Sales of E-bicycles halved,
Total revenue fell 25.8%
CHANGZHOU, China, Jan. 20,
2023 /PRNewswire/ -- EZGO Technologies Ltd.
(Nasdaq: EZGO) ("EZGO" or "we", "our", or "the Company"), a leading
short-distance transportation solutions provider in China, today announced its audited financial
results for the fiscal year ended September
30, 2022 (the "Fiscal Year 2022").
Fiscal Year 2022 Financial Summary (all results compared to the
prior fiscal year unless otherwise noted)
- Revenues were $17.4 million, a
decrease of 25.8%, primarily as a result of the decline in volume
and price of the e-bicycle business fell.
- Net loss was $7.5 million,
compared to net loss of $3.4
million.
- Basic and diluted loss per share attributable to shareholders
was $0.48, compared to $0.27 in the same period last year.
Management Commentary
Mr. Jianhui Ye, Chief Executive
Officer of EZGO, stated, "The operating revenue in Fiscal Year 2022
was about $17.4 million, down 25.8%
YoY ("Year on Year"). The main reason for the decline in revenue
was that the volume and price of the e-bicycle business fell, and
sales revenue nearly halved YoY. Although the revenue of the
lithium battery business increased by nearly two-thirds, it did not
offset the impact of decline in our e-bicycle business."
"The sales revenue of e-bicycles was US$9.4 million, down 48.4% YoY. The main reason
for the decline was that the production, supply chain and channel
marketing were all adversely affected significantly by the repeated
outbreak of the epidemic. The revenue of batteries and battery
packs was about US$7.0 million, up
63.0% YoY. The increase in revenue of the batteries was mainly due
to the continuous relationship with new customers and long-term
customers."
Mr. Jianhui Ye, concluded,
"Looking forward to the future, the new sales model will be
gradually promoted and implemented, and new products will be
introduced to the market. In addition, it is expected that the
sales of e-bicycles will gradually recover with the lift of
COVID-19 epidemic control measures. In the future, the Company will
still take "differentiated positioning and ladder innovation" as
the strategic orientation, develop and design products to meet the
needs of consumers at different levels. Through the expansion of
the sales network, we will continue to dig deeper into the domestic
market, gradually expand the overseas market, and comprehensively
distribute the whole category of two-wheel electric vehicles,
lithium batteries and other products."
Fiscal Year 2022 Financial Review
The following table identifies the disaggregation of our revenue
from continuing operations and reportable segments for the fiscal
years ended September 30, 2020, 2021
and 2022, respectively:
|
|
|
|
Years Ended
September 30,
|
|
|
|
Segment
|
|
2020
|
|
|
2021
|
|
|
2022
|
|
Sales of batteries and
battery packs
|
|
Battery cells and packs
segment
|
|
$
|
3,148,156
|
|
|
$
|
4,288,366
|
|
|
$
|
6,990,215
|
|
Sales of
e-bicycles
|
|
E-bicycle sales
segment
|
|
|
11,165,290
|
|
|
|
18,232,537
|
|
|
|
9,405,103
|
|
Others
|
|
|
|
|
929,836
|
|
|
|
901,103
|
|
|
|
993,899
|
|
Net
Revenue
|
|
|
|
$
|
15,243,282
|
|
|
$
|
23,422,006
|
|
|
$
|
17,389,217
|
|
The decrease in revenue from the fiscal year ended September 30, 2021 (the "Fiscal Year2021") to
Fiscal Year 2022 was mainly due to the decrease of sales of
e-bicycles which was partially offset by the increase of sales of
batteries and battery packs.
The sales of e-bicycles decreased by 48.4% to $9,405,103 for Fiscal Year 2022 from $18,232,537 for Fiscal Year 2021 due to the
decreased unit price and the decreased sales volume of the
e-bicycles under the fierce competition in the e-bicycle
industry.
The revenue from sales of battery packs for Fiscal
Year 2022 was $6,990,215,
compared to $4,288,366 for Fiscal
Year 2021. We continued to boost sales of our battery packs
due to the increasing market demand and the increase of unit price
during Fiscal Year 2022. Our sales price of battery packs increased
by approximately 60% for Fiscal Year 2022 compared to Fiscal
Year 2021.
Cost of revenues
Our cost of revenues decreased by $5,869,350, or 25%, to $17,170,178 for Fiscal Year 2022 from
$23,039,528 for Fiscal
Year 2021, which was primarily due to the decrease of
manufacturing and purchase cost of e-bicycles for sales of
e-bicycles, which is in line with the decrease of revenues.
Gross profit
Gross profit for Fiscal Year 2022 was $219,039, or 1% of net revenues.
Gross profit margin for Fiscal Year 2022 decreased from 2%
to 1%, primarily due to the negative margin of sales of e-bicycles,
which accounts for a large proportion of our total revenue. The
decrease of gross profit margin was primarily because the average
selling price of our e-bicycle decreased by 12% for Fiscal
Year 2022. Also, the cost of raw materials increased due to
adverse impact of COVID-19 pandemics that caused repeated shutdown
in factory production.
Selling and marketing expenses
EZGO's selling and marketing expenses decreased by $550,297, or approximately 35%, to $1,008,422 for Fiscal Year 2022 from
$1,558,719 for Fiscal Year 2021,
was primarily due to the decrease of exhibition expenses,
advertising and promotion expenses. Exhibitions and many sales
activities were cancelled or affected by COVID-19 pandemic under
zero-COVID policy in 2022. The advertising expenses decreased
$115,697 or 66% from $174,566 in Fiscal Year 2021 to $58,869 in Fiscal Year 2022. The exhibition
expenses decreased $152,955 or 81%
from $188,177 in Fiscal Year 2021 to
$35,221 in Fiscal Year 2022.
General and administrative expenses
General and administrative expenses increased by $2,972,046, or 110%, to $5,673,224 for Fiscal Year 2022 from
$2,701,178 for Fiscal Year 2021.
The increase was primarily attributed to 1) the increase of
share-based compensation expense, management salaries and employee
bonus; 2) the increased depreciation and amortization for the
acquired land use right and buildings; and 3) the increased
expenses in research and development activities for new e-bicycles
models.
Income tax expense/benefit
EZGO incurred an income tax loss of $527,119 for Fiscal Year 2022. The reason is
that the Company accrued valuation allowance for deferred tax
assets of $1,755,296 for Fiscal
Year 2022, based on the assessment that it is more likely than
not that the Company will not create enough future taxable income
to fully utilize its deferred tax assets.
Net income/loss
As a result of the foregoing, we recorded a net loss of
$7,468,830 for Fiscal Year 2022,
as compared to a net loss of $3,413,644 for Fiscal Year 2021.
For additional information, please see EZGO's Annual Report on
Form 20-F for the fiscal year ended September 30, 2022, which was filed with the U.S.
Securities and Exchange Commission on January 20, 2023.
About EZGO Technologies Ltd.
Leveraging an Internet of Things (IoT) product and service
platform and three e-bicycle brands, "EZGO", "Cenbird" and
"Dilang", EZGO has established a business model centered on the
manufacturing and sale of two- and three-wheeled electric vehicles,
lithium batteries, complemented by the e-bicycle charging pile
business. For additional information, please visit EZGO's website
at www.ezgotech.com.cn. Investors can visit the "Investor
Relations" section of EZGO's website at
http://www.ezgotech.com.cn/Investor/.
Exchange Rate
This announcement contains translations of certain Chinese
Renminbi ("RMB") amounts into U.S. dollars ("US$") at specified
rates solely for the convenience of the readers. Unless otherwise
stated, all translations from RMB to US$ were made at the rate of
RMB7.1135 to US$1.00, the exchange rate in effect as of
September 30, 2022, as set forth in
the H.10 Statistical release of the Board of Governors of the
Federal Reserve System. The Company makes no representation that
the RMB or US$ amounts referred could be converted into US$ or RMB,
as the case may be, at any particular rate or at all.
Safe Harbor Statement
This press release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. When the Company uses words such as
"may," "will," "intend," "should," "believe," "expect,"
"anticipate," "project," "estimate," or similar expressions that do
not relate solely to historical matters, it is making
forward-looking statements. Forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties that may cause the actual results to differ
materially from the Company's expectations discussed in the
forward-looking statements. These statements are subject to
uncertainties and risks including, but not limited to, the
following: the Company's goals and strategies; the Company's future
business development; product and service demand and acceptance;
changes in technology; economic conditions; the growth of the
short-distance transportation solutions market in China and the other international markets the
Company plans to serve; reputation and brand; the impact of
competition and pricing; government regulations; fluctuations in
general economic and business conditions in China and the international markets the
Company plans to serve and assumptions underlying or related to any
of the foregoing and other risks contained in reports filed by the
Company with the Securities and Exchange Commission ("SEC"),
including the Company's most recently filed Annual Report on Form
20-F and its subsequent filings. For these reasons, among others,
investors are cautioned not to place undue reliance upon any
forward-looking statements in this press release. Additional
factors are discussed in the Company's filings with the SEC, which
are available for review at www.sec.gov. The Company undertakes no
obligation to publicly revise these forward–looking statements to
reflect events or circumstances that arise after the date
hereof.
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SOURCE EZGO Technologies Ltd.