GTEC - Earnings call 3 2023 | Greenland Technologies Holding Corporation

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Operator

Good day, and thank you for standing by. Welcome to the Greenland Technologies Reports Third Quarter 2023 Unaudited Financial Results Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Josh Centanni, Investor Relations Director. ahead. go Please

Josh Centanni

and Quarter operator, Welcome Greenland to Thank Earnings hello Conference Third XXXX Call. Technologies you, everyone.

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

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

and statements inherent risks uncertainties. Forward-looking involve

required As all to public not that, ahead, assume that now expectations uncertainties law. Mr. as dollars. Wang. SEC. risks such, different With the Also, and let does results except Further during filings applicable materially The included Wang. Please are Raymond U.S. CEO, company and be Mr. note from expressed the call in any over with other the call mentioned conference figures is turn the update forward-looking the company's please under in company's information statement, stated, actual any may today. regarding to obligation our me otherwise go unless the these

Raymond Z. Wang

Product up with increase year-over-year. as evidenced by sales, Greenland Good XX% balance margins of in dedication at and the we efficiency operational business deliveries Greenland, team. XX%, you Josh. for have our another here the at it joining our delivered and global are morning, without thank you, on everyone, up and achieved could Thank mission quarter sheet. excellence us today. outstanding We've our done margins to not growth in and

of margins the and proud success extremely industry-leading our for innovative driving clients are business. for that generate developing products in We our

drivetrain expected, most transmission by financial business. of performance the generated and is our As

that award drivers profit and new to XX% line us development drivetrains XX% core distribution increased with margins margin. of product the of of our of industry-leading a One our is the

across our Our grow margins will to continue portfolio. client product line ramps as this

addition, in as have has heavy accounts applications line our our drivetrains In markets such up military machinery year-over-year. support and which XX% and receivable, with in million is equipment $XX.X expanded outdoor product led we to to new

been has environment global companies. clientele to able to volatile the Greenland due geopolitical OEM successfully navigate of our equipment

and seen We by demand brands for have areas an to conflict. to increased operate able equipment products lost replace increased of in inventories

to a remainder Greenland Now the yen of to the the from dollar to has X.X. X.X That's for yen at X% is primary risk us the weakening for year fallen Year-to-date, the the dollar. lot.

However, the will showcases still even of off pioneer year. to top, revenue track core strength business market that are States. And year. the continue into continues HEVI and this the new million here electric with in generate make to haircut heavy over the United the growth in $XX -- we our we for as the process on truly machinery progress

support port our very all Port electric Bid proud win their their to Baltimore loader. electrify efforts the with are We front equipment of GEL-XXXX to to

generated will opportunities process leads which with signed. closing, nearing of report through pipeline solid our we a have We sales when additional

the and am discovery sales there's with market confident HEVI nimble process, Now our penetration the and stay reference of as innovation, and discover to right to new that to culture sales industry of I strategies by in successful we machinery, to it adoption. our win expansion. lead our will market. is electric in a pioneer heavy this And strategy to continues other exploring responsibility accelerate no player to

with new feedback its from revenue investment or joining no companies creates companies The The adoption and and inventory our machinery. the HEVI show capability financial authorized heavy in service given in network to requires member support ASP provider our equipment model promise to structure. a positive unique continues model stream interested for and

to the our appropriately of of align with HEVI top-tier the activity sales our will progression support. expansion clients network that service have and ensure ASP We access to

of to growing Energy, network new the providing HEVI business a to Now products line the dedicated solutions last quarter, power of America. announced across I formation DC-powered

Energy to details of DC-powered DC our is school trucks stage. HEVI having equipment, electric and We're to take recent yet buses, such very challenge deploy. station as months will garbage at can to solve the this that and share install and without additional cars not expensive passenger ready traditional adopting vehicles. charging

HEVI market. shares vision U.S. certified the same and delivering product heavy U.S.-made I However, to that can say a the Energy as corp in

Now our that undervalued Greenland I it feel no is given significantly is secret operational performance.

and share growth to with business. performance opportunities for sales lines market new significant the product grow continues Our creating

explore over to realize and price amassed have this tailwinds opportunities company $XX following long-term XX% And in continue the year-over-year to quarters. in to in efforts will to have our cash, us disparity propel up address Board and many our and have not I our GTEC reflected valuation. proper to for shareholders. million success the We share appropriately the Unfortunately,

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

if the it into financial Now take with our that, can of away. J.J., let's you details dive performance.

Jing Jin

quarter. over for now our go you, I the results joining Raymond. you, our third everyone, for call will Thank Thank financial today.

For earnings details today. of results, please release our financial to that the issued full our was refer

increasing basis, X.X% driven continues to USD XX.X% increase revenue to quarter, USD XX.X decrease the approximately third efficient sales For we revenue increased year. million million, X.X% profit year an QX sold increase in The approximately demand. due ago. cost total prior. The cost. on from year 'XX. off. XX.X% was margin increased strategic gross in compared compared the million Further, to in our from our to our a focus primarily In increase a revenue in stronger by compared as foreign dollar, QX, up volume last decrease XX.X X by impact X.X a as was was representing of million, XX.X% products company's and market mentioned, pay as negative higher-value currency by constant gross X.XX quarter USD goods XXXX a excluding exchange XX.XX to manufacturing the production approximately On an and approximately Greenland USD million USD was representing the the by

outstanding higher and primarily line X.X the performance increase September X Our products This more our and ended XX.X% business. to of operating underscore in our the USD strategic. as business and leadership the to sophisticated Total HEVI success expenses to shipping compared XXXX. months value investment in company's into the of XX, was due investment our R&D industry fee, the rose million

drove quarter. results those of profitability strong combination the during The

from same X.X income quarter QX was year. XX% Our up operations million USD from last the

cash and cash XX.X% sheet Our balance remains last end as million up up equivalents the the XX.X quarter, USD USD of we from quarter XX.X year. million strong the the same for

sustain provide the HEVI us and flexibility in to investment position as business. cash operational line empowers substantial robust Our our

of As substantial are growth we about we project value financial and look our achieving the a to shareholders. delivering forward, XXXX positive we for outlook optimistic remainder earnings

prepared Our our unwavering our ensuring strategic customers commitment the needs concludes to implementing That addressing efficient reinforce and our remarks. dynamic operational confidence. business for efficiency

Operator, Let's the go please questions. now call ahead. open for

Operator

O'Neill Theodore question line Instructions] First of Research. [Operator from Litchfield from the is Hills

Theodore O'Neill

And an the could on revenue You currency impact currency your would what mentioned repeat the percent idea in prepared quarter? us give was on the be remarks, you in as you currency would a the issue what basis? constant

Raymond Z. Wang

from Absolutely. X%. alone The was currency impact this year

So X we've right months little million. generated now, $XX in the over a past

higher, we So roughly. X% about would be

Theodore O'Neill

project? Okay. we be milestones And looking in on for business should the here. you've that of got Baltimore Port Are there

Raymond Z. Wang

is for unit our for Delivery scheduled February.

So we will balance that HEVI quarter. hit for sheet the see first our in

Theodore O'Neill

that you supply a number chain having transmission was you And that? I done if And disruption quarter, last Okay. I was QX? you talked also, could you XX,XXX wondering impacting comparable that some units on us you wondering and And said update could had if about give business. for

Raymond Z. Wang

Yes.

the for overall actually sets. actually, we transmissions XXX, from did an months year. is XXX So is which the that past X right XXX,XXX increase last now

is number this the of well up. to topped this my stands, company already as now continue around pick as head. year-over-year throughout at roughly continues our And that right will XX% the remainder global a in for demand we off accounts off back -- top year So right of trend the see have the to And we're the is as reflected it receivable increase. about that's I'll

right apologize million. $XX I around Sorry,

proud So transmission a from to very rise, of. delivery unit we're which standpoint, that continues

Theodore O'Neill

-- have I think in issues were you were mentioned update any just And you supply chain Do there last that? quarter. on that

Raymond Z. Wang

very Yes. impact, standpoint raw drastic of more fortunate in environment. now, the to risk a it like priority to leading the what impact of there's enough our have been been with you. we've market have and significantly our foundries Though steel material position geopolitical It's suppliers business. lot Right been hasn't in a

volatility be geopolitical to the ban should is that that can countries tariffs there's of steel be or QX to in put to I that let's exportation were overseas to that U.S. able something restrictions for warning or China the and if the would between we of However, drastically exacerbate need say, as to the such then continue raw something address increased nature.

Operator

of is Water from Mattison next question The line from Graham Research. the Tower

Graham Mattison

really margins the I product that in talk about market a a just or on driving tech Congratulations or a better on quarter. is of gross mean, that? combination the efficiency the part Can your demanding both? bit more little what's higher you

Raymond Z. Wang

sales XX I've with in the That's a share. for with maximizing because months combination we the increasing our industry, that our on is presence now see doing. transmission that our a our not operation. past really growth It's it been right expansion starts of just but and both, we're the harping more for efficient in market-leading something and where would market returns drivetrain

developing from products. to a for efficiency clientele, were to So manufacturing processes from yet products product utilize state-of-the-art manufacturing technology, achieve and we that to a that margins line increase focus, those our also both big a that standpoint, was our end by able standpoint benefit innovative

been And developed, sales that to then adoption, our extremely process was once distribute that for clientele that's our to then and it successful. was

So gross is if margin. last quarter, creep you at for numbers about look our steady past of the quarters, there X up XX%. it's a our

of topped is excellence. This the XX%. over that this showcasing efforts quarter, towards we work operational And our just

Graham Mattison

How it. runway is there Got Great. margins. much on

do As side? into see you potential the on towards as -- margin of bigger is shift it a XXXX, or -- product it to -- do be revenue mix? you see next the a more look Or side further more we driver being year, it there that look in you the expand would more just with

Raymond Z. Wang

to see XX% business, going the margin So and output conservatively core the that the drivetrain runway our XX% around to from I level. is be more right on transmission and standpoint

impact. to meaningful business of line line more results to next However, business, year, anticipate begin of deliver for that's our that of be and I do that a we and out line going heavy some revenue will of performance top

Graham Mattison

sense. Have makes That Question far impact from the you've center, your on you. side. model the seen Got service that announced heavy that. ASP any so you now

Raymond Z. Wang

for From standpoint, been very model. an establishment reassuring our that has overall

from confidence service are the the have a pursuing that we So right we need approach standpoint.

to phenomenal. not that, So discredit been that's

However, that nut on service it's generate still that since the sales the model both are side the and in on volume product it adoption. to And for being out we is still to make right solving, -- rewarding around entire the sides. ASPs now, that field predicated sales, those cracking

up We out We're begins can well. sales. our many ramp to there extremely comes for to for as And ASP possible. ramp anticipation appropriately up doing up, we ASPs and just then not confident are the as as clientele rapidly we're sales ensure network going in through. as that the coverage signing it

Graham Mattison

the or rental some companies? Got that the with you last it. of demo had then on Any partnerships And programs with the update question. running Great. big --

Raymond Z. Wang

can't much share I too this at Yes. stage.

fleet execute far. But large to let's the active. with deal, We're developing. that of say. particularly and earnings time I've that some outcome extremely I'm those companies rental communication. active And still relationships progressing. I they're making, However, take I'm those They're definitely so that, extremely active with some say we're the prior into calls, and still named projects still pleased the in with still a in can are progress pleased

Graham Mattison

the process for given works, mean, in Is how is of potential that XXXX? that a look I something to that timing --

Raymond Z. Wang

a say. to is one That little harder

Our balance announcements for optimistic to some XXXX, target until that but it XXXX. the in might from is take an impact to have sheet, related actual

on to they lines from runway delivery. product X-month heavy Our order the have a side,

or realize to June by if to at of rental order brand year on we're delivery we drop see XXX hit, so that desk have would a national it really company XXX a of unit for next in XXXX. So itself our

Operator

the Next Dionisio question from Capital. of is from line Aegis Rommel

Rommel Dionisio

the core the the and outlook you Obviously, United does I the wonder just gains wake visit in if if market. about and market to level little in just China. a definitely you in on demonstrated of the wonder could transmission overall seem Premier the come bit it for States into talk business back. outlook market I macro a strong you've about XXXX could the markets going like share that talk Chinese

Raymond Z. Wang

balance satisfy just growth the globe. across the up technology with -- strong such very course. an behaviorism with see economies particularly environment Of though the world to a to volatile continue company That and and strong still countries. towards for still Though industry on to level, promote the the global At forklift e-commerce have transmissions, macro demand has been see drivetrains across level, geopolitical there's the struggled their in and in operational catch foothold itself. And shift has challenging. significant a We the demand right we delivery. taken to

while. which the annual countries most still really to for and to the I And better? or it's forklifts a growth driving little it's to better next strong were do to brands increase in are to level, that's at macro now If At that, component that to likely continue are really right to transition to logistics on that rate And can agnostic that little overall, going for down XX% drive business. at we global talk affairs. years. power that's we going rely to demand a go the compound sense, to stage drill the that this do our annual, about anticipate the will that for which X% X X macro going a

Rommel Dionisio

if X can Raymond, just first of win wonder, kind that, follow-up landmark Okay. them you to that if with That's make maybe could on all, pushed really of how the characterize of extent if over you can, make out, Port share edge helpful. could. kind the question, And to that Baltimore. pushed very that them I that Congratulations, edge what how the us decision? the with I you Just to the what played order? over of

Raymond Z. Wang

of that was is wheel. principle over diesel and Yes, our behind for the is the past it's The people cost it we pushed which -- century, knew Because -- all wheel. about. get power process, the for what getting that feel comfortable way to that benefits best get this sales guiding since to brand-new been was is technology and talk can despite to them behind our the we savings people

did. we So that's what

those With of our to Port understood them in the out they They Baltimore, for full their firsthand, at saw a we to quality. brought our once site They small the Marsh school power. invited equipment. try got to White of operators. the And advantages. saw operate And they the they operators bus

sorry, we I back demand company was the entered point that procurement our process time, did to at -- into in the to say. And wanted, that let's pioneer February. technology. it rather the they on extremely first some were process take time. And it comfortable or in improved say be We that will for

of took that to and deal. this bid, were able until officially year before it August win However, then entered it we

the our and itself I the we because So a anticipated, take longer the out soft long just quarters. it's initially that asset called of clientele, for even sales process equipment purchasing when values victories, achieved process, we can very than for

on share the and So wanted one just call. lesson, I that to learning was that a

Rommel Dionisio

if shipping I could. shipping Okay. Was in have if just Or just that, One stabilized. of you you quarter. could that wonder thought cited I higher I last clarify kind rates housekeeping fees I higher question, noticed of units? because please? the

Raymond Z. Wang

course. Of

line up which to of facility. states at Until [indiscernible] of process. of rates Many component get scale we assembly shipping needs, we've manufacturing lines has for over our around business the been the normalized of all with meet fantastic. air the our tooling White So many to our clientele. our required the for equipment world, that time Marsh is the the and shipped HEVI have

the a standpoint business we their of cost short-term seeing global will we away shipping be manufacturing be moved a side is components at shipping support that. And with business, to this are the meet from to to clients' scale scale. able increased line for of start costs to on a once So a sales support needs our from increase on some of infrastructure steady that the

not So I for demand say be We're this of of but have I clients. to this. clients, our the top-tier meet doing careful how all of some to our

We the have some shipping. onset of

Operator

questions further And this there at are no time.

Raymond hand any Thank back will conference closing remarks. Wang the to you. for now I So

Raymond Z. Wang

Wonderful.

So you everyone, today. us all for wanted I just joining to thank

are XXXX the It's we strong on As delivering and setting. we our that earnings. been milestones expectations a consistently QX very quarter, reported and we're

Our with stopping. and continues to no generating profit signs quarter. component stable after extremely deliver business quarter of

opportunities an adoption line to to industry. as is will establish, significant Once This market for HEVI over the to as cleaner environment the player company. once we And from we it first industry our business lead penetrate importantly, a electric. industry tomorrow. for this And for of the local pioneer our to going first, most shareholders. an also some generate for growth convert diesel and communities

something that we for are you wonderful to this thank much, that's And quarters the for next proud journey, us joining, few what all have and everyone, are you dedicated hope very for wanted And day. and achieving. we extremely extremely But along optimistic we'll extremely we we're a bring. to you joining of for thank I

Operator

conference disconnect. Thank may for today's you participating, now concludes call. This and you

Greenland Technologies Holding (GTEC) 20 Nov 232023 Q3 Earnings call transcript