Greenland Technologies Holding Corporation · NASDAQ:GTEC
Greenland Technologies — Greenland Acquisition — SPAC Merger (August 2019)
24 slides from Greenland Technologies's SPAC merger presentation, Aug 27, 2019
Slide 1: Zhongchai Holding (Hong Kong) Limited Investor Presentation
Zhongchai Holding (Hong Kong) Limited Investor Presentation
Slide 2: Disclaimer
This presentation contemplates the business combination (the “Business Combination”) pursuant to a share exchange agreement ( the “Share Exchange Agreement”) among Greenland Acquisition Corporation, a business company with limited liability incorporated under the laws of the British Virgi n I slan
Slide 3: Non-GAAP and proxy statement notice
This presentation includes financial measures and other non - GAAP financial information that is calculated and presented on the b asis of methodologies other than in accordance with generally accepted accounting principles in the United States of America ("GAAP"). Any non - GAAP financial measure
Slide 4: Disclaimer (continued)
The information contained in the presentation may be of a price - sensitive nature and the provision of any such information may c onstitute you and/or your representatives as “insiders” under relevant securities laws. Accordingly, you may not deal in, and will inform your representatives of the r
Slide 5: Transaction Summary
Transaction Summary 5 Pro forma Valuation Illustrative share price (per share) $ 10.25 Shares outstanding 10,813,615 Total Equity Value $ 110,839,550 Pro Forma Net Debt 2 $ ( 9,560,856) Pro Forma Enterprise Value $ 101,278,694 • Greenland Acquisition Corporation (“ GLAC ”) to acquire 100 % stake of
Slide 6: Pro-Forma Capitalization Table
Pro - Forma Capitalization Table 6 Pro Forma Ownership Pro Forma Share Price, per share At Close Month 18 Shares % Shares % Zhongchai Initial Shareholder 6,750,000 6,750,000 Shared Released from Escrow 750,000 Zhongchai Initial Shareholder 6,750,000 6 7 % 7,500,000 6 9 % GLAC Sponsor 1 1,410,200 1 4
Slide 7: Company Overview Snapshot
2017A 2018A USD in Million Company Overview 7 Snapshot A leading developer and manufacturer of transmission systems for material handling equipment market in China A developer of a robotic cargo carrier prototype expected to be available for commercial use in China A well - established manufacturer
Slide 8: Experienced Management Team
Experienced Management Team 8 Peter Wang Founder & Director Jing Jin CFO 10+ years in finance with public company experience Dr. Lei Chen Chief Scientist 25 years in technology research and commercialization Dong Xiao CDO 10+ years of vehicle and industrial design • Mr. Wang has more than 20 years o
Slide 9: Independent Directors
Independent Director 9 Everett Xiaolin Wang Independent Director Min Zhang Independent Director • Founder & Partner of Empower Investment • Investment Director at Morningside Investment • Senior Manager of PwC Hong Liang Lu Independent Director • Co - founded and Director of UTStarcom (Nasdaq: UTSI)
Slide 10: Company Profile
Company Profile 10 2007 Began batch production of transmissions 2011 Upgraded to fully automatic assembly line with annual capacity of 80,000 units of transmissions July 2013 Recognized as a High - tech Enterprise 2015 Construction commenced to build out a new manufacturing August 2018 Completed a c
Slide 11: Intellectual Property and Certification
Intellectual Property and Certification 11 ▪ The Company has a wealth of intellectual property consisting of patents, trade - marks and proprietary design specifications ▪ The Company’s proprietary systems, components, and manufacturing capabilities offer substantial values ▪ As of June 18, 2019, th
Slide 12: Industry Overview of Forklift Market
Industry Overview of Forklift Market Forklifts Sales Volume in China during 2005 - 2017 Forklift sale in China and Worldwide during 2006 - 2017 Growth drivers Correlation between Forklift Trucks Sales and Logistic Stable demand on forklift trucks in China, especially the increase sales portions on e
Slide 13: Industry Overview of Industrial Robots
Industry Overview of Industrial Robots 13 According to International Federation of Robotics (IFR)’s research in 2018, the estimated annual worldwide supply of industri al robots is 14% on average per year and the average robot sales was increased by 19% per year (CAGR) between 2012 and 2017. Asia is
Slide 14: Fast Growing Market
Fast Growing Market Projected AGVs Sales Volume in China Proportion for AGVs application in industries 14 Projected AGVs Sales Reveune in China AGV, Automated Storage and Retrieval Systems to See Strongest Growth The global AGV market size was valued at USD 2.49 billion in 2018 and is projected to e
Slide 15: Customers
Customers Through the years, Zhongchai has developed over 100 customers with many major original equipment manufacturers and system integrators in China. Representative customers include: Long - term relationship with leading manufacturers helps maintain existing brand’s leadership and support expan
Slide 16: Products Portfolio
Products Portfolio The Company provides high - quality transmission systems of material handling equipment to the China's leading forklifts manufactu rers. 16 Mechanical Gearboxes • 14 models • Ideal for 1 - 5 ton forklifts • Rated speed ranging from 2,250 RPM to 2,500 RPM • Transmission ratio: 18.2
Slide 17: Production Capacity
Production Capacity • The Company has 44,751 square meters of modern manufacturing facilities with around $35 million asset value. • The management projects the annual production capacity is up to 200,000 transmission systems and 10,000 robots. 17
Slide 18: Strong After-Market Support
Strategic benefits from the service network Proximity to markets, allowing fast response to the customer needs Broad geographic reach allows for close relationships with customers and development of customer loyalty National coverage National coverage for support and training Close to th
Slide 19: Strategic Growth Opportunity
Strategic Growth Opportunity Meeting the soaring demand, the Company has engaged in designing and manufacturing robotic material handling equipment for industrial and logistic applications. The Company believes such market represents a substantial opportunity for the Company's future business growth
Slide 20: RC 1000 New Product – Robotic Cargo Carrier
RC 1000 New Product – Robotic Cargo Carrier (RCC) 20 Payload capacity: 500 – 1000 Kg Operating speed: 5km/h Max Power: 23kw Battery Power: 8kwh Battery Type: Lithium Operating Time: 8h Expected releasing: The end of 2019 with well - established supply chain, the Company provides more cost - effectiv
Slide 21: Financial Forecasting
Financial Forecasting 21 Revenue Gross Margin Net Income EBITDA 60.21 67.36 74.32 2018 Audited 2019 E 2020E USD in Million 14.07 14.99 18.71 2018 Audited 2019 E 2020 E USD in Million 6.62 6.80 8.82 2018 Audited 2019 E 2020 E 10.28 11.07 14.21 2018 2019 E 2020 E USD in Million USD in Million
Slide 22: Comparable Analysis
Comparable Analysis 22 2020E P/E Multiples Robotics 2019E P/E Multiples Transmission Systems Robotics Transmission Systems * Average: 28.32x Average: 15.23x Average: 21.43x Average: 14.74x (Pro - Forma) (Pro - Forma) Source: Capital IQ, Company Presentation as of 8/7/2019 ； Seeking Alpha; Wind 1 6 .
Slide 23: Investment Highlights
Investment Highlights 23 Strong technological innovation and product development capabilities Strategically positioned service network with national coverage Market leadership with integrated solution capabilities to capture growth opportunities Broad customer base of leading manufacturers Well - de
Slide 24: Greenland Corporation
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