Greenland Technologies Holding Corp (GTEC) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Greenland Technologies Reports Third Quarter 2023 Unaudited Financial Results Conference Call. (Operator Instructions). Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Josh Centanni, Investor Relations Director. Please go ahead.

美好的一天，感謝您的支持。歡迎參加格陵蘭科技 2023 年第三季未經審計財務業績電話會議。（操作員說明）。請注意，今天的會議正在錄製中。現在我想將會議交給今天的第一位發言人，投資者關係總監 Josh Centanni。請繼續。

Thank you, operator, and hello everyone. Welcome to Greenland Technologies Third Quarter 2023 Earnings Conference Call. Joining us today is Mr. Raymond Wang, Chief Executive Officer and Mr. Jing Jin, Chief Financial Officer. We released results earlier today. The press release is available on the company's IR website at gtec-tech.com as well as from Newswire services. A replay of this call will also be available in a few hours on our IR website. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

謝謝接線員，大家好。歡迎參加格陵蘭科技 2023 年第三季財報電話會議。今天加入我們的是執行長王雷蒙先生​​和財務長金晶先生。我們今天早些時候發布了結果。該新聞稿可在該公司的投資者關係網站 gtec-tech.com 以及 Newswire 服務上取得。幾小時後我們的 IR 網站上也將提供本次電話會議的重播。在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。

Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statement, except as required under applicable law. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars. With that, let me now turn the call over to our CEO, Mr. Raymond Wang. Please go ahead, Mr. Wang.

前瞻性陳述涉及固有風險和不確定性。因此，公司的實際結果可能與今天表達的預期有重大差異。有關這些以及其他風險和不確定性的更多資訊包含在該公司向 SEC 提交的公開文件中。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。另請注意，除非另有說明，電話會議中提到的所有數字均以美元為單位。現在，讓我將電話轉給我們的執行長 Raymond Wang 先生。王先生，請繼續。

Thank you, Josh. Good morning, everyone, and thank you for joining us today. We've achieved another outstanding quarter at here at Greenland, and we could not have done it without the dedication of our global team. Greenland delivered on our mission to increase efficiency and operational excellence in the business as evidenced by our growth in sales, margins and balance sheet. Product deliveries are up 10%, with margins up 30% year-over-year. We are extremely proud of our success in developing and driving innovative products for our clients that generate industry-leading margins for the business.

謝謝你，喬許。大家早安，感謝您今天加入我們。我們在格陵蘭島又取得了出色的季度業績，如果沒有我們全球團隊的奉獻精神，我們不可能做到這一點。格陵蘭履行了提高業務效率和卓越營運的使命，我們的銷售額、利潤率和資產負債表的成長證明了這一點。產品交付量較去年同期成長 10%，利潤率較去年同期成長 30%。我們為我們的客戶成功開發和推動創新產品而感到非常自豪，這些產品為我們的業務創造了行業領先的利潤。

As expected, most of the financial performance is generated by our transmission and drivetrain business. One of the core drivers of our increased margins is the development and distribution of our new product line of industry-leading drivetrains that award us with a 40% to 45% profit margin. Our margins will continue to grow as this product line ramps across our client portfolio. In addition, we have expanded our product line with drivetrains to support equipment in new markets such as outdoor heavy machinery and military applications and has led to our $20.8 million in accounts receivable, which is up 45% year-over-year.

正如預期的那樣，大部分財務業績來自我們的變速箱和傳動系統業務。我們利潤成長的核心驅動力之一是業界領先傳動系統新產品線的開發和分銷，這為我們帶來了 40% 至 45% 的利潤率。隨著該產品線在我們的客戶組合中不斷擴展，我們的利潤率將繼續成長。此外，我們還擴大了動力傳動系統產品線，以支援戶外重型機械和軍事應用等新市場的設備，這使得我們的應收帳款達到 2,080 萬美元，年成長 45%。

Greenland has been able to successfully navigate the volatile geopolitical environment due to our global clientele of OEM equipment companies. We have seen an increased demand for products to replace lost equipment and increased inventories by brands able to operate in areas of conflict. Now the primary risk for us for the remainder of the year at Greenland is the weakening yen to the dollar. Year-to-date, the yen to dollar has fallen 8% from 6.7 to 7.3. That's a lot. However, even with the haircut off the top, we are still on track to generate over $90 million in revenue for the year. And this truly showcases the strength and growth of our core business that will continue into the new year. HEVI continues to make process -- progress as we pioneer the electric heavy machinery market here in the United States.

由於我們的全球 OEM 設備公司客戶，格陵蘭能夠成功應對動盪的地緣政治環境。我們發現，對於替換丟失設備的產品的需求不斷增加，能夠在衝突地區開展業務的品牌的庫存也有所增加。現在，格陵蘭島今年剩餘時間面臨的主要風險是日圓兌美元匯率走弱。今年迄今，日圓兌美元匯率已下跌 8%，從 6.7 跌至 7.3。就這麼多了。然而，即使削減了頂部，我們仍然有望在今年創造超過 9000 萬美元的收入。這真正展示了我們核心業務的實力和成長，並將持續到新的一年。HEVI 在美國電動重型機械市場的開拓中不斷取得進步。

We are very proud to win the Port of Baltimore Bid to support their efforts to electrify their port equipment with our GEL-5000 all electric front loader. We have a solid pipeline of opportunities generated through our sales process with additional leads nearing closing, which we will report when signed. Now as a pioneer in this industry of electric heavy machinery, it is our responsibility to discover the right sales strategy to win adoption. And there's no other player to reference in our market. HEVI continues to stay nimble by exploring new strategies to accelerate the sales process, and I am confident that with our culture of discovery and innovation, we will lead to successful market penetration and expansion.

我們非常自豪能夠贏得巴爾的摩港投標，以支持他們使用我們的 GEL-5000 全電動前端裝載機實現港口設備電氣化的努力。我們擁有透過銷售流程產生的可靠機會管道，並且其他潛在客戶即將關閉，我們將在簽署後進行報告。現在，作為電動重型機械行業的先驅，我們有責任找到正確的銷售策略以贏得採用。我們的市場上沒有其他玩家可以參考。HEVI 透過探索新的策略來加速銷售流程，繼續保持靈活性，我相信憑藉我們的發現和創新文化，我們將成功實現市場滲透和擴張。

The HEVI authorized service provider model continues to show promise in adoption and positive feedback from companies interested in joining our network given its unique structure. The ASP model requires no inventory or financial investment and creates a new revenue stream for member companies with the equipment and capability to support our heavy machinery. We will appropriately align expansion of the HEVI ASP network with the progression of our sales activity to ensure that our clients have access to top-tier service and support. Now last quarter, I announced the formation of HEVI Energy, a new business line dedicated to providing power solutions to the growing network of DC-powered products across America.

鑑於其獨特的結構，HEVI 授權服務提供者模式繼續顯示出採用的前景，並獲得有興趣加入我們網路的公司的正面回饋。ASP 模式不需要庫存或財務投資，並為擁有支援我們重型機械的設備和能力的會員公司創造了新的收入來源。我們將適當調整 HEVI ASP 網路的擴張與我們銷售活動的進展，以確保我們的客戶能夠獲得頂級的服務和支援。上個季度，我宣布成立 HEVI Energy，這是一條新的業務線，致力於為美國不斷成長的直流供電產品網路提供電源解決方案。

HEVI Energy will solve the challenge of adopting DC-powered equipment, such as electric school buses, garbage trucks and recent passenger cars and vehicles without having to install our traditional DC charging station that is very expensive and can take months to deploy. We're not yet ready to share additional details at this stage. However, I can say that HEVI Energy shares the same vision as HEVI Corp. in delivering a U.S.-made and certified product to the U.S. market. Now it is no secret that I feel Greenland is significantly undervalued given our operational performance.

HEVI Energy 將解決採用直流供電設備的挑戰，例如電動校車、垃圾車以及最近的乘用車和車輛，而無需安裝我們傳統的直流充電站，這種充電站非常昂貴且可能需要數月時間才能部署。現階段我們尚未準備好分享更多細節。然而，我可以說，HEVI Energy 與 HEVI Corp. 有著相同的願景，即向美國市場提供美國製造並經過認證的產品。現在，鑑於我們的營運績效，我認為格陵蘭島的價值被嚴重低估，這已不是什麼秘密。

Our sales performance and market share continues to grow with new product lines creating significant growth opportunities for the business. We have amassed over $21 million in cash, up 32% year-over-year and have many tailwinds to propel us to success in the following quarters. Unfortunately, our efforts have not appropriately reflected in our valuation. And the GTEC Board and I will continue to explore opportunities to address this disparity to realize the proper share price for our company and long-term shareholders. Now I am proud of the work that the GTEC team has accomplished. We still have much to do and milestones to achieve, but I believe we're on the right track to succeed for the company and our shareholders. Now with that, let's dive into the details of our financial performance. J.J., if you can take it away.

隨著新產品線的推出，我們的銷售業績和市場份額不斷增長，為業務創造了巨大的成長機會。我們已累積了超過 2,100 萬美元的現金，年增 32%，並有許多有利因素推動我們在接下來的幾個季度取得成功。不幸的是，我們的努力並沒有適當地反映在我們的估值中。我和 GTEC 董事會將繼續探索解決這一差異的機會，以便為我們公司和長期股東實現適當的股價。現在我為 GTEC 團隊所完成的工作感到自豪。我們還有很多工作要做，還有很多里程碑要實現，但我相信我們正走在為公司和股東取得成功的正確軌道上。現在，讓我們深入了解我們的財務表現的細節。J.J.，如果你能把它拿走的話。

Thank you, Raymond. Thank you, everyone, for joining our call today. I will now go over our financial results for the third quarter. For the full details of our financial results, please refer to our earnings release that was issued today. For the third quarter, our revenue was USD 21.8 million, up 0.2% from USD 21.7 million a year ago. The increase in revenue was primarily an increase in the company's sales volume driven by increasing market demand. On a constant currency basis, excluding the negative foreign exchange impact from a stronger dollar, revenue increased by approximately 4.6% as compared to the year prior.

謝謝你，雷蒙德。謝謝大家今天加入我們的電話會議。我現在將回顧我們第三季的財務表現。有關我們財務業績的完整詳細信息，請參閱我們今天發布的收益報告。第三季度，我們的營收為 2,180 萬美元，比去年同期的 2,170 萬美元成長 0.2%。收入的增加主要是市場需求增加帶動公司銷售增加。以固定匯率計算，排除美元走強帶來的外匯負面影響，營收較上年成長約4.6%。

The total cost of goods sold was approximately USD 15.57 million, representing a decrease by approximately USD 1.40 million due to the decrease in production cost. Greenland gross profit was approximately USD 6.2 million representing an increase by 30.3% as compared to Q3 last year. Further, as we mentioned, our strategic focus on higher-value products and efficient manufacturing continues to pay off. In Q3, our gross margin increased 28.7% compared to 22.1% in Q3 2022 and '23. Our outstanding performance underscore our industry leadership and the success of our business strategies. Total operating expenses rose 26.5% to USD 3.4 million as compared to the 3 months ended September 30, 2022. This was primarily due to the increase in the shipping fee, the company's R&D investment in higher value and more sophisticated products and investment into our HEVI line of business.

銷售成本總額約1,557萬美元，因生產成本下降而減少約140萬美元。綠地毛利約620萬美元，較去年第三季成長30.3%。此外，正如我們所提到的，我們對高價值產品和高效製造的戰略重點繼續得到回報。第三季度，我們的毛利率成長了 28.7%，而 2022 年第三季和 2023 年第三季的毛利率為 22.1%。我們的出色表現凸顯了我們的產業領先地位和業務策略的成功。與截至 2022 年 9 月 30 日的三個月相比，總營運費用增加 26.5% 至 340 萬美元。這主要是由於運費的增加、公司對更高價值和更複雜產品的研發投資以及對 HEVI 業務線的投資。

The combination of those results drove strong profitability during the quarter. Our Q3 income from operations was USD 2.8 million up 35% from the same quarter last year. Our balance sheet remains strong as we end up the quarter, the cash and the cash equivalents of USD 21.5 million up 32.2% from USD 16.2 million for the same quarter last year. Our robust cash position provide as the substantial operational flexibility and empowers us to sustain investment in our HEVI line business. As we look forward, we project a positive earnings outlook for the remainder of 2023. We are optimistic about achieving substantial financial growth and delivering value to our shareholders. Our unwavering commitment to implementing efficient business strategies ensuring operational efficiency and addressing the dynamic needs for our customers reinforces our confidence. That concludes our prepared remarks. Let's now open the call for questions. Operator, please go ahead.

這些結果的結合推動了本季強勁的獲利能力。我們第三季的營運收入為 280 萬美元，比去年同期成長 35%。截至本季末，我們的資產負債表仍然強勁，現金和現金等價物為 2,150 萬美元，比去年同期的 1,620 萬美元增長 32.2%。我們強勁的現金狀況提供了巨大的營運靈活性，並使我們能夠維持對 HEVI 線業務的投資。展望未來，我們預計 2023 年剩餘時間的獲利前景將保持樂觀。我們對實現大幅財務成長並為股東創造價值持樂觀態度。我們堅定不移地致力於實施高效的業務策略，確保營運效率並滿足客戶的動態需求，這增強了我們的信心。我們準備好的演講到此結束。現在讓我們開始提問。接線員，請繼續。

(Operator Instructions)

（操作員說明）

First question is from the line of Theodore O'Neill from Litchfield Hills Research.

第一個問題來自利奇菲爾德山研究中心的西奧多·奧尼爾。

You mentioned the currency issue in your prepared remarks, could you give us an idea what the revenue would be on a constant currency basis? And would you repeat what the impact was on currency as percent in the quarter?

您在準備好的發言中提到了貨幣問題，您能否告訴我們以固定匯率計算的收入是多少？您能否重複本季對貨幣的影響（百分比）？

Absolutely. The currency impact from this year alone was 8%. So we've generated in the past 9 months right now, a little over $67 million. So we would be about 8% higher, roughly.

絕對地。光是今年的貨幣影響就達 8%。因此，我們在過去 9 個月內的收入略高於 6,700 萬美元。所以我們的價格大約會高出 8% 左右。

Okay. And in the Port of Baltimore business you've got here, are there milestones we should be looking for on that project?

好的。在巴爾的摩港業務中，我們應該在該專案上尋找里程碑嗎？

Delivery for our unit is scheduled for February. So we will see that hit our balance sheet for HEVI in the first quarter.

我們的設備預計於二月交付。因此，我們將看到第一季 HEVI 的資產負債表受到影響。

Okay. And last quarter, you said that you had done 38,256 transmission units and I was wondering if you could give a comparable number for Q3? And also, you talked about having some supply chain disruption impacting that business. And I was wondering if you could update us on that?

好的。上個季度，您說您已經完成了 38,256 個傳輸單元，我想知道您是否可以給出第三季度的可比較數字？此外，您也談到了供應鏈中斷對該業務的影響。我想知道您能否向我們介紹最新情況？

Yes. So actually, the overall transmissions right now for the past 9 months is 112,414 sets. which actually is an increase from 102,000 that we did last year. So as it stands, we're roughly about 10% year-over-year increase. And this is a trend that we will continue to see throughout the remainder of the year as global demand continues to pick back up. And this is reflected as well in our accounts receivable for the company that's already topped off right now at right around -- I don't have the number off the top of my head. Sorry, I apologize right around $23 million. So from a transmission unit delivery standpoint, that continues to rise, which we're very proud of.

是的。實際上，過去 9 個月的總傳輸量為 112,414 套。這實際上比我們去年的 102,000 有所增加。就目前情況而言，我們的年增幅約為 10% 左右。隨著全球需求持續回升，我們將在今年剩餘時間內繼續看到這一趨勢。這也反映在我們公司的應收帳款中，該帳款現在已經達到頂峰——我腦子裡沒有這個數字。抱歉，我道歉大約 2300 萬美元。因此，從傳輸單元交付的角度來看，這一數字持續上升，我們對此感到非常自豪。

And were -- I think you mentioned there were just supply chain issues in that last quarter. Do you have any update on that?

我想你提到上個季度只是供應鏈問題。你有這方面的最新消息嗎？

Yes. It's more of a risk standpoint in the geopolitical environment. Right now, we've been very fortunate in our market leading position to have priority with a lot of our raw material suppliers like steel foundries and what have you. Though there's been impact, it hasn't been drastic enough to significantly impact the business. However, the warning that I put in Q2 is should the geopolitical volatility continue to exacerbate and there's increased tariffs or restrictions between countries then that can be something that we would need to be able to address for such as if let's say, the U.S. were to drastically ban the exportation of raw steel overseas to China or something of that nature.

是的。這更多的是地緣政治環境中的風險立場。目前，我們非常幸運地處於市場領先地位，能夠優先與許多原材料供應商（例如鋼鐵鑄造廠等）合作。儘管產生了影響，但不足以對業務產生重大影響。然而，我在第二季度提出的警告是，如果地緣政治波動繼續加劇，並且國家之間增加關稅或限制，那麼這可能是我們需要解決的問題，例如，如果美國要嚴厲禁止海外原鋼出口到中國或類似的行為。

The next question is from the line of Graham Mattison from Water Tower Research.

下一個問題來自 Water Tower Research 的 Graham Mattison。

Congratulations on the gross margins in the quarter. Can you talk a little bit more about what's really driving that? I mean, is that better efficiency on your part or just the market demanding a higher tech product or a combination of both?

恭喜本季毛利率實現成長。能多談談真正的推動因素嗎？我的意思是，這是否是您的效率提高了，還是市場需要更高技術的產品，還是兩者兼而有之？

It's a combination of both, it really starts with a more efficient operation. That's something that I've been harping on for the past 18 months because with our market-leading presence right now in our transmission and drivetrain industry, where we would see growth is not just the expansion and increasing our market share, but in maximizing our returns for the sales that we're doing. So that was a big focus, both from a manufacturing efficiency standpoint and from a product line standpoint, that we were able to achieve by developing innovative products that benefit our clientele, yet also utilize state-of-the-art technology and manufacturing processes to increase our margins for those products.

它是兩者的結合，它真正始於更有效率的營運。這是我在過去18 個月裡一直在強調的事情，因為我們目前在變速箱和傳動系統行業處於市場領先地位，我們看到的增長不僅僅是擴大和增加我們的市場份額，而是最大限度地提高我們的市場佔有率。因此，無論是從製造效率的角度還是從產品線的角度來看，這都是一個重點，我們能夠透過開發有利於我們的客戶的創新產品來實現這一點，同時也利用最先進的技術和製造工藝來實現增加我們這些產品的利潤。

And then once that was developed, then it was our sales process to distribute that to our clientele for adoption, and that's been extremely successful. So if you look at our numbers for the past 3 quarters, there is a steady creep up of our gross margin. Last quarter, it was about 29%. This quarter, we topped over 30%. And this is just showcasing the efforts of our work towards that operational excellence.

一旦開發完成，我們的銷售流程就會將其分發給我們的客戶以供採用，這是非常成功的。因此，如果你看看我們過去三個季度的數據，就會發現我們的毛利率正在穩定上升。上季約為 29%。本季度，我們的成長率超過了 30%。這只是展示了我們為實現卓越營運所做的努力。

Got it. Great. How much runway is there on margins. As you look into next year, is there a potential to expand that further with a shift in product mix? Or do you see more of it just -- would it be more -- as we look towards 2024, do you see it -- the bigger driver being more on the margin side or the revenue side?

知道了。偉大的。邊緣有多少跑道。展望明年，是否有可能透過產品組合的轉變進一步擴大這一規模？或者您看到更多 - 當我們展望 2024 年時，您是否看到 - 更大的驅動力更多地來自利潤方面或收入方面？

So I see from our core transmission and drivetrain business, the runway is going to be more on the margin standpoint and conservatively output that right around the 34% to 35% level. However, for our HEVI line of business, I do anticipate that we will begin to deliver some meaningful results and performance out of that line of business next year, and that's going to be more of a revenue top line impact.

因此，我從我們的核心變速箱和動力傳動系統業務來看，跑道將更多地從利潤角度來看，保守地輸出大約在 34% 到 35% 的水平。然而，對於我們的 HEVI 業務線，我確實預計明年我們將開始從該業務線中交付一些有意義的成果和績效，這將更多地對收入產生影響。

Got you. That makes sense. Question on the HEVI side, have you seen any impact from your service center, the ASP model so far now that you've announced that?

明白你了。這是有道理的。關於 HEVI 方面的問題，自從您宣布以來，您是否看到了您的服務中心、ASP 模式帶來的任何影響？

From an establishment standpoint, that has been very reassuring for our overall model. So we have the confidence that we are pursuing the right approach from a service need standpoint. So not to discredit that, that's been phenomenal. However, it's -- that entire model is still predicated around the sales, the product being out in the field to generate that service volume for those ASPs to make it rewarding on both sides. And right now, since we are still solving, cracking that nut on the sales side and adoption, we are not going out there and just signing up as many ASPs as possible. We're doing it appropriately to ensure coverage for our clientele in anticipation for the sales that comes through. And as sales begins to ramp up, then we're extremely confident we can rapidly ramp up the ASP network as well.

從機構的角度來看，這對我們的整體模式非常令人放心。因此，我們有信心從服務需求的角度採取正確的方法。所以不要懷疑這一點，這是驚人的。然而，整個模型仍然以銷售為基礎，產品在現場為這些 ASP 產生服務量，從而使雙方都獲得回報。目前，由於我們仍在解決、破解銷售和採用方面的難題，因此我們不會出去簽署盡可能多的 ASP。我們正在採取適當的措施，以確保涵蓋我們的客戶，以實現預期的銷售。隨著銷售額開始增加，我們非常有信心能夠快速擴大 ASP 網路。

Got it. Great. And then last question. Any update on the partnerships with -- or the demo programs that you had running with some of the big rental companies?

知道了。偉大的。然後是最後一個問題。關於與一些大型租賃公司的合作夥伴關係或您與一些大型租賃公司運行的演示程式有什麼更新嗎？

Yes. I can't share too much at this stage. However, I can say that, particularly with some of the rental companies that I've named in prior earnings calls, those are still active and developing. I'm extremely pleased with the progress that we're making. Tthose relationships definitely take some time to execute into a large fleet deal, let's say. But they're still active. They're still progressing. We're still in active projects and communication. And I'm extremely pleased with the outcome so far.

是的。現階段我無法分享太多。然而，我可以說，特別是我在之前的財報電話會議中提到的一些租賃公司，它們仍然活躍並正在發展中。我對我們所取得的進展感到非常滿意。可以說，這些關係肯定需要一些時間才能落實到大型車隊交易中。但他們仍然很活躍。他們仍在進步。我們仍在積極的項目和溝通中。我對迄今為止的結果非常滿意。

Is that a potential -- I mean, given the timing of how that process works, is that something to look for in 2024?

這是一種潛力嗎？

That one is a little harder to say. Our optimistic target is to have some related announcements for it in 2024, but from an actual impact to the balance sheet, that might take until 2025. Our product lines on the HEVI side, they have a 6-month runway from order to delivery. So it would have to realize itself by June of next year for delivery to hit, so if a national brand rental company we're at a drop of 100 or 150 unit order on our desk than we'd really see in 2025.

這個就有點難說了。我們樂觀的目標是在 2024 年發布一些相關公告，但從對資產負債表的實際影響來看，可能要等到 2025 年。我們在HEVI方面的產品線，他們從訂單到交付有6個月的跑道。因此，它必須在明年 6 月之前實現交付目標，因此，如果是一家全國性品牌租賃公司，我們的辦公桌上的訂單量將比 2025 年實際看到的減少 100 或 150 台。

Next question is from the line of Rommel Dionisio from Aegis Capital.

下一個問題來自 Aegis Capital 的 Rommel Dionisio。

I wonder if you could just talk about the overall market outlook in the core transmission business in China. Obviously, in the wake of the Chinese Premier visit to the United States and it does seem like you've definitely demonstrated strong market share gains and the markets come back. I wonder if you could just talk a little bit about the outlook going into 2024 on a macro level for that market.

請問您能否簡單談談中國核心變速器業務的整體市場前景？顯然，在中國總理訪問美國之後，你們確實表現出了強勁的市場份額增長，市場也有所回升。我想知道您能否從宏觀層面談談 2024 年該市場的前景。

Of course. At a macro level, we still continue to see strong global demand for drivetrains and transmissions, particularly on the forklift industry itself. Though the geopolitical environment has been very volatile and challenging. And though economies across the world have struggled with the right balance to promote growth in the company -- in their countries. We still see an operational level, there's significant demand to satisfy the shift towards e-commerce and delivery. That behaviorism to catch up with technology has just taken such a strong foothold across the globe.

當然。從宏觀層面來看，我們仍然看到全球對動力傳動系統和變速箱的強勁需求，特別是堆高機產業本身。儘管地緣政治環境非常不穩定且充滿挑戰。儘管世界各地的經濟體都在努力保持適當的平衡，以促進本國公司的成長。我們仍然看到營運層面，有很大的需求來滿足向電子商務和交付的轉變。追趕科技的行為主義剛剛在全球站穩了腳步。

And it's really that transition to rely on the logistics that power that, that's really driving that increase in demand for forklifts overall, and that will continue to drive our component business. And that's a little agnostic right now at this stage to the global affairs. If we were to drill down to the macro level, which brands are going to do better or which countries are going to do better? I can talk about that for a little while. At the macro sense, we still anticipate it's going to go strong at most likely a 8% to 10% compound annual growth rate for the next 2 to 4 years.

正是這種依賴物流的轉變，真正推動了堆高機整體需求的成長，並將繼續推動我們的零件業務。在現階段，這對全球事務來說有點不可知。如果我們深入宏觀層面，哪些品牌會做得更好，哪些國家會做得更好？我可以稍微討論一下這個問題。從宏觀角度來看，我們仍然預期未來2到4年複合年增長率最有可能達到8%到10%。

Okay. That's very helpful. And maybe 1 follow-up question, if I could. Congratulations, first of all, on the landmark win with the Port of Baltimore. I wonder, Raymond, if you can just share with us kind of how that, to the extent that you can, how that kind of played out, what pushed them over the edge to make that order? Just if you could characterize what really pushed them over the edge to make that decision?

好的。這非常有幫助。如果可以的話，也許還有 1 個後續問題。首先祝賀巴爾的摩港取得了里程碑式的勝利。我想知道，雷蒙德，您是否可以與我們分享一下，在您可以的範圍內，這種情況是如何發生的，是什麼促使他們做出了這個訂單？如果你能描述一下真正促使他們做出這個決定的是什麼？

Yes, it was -- what pushed that over was our guiding principle for our sales process, which is getting people behind the wheel. Because this is brand-new technology and it's been diesel power since -- for the past century, we knew that despite all of the benefits and cost savings that we can talk about. The best way to get people to feel comfortable is to get them behind the wheel. So that's what we did. With the Port of Baltimore, we invited them to our site in White Marsh for their operators. And they brought a small school bus full of those operators to try out our equipment. And once they got to operate at firsthand, they saw the quality. They saw the power. They understood the advantages.

是的，是的——推動這一點的是我們銷售流程的指導原則，即讓人們來駕駛。因為這是全新的技術，而且自上個世紀以來一直採用柴油動力，但我們知道，儘管有我們可以談論的所有好處和成本節約。讓人們感到舒適的最好方法就是讓他們坐在方向盤後面。這就是我們所做的。我們邀請巴爾的摩港的營運商來到我們位於懷特馬什的站點。他們帶來了一輛滿載這些操作員的小型校車來試用我們的設備。一旦他們親自操作，他們就看到了品質。他們看到了力量。他們了解其中的優勢。

And at that point in time, they were extremely comfortable to be the first company to pioneer our technology. And that process did take some time. I will say that the process we wanted, let's say. The demand for it was entered into procurement in February. However, it took until August of this year before it entered bid, and then we were able to officially win that deal. So I called that out because for the asset values of our equipment and for the clientele, it's a very long sales process, longer than we initially anticipated, even when we achieved soft victories, just the purchasing process itself can take quarters. So that was a learning lesson, and one that I just wanted to share on the call.

那時，他們非常樂意成為第一家開創我們科技的公司。這個過程確實需要一些時間。我會說我們想要的過程，讓我們說。其需求已於2月進入採購階段。但直到今年8月才進入投標，我們才正式得標。所以我之所以這麼說，是因為對於我們設備的資產價值和客戶來說，這是一個非常漫長的銷售過程，比我們最初預期的要長，即使我們取得了軟性勝利，僅採購過程本身就可能需要幾個季度。所以這是一個教訓，我只想在電話中分享。

Okay. One last housekeeping question, if I could. I noticed you cited higher shipping fees in the quarter. Was that just because of higher units? Or I thought shipping rates have kind of stabilized. I wonder if you could just clarify that, please?

好的。最後一個家政問題，如果可以的話。我注意到您提到本季運費較高。難道只是因為單位比較高？或者我認為運費已經穩定下來。我想知道你能否澄清一下？

Of course. So the shipping rates have normalized around the world, which is fantastic. Until we get up to manufacturing scale with our HEVI line of business for all of the assembly process that we're performing in the United States at our White Marsh facility. Many of the component needs, many of the tooling and equipment that we've required has been air shipped over to meet our time lines for our clientele. So this is a short-term cost increase from a shipping standpoint for the business that will be moved away from once we start manufacturing at scale with a steady line of sales to support that.

當然。因此，世界各地的運費已經正常化，這真是太棒了。直到我們的 HEVI 業務線達到製造規模，用於我們在美國懷特馬什工廠執行的所有組裝流程。我們所需的許多組件需求、許多工具和設備都已空運過來，以滿足我們客戶的時間表。因此，從運輸的角度來看，這對業務來說是短期成本增加，一旦我們開始大規模生產並有穩定的銷售線來支持這一點，這種增加就會消失。

And on the components side of the business, we are seeing increased shipping costs to meet some of our clients' needs to be able to support their infrastructure on a global scale. So I have to be careful how I say this. We're not doing this for all of our clients, but to meet the demand of some of our top-tier clients. We have onset some of the shipping.

在業務的組件方面，我們看到運輸成本增加，以滿足一些客戶在全球範圍內支援其基礎設施的需求。所以我必須小心我說話的方式。我們這樣做並不是為了所有客戶，而是為了滿​​足一些頂級客戶的需求。我們已經開始部分運輸。

And there are no further questions at this time. So I will now hand the conference back to Raymond Wang for any closing remarks. Thank you.

目前沒有其他問題。因此，我現在將會議交還給雷蒙德·王（Raymond Wang）發表閉幕詞。謝謝。

Wonderful. So everyone, I just wanted to thank you all for joining us today. As we reported our Q3 2023 earnings. It's been a very strong quarter, and we are consistently delivering on the milestones and expectations that we're setting. Our component business is extremely stable profit generating and continues to deliver quarter after quarter with no signs of stopping.

精彩的。所以大家，我只是想感謝大家今天加入我們。正如我們報告的 2023 年第三季收益。這是一個非常強勁的季度，我們始終如一地實現我們設定的里程碑和期望。我們的零件業務產生的利潤極其穩定，並且持續一個季度又一個季度地交付，沒有停止的跡象。

And the HEVI line of business as an industry first, as an industry first player to pioneer this industry. Once we establish, once we penetrate the market and convert adoption from diesel over to electric. This is going to generate some significant growth opportunities for the company, for our shareholders, and also most importantly, it will lead to a cleaner environment for our local communities for tomorrow.

HEVI 業務線作為行業第一，作為行業第一參與者開拓了這個行業。一旦我們建立起來，一旦我們滲透市場並將採用從柴油轉向電動。這將為公司、我們的股東帶來一些重大的成長機會，最重要的是，它將為我們當地社區的明天帶來更清潔的環境。

And that's something that we are extremely proud of we are extremely dedicated to achieving. And we wanted to thank you all for joining us along for this journey, and we're extremely optimistic for what the next few quarters we'll bring. But thank you very much, everyone, for joining, and I hope you have a wonderful day.

這是我們非常自豪的事情，我們非常致力於實現這一目標。我們要感謝大家加入我們的這段旅程，我們對未來幾季的成果非常樂觀。但非常感謝大家的加入，希望你們有個愉快的一天。

This concludes today's conference call. Thank you for participating, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。