Greenland Technologies Holding Corporation

Good day, ladies and gentlemen. Thank you for standing by, and we warmly welcome you all to the Greenland Technologies Second Quarter Earnings Conference Call. Currently, all participants are on a listen-only mode. Later, we'll 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'm going to turn the call over to Josh Centani, Investor Relations Director of Greenland. Mr. Centani, please proceed.

Thank you, Operator, and hello, everyone. Welcome to Greenland Technology's second quarter 2023 earnings conference call. Joining us today is Mr. Raymond Wang, Chief Executive Officer, and Mr. Jing Jin, Chief Financial Officer. We released results earlier today. The press release is available on the company's IR website at 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 US Private Securities 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 figures mentioned during the conference call are in U.S. dollars. With that, let me now turn the call over to our CEO, Mr. Raymond Wang. Please go ahead, Mr. Wang.

Thanks, Josh. Good afternoon, everyone, and thank you for joining us today. I'd like to start by thanking our global team for their dedication, persistence, and passion to stay focused in a volatile global market and continue to drive the business forward to success. Our results emphasize my position that our industry has recovered and normalized from the global pandemic, with OEMs ramping up production to meet pent-up demand. We posted $24 million in revenue with over 38,000 drivetrain units delivered. which represents a year-over-year increase of 14% and 32% respectively. Further, our efforts towards a more efficient operation continues to bear fruit as our gross margins improved by 590 basis points year-over-year, resulting in a 29.4% gross margin, generating $2.9 million in net income. I anticipate this trend will continue with strong results in our component business through the second half and remainder of 2023. If not for the weakening Chinese yen, our results would have been even stronger. The Chinese market has been very volatile and we have been actively monitoring and engaging. It is worth noting that our component sales in China represents over 98% as we report sales in the region that we deliver. However, an increasing number of our clients are exporting our components overseas as they begin to shift operation to regions such as Europe, South America, and North America, particularly in Mexico. As a result, the growth of our component business is not reliant solely on the performance of the Chinese economy, but global demand as a whole. Heavy continues to make progress as we pioneered the electric heavy machinery market in the United States. The sales process has proved longer than anticipated, but I am confident that we are on the right path based on the demand and feedback we continue to see. We have been executing on our strategy to educate the heavy machinery industry on the opportunities and advantages that electric machinery offer through product demos, trade shows, and conferences. Our sales team has been progressing well through existing leads while actively pursuing new opportunities. This is strengthened by our efforts to lobby consumer incentives for off-highway electric heavy equipment. We passed the nation's first off-highway electric heavy machinery incentive last year in Maryland, and other states have quickly begun embracing similar policies. Currently, over a dozen different states provide consumer incentives for off-highway heavy machinery that will heavily support our sales efforts, with incentives that range from 20% all the way up to 75%. Interest remains strong with new brand names exploring our product line, and I'm confident that HEAVY will post meaningful revenue this year. One hurdle we solved in 2022 was the development of our mobile DC chargers for our electric heavy machinery that opened the door to allow our products to be usable on any job site in the United States. Reception for these chargers have far exceeded our expectations, not just for our heavy machinery, but for other applications as well that we did not originally anticipate. Most new electric products and EVs are relying more on DC power, but traditional DC charging stations are very expensive and can take months to deploy. Our clients are turning to our mobile charging stations Chargers as a solution to meet their needs and to appropriately meet this demand Greenland technologies will be creating a new business unit called heavy energy. The mission of heavy energy is to address the needs of the growing DC powered electrified product industry with heavy energies unique offering of power solutions. Now, you can expect more details about Heavy Energy through press releases that will be released in the very near future. I am extremely proud of the work that the G-TECH team has accomplished. We still have much to do and milestones to achieve, but I believe we are on the right track to hit these goals and succeed for the company and for our shareholders. Now, let's dive into the details of our financial performance. I will hand the call over to my CFO, JJ. JJ, go ahead. Actually, I apologize, everyone. It seems we may be having some technical difficulties. Just for the sake of everyone's time, Josh, would you read through the financial performance for Heavy? And then when JJ gets set up, we can bring him back online.