Greenland Technologies Holding Corporation Q3 FY2022 earnings call

• Component business: Operating better but held back by pandemic regulations, produced record drivetrain deliveries in Q3, production strong despite supply chain challenges like raw material procurement. - HEVI Equipment: Opened U.S. assembly site, partnered with Cyngn to incorporate Infinitracker into product line, undergoing campaign to ensure compatibility with major EV providers in US, well-funded with $10M fundraiser in July. - Financials: Net income up 67% in Q3, revenue $21.8M, gross profit $4.8M, operating expenses down 10% to $2.7M, operating expenses as % of revenue down to 12.6%

Component Business: Produced and delivered 31,303 drivetrain units, resulting in revenue of $21.8 million. This is a new record for third quarter drivetrain deliveries but revenue is slightly lower due to foreign exchange rate shift. HEVI Electric Industrial Equipment Division: Officially opened first U.S.-based assembly site outside of Baltimore, Maryland. Expect to roll-out first unit off the line in Q1 next year, producing 500 units per year and creating 4-5 dozen green jobs. Revenue contribution details not explicitly given for each segment but component business had $21.8M revenue in Q3.

• Expect Q3 backlog to carry into Q4 for component business deliveries, though COVID restrictions may impact Q4. - HEVI Equipment division to grow with securing first fleet deal, continuing to invest in inventory, supply chain, marketing, and talent to drive the business

• Short-term impact of China's zero COVID policy on deliveries and backlog, as some regions shut down delaying product demand and deliveries. - Global economic challenges including inflation, supply chain issues impacting the broader industry

Q: About deliveries and delays in Q4 and HEVI equipment education steps A: Raymond Wang stated Q3 backlog will be completed in Q4, though COVID restrictions may impact Q4. For HEVI, attending trade shows in target regions like New Jersey municipalities MUA Expo, doubling sales force, expanding marketing team by 50% to educate market Q: Granularity on cost streamlining A: Jing Jin and Raymond Wang mentioned streamlining product offerings by trimming down drivetrain components from over 50 series to about 36, standardizing products for greater efficiency in purchasing and assembly, strong supply chain partnership maintaining good gross margin Q: Details on fleet deal A: Raymond Wang said fleet deal varies by industry, e.g., national rental industry could be a pilot for adoption in select areas, construction industry could be large deals in urban environment for incorporation into bid process