Q2 2022 Greenland Technologies Holding Corp Earnings Call

Thank you for standing by and welcome to the Green Technologies, Holding Corporation reported second quarter and first half 2022 unaudited financial results conference call.

All participants are in a listen only mode there.

There will be a presentation, followed by a question and answer session if.

If you wish to ask a question you will need to press the star followed by the number one on your telephone keypad.

I would now like to turn the conference over to Julia just one. Please go ahead.

Thank you operator, and Hello, everyone welcome to Greenland technology second quarter, and the first half 'twenty 'twenty earnings Conference call.

Yesterday, Mr. Raymond Wong Chief Executive Officer, and Mr. Jim <unk>, Chief Financial Officer, We released the results earlier today. The press release is available on the company I want website at IR Doc Tech cash tax dotcom as well as strong used wisely.

Play all of the call will also be a variable in a few hours on our IR website before we continue. Please note that today's discussion contains forward looking statements made under safe Harbor provision of the private Securities Litigation Reform Act of 1995 forward looking thing that you can walk me Harrington.

Risks and uncertainties.

The company's actual results may be materially different from expectations expressed today further information regarding these and other risks and uncertainties is included in the company's public filing with that do you see 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 the figures mentioned during the conference call or in the U S solid waste that let me now turn the call over to our CEO Mr. Raymond Huang. Please go ahead Mr. Huang.

Thank you Julien good morning, everyone and thank you for joining US today, we have a lot to talk about during this call, but before I jump into it I just wanted to start by thanking my team for their hard work and dedication to our mission at Green and technologies to continue to deliver the best quality products.

And develop innovative solutions for our clients shareholders and local communities.

Now Q2 has been a challenging quarter for the company with $26 million in revenue generated representing the first quarter, but we did not produce positive year over year growth. Since we became became a publicly listed company on the NASDAQ in 2019. This decline is primarily attributed to the <unk>.

Stated COVID-19 restrictions and shutdowns in China that lasted in some cities for over a month.

Despite greenland being lucky to avoid shutdown of our own facilities. Some of our key clients were not as lucky and had to close their operations for weeks and in some cases for over a months. This resulted in orders being delayed by client request and ultimately a decline in our Q2 sales and revenue.

Now allow me to emphasize that this is a short term disruption that Adam any believes the execution of our long term strategy will continue to generate profitable growth and value for the company. If we take a step back and view our first half results. Then you will see that despite losing them.

A month of sales opportunity due to these COVID-19 restrictions, we are still on pace with last year's performance with $49 $9 million in revenue compared to $52 $8 million in 2021.

$5 $6 million of net income this year compared to $5 $3 million in the last.

Should we have continued our trend.

Would have continued our trend of positive business growth were it not for the Covid related restrictions and further our gross margin has actually grown by 330 bps to 23, 5%. This tells me that we remain on the right course, and we will continue to.

<unk> on our current strategy.

Now our clients impacted by the closure have generated a significant backlog of orders for our drive trains and components that will could treat contributes towards a strong second half 2020.

Full year 2022 results of our component business to be on par if not higher than what we produced in 2021.

We continue to achieve key milestones in our heavy division, which is focused on the manufacturer of electric industrial heavy equipment.

This quarter, we launched the G. L 5000, which is a five ton rated load 40000 pound lithium powered wheeled front-loader, we launched that in July and the unit is now available for demonstrations and sale.

G. L 5000 actually receives the most interest on our website compared to our other products and we expect to open them.

Excuse me.

And we've already scheduled multiple demonstrations for the vehicle as part of our sales process in.

In addition, this quarter, we secured our first assembly site located in Baltimore, Maryland, and expect to open their doors at the end of this month. We expect this facility to produce over 500 units per year. When it is operating at full capacity.

And our sales focus for a heavy division is on the mid Atlantic region of the United States. So we can provide the appropriate supports to our future customers now.

Now, we aren't where we want to be in terms of sales, but it hasnt been due to a lack of demand, but a lack of infrastructure.

We found that initially we positioned our equipments along D. C. F. C. Charging networks. However, we found that the deployment of new charging stations to be slow or too costly for local businesses to justify.

Accessible charging infrastructure is critical to the deployment and adoption of Evs and is currently in its infancy across that market.

So to address this we have been developing our own line of mobile Chargers that will allow our customers to charge our products without requiring investment into an on site charging station.

We will be offering multiple charging solutions that support sites with power arranging anywhere from 110 volts to 220 votes or even 484.

These units can fully charge, our equipments in eight hours or less and that's a bit longer than our D. C. F. C charges would but it's still a lines with most of our Prof prospects, who would simply let the units charged overnight to be ready for a full day of work in the morning.

These charges are expected to enter production at the end of Q3 of this year and supports our strategy to drive equipment sales by making our products easier to integrate into an existing sites operation.

Further we closed a $10 million fund raised through a combination of a direct registration.