Earnings call transcript Q2 2023

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Operator

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 in listen-only mode. Later, we will conduct the question-and-answer session and instructions will follow at that time.

As a reminder, we are recording today's call.

objections, disconnect any this have you you at may time. If

to turn Centanni, Investor the I'll Josh please call Mr. Now Greenland. over Centanni, of Relations proceed. Director

Josh Centanni

quarter Welcome you, Greenland Thank hello, conference everyone. and Technologies' operator, second XXXX earnings call. to

A Wang, is Mr. Jing Financial company's of gtech-tech.com available website available replay released on Joining We Officer; today. earlier as Chief Executive from at Raymond website. the today hours will and Chief well Newswire call us The also Officer. a results in is Mr. on Jin, press services. IR as this our release IR be few

of Before please continue, provisions contain safe discussion will harbor forward-looking Act statements of the we Securities XXXX. that under Private the note made U.S. today's Reform Litigation

inherent involve statements uncertainties. and risks Forward-looking

materially company's the the actual from today. be may results different such, expressed expectations As

update Further figures is uncertainties any the The risks the unless company information does filings all please dollars. otherwise as note law. included conference that Also, during in to forward-looking other these assume with regarding in company's public required U.S. under are SEC. any stated, and not call applicable mentioned statements, except and the obligation

me Please our over the turn Mr. Raymond CEO, Wang. With call let go that, Wang. now Mr. ahead, to

Raymond Wang

market and to and to today. you by persistence a us for success. stay Josh. start Good Thanks, focused afternoon, everyone, continue like passion global I'd the team volatile dedication, thank and drive their to for business joining thanking global in to our forward

to demand. results and up pandemic has OEMs normalized pent-up recovered my from our production global that with industry Our the ramping emphasize position meet

second-half margins units Further, continues through year-over-year basis of in income. million towards with in more component year-over-year, our in XX% fruit business trend gross revenue margin, by and operation drivetrain delivered represents which a XXXX. respectively. $X.X anticipate $XX XX.X% improved increase remainder gross I our continue of strong bear our efficient and We a resulting net efforts results a as the generating in XX%, to with points this over XXX posted million XX,XXX will

for the It has represents and our been would our worth report results actively and in component sales that engaging. been noting the we The region not volatile, If yen, sales we that over XX% even weakening have Chinese monitoring stronger. is Chinese we deliver. been market very have as in China

as number our components of However, particularly North overseas shift are to America, and America, increasing our Mexico. begin in an such as exporting Europe, clients operation to they South regions

not solely As of a result, is reliant the performance global as on demand the business Chinese the economy, growth component but whole. of our a

to make continues sales right I am progress market the path see. feedback on electric HEVI longer The to process confident are the pioneer proved States. on in than machinery anticipated. has as and based we the demand we United continue the But heavy that we

have trade We electric on machinery industry conferences. the the opportunities and demos, executing product shows that on been our advantages offer heavy through strategy machinery educate and to

consumer through team pursuing This incentives strengthened efforts for leads is our actively sales progressing lobby opportunities. electric new been by well to has Our equipment. off-highway heavy existing while

that our heavy over Currently, nation's for XX%. range way similar embracing provide heavy consumer the a begun all support dozen year up in states other first XX% efforts incentives machinery have sales that electric with quickly and from to We machinery passed the Maryland, off-highway policies. heavily will incentives different states last off-highway incentives

our for hurdle just that this job as usable electric States. far for exploring machinery, we year. I'm our product Reception the did One these heavy post be to other open expectations, site brand products not remains but chargers our allow chargers strong exceeded in well have we meaningful revenue not anticipate. our originally United that XXXX to and Interest confident on door mobile applications that any with was the machinery the HEVI DC heavy for of in solved new will development our our names line, for

very Most to DC new can electric are traditional products take and and EVs are expensive deploy. relying power. DC more months stations charging on But

chargers offering turning is are solutions. to this needs. new DC-powered a solution be electrified will clients Greenland with And to the Energy's the as mission Our our industry to their address needs of The creating HEVI product HEVI growing mobile called of demand, meet HEVI power meet a unit business of unique Technologies appropriately Energy Energy. to

future. expect about can HEVI that Energy you will very our more be releases details press the through near Now in released

have GTEC these that goals team I the shareholders. still proud do the we track believe and the and are extremely on and achieve, but right hit We has for to our succeed I for accomplished. of company much to am work the to milestones

Now the details let's performance. financial our dive into of

hand will JJ, mic CFO, some have might still over issues. I ahead. We the to my call JJ. go there? JJ,

Jing Jin

you Can me? hear

Raymond Wang

we Yes, hear can now. you

Jing Jin

Okay.

Sorry.

Raymond Wang

be may difficulties. some everyone. having Actually, apologize I technical seems we It

you time, sake through for would back, HEVI? for JJ then him bring read performance on of Josh, back financial the mic. Just can And everyone's gets when the we

Josh Centanni

Sure.

of our was results, today. issued the release please first-half earnings details including results, our that full the For XXXX financial refer to

by second our from our sales year a XX% increase ago. quarter, up $XX.X The the million was revenue For XX% was volume. increase $XX.X million, a driven in

exchange the revenue shipped to currency we from excluding earlier. On a XX,XXX XX,XXX basis, XX% a transmission by from constant previous increased units foreign negative year. the compared stronger about QX, a impact products of In year dollar,

high the industry hydraulics last a strategic stellar pay Ray our leadership as The our business in focus points in and performance QX, as by higher-value gross years. In to such on strategies. demonstrates off. Further, transmission products, our our three of the effectiveness marking improved mentioned, the basis margin continues record XXX

to the $X.X The company's our administrative investment million. activities marketing, the related advertising, Total general primarily was division. on rose of as to expenses XX% to well as operating due increase expansion R&D HEVI focus and

of drove quarter. The these results combination profitability the throughout strong

from year-over-year $X.X up a million same XX% million, was ago. QX year quarter up last was million, income $X.X Net the Our from income XX% year. operations $X.X from

balance $X.X This up to from gives continue million to cash on million, our Moving cash in quarter year. position the in our with ended fourfold $XX.X to invest and us which and HEVI business. significant operations our enables over last of cash We sheet. equivalents flexibility is strong

We for of into remainder products our Looking anticipate to transmission XXXX. demand the remain strong.

Our industrial on advantage electric, business in division goal remains leveraging equipment in advance industry our to commercial vehicles. our our products first-mover transmission HEVI leadership on continuing all while heavy of

I'd open now That concludes ahead. any Operator, our for remarks. please to the call questions. like go prepared

Operator

of of Thank Instructions] [Operator question O'Neill you. Hill Theodore comes from the line Research. Our first

is Your open. line

Theodore O'Neill

quarter. very and you much Thank the congratulations on good

Raymond Wang

Theo. you, Thank

Theodore O'Neill

talked -- how product margin profit was improved, cite are Can about gross and sort here you us higher-value So what products. better improved was give of on these of in you you range margins of quarter? products your that prepared helped in range a mix, remarks, the higher-value

Raymond Wang

Absolutely.

actually strategy product or increase for machinery our part simplify in business, is lines focus series. of onetime the in and margin a our to higher-margin component offering on our newer product multiyear So more

this, XXXX, we're amongst who demands scale aid our that XX further units are we each into into just had mostly X manufacturing series models over operators, time, making meet put of at a To to So context, with dozen-plus margins. But our the as of almost complicated that them. clientele we custom in solutions. -- Tier our process many different drivetrain and

been years So five past now, simplifying actually for our product offering. we've the near

well. XX and and as integrated of six different some each nine components and offer on and newer such we're only series we Now transmissions our probably about more higher-margin drivetrains, different to drivetrain products about models only focusing pushing as

Theodore O'Neill

product Okay. number the terms demos, of the And on -- demos of on in you length demos, us give customers and your training of an can update on HEVI division equipment?

Raymond Wang

absolutely. Absolutely,

meet Since we've three the added our our another actually dedicated inventory HEVI time. we've Plus quarter, X of now entire we've demos. for shortened been front last to getting. larger our smaller two loaders the demand our So units, we've try also support to that demo loaders, on of right to demand

of to a actually our down feel brought to weeks to based we were max. for a days one site of site, of part our clients. a lot that demystify are just on week and product the to assumptions really to sites first-hand our become experience and client address electrification to will go a is lot to Before, the this two deploying And products about to give from job strategy we've get good continuing demand, job eventually to that And interest. a But our up products. driving for three job operators

Theodore O'Neill

them, be that Will single you phase, lease them, And here? DC on and business, think products. will once my the wondering now. the rent a got I'm I'm about And question see you've for I different two One on there the you sell products? three portable for them? last phase. as What's that once more mobile is thought website expanding chargers. is

Raymond Wang

Great question.

selling high level, a new chargers. our mobile be at DC So very will we

that into market but to them, enjoying our out, it The creating We they had. it, to plug electric us, will that product new we're been demand everything setting we them not just they've couldn't have demos folks loving trying that help back we've And the us. use be catered been sell chargers give identifying. and ones our when specifically originally them for for designed were that towards

too all the into don't in some -- to we've will U.S. for doing off will is R&D Maryland R&D demand. want too satisfy ISO being to fully just our But details starting they I to And here USA, will appropriate U.S. in in secrets mobile this spill been on mission the catered charger, DC market will specifically that States. certifications, the soon. yet, say the needs for get chargers these So designed facility. aggressively they can't from product and made certifications very UL IP. the the they actually are a have be I They can They be United many

Theodore O'Neill

Thanks That sounds good. very pretty much.

Unidentified Company Representative

course. Of

Operator

One Thank Thank you. please. moment, you.

Dionisio question Capital. from Rommel of line of Our Aegis next comes the

open. is line Your

Rommel Dionisio

Thank you. Good afternoon.

you maintain -- segment are this the I downturn Thank if and successfully. share COVID I a unlock overall During able know wonder in could as could able you. capturing comment the wondered comes a was of just still to share lockdowns, market you guys sector result characterize gains. to obviously, of downturn were period, during that those if there back, industry, the you year, as were economic I on in market you very that. but you And -- the the

Raymond Wang

field. very has It a volatile absolutely. Yes, been

clientele, have able actually portfolio, been to client market extremely been our remain unannounced, brands Tier proud but share we expand expanding that wish new with to few which have we're a We X of. our actually

alluded very nationalize as keeping to looking are However, close for logistics to environment eye is we're I that and chains as supplies supply try now massive right challenge, chains the that is there scale, on countries a a Primarily volatile possible. a global to massive on. earlier redefinition much their

depending on than done it's and countries But depending on presence, easier on markets, depending for others. said

been So facilities being amount where during the it's a similar And overseas close that actually I have one something significantly XX%-plus because we things of up about pandemic. this my of mentioned went is larger shipped This that are to -- to our components eye keeping on actively sales something about from manufacturing they in a opening when seeing the China-based that actually larger remarks, XX%. looking saw they're -- that overseas. we're we is a

just even So decrease. two, a year we in or a saw

adopted back because found ramp But quality very it to some the challenging manufacturing devastating up optimistic, new. a to or to companies, that and of -- reverted were it though we saw quickly countries us were the was so impact and reversal aspirations us they very

So clientele. have our expanding yes, we been

something keeping out. We on, a we exactly market our close how have still but that been eye shapes it's share that expanding are

Rommel Dionisio

helpful. That's Okay. very

how going? wonder share the -- could follow-up Maryland up and Any been Just little you Thank just learned, as you. lessons if challenges on with us a all running update what any how while, -- the I unforeseen you a an may facility. and have it's question, it's

Raymond Wang

chargers on The is both site for well, and HEVI right DC and to it's coming production we're along go itself Maryland for energy. well as mobile Absolutely. manufacturing ready now, expanding for support our to extremely equipment heavy

at of capability to are able beginning assemble a to standpoint, full from the We heavy deliver first now that and on And track we equipment in on capability have the target right be Maryland QX. the still unit site. to assembled

a However, have that standpoint. -- production is and model from been plans time aggressive our predicated too on sales goals our production may a a little were

for our we air-quoted mentioned, cycle for When the them. garbage sales did industry, electric the cycle non-incentive-based school tractor to we equipment. XX-month I overall buses, trucks heavy electric in electric As and pioneer to purchases compared brand-new was underestimate a sales peers over trailers, trying

Our original nine. estimates were

This is ramp to sales us. want just present to we down there. if up challenge we the products So because site a it that why assembled QX moved this from does to for turn didn't weren't our first QX

So the ready is we drive need have to it. site just capabilities, sales the go. to the We

Rommel Dionisio

Great.

Okay. Congratulations on the quarter. Thanks.

Raymond Wang

much. very you Thank

Operator

you. question line the Graham [Operator Thank Our Water next from Tower of comes Research. Mattison Instructions] of

Your line is open.

Graham Mattison

good it's and demonstration versus Hi, there's more that great Would you even question out got maybe first there. second you've because where today? and afternoon, quarter more quarter progress everyone with -- the A the going that -- is say the

Raymond Wang

Graham, sorry, out I'm heard from say might and you you it cut there. there. would have then cut I I out apologize.

Graham Mattison

apologize. I just actually is I'm asking I don't this No, was better? I know. sorry. --

Raymond Wang

Much better, yes.

Graham Mattison

Okay. Great.

Sorry that. about

even leveling Or to quarters? it the you you're the doing, seeing is of Are push that? to is off? that of it how that terms demos acceleration there of is the In pace room an prior further? compared Or

Raymond Wang

as The the proactive field. growing, demand especially conduct are and sales introduced actually into campaigns more incentives we is more

So growing. been has the demand

has is to to X of in the it pace three the because one, doing demos be receive past more Our of room another the our few XX grow to ramping the just have as would of meet would able significant. we significantly. need needs demand We're We been been demos. anticipate the them. And where to -- duration probably would we units quarters,

extremely been strong. that's So

the were interest the and lot see. happy demos, for are which The times our incentives of chargers demos, from sales the those to next there. expanding the process A with was steps extremely we

of for validating met still as wanted we this any hesitation frame. they with pursue really good of nature. to things and just our options is other the in statements, efforts in look research further it getting And some terms was them just there keep to to that field, players contacts, other time conduct in sales the agreement sustainability a sector extended at However,

mobile well. changing as well, demo that's solving post that for DC our incentives been meaningful financial the infrastructure having with chargers with are Now actually as addressing problem, very game us, we and with deadlines concerns conversations the

Graham Mattison

do anything then on sales you centers? develop And Are authorized that looking plan still has on Great. to you those? the service still front? And using the helped

Raymond Wang

is with -- already actually network, signed we we once as heavy it's I'm authorized the have. actually we solid that in the already well. -- secret, to a three service expand signed. about it's announcement officially companies. all sites have we equipment board but board that it's we along were have Yes, from to going repair way right footprint, rental now, about an on We companies provider have New sorry, primarily And Right some do that. now no on and range companies continue four about But are actually rental that it's on signed Jersey, something towards it truck

Graham Mattison

of Great. us large quarter, rental give other companies. you sort you there? is Rentals about And Any last some you management fleet question, then were any program talking updates update the United last can there had, -- then I think you and with spoke or

Raymond Wang

want Rental a We a is our we're the larger GEL-XXXX Yes. team. GEL-XXXX line to through just the the get sales a go and and through they well product to as better product to for ongoing. completed demo demo loader, with The about now pilot new the to their and still marketability line the demo unit, initiate comfortability smaller better our United understand with

still progressing active that's and very nicely. So

a yards and management In organizations public brands, large operations, other that, agriculture, standpoint, port addition fleet and making rental significant on are as to with national demos well. both process work and we waste

they that progress bear we're will making I stage, some significant we fruit. very prefer that there, assure that, But actually and to this at optimistic can However, are unnamed. remain you

Graham Mattison

with and All that those way just before of in Is programs a of making you pilot it? terms how they a typically start work, right. sort to And the demo then think about to shift right order. an

Raymond Wang

the And product they'll correct. performance with expectations It that's standpoint, then maintenance pick a Yes, their over product both and if financial demo pilot goes phase. purchased a adoption. larger typically up to performs from then to the

Graham Mattison

much. Got Thank I’ll back great jump very it. queue. you in Alright,

Raymond Wang

Thank you, Graham.

Operator

time. no further Mr. showing I'm call at for back questions to like closing you. any turn to Thank Wang remarks. over this I'd the

Raymond Wang

you off, my very It near thank And truly us call. having I I everyone quarter work quiet at has will evening second able in your working fantastic so for everything everyone's earnings am here our news hard a exciting believe everyone, be the is Well, trouble I will in our mouth patience wonderful honestly time we a we but have your week. attending company, for Greenland. shareholder. much I of here, very to for keeping hope a very do future. appreciate the and that on some pay as a provide And very, But and rest exciting that support

Operator

this Ladies gentlemen, does you conclude all and participating. Thank for you. today's Thank conference.

You may now disconnect. Have a great day.

Greenland Technologies Holding (GTEC) 21 Aug 232023 Q2 Earnings call transcript