Greenland Technologies Holding Corporation (NASDAQ:GTEC) Q4 2022 Earnings Call Transcript

Raymond Wang: So initial feedback has been extremely positive, extremely positive. These demos and pilots are something that we drive and encourage, because there’s always a lot of concern and doubt for new technology on whether it’s strong enough, or whether the battery can provide enough life to get the job done. And our units are truly designed for that. So there’s no better way for us to prove it than to get it into the hands and to get people behind the wheel of the equipment. And feedback has been extremely overwhelmingly positive. So, we’ve been extremely glad but what we’ve hearing and what that means for the overall business as well. And for the delivery for next steps. So let’s take a company like United Rentals, for example, the way that we see it playing out is after the initial demo phase, then it’ll transition to a full on pilot, where you are will purchase between, let’s say, 50 to 150 units of our particular product, to do a full deep dive, 12 months pilot study on our product live in market to get a better understanding of profit margins, maintenance costs, the Scotiabank.

And if that pilot proves positive for their business overall, then they would proceed to nationwide or global distribution, which is definitely something that we would be in favor of. And from a delivery standpoint, our Baltimore, Maryland site is prepared to complete the first finished product in Q2 within actually the next few weeks. However, it does not represent our only manufacturing capability. We still have our assembly sites overseas, where our product right now both the components and the assembly are being done today. And we would have the capability to support a larger order in the 50-unit, 100-unit scale from that site, and in combination with our Baltimore, Maryland sites together. And we can do probably about 200 units with a six-month turnaround time.

Operator: We’ll now take our next question. And this is from the line of Theodore O’Neill from Litchfield Hills Research. Please go ahead.

Theodore O’Neill : Thank you, very much. Raymond in your prepared remarks, you said you’re going to train people to repair and maintain the machines and I’m talking about the HEVI subsidiary and all these questions I have. For the early adopters of your machines. How do you address the service issue for them?

Raymond Wang: Yes. So today, we it’s all about empowering our clientele. Since we’re doing a direct sales model, we’re selling straight from OEM to the end consumer. We are not reliant upon catering to a dealership network. And what this provides us the opportunity to do is we’re able to actually promote the clients right to repair our equipment when they purchase it. And this is truly been disruptive and supportive and a big advantage for the HEVI brand, as we introduce it to various companies. And from a servicing standpoint, this provides choice for the client. So should that company have their own team of mechanics have the necessary equipment to perform a particular service need maintenance, need or repair, then they are able to do so with our full support and blessing.

So, let’s take for example, if they needed to replace or remount it’s higher, instead of being dependent on working with a HEVI dealer and paying costs that can be upwards of over $1,000 per tire, they can actually work with their local tire supplier will give them all the specs, if they so desired, we will sell them our own OEM tire, and then they can handle that replacements with our blessing and education. Now should that company then not have the equipment expertise or desire to conduct that service, then this is where our approved service providers would come into play. So we would be able to offer a list of established shops that we’ve established a relationship with, that we’ve trained them on our equipment that they can get in contact with to perform that repair.