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Significant Win from Port of Baltimore Should Jumpstart HEVI Sales Ramp

Greenland Technologies announced it has won a bid from the Port of Baltimore to help facilitate the Port’s plan to electrify its operating equipment. This will include sales of the HEVI GEL-5000, a five-ton rated all-electric wheeled front loader with a nine-hour operating cycle and a two-hour rapid charge time. The first major sales win for HEVI, and one that we expect will accelerate product adoption. The Port award is the cumulation of more than two years of the company doing demonstrations of its products both at its headquarters and also at potential customer sites. Now that a major and well-known entity has committed to and will be deploying HEVI products, we expect that the implicit endorsement will make it easier for smaller and more risk-averse companies and municipalities to go with HEVI’s ell-electric products. HEVI’s Baltimore assembly facility is ready to support the expected growth. The 54,000-square-foot assembly facility recently opened in Baltimore, Maryland can provide local support, assembly, and distribution of the electric industrial heavy equipment product line as well as expand to the production of mobile DC charging equipment. Further, HEVI has signed on a number of authorized service centers that will be able to support the product when it is in the field. The company’s direct-to-consumer model can offer customers cost savings and efficiency advantages versus the traditional dealer network model. The pace of HEVI demonstrations has been accelerating. The company has added another five demo units since 1Q and shortened the demo period to reach more potential customer sites. The United Rental pilot demo, signed in 1Q23, continues and has been expanded to include other HEVI products. The company is working to develop additional pilot programs with other national rental companies and major municipalities, which we expect will be a catalyst for the shares when announced.