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

And with our distributed assembly model, the reason why the HEVI business is focused on the Mid Atlantic area is to support that approved service provider models. We can provide that part to that shop, either same day or no more than one — one business day. So, this way, keeps the shopper engaged and keeps them supplied to be able to provide that service to that client. And then the third option is to be able to provide direct support from our team of technicians, right out of our distribution sites and assembly sites, just like in Baltimore, Maryland and then in New Jersey.

Theodore O’Neill: And as those first machines roll off the assembly line in Q2, how should we think about how much of it goes into demo pool? How much goes into pilot sales and how much goes into regular commercial sales?

Operator: I am not able to hear you, is your line on mute?

Raymond Wang: No. Can you hear me?

Operator: Yeah, I can hear the participant asking a question. I’m not sure to speak is answering. We can’t hear you at the moment.

Yujia Zhai: Pretty much off the line. I just tried to connect with him. Sorry about this. Just give me sec.

Operator: Thank you.

Yujia Zhai: Raymond, your mic is doesn’t work. We cannot hear you. But I can hear you. I saw you writing right now.

Raymond Wang: Hello, can you hear me?

Operator: We can now. Thank you.

Raymond Wang: Great, terribly sorry, everyone. I’m not sure what happened there. To reiterate the Actually, I did I was able to hear the question. So just to restate my answer in response to it. So right now, we’ve been receiving so much demand and interest into our product that I’ve dedicated our entire inventory of electric HEVI equipment to support demos in pilots. And we’re actually fully booked all the way into May at this stage, which is a wonderful problem for us to have. And what is going to come out it’s going to be a matter of timing because we’re right on that precipice of crossing that first adopter phase. Our brand is getting established to the comfortability that we are going to be able to start converting these interests into direct product sales. And then our production capabilities are going to meet either the need for both the demos or the products, whichever is coming first, from a timeline standpoint.

Theodore O’Neill : Okay. And one more question. If you have a strong demand for the machines, and you end up having building some part of it in your plants in China, and then bringing it over here and assembling it into a finished unit, is there any issue with tariffs in that transfer of part of the equipment?

Raymond Wang: At this stage, the tariffs would remain the same at roughly 25% for equipment. However, are Baltimore, Maryland sides, we’re actually in process right now of getting it SEC designated, which will help support the overall duty and tariffs scenario for any product coming into that site for assembly.

Theodore O’Neill: Thank you, very much.

Operator: We’ll now take our next question. This is from the line of Rommel Dionisio from Aegis Capital. Please go ahead.

Rommel Dionisio : Yes, thank you, and good morning. I wonder if we can just couple of points about — ask about a couple of the things China Business. Could you discuss pent up demand? I mean, obviously, with these restrictions having been in place for so long, I wonder if you could just talk about, how much pent-up demand there potentially could be, as well as your market shares. I mean, it’s obviously been a challenging market. But you seem to have held up relatively well, perhaps better than the rest of the market. I wonder if you could just discuss those market shares in China as well. Thank you.