EZGO ANNOUNCES FINANCIAL RESULTS FOR FISCAL YEAR 2023

Financial Performance - Revenues for Fiscal Year 2023 were $15.9 million, a decrease of 8.4% compared to $17.4 million in Fiscal Year 2022, primarily due to a decline in e-bicycle sales [1][7] - Gross profit increased to $1.1 million from $0.2 million, with a gross margin of 7.2%, up from 1.3%, driven by improved margins in electronic control systems and intelligent robots [1][10] - Net loss for Fiscal Year 2023 was $7.3 million, slightly improved from a net loss of $7.5 million in the previous year [1][12] Revenue Breakdown - E-bicycle sales generated $4.3 million, a significant decrease of 54.5% from $9.4 million in Fiscal Year 2022, attributed to increased competition [6][7] - Revenue from lithium and lead-acid battery packs was $8.2 million, an 18% increase from $7.0 million in Fiscal Year 2022, supported by new large orders [8] - Sales of electronic control systems and intelligent robots contributed $2.3 million in revenue, marking the introduction of this new business segment [9] Cost Management - Cost of revenues decreased to $14.8 million, down 14% from $17.2 million in Fiscal Year 2022, reflecting reduced manufacturing costs in line with lower e-bicycle sales [10] - Selling and marketing expenses were reduced by approximately 38.5% to $0.6 million, primarily due to decreased salaries and service expenses [10] - General and administrative expenses decreased by 3.6% to $4.7 million, mainly due to lower bad debt expenses and depreciation [11] Strategic Initiatives - The company focused on enhancing the value of its e-bicycle offerings while diversifying into new revenue streams such as battery packs and electronic control systems [2][3] - The strategic diversification led to an 18% growth in revenue from battery packs, indicating successful adaptation to market conditions [3] - The company aims to refine its revenue structure and deliver profitable products to create sustainable value for shareholders [4] Financial Condition - As of September 30, 2023, the company had cash and cash equivalents of $17.3 million, a significant increase from $4.4 million a year earlier [1][13]