Q4 2021 Greenland Technologies Holding Corp Earnings Call

March 28, 2022

Bye.

Okay.

Good day, ladies and gentlemen, thank you for standing by and welcome to the Greenland technologies fourth quarter and full year 2012.

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.

We are recording today's call.

You may disconnect at this time.

Mhm managing director.

MS. Cheng. Please go ahead.

Thank you, operator, and hello, everyone. Welcome to Greenland Tech Knowledge fourth quarter and 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.

Thank you operator, and Hello, everyone welcome to Greenland technology fourth quarter, and the full year 2021 and these conference call joining us today are Mr. Remo, <unk>, Chief Executive Officer, and MS. Jing Jing Chief Financial Officer, We released the results earlier today. The press release is available on the company's IR website.

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ir.gtech-tech.com, as well as strong news wireless service.

Dodge Jeep Dash Tech dot com as well as from Newswire services a replay of this call will also be available.

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 four looking statements made under the safe harbor provision of the U.S. Private Security Litigation Reform Act of 1995. Four looking statement involves inherent risks and uncertainties. As such, the company's actual result may be materially different from its participants expressed.

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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 Security Litigation Reform Act of 1995 forward looking thing that you will inherit the risks and uncertainties as such the Companys edgy redone.

<unk> be materially different from those expressed today further information regarding these and other risks uncertainties is included in the company's public filings with SEC. The company does not assume any obligation to update any forward looking statements, except as required under applicable law.

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 updated, all the figures mentioned here during this conference call are in US dollars.

Also please note that unless otherwise stated all the figures mentioned 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. <unk>.

Speaker Change: With that, let me now turn the call over to our CEO , Mr. Raymond Huang. Go ahead, Mr. Huang.

Raymond 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.

Thank you Julia and good morning, everyone. Thank you for joining us today.

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 and the <unk>.

Raymond Huang: 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.

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 many challenges present in today's global environment.

Raymond Huang: 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.

Despite these challenges we were able to meet and nearly surpassed the top line of my revenue guidance with 98.8.

$8 million and 141000 transmission units delivered which represents a tremendous growth of 48% and 30% year over year growth respectively.

Raymond Huang: 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.

This demonstrates that the global material handling industry continues to grow and we are green and technologies have the capability to meet and capture this opportunity.

Raymond Huang: 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.

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've surpassed my top line guidance of 100 million.

Raymond Huang: 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.

<unk> revenue for the year were it not for the continuation of global supply chain constraints.

Raymond Huang: Now on the other hand, our earnings were lower than we expected due to two primary reasons.

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 five five.

Raymond Huang: 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.

Scent for the country.

Raymond Huang: 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.

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.

Raymond Huang: Secondly, raw material and component costs have remained high longer than anticipated. Materials such as steel have peaked over 200% in 2021.

Secondly, raw material and component costs have remained high longer than anticipated materials, such as steel have peaked over 200% in 2021.

Raymond Huang: 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.

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.

Raymond Huang: 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 forecast and contributed to the overall increase in 2021 operating expenses.

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 forecast and contributed to the overall increase in 2021 operating expenses.

Raymond Huang: 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 GEL 1800, which is a 1.8 ton rated load wheeled front loader.

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 GE F series lithium powered forklifts and the all electric lithium powered.

<unk> <unk> thousand 800, which is the one eight ton rated load wheeled front-loader as.

Raymond Huang: As of November 2021, these vehicles are available for sale in the Mid-Atlantic region of the United States.

As of November 2021. These vehicles are available for sale in the mid Atlantic region of the state we have since followed up with the launch of our all electric lithium Parrot's GE X 8000 in February which is an eight ton rated load, we owed excavator and our upcoming <unk>.

Raymond Huang: 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 GEL5000, a 5-ton rated load wheeled front loader, arriving in the second quarter of this year.

<unk> thousand five ton rated lode wheel front-loader, arriving in the second quarter of this year.

Raymond Huang: As I stated prior, our goal is to shift assembly of our electric industrial equipment to the United States to better serve the region.

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 is 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.

Raymond Huang: 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.

Raymond Huang: 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 selected Maryland for its impressive infrastructure to service the mid Atlantic region by Road rail Sea or air.

They are educated and trained workforce commitment to sustainability and their willingness and support to do business.

This initial sites will be modest in size at about 60000 square feet with an annual production of about 500 to 750 vehicles went fully operational.

Raymond Huang: We will deploy additional sites as we expand our target region.

We will deploy additional sites as we expand our target regions.

Raymond Huang: 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 first hand.

We are also developing experience centers that will provide education sales in local service to our prospects in 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 top.

Raymond Huang: 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.

<unk> location for this first sensor 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 experienced centers, but due to limited site inventories in high traffic areas. The launch date for our first center.

Raymond Huang: The design process is near complete for our experience centres, but due to limited site inventories and high traffic areas, the launch date for our first centre is delayed to the end of this year, in 2022, potentially into next year, should we have to build to suit our needs.

<unk> is delayed to the end of this year in 2022 potentially into next year should we have to build to suit our needs.

Raymond Huang: 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.

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 agriculture.

Raymond Huang: 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.

Industries, but we are discovering the sales process to be longer than anticipated.

Raymond Huang: I am extremely optimistic that with patience and persistence, this product line will quickly bear fruit and add significant value to the company and our shareholders.

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.

Raymond Huang: 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.

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 engine to develop onsite autonomous solutions with our product and Princeton New energy.

Raymond Huang: We have recently announced strategic partnerships with great companies such as Xinjin 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 product.

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.

Raymond Huang: I will focus more on these partnerships during our Q1 2022 earnings call, but just want to highlight that these collaborations help to illustrate our long-term strategy and vision for our electric product lines. Thank you for your time.

<unk> 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.

Raymond Huang: For 2022, I will not be issuing an annual guidance for revenue or earnings due to the volatile and unprecedented environment.

Raymond Huang: 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.

Sales results with headwinds throughout the year that will contribute to modest growth of our core transmission and drivetrain business in 2022 plus.

Raymond Huang: Plus, we expect our price increases to offset higher manufacturing and transportation costs that will further preserve and improve our margin.

Plus we expect our price increases to offset higher manufacturing and transportation costs that will further preserve and improve our margins.

Raymond Huang: 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.

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.

Raymond Huang: For 2022, we expect to deliver between 100 and 150 electric vehicles.

Raymond Huang: 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.

Fans, we anticipate delivering between 1750 2000 electric vehicles by 2024 at that scale. The EV Division will rival our core transmission and drivetrain business for the company.

Raymond Huang: 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.

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.

Band It 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.

Raymond Huang: greater expansion in the charging infrastructure throughout the nation, and the introduction of consumer incentives that include adoption of electric industrial equipment to qualify.

Raymond Huang: With that, let me turn the call over to our CFO , Jingjing, who will provide details on our financial performance.

And with that let me turn the call over to our CFO changing who will provide details on our financial performance Jay Jay go ahead.

Thank you Amy and thank you everyone for joining our call today.

Jingjing: Thank you, Raymond, and thank you, everyone, for joining our call today. I will now go over our key financial results for the fourth quarter and the full year 2021.

Now I'll go over our key financial results for the fourth quarter and full year 2021 for the full details of our financial results. Please refer to our earnings press release.

Jingjing: For the full details of our financial results, please refer to our earnings press.

Jingjing: As Ray noted, we continue to drive record revenue growth and the growth margin expansion, led by higher transmission sales, while increasing investment in our infrastructure to support the next phase of our growth. We are working closely with our.

As already noted we continued to drive record revenue growth and gross margin expansion led by higher transmission sales, while increasing investment in our infrastructure to support the massive phase of our growth.

We are working closely with our supply chain partners to try to offset the higher cost in creating areas from raw materials and components to the shipping.

Jingjing: to try to offset the higher cost in padding areas from raw materials and the components to the.

Jingjing: The important takeaway is we see continued growth in 2022 and are investing in support of that with higher revenue generating sales counted. And the R&D investment that we'll issue, we have the value-added EV vehicles and the transmission products to our customer want.

The important take away is we see continued growth in 2021 of 2022, and we're seeing in support of higher revenue generating sales counted.

The R&D Weitzman, who got a real issue, we have the value added EV vehicles, and the transmission products through our customer want it.

Jingjing: Turning to our results, we achieved record revenue of $98.8 million U.S. dollars for the full year. This is up 48% over 2021, led by growth in sales of our transmission products. We sold 141,431 units of transmission products in 2021, up almost 30% from the previous year.

Turning to our results we achieved record revenue of 98 8 million U S dollar for the full year.

<unk> up 48% over 2021.

Led by growth in sales of our transmission products.

Sold 141431 units of <unk> product in 2021.

Most of the 30% from the previous year's comparable to 2020, our cost of goods sold rose, 47% to $79 8 million U S. Dollar in 2021 primary due to the increase in sales volume and the the increasing raw material prices, we generated gross profit of.

Jingjing: Compared to 2020, our cost of goods sold rose 47% to $79.8 million in 2021, primarily due to the increase in sale volume and the increase in raw material price.

Jingjing: We generated gross profit of $19.6 million, an increase of 53% from $12.8 million in 2020, led by the ongoing strategic shift in our product needs towards the higher value, most sophisticated products. Notably, our gross margin was up to seven basis points year over year to 19.8.

$19 6 million U S dollar and increasing 53% from 12 8 million U S. Dollar in 2020 later by the ongoing strategy shift our product mix towards higher value most of the vacated products, notably our gross.

<unk> was up to seven basis point year over year to 19, 8%.

Meanwhile, total operating expenses increased 80, 86% to $11 3 million U S dollar.

Jingjing: Meanwhile, total operating expenses increased 86% to 11.3 million US dollars.

Jingjing: as we continue to invest in support of higher revenue level and the target long-term growth with an expansion of its revenue generating headcount and a more than doubling of its RMB for the full year of 2021 compared to the full year of 2020.

As we continue to invest in support of higher revenue level and the targeted long term growth with the expansion of these revenue generating headcount and a more than doubling of R&D for the full year of 2021 compared to the full year of 2020.

Jingjing: Despite the increase, we held operating

Despite the increase we have the operating.

Jingjing: expenses at 11.5 of total revenue, which was only up to 2.3 percent points from 2020.

At 11, one five of total revenue, which was only up 3.21 percentage points from 2020, we think that selling expenses increased 18% to $1 9 million U S dollar general and administrative expenses increased 85%.

Jingjing: Within that, selling expenses increased 18% to $1.9 million. General and administrative expenses increased 85% to $3.9 million. And research and development expense increased 132% to $5.5 million in 2021.

231, 9 million U S dollar and research and if you wait a minute defense increased 132% to <unk> five 5 million U S. Dollar in 2021.

Especially the R&D Weizmann is already paying off was we launched three new Electorally industrial vehicle light in 2021, which we studied will drive increased revenue over the coming quarters.

Jingjing: Especially the R&D investment is already paying off with relaunched three new electric industrial vehicle lines in 2021, which we expected will drive increased revenue over the coming quarter.

Jingjing: as a result of our strong sales and efficient operation and expensive management.

As a result of our strong sales and efficient operation and expense management, which achieved a record net income of seven 3 million U S. Dollar in 2021.

Jingjing: which achieved a record net income of 7.3 million U.S. dollars in 2021, up 14 percent from the prior year.

Chris <unk> from the prior year.

Jingjing: Next, let me briefly walk you through our financial results for the fourth quarter of 2021.

Neste made me briefly walk you through our financial results for the fourth quarter of 2021 total revenue were $2 22, 9 million U S dollar compared with $23 9 million U S. Dollar in the same period of 2020, the slight decline was due.

Jingjing: Total revenue were 22.9 million U.S. dollars, compared with 23.9 million U.S. dollars in the same period of 2020. The slide decline was due to the re-recognition of our orders that accumulated during the pandemic, but were not fulfilled until the fourth quarter of 2020.

Due to the recognition of our odors that accumulated during the pandemic, but the one not fulfilled until the fourth quarter of 2020.

Jingjing: compile with the adverse impact of the fourth quarter of 2021 of the ongoing supply chain constraints that limit the availability of the necessary materials and components.

<unk> always the impact of the fourth quarter of 'twenty or 'twenty, one of the ongoing supply chain constraints that limit the availability.

That's a fair read materials and components.

Jingjing: The number of transmission products sold was 31,349 units, compared with 37,164 units in the fourth quarter of 2020.

The number of transmission product soda was 31349 units compared with 37164 units in the fourth quarter after 2020.

Jingjing: Gross profit was $3.7 million compared to $4.6 million in the fourth quarter of 2020.

Gross profit was $3 7 million U S dollar compared to $4 6 million U S. Dollar in the fourth quarter of 2020.

Jingjing: Total operating expenses was US$3.8 million as the company expanded its operations compared to US$1.9 million in the first quarter of 2020. Net income was US$0.4 million compared with US$2.2 million in the same period of 2020.

Total operating expenses were three 8 million U S dollar.

Company, expanding its operation compared to one 9 million in the fourth quarter of 2020 net income was 014 million U S. Dollar compel to ways to one 2 million in the same period of 2020.

Jingjing: Importantly, we took the opportunity to enhance our balance sheet in 2021 in the pursuit of our long-term growth strategy.

Importantly, we took the opportunity strengths our balance sheet in 2021 in the pursuit of our long term growth strategy.

Jingjing: As of the end of December 2021, our cash, restricted cash and cash equivalent was 17.8 million U.S. dollars, nearly doubled 9.4 million a year earlier.

As of the end of December 2021, our cash restricted cash and cash equivalents was <unk>.

<unk>, one 8 million U S dollar nearly doubled $9 4 million year earlier.

As we enter into 2022, we are very optimistic and remain committed to driving increased revenue and profitability as we work to build a greater value for all shareholders.

Jingjing: As we enter into 2022, we are very optimistic and remain committed to driving increased revenue and profitability as we work to build a greater value for our shareholders.

Speaker Change: That concludes our prepared remarks. Let's now open for the call questions. Operator, please go ahead. Thank you.

That concludes our prepared remarks lets now open for the call questions.

Please go ahead.

Thank you ask a question you will need to press star one on your telephone.

Part of your question press the pound key.

Thank you.

Please limit yourself to one question at a time.

Please stand by while we compile the Q&A roster.

Our first question comes from Rommel.

Your line is open.

Speaker Change: Thank you and good morning. I just want to touch base on the core China business. Raymond, I certainly appreciate your commentary on the deceleration of the economy. You've been generating such strong market share gains there over the last several quarters. I just wonder if you could touch on those trends continuing and the opportunity also you mentioned to expand

Thank you and good morning.

Just wanted to touch base on the core China business.

Certainly appreciate your commentary on the deceleration of the economy.

Generally it's a strong market share gains there.

Last several quarters I, just wonder if you could touch on those trends continuing.

The opportunity also you mentioned to expand.

Yes.

Raymond Huang: that that business to rest of world or some of the particular geographic markets as being uh... a low-hanging fruit in terms of opportunity there

Business to rest of world what are some of the particular geographic markets.

As being a low hanging fruit in terms of opportunity there. Thank you.

Raymond Huang: For the core business of drivetrains and transmissions, we have been very proud of our position as market leader in our space for providing those drivetrains and transmissions to the forklift market. For those on the call, China right now is the global leader in forklift sales and OEM manufacturing.

Good morning, Rommel and thank you for your question so for the core business of Drivetrains and transmissions, we have been very proud of our position as market leader in our space for providing those drivetrains and transmissions to afford it.

The market for those on the call China right now is the market leader is the global leader in forklift sales and OEM manufacturing, China itself consumes about 700000 forklifts per year.

Raymond Huang: China itself consumes about 700,000 forklifts per year, whereas the United States right now in number two consumes about 400,000, but rapidly rising, especially with the shift towards e-commerce and warehousing logistics.

Whereas the United States right now and number two consumes about 400000, but rapidly rising, especially with the shift towards e-commerce and warehousing logistics.

Raymond Huang: Now, with that said, as China slows down, we still maintain our position as market leader working with the OEMs. The slowdown that we're seeing is with some of the smaller OEMs that we support.

Now with that said as China slows down we still maintain our position as market leader working with the Oems the.

The slowdown that we're seeing is with some of the smaller Oems that we support.

Raymond Huang: They are rapidly trying to adapt their business to be able to support more of a global presence, whether it be to markets such as Europe , Africa, and South America as well, that are continuing to rise faster to account and make up for the slowdown that's going on in the Chinese market. For the smaller operations, their transition is going to take just a little bit of time, but we're extremely optimistic.

They are rapidly trying to adapt their business to be able to support more of a global presence whether it be to markets such as Europe Africa, and South America as well that are continuing to rise faster to account and make up for the.

Slowdown thats going on in the Chinese market.

For the smaller operations there transition is going to takes us a little bit of time, but we're extremely optimistic.

Raymond Huang: uh... that we will still maintain our market share uh... and partnerships with with

That we will still maintain our market share.

And partnerships with key clients.

Raymond Huang: key clients. As for the business expansion to the global market, this is one of the key strategies for Greenland, especially in the launch of our EV business, because it diversifies the EV product line, diversifies the offering.

As for their business.

<unk> expansion to the global market and this is one of the key strategies for Greenland, especially in the launch of our EV business because it diversifies the EV product line Diversifies the offering.

Raymond Huang: here at Greenland, especially outside the borders of China where a majority of our core business of transmissions and drive trains are sold. So by targeting the...

Here at Greenland, especially outside the borders of.

China, where a majority of our core business of transition transmission and Drivetrains are sold.

So by targeting the.

Raymond Huang: EV industrial market in a space that is completely untapped at this stage.

EV industrial markets in a space that is completely untapped at this stage.

Raymond Huang: in markets such as the United States will really help in the long term continue to diversify the company and protect us and mitigate risk from

In markets, such as the United States will really help in the long term continue to diversify the company and protect us and mitigate risk from.

Raymond Huang: various, let's say, regulatory environments or political environments as well. It helps us to mitigate our risk. So this supports our long-term strategy for the company in expanding to the EV business line. Plus, the opportunity is significant.

Various let's say regulatory environments or political environments as well it helps us to mitigate our risk so.

This supports our long term strategy for the company and expanding to the EV business line plus the opportunity is significant and I feel very strongly it's gonna add a lot of value to our shareholders and since we are the first one with a product here commercially available in the United States. This is.

Raymond Huang: I feel very strongly it's going to add a lot of value to our shareholders. And since we are the first one with a product here commercially available in the United States, this is a very, I don't want to call it a low-hanging fruit, but it's a very attractive and very...

A very I don't want call it a low hanging fruit, but its a very attractive and very.

Raymond Huang: large fruit and opportunity for our business. The front loader and excavator markets combined are about 70 billion dollars.

Large fruit and opportunity for our business the front loader excavator markets combined.

About $70 billion and not.

Raymond Huang: not a single other player in the United States is electric. So for us to penetrate this market, capture some market share, that's going to be a significant opportunity for us. And then once we penetrate the U.S. market, then it'll allow us to expand very rapidly to the rest of the world, from South America to Europe to Africa. And the demand is so strong in those markets that

Not a single other player in the United States is electric so for us to.

Great. This market capture some market share thats going to be significant opportunity for us and then once we.

Penetrate the U S market then it will allow us to expand very rapidly to the rest of.

The world from.

From South America to Europe to Africa, and the demand is so strong in those markets that.

Raymond Huang: We couldn't turn away from it, so we announced the deal that we made, a strategic partnership with eLive, based out of Morocco, that's going to be between a $5 to $9 million minimum deal across five years and onward. We're extremely excited about those prospects, but our focus for our company is going to be on penetrating the U.S. market.

Oh, we couldn't turn away from it so we announced the deal that we made a strategic partnership with the <unk> life based out of Morocco.

That's going to be between a $5 million to $9 million.

Minimum deal across the five years and onward, and we're extremely excited about those prospects, but our focus for our company is going to be on penetrating the U S market.

Thank you our next question comes from.

Does it.

Wells Fargo.

Is open.

Yes, Hi, Ray How's it going.

Doing well doing well Hello Corey.

Speaker Change: Hey, how's it going with the institutional investor base? I know you were trying to.

Hey.

How is it going with the institutional.

Investor Base I know you were trying to.

Speaker Change: basically get some interest going there. How things been going? How are they receiving you when you've been able to interact with?

Basically.

Get some interest going there.

How things been going how are they receiving.

You when you've been able to interact with them.

Speaker Change: I've been doing a lot of conferences, MDR roadshows, and one-on-one conversations with the institutional base.

We've been I've been doing a lot of our conferences MTR road shows and one on one conversations.

With the institutional base and the.

Speaker Change: interest in Greenland has been very strong.

Interest in Greenland has been very strong.

Speaker Change: They are all extremely supportive and understand our vision on what we're trying to do, tapping into the industrial vehicle market. They absolutely agree that the timing is there, the markets are ready for it, and for us coming in with a very strong manufacturing background as our bread and butter, they're 100 percent on board from that standpoint.

They are all extremely supportive and understand our vision on what we're trying to do tapping into the industrial vehicle market and they absolutely agree that the timing is there the markets are ready for it and for us coming in with a very strong manufacturing background.

As our bread and butter.

They're 100% on board from that standpoint, one of the challenges that we have is from a stock standpoint, we trade at the very low <unk>.

Speaker Change: One of the challenges that we have is from a stock standpoint, we trade at a very low volume and our market cap is right around $63 million, whereas we've posted almost $100 million in revenue.

Volume and our market cap is right around $60 million spread.

Its right around 63 last I checked $63 million, whereas we've posted almost $100 million in revenue.

Speaker Change: So though we are significantly undervalued from a market standpoint, from an institutional side, we typically tend to be smaller.

So Dover here significantly undervalued from a market standpoint from an institutional side, we typically tend to be smaller then.

Speaker Change: the guidelines for them to really get involved with Greenland, but I've had conversations with many different analysts and investment banks and they're so interested in us that they've told me that they've opened up personal positions to follow our company for that level that we will get there.

The guidelines for them to really get involved with Greenland, but I've had conversations with many different analysts and investment banks and they are so interested in us that.

They've told me that they've opened up personal positions us to follow our company for that level that we will get there so.

Speaker Change: So, the interest has been there, but the commitment's been low just because of our current.

Interest has been there, but the commitment spend low just because of our current.

Speaker Change: our current market cap and trading volume. At this stage, per our last poll, we have about 95% of our shareholders are retail.

Our current market cap and trading volume.

At this stage per our last poll, we have it was about 95 right around 95% of our shareholders are retail.

As a reminder to ask a question at this time. Please press Star then one on you touched on the telephone.

Thank you seeing no more questions in the queue, Let me turn the call back to Mr. Wang for closing remarks.

Speaker Change: Thank you very much, Operator, and thank you everyone for participating in today's call and for your support. We really appreciate your interest into Greenland and look forward to reporting to you again next quarter on our progress. And with that, I hope everyone has a fantastic day.

Thank you very much operator, and thank you everyone for participating in today's call and for your support we really appreciate your interest Integrin, then and look forward to reporting to you again next quarter on our progress and with that I hope everyone has a fantastic day.

Thank you all again this concludes the call you may now disconnect.

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Good day, ladies and gentlemen, thank you for standing by and welcome to the Green line technologies fourth quarter and full 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.

You may disconnect at this time.

Okay.

Speaker Change: Okay.

MS. Cheng. Please go ahead.

Speaker Change: Thank you, operator, and hello, everyone. Welcome to Greenland Tech Knowledge fourth quarter and 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.

Thank you operator, and Hello, everyone welcome to Greenland technologies fourth quarter and the full year 2021.

Great call Janet today, Mr. Raymond Huang Chief Executive Officer, and MS Gene Chen Chief Financial Officer, We released the results earlier today the press release available on the company's IR website.

Speaker Change: ir.gtech-tech.com, as well as strong news wireless service.

<unk> Dot dk des tack dotcom as well.

As Ron Newswire services, a replay of this call will also be available.

Speaker Change: 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 four looking statements made under the safe harbor provision of the U.S. Private Security Litigation Reform Act of 1995. Four looking statement involves inherent risks and uncertainties. As such, the company's actual result may be materially different from its participants expressed.

Oh Wow.

Our website is fully <unk>.

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 they may involve inherent risks and uncertainties as such the company's etch rates out may be materially different from that.

Or are they spread today.

Speaker Change: 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 updated, all the figures mentioned here during this conference call are in US dollars.

Information regarding these and other risks.

Including in the company's public filings with Dicey.

The company does not assume any obligation to update any forward looking statement, except as required under <unk>.

Think about law also please note that unless otherwise stated all the figures yes.

During the call.

He.

Speaker Change: With that, let me now turn the call over to our CEO , Mr. Raymond Huang. Go ahead, Mr. Huang.

With that let me now turn the call over to our CEO Mr. Raymond Huang go ahead, Mr. <unk>.

Thank you Julia and good morning, everyone. Thank you for joining US today as I 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 surpassed the top line of my revenue guidance with $98 eight.

$8 million and 141000 transmission units delivered which represents a tremendous growth of 48% and 30% year over year growth respectively.

Raymond Huang: 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.

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.

Raymond Huang: 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.

Raymond Huang: 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.

And revenue for the year were it not for the continuation of global supply chain constraints.

Raymond Huang: Now on the other hand, our earnings were lower than we expected due to two primary reasons.

<unk> for the country.

Raymond Huang: 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.

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.

Raymond Huang: Secondly, raw material and component costs have remained high longer than anticipated. Materials such as steel have peaked over 200% in 2021.

Secondly, raw material and component costs have remained high at 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 or 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 that these expenses are in line with forecast and contributed to the overall increase in 2021 operating expenses.

<unk> thousand 800, which is a 1.8 ton rated load wheeled front-loader as.

Raymond Huang: As of November 2021, these vehicles are available for sale in the Mid-Atlantic region of the United States.

As of November 2021. These vehicles are available for sale in the mid Atlantic region of the state we have since followed up with the launch of our all electric lithium powered GE X 8000 in February which is an eight ton rated load, we owed excavator and our upcoming GE <unk>.

Raymond Huang: 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 GEL5000, a 5 ton rated load wheeled front loader, arriving in the second quarter of this year.

<unk> thousand five ton rated load wheeled front-loader, arriving in the second quarter of this year.

Raymond Huang: As I stated prior, our goal is to shift assembly of our electric industrial equipment to the United States to better serve the region.

Raymond Huang: 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.

They are educated and trained workforce commitment to sustainability and their willingness and support to do business.

This initial sites will be modest in size at about 60000 square feet with annual production of about 500 to 750 vehicles when fully operational.

Raymond Huang: We will deploy additional sites as we expand our target region.

We will deploy additional sites as we expand our target regions.

We are also developing experience centers that will provide education sales in local service to our prospects and clients out 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 top.

Raymond Huang: 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.

<unk> location for this first sensor 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 in high traffic areas. The launch date for our first center.

<unk> is delayed to the end of this year in 2022 potentially into next year should we have to build to suit our needs.

Raymond Huang: 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.

Industries, but we are discovering the sales process to be longer than anticipated.

Raymond Huang: I am extremely optimistic that with patience and persistence, this product line will quickly bear fruit and add significant value to the company and our shareholders.

I am extremely optimistic that with patience and persistence. This product line will quickly bear fruit and add significant value to the company and our shareholders.

Raymond Huang: 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.

Raymond Huang: We have recently announced strategic partnerships with great companies such as Xinjin 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 product.

Raymond Huang: 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. Thank you for your time.

<unk> and vision for our electric product lines.

Raymond Huang: For 2022, I will not be issuing an annual guidance for revenue or earnings due to the volatile and unprecedented environment.

Sales results with headwinds throughout the year, they will contribute to modest growth of our core transmission and drivetrain business in 2022 plus.

Raymond Huang: Plus, we expect our price increases to offset higher manufacturing and transportation costs that will further preserve and improve our margin.

Plus we expect our price increases to offset higher manufacturing and transportation costs that will further preserve and improve our margins.

Raymond Huang: 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.

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.

Raymond Huang: For 2022, we expect to deliver between 100 and 150 electric vehicles.

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 1750 2000 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.

Raymond Huang: With that, let me turn the call over to our CFO , Jingjing, who will provide details on our financial performance.

And with that let me turn the call over to our CFO changing who will provide details on our financial performance Jay Jay go ahead.

Jingjing: Thank you, Raymond, and thank you, everyone, for joining our call today. I will now go over our key financial results for the fourth quarter and the full year 2021.

Thank you Raymond and thank you everyone for joining our call today I will now go over our key financial results for the fourth quarter and full year 2021 for the full details of our financial results. Please refer to our earnings press release.

Jingjing: For the full details of our financial results, please refer to our earnings press.

That's really noted we continued to drive record revenue growth and the gross margin expansion led by higher transmission sales, while increasing investment in our infrastructure to support the massive phase of our growth.

We are working closely with our supply chain partners to try to offset the higher cost impacting areas from raw materials and components to the GP.

Jingjing: to try to offset the higher cost in padding areas from raw materials and components to the.

The important take away is we see continued growth in 2021, 2022 and USC in support of that always higher revenue generating sales counted.

And the R&D Westman, who got a real issue we have the value added EV vehicles, and the transmission products to our customer want it.

Turning to our results we achieved record revenue of 98 8 million U S dollar for the full year.

<unk> up 48% over 2021.

Led by growth in sales of our transmission products.

Those 141431 units of transmission products in 2021.

Most of the 30% from the previous year's comparable to 2020, our cost of goods sold rose, 47% to 79 8 million U S. Dollar in 2021 primary due to the increase in sales volume and the increasing raw material prices, we generated gross profit.

Jingjing: Compared to 2020, our cost of goods sold rose 47% to $79.8 million in 2021, primarily due to the increase in sale volume and the increase in raw material price.

Of $19 6 million U S dollar and increasing 53% from 12 8 million U S. Dollar in 2020 later by the ongoing strategy shift our product mix towards higher value most of those vacated program.

<unk>, our gross margin was up to seven basis point year over year to 19, 8%.

Jingjing: Meanwhile, total operating expenses increased 86% to US$11.3 million.

Meanwhile, total operating expenses increased 80, 86% to $11 3 million U S Butler as.

Jingjing: as we continue to invest in support of higher revenue level and the target long-term growth with an expansion of its revenue generating headcount and a more than doubling of its R&D for the full year of 2021 compared to the full year of 2020.

As we continue to invest in support of higher revenue level and the targeted long term growth with the expansion of these revenue generating head count and a more than doubling of R&D for the full year of 2021 compared to the full year of 2020.

Jingjing: Despite the increase, we held operating

Despite the increase we have the operating.

Jingjing: expenses at 11.5 of total revenue, which was only up to 2.3 percent points from 2020.

At 11, one five of total revenue, which was only up 3.21 percentage.

Percent points from 2021.

We think that selling expenses increased 18% to $1 9 million U S. Dollar general and administrative expenses increased 85% to $3 9 million U S dollar and research and if you wait a minute defense increased 132% to <unk> 5.5 medium.

U S dollar in 2021.

Jingjing: Especially the R&D investment is already paying off once we launched three new electric industrial vehicle lines in 2021, which we expected will drive increased revenue over the coming quarter.

Especially the R&D investment is already paying off was we launched three new Electuary industrial vehicle light in 2021, which we expect it will drive increased revenue over the coming quarters.

Jingjing: as a result of our strong sales and efficient operation and expensive management.

As a result of our strong sales and efficient operation and expense management, which achieved a record net income.

Jingjing: which achieved a record net income of 7.3 million U.S. dollars in 2021, up 14 percent from the prior year.

Seven 3 million U S dollar in 2021 up 14% from the prior year.

Jingjing: Next, let me briefly walk you through our financial results for the fourth quarter of 2021.

<unk> made me briefly walk you through our financial results for the fourth quarter of 2021.

Jingjing: Total revenue were 22.9 million U.S. dollars, compared with 23.9 million U.S. dollars in the same period of 2020. The slight decline was due to the re-recognition of our orders that accumulated during the pandemic, but were not fulfilled until the fourth quarter of 2020.

Total revenue were two of $22 9 million U S dollar compared with $23 9 million U S. Dollar in the same period of 2020.

<unk> decline was due to the recognition of our odors that accumulated during the pandemic, but the one not fulfilled until the fourth quarter of 2020 compile ways the adverse impact of the fourth quarter of 'twenty or 'twenty one.

Jingjing: compile with the adverse impact of the fourth quarter of 2021 of the ongoing supply chain constraint that the limited availability of the necessary materials and components.

Ongoing supply chain constraints that limit the availability of.

That's a good array materials and components.

Jingjing: The number of transmission products sold was 31,349 units, compared with 37,164 units in the fourth quarter of 2020.

The number of transmission product so the world.

<unk> 1349 units compared with 37164 units in the fourth quarter of the 2020.

Jingjing: Gross profit was $3.7 million compared to $4.6 million in the fourth quarter of 2020.

Gross profit was $3 7 million U S dollar compared to $4 6 million in U S. Dollar in the fourth quarter of 2020.

Total operating expenses were three 8 million U S dollar as the company expanded its operation compared to one 9 million in the fourth quarter of 2020 net income was 0.4 million U S dollar compared to ways to one 2 million in the same period of 2020.

Jingjing: Importantly, we took the opportunity to enhance our balance sheet in 2021 in the pursuit of our long-term growth strategy.

Importantly, we took the opportunity strengths our balance sheet in 2021, and the pursuit of our long term growth strategy.

Jingjing: As of the end of December 2021, our cash, restricted cash, and cash equivalent was $17.8 million, nearly doubled $9.4 million a year earlier.

As of the end of December 2021, our cash restricted cash and cash equivalents was 17 8 million U S. Dollar nearly doubled $9 4 million year earlier.

Jingjing: As we enter into 2022, we are very optimistic and remain committed to driving increased revenue and profitability as we work to build a greater value for our shareholders.

As we enter into 2022, we are very optimistic and remain committed to driving increased revenue and the profitability as we work to build a greater value for all shareholders.

Speaker Change: That concludes our prepared remarks. Let's now open for the call questions. Operator, please go ahead. Thank you.

That concludes our prepared remarks lets now open for the call questions. Operator. Please go ahead.

Thank you ask a question you will need to press star one on your telephone.

As part of your question press the pound key.

Please limit yourself to one question at a time.

Standby, while we compile the Q&A roster.

Our first question comes from Rommel.

Capital Your line is open.

Thank you and good morning.

Wanted to touch base on the core China business revenue.

Really appreciate your commentary on the deceleration of the economy.

Generally it's a strong market share gains there over the last several quarters I just wonder if you could touch on those trends continuing and the opportunity also you mentioned to expand.

Raymond Huang: that that business to rest of world or some of the particular geographic markets as being uh... a low-hanging fruit in terms of opportunity there

The business to rest of world what are some of the particular geographic markets you see as being a low hanging fruit in terms of opportunity there. Thank you.

Speaker Change: Good morning, Ramo. Thank you for your question. For the core business of drivetrains and transmissions, we have been very proud of our position as market leader in our space for providing those drivetrains and transmissions to the forklift market. For those on the call, China right is the global leader in forklift sales and OEM manufacturing.

For those on the call in China right now is the market leader is the global leader in forklift sales and OEM manufacturing.

Speaker Change: China itself consumes about 700,000 forklifts per year, whereas the United States right now in number two consumes about 400,000, but rapidly rising, especially with the shift towards e-commerce and warehousing logistics.

Ana itself consumes about 700000 forklifts per year.

Whereas the United States right now and number two consumes about 400000, but rapidly rising, especially with the shift towards e-commerce and warehousing logistics.

Speaker Change: Now, with that said, as China slows down, we still maintain our position as market leader working with the OEMs. The slowdown that we're seeing is with some of the smaller OEMs that we support.

Now with that said as China slows down we still maintain our position as market leader working with the Oems.

The slowdown that we're seeing is with some of the smaller Oems that we support.

Speaker Change: They are rapidly trying to adapt their business to be able to support more of a global presence, whether it be to markets such as Europe , Africa, and South America as well, that are continuing to rise faster to account and make up for the slowdown that's going on in the Chinese market. For the smaller operations, their transition is going to take just a little bit of time, but we're extremely optimistic.

Slowdown thats going on in the Chinese market.

For the smaller operations there transition is going to take us a little bit of time, but we're extremely optimistic.

Speaker Change: uh... that we will still maintain our market share uh... and partnerships with with

That we will still maintain our market share.

And partnerships with key clients.

Speaker Change: As for the business expansion to the global market, this is one of the key strategies for Greenland, especially in the launch of our EV business, because the EV product line diversifies the offering.

As for the business.

Speaker Change: here at Greenland, especially outside the borders of China where a majority of our core business of transmissions and drivetrains are sold. So by targeting the...

Here at Greenland, especially outside the borders of.

China, where a majority of our core business of transition transmission to Drivetrains are sold.

So by targeting the.

Speaker Change: EV industrial market in a space that is completely untapped at this stage.

EV industrial markets in our space that is completely untapped at this stage.

Speaker Change: in markets such as the United States will really help in the long term continue to diversify the company and protect us and mitigate risk from

In markets, such as the United States will really help in the long term continue to diversify the company and protect us and mitigate risk from.

Speaker Change: various regulatory environments or political environments as well, it helps us to mitigate our risk. So, this supports our long-term strategy for the company in expanding to the EV business line. Plus, the opportunity is significant.

Various let's say regulatory environments or political environments as well it helps us to mitigate our risk so.

This supports our long term strategy for the company and expanding to the EV business line plus the opportunity is significant.

Speaker Change: I feel very strongly it's going to add a lot of value to our shareholders. And since we are the first one with a product here commercially available in the United States, this is a very, I don't want to call it a low-hanging fruit, but it's a very attractive and very...

I feel very strongly it's going to add a lot of value to our shareholders and since we are the first one with a product here commercially available in the United States. This is.

A very I don't want call it a low hanging fruit, but its a very attractive and very.

Speaker Change: large fruit and opportunity for our business. The front loader and excavator markets combined are about 70 billion dollars.

Large fruit and opportunity for our business the front loader excavator markets combined.

There are about $70 billion and not.

Speaker Change: not a single other player in the United States is electric. So for us to penetrate this market, capture some market share, that's going to be a significant opportunity for us. And then once we penetrate the U.S. market, then it'll allow us to expand very rapidly to the rest of the world, from South America to Europe to Africa. And the demand is so strong in those markets that

Not a single other player in the United States is electric so for us to penetrate this market capture some market share thats going to be a significant opportunity for us and then once we <unk>.

Penetrate the U S market and it will allow us to expand very rapidly to the rest of.

The world from.

From South America to Europe to Africa, and the demand is so strong in those markets that.

Speaker Change: We couldn't turn away from it, so we announced the deal that we made, a strategic partnership with eLive, based out of Morocco, that's going to be between a $5 to $9 million minimum deal across five years and onward, and we're extremely excited about those prospects. But our focus for our company is going to be on penetrating the U.S. market.

We couldn't turn away from it so we announced the deal that we made a strategic partnership with Eli.

<unk> life based out of Morocco.

That's going to be between a $5 million to $9 million.

Minimum deal across the five years and onward, and we're extremely excited about those prospects, but our focus for our company is going to be on penetrating the U S market.

Thank you our next question comes from.

Event.

From Wells Fargo. Your line is open.

Yes, Hi, Ray How's it going.

Doing well doing well Hello Corey.

Speaker Change: Hey, how's it going with the institutional investor base? I know you were trying to...

Hey.

How is it going with the institutional.

Investor Base I know you were trying to.

Speaker Change: basically get some interest going there. How things been going? How are they receiving you when you've been able to interact with?

Basically.

Some interest going there.

How things been going how are they receiving.

You when you've been able to interact with them.

Speaker Change: I've been doing a lot of conferences, MDR roadshows, and one-on-one conversations with the institutional base.

We've been I've been doing a lot of our conferences and Dr Road shows and one on one conversations.

With the institutional base.

And the.

Speaker Change: interest in Greenland has been very strong.

Interest in Greenland has been very strong.

They are all extremely supportive and understand our vision on what we're trying to do tapping into the industrial vehicle market and they absolutely agree.

Timing is there the markets are ready for it and for us coming with a very strong manufacturing background.

As our bread and butter.

They're 100% on board from that standpoint, one of the challenges that we have is from a stock standpoint, we trade at a very low volume.

And our market cap is right around $60 million.

Its right around 63 last I checked $63 million, whereas we've posted almost $100 million in revenue.

Speaker Change: So though we are significantly undervalued from a market standpoint, from an institutional side, we typically tend to be smaller.

So Dover here significantly undervalued from a market standpoint from an institutional side, we typically tend to be smaller then.

The guidelines for them to really get involved with Greenland, but I've had conversations with many different analysts and investment banks and they are so interested in us that.

They've told me that they've opened up personal positions us to follow our company for that level that we will get there so.

Speaker Change: So, the interest has been there, but the commitment's been low just because of our current.

Interest has been there, but the commitment spend low just because of our current.

Speaker Change: our current market cap and trading volume. At this stage, per our last poll, we have, it's about 95, right around 95% of our shareholders are retail.

Our current market cap and trading volume.

At this stage per our last poll we have.

95, right around 95% of our shareholders are retail.

As a reminder to ask a question at this time. Please press Star then one on you touched on telephone. Thank you seeing no more questions in the queue. Let me turn the call back to Mr. Wang for closing remarks.

Thank you very much operator, and thank you everyone for participating in today's call and for your support we really appreciate your interest integral inland and look forward to reporting to you again next quarter on our progress and with that I hope everyone has a fantastic day.

Speaker Change: Thank you very much, Operator, and thank you everyone for participating in today's call and for your support. We really appreciate your interest in Greenland and look forward to reporting to you again next quarter on our progress. And with that, I hope everyone has a fantastic day.

Thank you all again this concludes the call you may now disconnect.

Q4 2021 Greenland Technologies Holding Corp Earnings Call

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