Greenland Technologies Holding Corp. Q2 FY2022 earnings call

• Q2 was challenging with revenue decline due to reinstated COVID restrictions in China affecting clients. - First half results: revenue $49.9M vs $52.8M in 2021, net income $5.6M vs $5.3M in 2021. - Gross margin grew 330 bps to 23.5% in Q2. - Heavy division launched GEL-5000, secured Baltimore assembly site to open end of month, focusing on Mid-Atlantic US. - Developing mobile chargers for EVs to enter production end of Q3. - Closed $10M fund raise via direct registration and private placement, part to accelerate heavy division expansion, part for opportunities.

In the second quarter, revenue was $20.6 million, the first quarter with no positive year-over-year growth since IPO. For the first half of 2022, revenue was $49.9 million compared to $52.8 million in 2021. The components business remains on track, and the heavy division launched the GEL-5000 five-ton rated load 40,000 lithium-powered wheeled front loader, secured an assembly site in Baltimore, MD, and is focused on the Mid-Atlantic US region. The components business contributed to the first half revenue, with the heavy division's GEL-5000 generating interest on the website.

• Clients impacted by closures have a backlog contributing to strong second half. - Heavy division expects full year 2022 component business on par or higher than 2021. - Fund raise strengthens ability to weather market conditions, with part used for heavy division expansion and part for potential opportunities.

• Reinstated COVID restrictions in China causing client closures and order delays. - Global markets at risk of recession impacting business.

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