Phoenix Motor Inc.

Good afternoon, and welcome to the Phoenix Motors first quarter 2024 conference call. As a reminder, this call is being recorded, and all participants are in a listen-only mode. The call will be open for questions and answers following the presentation. On today's call, our Phoenix Motors CEO, Denton Pang, CFO, Michael Young, COO, Louis Liu, and CCO, Joe Spall. Before we begin, the company would like to remind everyone that various remarks about future expectations, plans, and prospects constitute forward-looking statements for purposes of safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Phoenix Motor cautions that these forward-looking statements are subject to risk and uncertainties that may cause their actual results to differ materially from those indicated, including risk described in the company's filings with the SEC. Any forward-looking statements made on this conference call speak only as of today's date, Thursday, October 3rd, 2024, and the company does not intend to update any of these forward-looking statements to reflect the events or circumstances that occur after today. I will now pass the call over to Phoenix Motors CEO, Denton Peng.

Mr. Peng? Thank you. And thank you to everyone for joining us on the call today. I'm excited to finally share the remarkable progress Phoenix Motor made in the first quarter of 2024. Our acquisition of one of the largest zero emission bus manufacturers in the U.S. significantly enhanced our capabilities, positioning us as a leader in the electric transit bus market with over 1,000 buses delivered. and a 40% market share in North America. We are extremely pleased to report the record financial results for the first quarter of 2024. Our net revenues increased significantly to $9.4 million, and our net income reached a record $14.8 million, or 49 cents per share, a remarkable turnaround for a net loss the experience in the same period last year. Our total assets increased to 78.7 million, up to 11.6 million at the end of 2023, which helps to bring our net assets back into compliance with the key NASDAQ listing standards. We believe our financial results are a clear indicator that our strategy initiatives are driving significant value, and position us well for sustained growth. Looking ahead, with ET's $200 million backlog, we expect our zero-mission transit bus business to contribute significantly to our revenue and strengthen our market position. The combined strength of our brands, our expanded product offerings, and our increased production capability position us well to capitalize on a growing demand for sustainable transportation solutions. I will now hand the call over to George Powell, our Chief Commercial Officer, who will give more detail about the Proterra acquisition and our sales and marketing initiatives.

Thank you, Denton, and good afternoon, everyone. Acquiring the largest transit bus manufacturer in North America brought with it over 20 years of experience. a significant market share, having delivered over 1,000 buses and holding 40% of the market. This acquisition was highly complementary to our existing business, enhancing our capabilities and expanding our product offering to include heavy-duty transit buses alongside our existing medium-duty trucks, shuttle, and school buses. The integration process has been smooth. and we are seeing the benefits of the strategic move in our operational and financial results. One of the immediate successes following this acquisition was the order of six zero-emission electric buses by Raleigh Durham International Airport in March. This marked our first formal order post-acquisition and signified the strong demand and confidence in our enhanced product line. We have a strong order backlog, with over 250 units supported by firm contracts and letters of intent, representing a total of $200 million in potential revenue. We expect our backlog to grow further as we ramp up deliveries to customers and gain further market share. Phoenix Motor now operates in three distinct market segments, zero-mission transit and shuttle buses for passenger transport, medium-duty electric trucks and work trucks for last and middle mile goods and vocational transportation, and electric Taipei school buses. Combined, these three segments offer a multi-billion dollar market opportunity backed by strong regulatory mandates. The transit bus segment is rapidly transitioning to zero-emission powertrains to meet the Federal Transit Administration goal of reducing greenhouse gas emissions by 50% by 2030. Various states, including California, have mandated the switch to zero emission transit and airport shuttle operations. Transit agencies are supported with consistent federal funding through the FDA, with over a billion dollars allocated annually towards low and zero emission transportation. Electrification is also gaining momentum in medium duty trucks, driven by regulatory requirements substantial funding, and incentives available for fleets to purchase electric vehicles. The inherent cost and operational efficiencies of electric vehicles further support this transition. The school bus market also offers favorable conditions, with various school districts across the nation committing to deploying over 5,600 electric buses. This is further supported by state and federal-level funding, including over a $5 billion allocation from the EPA. Turning to our sales and marketing efforts, as just noted, we are focused on markets that offer substantial growth opportunities, supported by advancements in EV technology and driven by regulatory mandates and incentives. We will continue to grow in these segments as we offer best-in-class products and unparalleled value to our customers. Phoenix ED transit buses are now available on various state and federal contracts, allowing transit agencies to acquire the buses through a simplified purchasing process. Our medium-duty vehicles are also available on various purchasing contracts. Importantly, our commitment to customer satisfaction extends beyond the initial sale. We are also focusing on improving our after-sales support. We've strengthened our team with a dedicated VP of service who will work directly with customers to support their fleet with adequate service and aftermarket parts. We're negotiating with suppliers to ensure timely availability of aftermarket parts and expect significant improvements in service response time, parts availability, and revenue growth from our aftersales operation. In summary, our strategic focus on high-growth market segments combined with our robust, backlog, and enhanced after-sales support positions Phoenix Motor for continued success in the rapidly evolving electric vehicle landscape. Thank you for your attention. I'll now pass the call over to our Chief Operating Officer, Louis Liu, for additional remarks.