00:04 Good day, ladies and gentlemen. Thank you for standing by and welcome to the Greenland 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. If you have any objections, you may disconnect at this time. 00:27 Now, I will turn the call over to Julia Qian, Managing Director of the Blueshirt Group Asia. Ms. Qian, please go ahead.

00:27 Thank you, operator, and hello, everyone. Welcome to Greenland Technologies fourth quarter and the full-year 2021 earnings conference call. Joining us today are Mr. Raymond Wang, Chief Executive Officer; and Mr. Jing Jin, Chief Financial Officer. 00:48 We released the result earlier today. The press release is available on the company's IR website at ir.gtec-tech.com, as well as on Newswire Services. A replay of this call will be also available in a few hours on our IR website. 01:06 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 Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. 01:23 As such, the company's actual result may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's corporate filing with the SEC. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Also please note that unless otherwise stated, all the figures mentioned during the conference call are in U.S. dollars. 01:54 With that, let me now turn the call over to our CEO, Mr. Raymond Wang. Go ahead, Mr. Wang.

02:02 Thank you, Julia and good morning, everyone. Thank you for joining us today. As I have 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. 02:29 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. 02:39 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. 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. 03:13 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 have surpassed my topline guidance of $100 million in revenue for the year for the continuation of global supply chain constraints. 03:13 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 5.5% for the country. 04:03 We will see improvement as more forklift OEMs in China expand their business to the global markets and we will be ready to capture…

10:55 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. For the full details of our financial results, please refer to our earnings press release. As Ray noted, we continue to drive record revenue growth and the gross margin expansion led by higher transmission sales while increasing investment in our infrastructure to support the of our growth. 11:25 We are working closely with our supply chain partners to try to offset the higher cost impacting areas from raw materials and in components to the shipping. The important takeaway is we see continued growth in 2022, and are investing in support of that with higher revenue generating sales accounted, and the R&D investments that were issued, we have the value-added EV vehicles and the transmission products to our . 11:59 Turning to our results, we achieved record revenue of $98.8 million 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 years. Compared to 2020, our cost of goods sold rose 47% to $79.8 million in 2021, primarily due to the increase in sales volume and the increasing raw material price. 12:43 We generated gross profit of $19.6 million, an increasing of 53% from $12.8 million in 2020 led by the ongoing strategy shift in our product needs towards the higher value most products, notably, our gross margin was up to 7 basis points year-over-year to 19.8%. 13:13 Meanwhile, total operating expenses increased 86% to $11.3 million as we continue to invest in support of higher revenue level and the target long-term growth with an expansion of its…

16:57 Thank you. Our first question comes from Rommel Dionisio with Aegis Capital. Your line is open.

17:22 Thank you, and good morning. I just wanted to touch based on the core China business. Raymond, certainly appreciate your commentary on the deceleration in the economy. You've been generating some strong market share gains there, over the last several quarters. I just wonder if you could touch on – are those trends continuing? And the opportunity also you mentioned to expand that business to rest of world, what are some of the particular geographic markets that you see as being a low hanging fruit in terms of opportunity there? Thank you.

17:55 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 drivetrain and transmissions to the forklift market. For those on the call, China right now is the market leader – is the global leader in forklift sales and OEM manufacturing. 18:23 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 warehouse logistics. 18:39 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. 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. 19:14 For these smaller operations, their transition is going to take us a little bit of time, but we're extremely optimistic that we will still maintain our market share and partnerships with these key clients. 19:29 As for the business expansion to 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 diversify the offering here at Greenland, especially outside the borders of China were a majority of our core business of transmissions and drivetrains are sold. So, by targeting the EV industrial markets in a space that is completely untapped at this stage in markets…

22:05 Thank you. Our next question comes from . Your line is open.

22:13 Yeah, hi, Ray. How's it going?

22:17 Doing well, doing well. Hello, .

22:20 Hey. How's going with the institutional investor base? I know you were trying to basically get some interest going there. How things been going? How are they receiving you when you've been able to interact with them?

22:43 I've been doing a lot of conferences, NDR road shows and one-on-one conversations with the institutional base. And the 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 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. 22:43 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. It’s probably about 63 last I checked, $63 million, whereas we've posted almost $100 million in revenue. So, though we are significantly undervalued from a market standpoint, from an institutional side, we typically tend to be smaller than 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 just to follow our company for that level that we will get there. 24:17 So, the interest has been there, but the commitment has been low just because of our current market cap and trading volume. At this stage per our last pole, we have as about – 95% of our shareholders are retail.

24:45 Thank. Thank you. Seeing no more questions in the queue. Let me turn the call back to Mr. Wang for closing remarks.

25:05 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.

25:23 Thank you all again. This concludes the call. You may now disconnect.