Greenland Technologies Holding Corporation

Good day ladies and gentlemen. Thank you for standing by and we warmly welcome you all to the Greenland Technologies fourth quarter and full year 2022 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 Yuji Ozai, Managing Director of the Blue Shirt Group. Mr. Zive, please proceed.

Thank you, operator, and hello, everyone. Welcome to Greenland Technologies' fourth quarter and full year 2022 earnings conference call. Joining us today are Mr. Raymond Wang, Chief Executive Officer, and Mr. Jin Jin, Chief Financial Officer. We released the results earlier today. The press release is available on the company's IR website at ir.gtech-tech.com, as well as from Newswire Services. A replay of this call will also be available in a few hours on the IR website. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may differ materially from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public findings of the SEC. The company does not assume any obligation to update any forward-looking statement except as required by law. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars. With that, let me now turn the call over to CEO Mr. Raymond Wang. Please go ahead, Raymond.

Hey, thank you, Yu. Good morning, everyone, and thank you for joining us today. We have a lot to go over, but before I get started, I want to begin by thanking my team for their persistence and dedication to delivering results for the company, despite a challenging global environment. We continued to be impacted by lingering pandemic regulations, but still managed to deliver strong results for 2022 and maintained our market leadership in our industry. Starting with our core component business, so we produced and delivered 129,686 drivetrain units in 2022, representing $90.8 million in revenue, of which 27,542 drivetrain units were in the fourth quarter, resulting in $19.1 million in revenue. Though lower than last year's results, I am proud of our performance that maintains our position as market leader in our industry. Market recovery has been slower than anticipated in the fourth quarter after China loosened their pandemic restrictions, which impacted our business. Furthermore, the weekend yuan had a material impact on our financial results, representing over half the negative performance of our revenue year-over-year growth. Given these challenges, I believe the worst is past us. we have already seen a strengthening market in the beginning of 2023. China is pushing for economic recovery with new loans in January rising over 17% year over year to just under 5 trillion yen. This has driven purchasing in industries we support such as logistics and manufacturing as they seek to satisfy the supply gap built up in 2022. In addition, 2023 forecasts indicate a stronger yen by the end of the year, which will support our financials. These factors will result in a banner 2023 year for Greenland's component business, particularly in the third and fourth quarters. Now, 2022 illustrated the vulnerability of Greenland's dependency on the Chinese yen to address this foreign exchange risk. We are exploring strategies and opportunities to expand the core component business to other markets outside of China. We will share more details regarding this direction at a later date. Shifting to our heavy electric industrial heavy equipment division, I am proud of the progress we have made throughout the year. Our mission with heavy is to be a pioneer in the introduction of clean and sustainable alternatives to the traditional heavy emission products in the industrial heavy equipment industry. This year, we expanded our product line. First, with our GEL 5000, an all-electric 39,683-pound, five-ton rated load wheeled front loader that has quickly become the favorite machine when we're conducting product demos. And second, a line of DC mobile chargers that provide clients with simple and easy charging solutions for their site without breaking the bank. We have two models that are as small as a carry-on luggage that support 220 volt or 480 volt power, which is readily available on commercial and industrial sites in the United States. With these mobile chargers, a potential client can integrate our electric heavy equipment into their fleet and site operations without having to invest in a costly DC charging station. In addition to our mobile charging solutions, our electric heavy equipment have completed or scheduled compatibility testing with the market leading providers of DC fast charging stations in the United States. So our customers will always have charging options to best suit their needs. Companies such as Siemens, Blink Charging, ABB, EVgo, and Electrify America, just to name a few. We partnered with Syngin, a California-based fleet technology developer, to incorporate their state-of-the-art GPS asset tracking system, the Infinity Tracker, into our entire product line. Each heavy equipment sold will come with the Infinity Tracker and three years of service for free. This offers our clients security, safety, and easier incorporation of heavy products into their fleet management system. Due to our focus on value, we have made significant progress towards the adoption of our electric heavy equipment. As I have reiterated on past earning calls, as a pioneer of new technology in our industry, we will overcome the challenge of adoption by securing a fleet deal with a brand name organization. And I am proud to announce that we currently have multiple active product demos and pilots with staple organizations such as United Rentals, the world's largest equipment rental company. Our accomplishments will have a profound impact on the heavy brand and product reputation that will rapidly convert the hundreds of interested leads that we've been accumulating into product sales. We've been successful in generating interest in our products because they are designed to align with the needs of our clients. Our all-electric heavy equipment is priced comparable to their diesel equivalent and offer a lower cost of ownership realized in the very first year with its significantly lower power and maintenance costs. For example, our GEL1800, an 11,000-pound electric front loader that runs for nine hours on a single charge, only costs $135,000 with the default bucket, battery, and the base 220V DC mobile charger. This is comparable to the price of a diesel system sold in the Mid-Atlantic region. However, the GEL1800 will only use roughly $4 of electricity per hour of operation compared to the standard 4-6 gallons of diesel per hour needed to run traditional equipment. This results in roughly $20,000 saved per year in fuel costs alone. Plus, our electric equipment have 40% to 60% less maintenance costs than a diesel system because there is no internal combustion engine or related parts to maintain. Heavy products offer a strong financial advantage to a company looking to switch to electric. And it is at this stage, after showcasing the financial benefits, that we can deliver the environmental and operational benefits that our electric equipment provides, such as zero operating emissions, which is perfect for indoor applications, and eliminates over 92 tons of CO2 emissions per machine per year. And with 60% less operating noise, this results in a safer work site that does not disrupt the local community, which is particularly an advantage in sensitive environments or in urban settings. All of these value propositions combined will lead heavy to successfully penetrate and capture market share in the $200 billion heavy industrial equipment industry. Our first U.S. assembly site, based in Baltimore, Maryland, is developing on schedule, and we anticipate the first finished product to roll off the assembly line in the second quarter of this year. This site illustrates the first step in Greenland's effort to expand and diversify our manufacturing capabilities around the world. Greenland is well funded to support the development and growth of heavy through our strong balance sheet and a $10 million fundraise completed last July with Aegis Capital. The updates shared earlier are evidence of these funds in use to grow the business and we will continue to invest into this business that capture the significant opportunities present. In 2023, HEVI will continue its focus on market penetration and product adoption. In addition, we will be establishing a network of approved service providers through partnership with existing businesses. HEVI will provide training and OEM parts sourcing so local equipment service centers can provide support for our products to our local clients. Further investment will also be made to improve HEVI's product offering, technologies, and overall value proposition. And we will focus on recruiting the talent and leadership needed to successfully execute our strategy. Now, there's a lot to be excited about for Greenland in 2023. We expect to see a rebound of our core component business, continued expansion of our manufacturing capabilities and infrastructure in the United States, securing the first deal of heavy electric industrial equipment with a flagship company that will put the heavy brand on the map, and the development of new products, technologies, and innovations that will lead Greenland towards an incredibly exciting future. Now with that, let me turn the call over to our CFO, Jingjing, to provide greater details into our financial performance. Go ahead, JJ.