Greenland Technologies Holding Corporation

Thank you for standing by, and welcome to the Greenland Technologies Holding Corporation Report's second quarter and first half 2022 Unauthorized Financial Results Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to turn the conference over to Julia Schwinn. Please go ahead.

Thank you, operator, and hello, everyone. Welcome to Greenland Tech Knowledge second quarter and the first half 2022 earnings conference call. Joining us today are Mr. Raymond Wong, Chief Executive Officer, and Mr. Jingjing, Chief Financial Officer. We released the result early today. The press release is available on the company's IA website at ia.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 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 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 equitable law. Also, please note that unless otherwise stated, all the figures mentioned during the conference call are in the U.S. dollars. With that, let me now turn the call over to our CEO, Mr. Raymond Huang. Please go ahead, Mr. Huang.

Thank you, Julia. Good morning, everyone, and thank you for joining us today. We have a lot to talk about during this call, but before I jump into it, I just want to start by thanking my team for their hard work and dedication to our mission at Greenland Technologies to continue to deliver the best quality products and develop innovative solutions for our clients, shareholders, and local communities. Now, Q2 has been a challenging quarter for the company. with $20.6 million in revenue generated, representing the first quarter where we did not produce positive year-over-year growth since we became a publicly listed company under NASDAQ in 2019. This decline is primarily attributed to the reinstated COVID restrictions and shutdowns in China that lasted in some cities for over a month. Despite Greenland being lucky to avoid shutdown of our own facilities, some of our key clients were not as lucky and had to close their operations for weeks and in some cases for over a month. This resulted in orders being delayed by client request and ultimately a decline in our Q2 sales and revenue. Now, allow me to emphasize that this is a short-term disruption and I adamantly believe execution of our long term strategy will continue to generate profitable growth and value for the company. If we take a step back and view our first half results, then you will see that despite losing a month of sales opportunity due to these COVID restrictions, we are still on pace with last year's performance with $49.9 million in revenue compared to $52.8 million in 2021. and $5.6 million in net income this year compared to $5.3 million in the last. We would have continued our trend of positive business growth were it not for the COVID-related restrictions. And further, our gross margin has actually grown by 330 bps to 23.5%. This tells me that we remain on the right course and we will continue to focus on our current strategy. Now, our clients impacted by the closure have generated a significant backlog of orders for our drivetrains and components that will contribute towards a strong second half of 2020, with full year 2022 results of our component business to be on par, if not higher, than what we produced in 2021. We continue to achieve key milestones in our heavy division, which is focused on the manufacture of electric industrial heavy equipment. This quarter, we launched the GEL 5000, which is a five-ton rated load, 40,000-pound lithium-powered wheeled front loader, We launched that in July and the unit is now available for demonstrations and sale. The GEL 5000 actually receives the most interest on our website compared to our other products and we expect to open, excuse me, and we've already scheduled multiple demonstrations for the vehicle as part of our sales process. In addition, this quarter, we secured our first assembly site located in Baltimore, Maryland, and expect to open the doors at the end of this month. We expect this facility to produce over 500 units per year when it is operating at full capacity. And our sales focus for our heavy division is on the Mid-Atlantic region of the United States, so we can provide the appropriate support to our future customers. Now, we aren't where we want to be in terms of sales, but it hasn't been due to a lack of demand, but a lack of infrastructure. We found that initially we positioned our equipment along DCFC charging networks. However, we found that the deployment of new charging stations to be slow or too costly for local businesses to justify. Accessible charging infrastructure is critical to the deployment and adoption of EVs. and is currently in its infancy across our market. So, to address this, we have been developing our own line of mobile chargers that will allow our customers to charge our products without requiring investment into an onsite charging station. We will be offering multiple charging solutions that support sites with power ranging anywhere from 110 volts to 220 volts or even 480 volts. These units can fully charge our equipment in eight hours or less. Now that's a bit longer than our DCFC chargers would, but it still aligns with most of our prospects who would simply let the units charge overnight to be ready for a full day of work in the morning. And these chargers are expected to enter production at the end of Q3 of this year. and supports our strategy to drive equipment sales by making our products easier to integrate into an existing site's operation. Further, we closed a $10 million fundraise through a combination of a direct registration and private placement with Aegis Capital at the end of last month. With global markets at risk of recession with no strong tailwinds to correct course in the short term, it is imperative for corporations to shore up cash reserves to be able to weather the storm. And this fundraise strengthens our ability to weather the current market conditions while providing and offering flexibility for us to be able to pursue any opportunities that should arise. As such, a portion of these funds will be used to accelerate the expansion of our heavy division through talent acquisition, inventory growth, and facility ramp-up, while the remainder will be held and reserved for the right opportunities that can further develop our channels for both product and service channel offerings. Despite a challenging second quarter, Greenland continues to generate positive results and deliver value to our shareholders. Our component business remains on track for another successful year with a strong backlog and positive industry tailwinds. Our heavy division continues to achieve the milestones we set for our strategy while remaining nimble to address industry challenges as we pioneer this new technology. And our balance sheet remains strong through business performance and recent fundraising activity. We at Greenland remain focused on executing our strategy to produce long-term profitable growth for the company and our shareholders. And with that, let me turn the call over to our CFO, Jingjing, to provide greater details into our financial performance. JJ, the call is yours.