Greenland Technologies Holding Corporation

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Greenland Technologies' fourth quarter and four-year 2021 earnings conference call. Currently, all participants are in 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 Julie Chen, Managing Director of the Blue Shirt Group Asia. Ms. Chen, please go ahead.

Thank you, operator, and hello, everyone. Welcome to Greenland Tech Knowledge fourth quarter in the four-year 2021 news conference call. Joining us today are Mr. Raymond Huang, Chief Executive Officer, and Ms. Jingjing, Chief Financial Officer. We released the result early today. The press release is available on the company's IR website, ir.gtech-tech.com, as well as from Newswire Services. A replay of this call will also be available in a few hours on our IR website. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Litigation Reform Act of 1995. Forward-looking statements involve 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 filings with the 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 stated, all the figures mentioned here 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, Julia, and good morning, everyone. Thank you for joining us today. As I've started every earnings call up to this point, I want to begin by recognizing my team here at Greenland for their hard work and dedication in delivering results for the company, our clients, and our shareholders. Their efforts have led Greenland Technologies to the best year in terms of revenue and sales in the history of our company. I'm extremely proud of their efforts and the leadership of our management team that have helped us navigate and overcome the many challenges present in today's global environment. Despite these challenges, we were able to meet and nearly surpass the top line of my revenue guidance with $98.8 million and 141,000 transmission units delivered, which represents a tremendous growth of 48% and 30% year-over-year growth respectively. This demonstrates that the global material handling industry continues to grow, and we at Greenland Technologies have the capability to meet and capture this opportunity. And this growth has been motivated by the significant increase in global demand for forklift trucks and material handling equipment as business sales models transition to e-commerce platforms which require a rapid expansion of logistical infrastructure. We would have surpassed my top-line guidance of $100 million in revenue for the year were it not for the continuation of global supply chain constraints. Now, on the other hand, our earnings were lower than we expected due to two primary reasons. First, despite global demand for forklift trucks increasing, the Chinese forklift market has begun slowing down and it reflects the 2022 forecasted GDP of roughly 5.5% for the country. We will see improvement as more forklift OEMs in China expand their business to the global markets and we will be ready to capture that opportunity. Secondly, raw material and component costs have remained high longer than anticipated. Materials such as steel have peaked over 200% in 2021. We have implemented price increases to offset this trend and are optimistic as we have witnessed a correction of this material pricing in the fourth quarter, which will serve as a headwind in the first half of 2022. Another contributing factor is our increased investment in our new electric industrial heavy equipment division and expansion into the U.S. market. Now, these expenses are in line with forecasts and contributed to the overall increase in 2021 operating expenses. Now, focusing on the electrical industrial heavy equipment division, I am proud that we have achieved all of our targeted milestones for 2021. We were able to launch our initial equipment product line in the United States, which includes our GEF series lithium-powered forklifts and the all-electric lithium-powered GEL1800, which is a 1.8-ton rated load wheeled front loader. As of November 2021, these vehicles are available for sale in the Mid-Atlantic region of the United States. We have since followed up with the launch of our all-electric lithium-powered GEX8000 in February, which is an 8-ton rated load wheeled excavator. and our upcoming GEL 5000, a five-ton rated load wheeled front loader arriving in the second quarter of this year. As I stated prior, our goal is to shift assembly of our electric industrial equipment to the United States to better serve the region. I have announced the selection of Maryland as the home for our first assembly site, and we are on track to open the doors in the second or third quarter of this year. We selected Maryland for its impressive infrastructure to service the Mid-Atlantic region by road, rail, sea, or air, their educated and trained workforce, commitment to sustainability, and their willingness and support to do business. This initial site will be modest in size at about 60,000 square feet with an annual production of about 500 to 750 vehicles when fully operational. We will deploy additional sites as we expand our target regions. We are also developing experience centers that will provide education, sales, and local service to our prospects and clientele. As we are pioneering new technology, these sites will be integral in expediting the sales process as interested users get an opportunity to get behind the wheel and operate the equipment firsthand. The target location for this first center will be in New Jersey, due to the abundant opportunity across the logistic, municipal, agriculture, and construction industries. The design process is near complete for our experience centers, but due to limited site inventories and high traffic areas, the launch date for our first center is delayed to the end of this year in 2022, potentially into next year should we have to build to suit our needs. It is important to note that this delay does not prevent our ability to sell our equipment. We have been attending in-person trade shows with our vehicles and have a growing sales team operating out of our offices in New Jersey promoting our products. Interest has been very strong for our products, particularly in the municipal and agricultural industries, but we are discovering the sales process to be longer than anticipated. I'm extremely optimistic that with patience and persistence, This product line will quickly bear fruit and add significant value to the company and our shareholders. Part of our strategy to penetrate the U.S. market is to establish partnerships with local companies that share our vision and commitment to sustainability. We have recently announced strategic partnerships with great companies such as Syngin to develop on-site autonomous solutions with our product, and Princeton U Energy to adapt their innovative plasma-assisted lithium battery recycling process to further reduce the carbon footprint of our products. I will focus more on these partnerships during our Q1 2022 earnings call, but just wanted to highlight that these collaborations help to illustrate our long-term strategy and vision for our electric product lines. Now, let's discuss guidance. For 2022, I will not be issuing an annual guidance for revenue or earnings due to the volatile and unprecedented environment. But let me share our outlook on the upcoming quarters. As I mentioned earlier, I anticipate the first quarter to deliver strong sales results with headwinds throughout the year that will contribute to modest growth of our core transmission and drivetrain business in 2022. Plus, We expect our price increases to offset higher manufacturing and transportation costs that will further preserve and improve our margins. With respect to our electric industrial equipment division, we have the products ready to go and are building out the infrastructure to drive sales and penetrate the market. For 2022, we expect to deliver between 100 and 150 electric vehicles. As our U.S. Assembly and Experience Center network expands, we anticipate delivering between 1,750 to 2,000 electric vehicles by 2024. At that scale, the EV division will rival our core transmission and drivetrain business for the company. The demand is there as organizations are ready to embrace cleaner and more sustainable alternatives. and we are the only available product in this industry in the United States. This demand will further be expanded as new legislation drives more sustainable business operations, greater expansion in the charging infrastructure throughout the nation, and the introduction of consumer incentives that include adoption of electric industrial equipment to qualify. And with that, let me turn the call over to our CFO, Jingjing, who will provide details on our financial performance. JJ, go ahead.