YUNHONG GREEN CTI LTD. Q3 FY2023 earnings call

• Rebranding: Stockholders approved renaming from Yunhong CTI Ltd. to Yunhong Green CTI Ltd. and changed ticker symbol to YHGJ.
• Website and product testing: Added significant new assets to website, sharing product samples and undergoing performance testing in the U.S. for market entry.
• Credit line: Extended credit line with lender for 2 years until September 30, 2025, under similar terms.
• Upcoming event: Participating in the China International Import Expo 2023, showcasing traditional balloons, balloon-inspired gifts, and compostable materials.
• Automation: Deployment of automation in manufacturing to create efficiencies and lower operating costs.
• Seasonality: Explained seasonality of balloons and related gifts, with peak seasons around Valentine's Day, Mother's Day, etc., and Q3 focused on spending controls and long-term planning.

Year-to-date sales in 2023 were $11 million compared to $12.4 million in 2022. Film products: Dropped off in Q3 2023 and lagged substantially behind 2022. Balloon-inspired gift items: Showed strong order growth, though year-to-date drop in the category due to timing of Valentine's Day shipments in 2022; overall, this area has been working well. Revenue contribution: Film products and balloon-inspired gift items are the main segments, with balloon-inspired gift items showing growth potential.

• Helium pricing: Slowly improving.
• Holiday orders: Fulfilling customer holiday orders.
• Share authorization: Authorized more shares for potential M&A, technology partnerships, or other value-add business developments, to be used where they enhance the business.

• Market competition: Two large U.S. competitors filed for Chapter 11 in 2023, impacting market dynamics.
• Supply chain: Previous short-term supply issue in the U.S. resolved but remains a potential risk.
• Helium pricing: Volatility in helium costs could affect operations.

Q: Will Frank or Jana be attending the Yunhong conference in China?

A: This time, only Yunhong folks will attend, with a lot of materials supporting the conference.

Q: Who was the second company mentioned in BK?

A: Pioneer, a private company based in Wichita, Kansas, owning brands like Qualatex and Continental.

Q: Is Yunhong the third largest producer in the U.S. at this point?

A: For foil domestically, it is the third largest, with the next largest being Convertidora out of Mexico.

Q: Have there been conversations about acquisitions using authorized shares?

A: Authorized more shares for potential M&A or technology partners, to be used for value-add purposes to develop the business