me, sorry.
spk04: Yeah, so I think that's one of the other reasons to take over the growth that we are looking for. Because during the COVID pandemic, domestically in China, I think the strong opposition of the Chinese government to put over as we locate the supply chain. So we are doing good and fine to deliver the products. We have experienced some other competitors that are able to deliver the products to their customer. But I think one of the attribution to our growth is we secure the supply chain and we gather what we deliver. And also we soften our little bit for the new products.
spk03: Okay. And maybe just a quick follow-up. Obviously we're seeing raw material prices rise across the board. To what extent are you able to pass through some price increases as a result of those rising raw material prices? Thanks.
spk02: Of course. So, yes, raw materials, especially in steel that directly impacts our business, has been peaking at the start of this year. And it's a short-term spike. We're already seeing prices start to normalize. However, that was a difficult time period. And we actually followed a philosophy that we were actually not going to pass that expense directly to our clients. We did expect it to be short-term. Our assumptions there were appropriate. And this actually helped support our clientele through this time, which really helped to build long-term relationships. This is a very key attribute to the success of our company and how we are able to attract and maintain Tier 1 OEM clients. We work with them and support them through difficult short-term hurdles in the markets and in the economy. So we are actually able to absorb it and the success and results that we actually are posting today already factors that increase to our expenses. which either further showcases the strength of our results.
spk03: Yeah, it certainly does. Okay, thanks very much. Congratulations on the quarter.
spk04: Well, good. Thank you.
spk06: Once again, if you wish to ask a question, please press star 1 on your telephone. Your next question comes from the line of Carl Winfield.
spk01: First, I'd like to congratulate the company on its outstanding performance financially last year during the COVID crisis in 2020. Going forward in your export market into the United States, do you think that the interest in the United States for your products will justify your forecast for 2021 and 2022?
spk02: Yes, absolutely. So our expansion into the United States with our electric industrial vehicles are beginning this year. We have the vehicles arriving in Q3, Q4, and we will begin to initiate commercial sales. But Full disclosure, it's going to take a little bit of time for reasonable sales to begin. We still have to create and establish our assembly site. It's going to take some time to develop our brand and brand awareness into our product as well, especially because we are a pioneer in this space of industrial-sized, all-electric construction vehicles. There's no other commercial unit available in the market at this time. And this is a market that's historically been dominated by internal combustion diesel engines. So there's definitely a consumer adaption that we need to pioneer drive and spearhead. So I don't expect to see true reasonable sales for our construction vehicles until probably the Q2 to Q3 timeframe of 2022. So our guidance for 2021 is primarily attributed to our core business of drivetrain and transmission components, but it will be supported by moderate vehicle sales, particularly in our lithium-based forklifts. We anticipate those vehicles will sell much faster Because electric forklifts, the mentality is already established, even in the United States. Lead-acid battery forklifts have been around since the 90s, and their market share is beginning to rise in the overall sale of forklifts in the United States. And lithium is a far superior product compared to a lead-acid battery in terms of maintenance, ease of use, and power. as long as it's priced appropriately. So just a few weeks ago, we were very happy to announce our sale price for our three models. And they essentially range from $24,000 to $25,000, with rated loads from 1.8 tons to 3.5 tons. And this range captures not just the majority of forklift sizes used and sold in warehouses and manufacturing facilities today but also this price is comparable to the purchase of a lead acid based vehicle so from a business standpoint looking to add on to their forklift fleet or looking to begin converting to electric vehicles and capture potential state, local, and federal electric incentives for their business, it becomes a no-brainer.
spk01: My second question is with regards to the transmission production, doesn't your electric cars use a direct drive as opposed to gears and stuff?
spk02: So our electric forklifts utilize our integrated drivetrain system, which incorporates both the electric motor, the driving axle, and the speed reduction gearbox all together in a single package. It's very easy to incorporate. So it still utilizes gears and driving axle with the motor for its power, and specifically designed to support lithium batteries-powered forklifts. So that is still included.
spk01: Okay. Thank you very much. And like I said again, congratulations on your performance last year and going forward.
spk02: Thank you very much. Thank you.
spk06: Your next question comes from the line FGHL of Amazon. Please ask your question.
spk08: Hello. Congratulations for your business. I think that your business is a very good idea to make everything electronic. I wonder whether you plan to ship the product eventually to Europe because the whole world needs electric folks.
spk02: Yes, especially after we announced our products, particularly the electric front loaders and excavators, we announced it to the North American market. However, the beauty of the Internet and information is the whole world saw it right away. And we actually began to receive a lot of strong interest from European countries like Russia, Oslo, Romania, Germany, Italy, and even other countries like Australia, Morocco, and Africa, and some South American countries as well. So this showcased to us that the need and desire for these vehicles is present in the global market, and the timing is now, especially as governments begin to instill new emission targets for their countries, for their businesses and industries. So right now, our focus is going to be on the North American market. Focus is key and critical for the success of a business. That's always been our philosophy and our focus is going to be on North America. However, I will say based on the strong interest, we are having conversations and we are keeping a very close ear on opportunities available in other markets, such as in Europe.
spk08: Yes. When do you plan? I think just in North America, just in America, there are a lot of new clients, a lot of clients would be interested in your book. Do you have any plans that you put to Amazon?
spk02: We have not spoken to Amazon yet, but I would love to initiate those conversations.
spk08: It's a very good idea. I think so too. Thank you. Thank you.
spk06: Once again, if you wish to ask a question, please press star. and the number one on your telephone feedback. Your next question comes from the line of GHL of Amazon. Please ask your question.
spk08: Hi, I have another question. How do you prevent other competitors to enter this field and win against them?
spk02: Yes, the key thing is in the manufacturing and production. It takes a high level of skill and expertise to be able to develop electric industrial vehicles of this size, which is why there's no commercially available vehicles today. The only other potential vehicles that exist on the market are a Volvo, Caterpillar, and Komatsu, they do have electric versions of their vehicles, primarily excavators. However, these companies have no true incentive to actually make these vehicles commercially available at this time because they are the market leaders in their space today. Caterpillar, for example, has over $2 billion backlog for their internal combustion vehicles. It's huge, which showcases the opportunity. However, because they're the market leader, if they were to sell an electric industrial vehicle, that simply becomes one less internal combustion vehicle that they sell. It simply cannibalizes their business. And right now, their business model is not specifically catered towards electrification. They rely heavily on their dealership distribution system, and that system is supported heavily by long-term maintenance contracts to keep these vehicles running. Electric industrial vehicles have very little maintenance, so this is a whole revenue stream that is not going to support the dealership model, which is why we here at Greenland As we approach the United States, we're actually going to be doing direct sales to consumers. We're not going to follow the traditional dealership model because the incentives and motivations are not there for them, and it would become a linchpin for us, for our business. But that's the competitive landscape. Right now, there's very, very little competitors out there with no incentive to truly enter the market, and anyone else are very small-scale competitors producing small-scale vehicles that are under one ton in total weight size, so really utilized for small residential applications and cannot support the industrial service.
spk08: I think I read an article that you also do electrical vehicles. It's like you're starting to do that, right? Is that true? Because I do think your interest rate is a very good idea. But if you divert your interest in other fields, you may lose the profit. And the real deal can make a big profit, which is electrical work lift.
spk02: Yep. And you're right. Focus is key, which is why, no, we're not exploring any type of product in the electrical passenger car market or anything of that nature. Our focus is just on industrial vehicles because that's our expertise. We're the market leader for drivetrain systems for material handling vehicles. So from a focus standpoint, we operate in our expertise.
spk08: I wish you success. It's a very good idea. Thank you very much.
spk06: Your next question comes from the line of Wayne Lee of VCL. Please ask your question.
spk04: Okay, thank you for taking my question. I would like to ask, what's your manufacturer plan for electric motor and excavator? I mean, if they are in the U.S., what will be the expected margin?
spk02: I'm terribly sorry, Wade. I only caught the last end of your question asking about the margin, but I missed the first part. I apologize.
spk04: Could you repeat it? Okay. What was your manufacturer plan for electric-loaded and excavated materials? I mean, this is the first question to ask. And the second question is, if they are assembled in the United States, and what will be the expected margin? Are you asking for the site? Like, for the building site of the electronic vehicle? Yes. Okay. Raymond, go ahead.
spk02: So, yes. So we will be establishing a modest assembly site for the final assembly, quality assurance, and distribution of these electrical vehicles. Because we are going to continue to rely on our strength in manufacturing capabilities and supply chains overseas in China, the parts are going to be created there. We're going to package them together in semi-knockdown kits or SKD kits. and then ship them over to these assembly sites for that final assembly. And because of that, we only need assembly sites of modest size. So we're talking about 40,000 to 60,000 square feet in size. And that's where these vehicles are going to be assembled on U.S. soil with U.S. hands. Now, in regarding the price and margins, we have not yet announced the price of either the GEL1800 or the GEX8000, the front loader and the excavator. However, I can say that the initial purchase price will be comparable to the legacy combustion engine vehicles today. It is important to note that our electric vehicles require significantly less maintenance than an internal combustion vehicle, and the price of electricity to operate the vehicle is a fraction of the price of diesel fuel required. So the return on investment for our vehicles becomes extremely attractive to a business or end consumer. And let's not forget about the potential opportunities in government incentives for electric vehicle products. All these considered, Greenland vehicles will be offering a significant value to our clients.
spk04: Thank you very much. And another question is that, Will you build your own distribution channel or leverage the existing dealers?
spk02: We will be building our own distribution channel. We will not be relying on the dealership network. We just have no confidence in the dealers having the right incentives and motivations to push our products, especially because right now the industry is in entirely dominated by internal combustion vehicles that these dealers are selling today. So I use this example all the time. If a dealer has 200 diesel excavators on their lot and five electric, and a customer comes in saying, hey, which vehicle should I buy for my business? The dealer's going to point to the diesel engine because they have so much work. And also it has higher downstream revenue. for that dealership. So our vehicles would not move. We're not very confident they would move. So because of that, we will be establishing our own distribution network. And to support it, we've already opened a sales and marketing office here in the east coast of the United States. It's currently based out of New Jersey. And it's just the start. For each of our assembly sites that we put up, because they're modest in size, because they're only about 40,000 to 60,000, we actually plan to spread our outreach to these markets utilizing those sites. So they would not be supporting just assembly, but also sales and support as well to our clients. Okay, thank you very much.
spk06: Once again, if you wish to ask a question, please press star and the number one on your telephone keypad. Your next question comes from the line of Wei-Chi Liu of Valuable Capital Limb. Please ask your question. For the line of Wei-Chi Liu, your line is open. Please ask your question.
spk07: Oh, sorry. Hi. Can you hear me right now?
spk02: Yes, we can.
spk07: Oh, yeah. So we have noticed that the company has started pre-booking for the GEL1800 electric loader and the GEX electric excavator in June. So can you please share with us how many EVs have been pre-booked and what's the market response so far?
spk02: Since we started the pre-booking service right at the end of the second quarter, It would not be appropriate to share the results of a few days. However, I can say that when the pre-booking service launched, we received strong interest and inquiry into the vehicles. However, the number of commitments has been low. Now, because this is radically new technology and a product that has historically been internal combustion, we expected there would be some reservation in the markets. And we are confident that we can strongly and quickly overcome these concerns once the vehicles arrive on U.S. soil and prospects can get inside and experience all of the advantages that the electric will offer firsthand, such as the instant torque from the electric motor, the quiet operation of the vehicle, and the zero operating emissions. So we expect that we will be winning hearts and minds with this product line once the land on U.S. soil and people can interact with it firsthand, and we expect an increase in our pre-building service at that time.
spk07: Thank you. And my second question is, when do you expect to scale the EVs in reasonable scale? And we'll share with us the sales metrics.
spk02: Great question. So we will likely begin sharing sales metrics in the fourth quarter of this year. But reasonable sales for these products we expect to truly begin in the second to third quarter once our first assembly site goes live because from that site we can begin pushing sales and service very heavily. And that is going to be the true milestone to enter that market and initiate realistic sales. That's when we can expect to start winning fleet contracts, which is definitely the target for these vehicles.
spk07: Thank you for the answers. The third question I have is what is the market interest and the demand of electric forklifts?
spk02: The demand for electric forklifts is high. The one hesitation that we were hearing from our potential prospects and interested parties was concerns with the price. especially in the North American market right now, because a lithium-powered forklift right around the 2.5 ton rated load range, which is the most common size available used in warehousing today, tops at around $70,000, because typically the battery and charger are sold separately from the vehicle itself, and the vehicles are typically sold sold at a significant upset. Now the reason for that, it's very similar to the internal combustion scenario and environment with market leaders like Caterpillar and Volvo. Here in the United States, the market leader is the Raymond brand of forklifts. It's Toyota's brand. They have market share of over 20% of all forklifts sold and about 70% of all electric forklifts sold. And these electric forklifts are utilizing the lead acid power system. Now, as the market leader, they are introducing the lithium-powered forklift, but it's done at a significant upscale. So right now, the only real options that consumers have is either they can buy a lead acid forklift for around $30,000 or a lithium battery forklift for around $70,000. and that's very difficult financially for business to support that transition but that's where we come in because we do not have a legacy product line to cannibalize so we're focused specifically on lithium powered forklifts and they are priced at a level that's comparable to the lead acid models available today and that's how we will be able to enter the market and capture market share because the return on investment for our vehicles, especially compared to a lead acid or internal combustion system, is going to be favorable for our vehicles.
spk07: Okay, so for the electric forklift, will you build up your own distribution channels or leverage existing dealers?
spk02: We are going to build our own line, our own distribution channels for the forklifts as well as the loaders and excavators.
spk07: And how many stores you would need and what will be the working capital required for building up the inventory and hiring the salesperson?
spk02: The working capital for each of these assembly sites range from between 3 to 5 million dollars. to establish inventories and get it fully staffed. And we expect operating expenses of about 1 to 2 million for the site. That does not incorporate the parts coming in and out for the end product. Now, for this model, we are going to be exploring as many locally sourced critical components directly in the United States as possible to be able to mitigate any type of financial burden regarding any trade tariffs to help improve our profit margins as well. So we are going to initially look for U.S. domestic suppliers of machinery attachments, tires, and lithium batteries needed by our And we're going to continue to explore these opportunities to source as many components domestically as we can and where it makes sense. And these partnerships are going to factor in our network as we begin to expand it further. We will be focusing primarily on the East Coast at this time in terms of our expansion as we explore setting up new assembly sites. Actually, one additional comment as well about your question, very important that I wanted to add, is for our first assembly site. So this year, Greenland Technologies, we actually worked with Aegis Capital to raise about $7 million in a follow-on offering, and these funds are going to support the establishment of our first assembly site. So from a current working capital standpoint, we are well equipped to be able to develop that and get that up and ready as fast as possible.
spk04: Yeah, I think she lost. She lost the connections.
spk06: Thank you. Seeing no more questions in the queue, let me turn the call back to Mr. Wang for closing remarks.
spk02: Wonderful. Thank you. So everyone, just as a quick recap, I am extremely proud of everything that's been done at Greenland Technologies by our team of hardworking individuals dedicated to the success of our business, not just for us but for our shareholders and our investors and for all the support across the board. This has been a record first year in the history of our company and I'm extremely optimistic with what the future is going to hold, especially because we have been able to deliver these results during a very difficult and challenging time, but we've been able to meet and overcome all of these challenges. And this is bolstered by the official launch of a new product line of electric industrial vehicles, which I am extremely excited about and cannot wait for them to arrive on U.S. soil. So then we can begin sharing these products with the local communities and be able to grow that business channel. So this is a milestone stage right now for business. We're right on the doorstep of the next evolution to Greenland Technologies. And I wanted to thank all of you for being here to learn more about our company, for asking wonderful questions, and for all of your support. So thank you very much. We look forward to speaking with you again in the third quarter.
spk06: Thank you all again. This concludes the call. You may now disconnect.
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