EZGO ANNOUNCES FINANCIAL RESULTS FOR FISCAL YEAR 2021
EZGO Technologies Ltd. reported financial results for the fiscal year ending September 30, 2021. Revenues increased by 53.7% to $23.4 million driven by strong e-bicycle sales, which grew 63.3% year-over-year. Despite the revenue growth, EZGO experienced a net loss of $3.4 million, down from a net income of $0.3 million in the previous year. Increased operating and sales expenses, due to hiring and marketing, significantly impacted profits. Cash and cash equivalents stood at approximately $4.8 million.
- Revenues increased by 53.7% to $23.4 million.
- Sales of e-bicycles grew 63.3% year-over-year.
- Net loss of $3.4 million compared to a net income of $0.3 million.
- Cost of revenues increased by 68.1% to $23.0 million.
CHANGZHOU, China, Jan. 27, 2022 /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, 2021 ("Fiscal Year 2021").
Fiscal Year 2021 Financial Highlights (all results compared to the prior fiscal year unless otherwise noted)
- Revenues were
$23.4 million , an increase of 53.7% - Net loss was
$3.4 million , compared to net income of$0.3 million , primarily as a result of increased cost of revenues and operating expenses associated with new hires and marketing - Cash and cash equivalents of approximately
$4.8 million at September 30, 2021
Management Commentary
Mr. Jianhui Ye, Chief Executive Officer of EZGO, stated, "We are pleased with the progress we have made during Fiscal Year 2021, which was a major turning point in our Company's development. We became a public company following our IPO in the first half of the fiscal year and made great strides with our new business focus—manufacturing and sales of two- and three-wheeled electric vehicles. We reported solid year-over-year top line growth of
Mr. Ye concluded, "Demand for our e-bicycles remains strong, and we are working to increase the production capacity at our current facilities to up to 200,000 units of our e-bicycles in the next couple of months. Last November, we were excited to announce the launch of our new EZGO branded products, along with the release of seven new independent innovation models. Of these new models, the four ultra-high-speed electric motorcycles are anticipated to be marketed primarily in American, European and other markets. We believe our commitment to ongoing innovation and quality, as well as our expanded marketing efforts, will lead to increased brand awareness and sales of our e-bicycles in Fiscal Year 2022 and beyond."
Fiscal Year 2021 Financial Review
Net Revenues
Net revenues from continuing operations for the fiscal year ended September 30, 2021, were approximately
The following table identifies revenue from continuing operations and reportable segments for the fiscal years ended September 30, 2021 and 2020:
For the fiscal year ended September 30, | Change | |||||||||||||||||||||||||
Segment | 2021 | % | 2020 | % | Amount | % | ||||||||||||||||||||
Sales of e-bicycles | E-bicycle sales | $ | 18,232,537 | 77.9 | $ | 11,165,290 | 73.2 | $ | 7,067,247 | 63.3 | ||||||||||||||||
Sales of batteries and battery packs | Battery cells and | 4,288,366 | 18.3 | 3,148,156 | 20.7 | 1,140,210 | 36.2 | |||||||||||||||||||
Others | 901,103 | 3.8 | 929,836 | 6.1 | (28,733) | (3.1) | ||||||||||||||||||||
Net revenues | $ | 23,422,006 | 100.0 | $ | 15,243,282 | 100.0 | $ | 8,178,724 | 53.7 | |||||||||||||||||
The e-bicycles sales segment mainly engages in offline sales of e-bicycles. For the fiscal year ended September 30, 2021, revenues from sales of e-bicycles were
Revenue from battery cells and packs segment for the fiscal year ended September 30, 2021, were
Cost of Revenues
Cost of revenues for the fiscal year ended September 30, 2021, were
Gross Profit
Gross profit for the fiscal year ended September 30, 2021, was
Selling and Marketing Expenses
EZGO's selling and marketing expenses primarily consist of salaries and benefits expense, advertising expense, and freight expense. Selling and marketing expenses increased to
General and Administrative Expenses
General and administrative expenses increased to
Income Tax Benefit (Expense)
Income tax benefit was approximately
Net Income (Loss)
Net loss was
For additional information, please see EZGO's Annual Report on Form 20-F for the fiscal year ended September 30, 2021, which was filed with the U.S. Securities and Exchange Commission on January 27, 2022.
About EZGO Technologies Ltd.
Leveraging an Internet of Things (IoT) product and service platform and three E-bicycle brands, "EZGO", "Dilang" and "Cenbird", EZGO has established a business model centered on the manufacturing and sale of two- and three-wheeled electric vehicles, 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/index.html.
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 RMB6.4854 to US
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"). 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.
For more information, please contact:
At the Company:
Shawn Wen
Email: ir@ez-go.com.cn
Phone: (+86) 13502829216
Investor Relations:
Carolyne Sohn
The Equity Group Inc.
Email: csohn@equityny.com
Phone: (415) 568-2255
EZGO TECHNOLOGIES LTD. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(In U.S. dollars except for number of shares) | ||||||||
As of September 30, | ||||||||
2020 | 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 322,598 | $ | 4,774,531 | ||||
Restricted cash | 17,932 | 1,115,354 | ||||||
Short-term investments | 2,209,261 | 2,387,003 | ||||||
Accounts receivable, net | 6,325,733 | 6,847,608 | ||||||
Notes receivable | 1,664,310 | - | ||||||
Inventories, net | 867,752 | 924,342 | ||||||
Advances to suppliers, net | 2,700,383 | 7,404,538 | ||||||
Amount due from related parties, current | 577,035 | 3,524,635 | ||||||
Prepaid expenses and other current assets, net | 881,073 | 609,602 | ||||||
Current assets of discontinued operation | 750,784 | 91,997 | ||||||
Total current assets | 16,316,861 | 27,679,610 | ||||||
Property, plants and equipment, net | 2,369,891 | 8,746,386 | ||||||
Land use right | - | 4,510,849 | ||||||
Amount due from related parties, noncurrent | 294,568 | 310,395 | ||||||
Long-term investments | - | 132,621 | ||||||
Deferred tax assets, net | 97,324 | 585,428 | ||||||
Non-current assets of discontinued operation | 739,154 | 46,381 | ||||||
Total assets | $ | 19,817,798 | $ | 42,011,670 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term borrowings | $ | 299,315 | $ | 310,395 | ||||
Accounts payable | 298,060 | 650,693 | ||||||
Accrued expenses and other payables | 3,753,817 | 7,142,630 | ||||||
Advances from customers | 154,554 | 94,899 | ||||||
Income tax payable | 292,940 | 395,483 | ||||||
Amount due to related parties | 754,283 | 71,849 | ||||||
Current liabilities of discontinued operation | 1,119,684 | 809,221 | ||||||
Total current liabilities | 6,672,653 | 9,475,170 | ||||||
Total liabilities | 6,672,653 | 9,475,170 | ||||||
Commitments and contingencies | - | - | ||||||
Equity | ||||||||
Preferred shares | - | - | ||||||
Ordinary shares (par value of | 7,800 | 13,627 | ||||||
Subscription receivable | (7,800) | (7,800) | ||||||
Receivables from a shareholder | (4,737,521) | (3,152,179) | ||||||
Additional paid-in capital | 12,078,058 | 32,260,048 | ||||||
Statutory reserve | 212,842 | 233,413 | ||||||
Retained earnings and (deficit) | 1,575,630 | (1,423,614) | ||||||
Accumulated other comprehensive income (loss) | (259,547) | 594,507 | ||||||
Total EZGO Technologies Ltd.'s shareholders' equity | 8,869,462 | 28,518,002 | ||||||
Non-controlling interests | 4,275,683 | 4,018,498 | ||||||
Total equity | 13,145,145 | 32,536,500 | ||||||
Total liabilities and equity | $ | 19,817,798 | $ | 42,011,670 | ||||
EZGO TECHNOLOGIES LTD. | ||||||||
CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME (LOSS) | ||||||||
(In U.S. dollars except for number of shares) | ||||||||
For the fiscal years ended September 30, | ||||||||
2020 | 2021 | |||||||
Net revenues | $ | 15,243,282 | $ | 23,422,006 | ||||
Cost of revenues | (13,704,248) | (23,039,528) | ||||||
Gross profit | 1,539,034 | 382,478 | ||||||
Operating expenses: | ||||||||
Selling and marketing expenses | (385,722) | (1,558,719) | ||||||
General and administrative expenses | (1,081,346) | (2,701,178) | ||||||
Total operating expenses | (1,467,068) | (4,259,897) | ||||||
Income (loss) from operations | 71,966 | (3,877,419) | ||||||
Other income (expenses): | ||||||||
Interest expense, net | (14,803) | (60,756) | ||||||
Other income, net | 393,198 | 141,530 | ||||||
Total other income, net | 378,395 | 80,774 | ||||||
Income (loss) from continuing operations before income tax expense | 450,361 | (3,796,645) | ||||||
Income tax (expense) benefit | (116,063) | 419,405 | ||||||
Net income (loss) from continuing operations | 334,298 | (3,377,240) | ||||||
Income (loss) from discontinued operation, net of tax | (57,376) | (36,404) | ||||||
Net income (loss) | 276,922 | (3,413,644) | ||||||
Net income (loss) from continuing operations | 334,298 | (3,377,240) | ||||||
Less: Net income (loss) attributable to non-controlling interests from continuing operations | 129,748 | (434,971) | ||||||
Net income (loss) attributable to EZGO Technologies Ltd.'s shareholders from continuing | 204,550 | (2,942,269) | ||||||
Income (loss) from discontinued operation, net of tax | (57,376) | (36,404) | ||||||
Less: Net income attributable to non-controlling interests from discontinued operation | - | - | ||||||
Net income (loss) attributable to EZGO Technologies Ltd.'s shareholders from discontinued | (57,376) | (36,404) | ||||||
Net income (loss) attributable to EZGO Technologies Ltd.'s shareholders | $ | 147,174 | $ | (2,978,673) | ||||
Net income (loss) from continuing operations per ordinary share: | ||||||||
Basic and diluted | $ | 0.03 | $ | (0.27) | ||||
Net income (loss) from discontinued operation per ordinary share: | ||||||||
Basic and diluted | $ | (0.01) | $ | (0.00) | ||||
Net income (loss) per ordinary share: | ||||||||
Basic and diluted | $ | 0.02 | $ | (0.27) | ||||
Weighted average shares outstanding | ||||||||
Basic and diluted | 7,800,000 | 10,735,606 | ||||||
Income (loss) from continuing operations before non-controlling interests | $ | 334,298 | $ | (3,377,240) | ||||
Income (loss) from discontinued operation, net of tax | (57,376) | (36,404) | ||||||
Net income (loss) | 276,922 | (3,413,644) | ||||||
Other comprehensive (loss) income | ||||||||
Foreign currency translation adjustment | 438,839 | 973,379 | ||||||
Unrealized gain on investments in available-for-sale debt investments | - | 58,461 | ||||||
Comprehensive income (loss) | 715,761 | (2,381,804) | ||||||
Less: Comprehensive income (loss) attributable to non-controlling interests | 171,477 | (257,185) | ||||||
Comprehensive income (loss) attributable to EZGO Technologies Ltd.'s shareholders | $ | 544,284 | $ | (2,124,619) | ||||
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SOURCE EZGO Technologies Ltd.
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