EZGO Tech(US:EZGO) Prnewswire·2024-09-09 21:30Core Viewpoint EZGO Technologies Ltd. reported significant revenue growth driven by battery sales, despite a sharp decline in e-bicycle sales due to market competition. The company is adjusting its business strategy to focus on higher-end products and expanding its lithium battery offerings while facing challenges in the e-bicycle market. Financial Highlights - Revenues increased to $8.6 million, a rise of 66.1% compared to the previous fiscal year [5][14] - E-bicycle units sold decreased by 76.7% to 4,766 units [5][8] - Sales of batteries and battery packs surged by 2614.6% to 243,336 units [5] - Gross margin improved to 5.7% from 3.5% [11] - Net loss narrowed to $4.7 million from $5.0 million [14] Management Commentary - The decline in lithium battery prices led to increased penetration in the e-bicycle industry, prompting the company to expand its battery product lines [2] - The company faced a significant drop in e-bicycle sales due to heightened competition and delays in new product launches [2][3] - The acquisition of Changzhou Higgs has contributed positively to sales volume and gross margin [3] Business Strategy Adjustments - The company has halted production of low and mid-range products, focusing on mid-to-high-speed electric motorcycles [4] - There is an emphasis on developing lithium battery products for low-speed vehicles and expanding overseas sales channels [4] - Equity investments in high-quality suppliers in the electric motorcycle and lithium battery sectors are being pursued [4] Revenue Breakdown - Revenue from batteries and battery packs reached $5.8 million, a 237.5% increase [7] - E-bicycle sales fell to $1.8 million, a decrease of 41.5% [8] - New revenue from electronic control systems was $739,390, marking the establishment of a new business segment [9] Cost and Profit Analysis - Cost of revenues increased by 62.4% to $8.1 million, primarily due to higher battery sales [10] - Gross profit rose to $487,799, with a gross profit margin increase attributed to higher-margin electronic control system sales [11] - Selling and marketing expenses increased by 7.5% to $307,127, while general and administrative expenses rose by 45.1% to $3.1 million [12] Other Financial Metrics - Other expenses decreased by 42.8% to $1.5 million, mainly due to the absence of significant losses from subsidiary disposals [13] - Income tax benefits increased to $79,488, reflecting higher deferred tax assets [13] - The company reported a comprehensive loss of $4.2 million for the period [23]