EZGO Technologies Ltd. Reports Fiscal 2020 Financial Results
EZGO Technologies Ltd. (Nasdaq: EZGO) reported a 224% revenue increase for the fiscal year ending September 30, 2020, achieving $16.8 million compared to $5.2 million in 2019. This growth was driven by a substantial rise in electric bicycle sales and lithium battery sales. However, the cost of revenue surged by 647% to approximately $13 million, leading to a significant decline in gross profit margins from 61% to 11%. Net income fell to $147,174 or $0.02 per share, down from $1.7 million or $0.23 per share. The company raised $11.2 million through its IPO, enhancing its financial position.
- Revenue of $16.8 million represents a 224% increase year-over-year.
- Electric bicycle sales rose by $11.0 million, driving significant revenue growth.
- Company raised $11.2 million through the IPO, improving cash position.
- Cost of revenue increased by approximately $13 million or 647%, outpacing revenue growth.
- Gross profit decreased to $1.8 million, representing only 11% of revenue compared to 61% the previous year.
- Net income attributable to shareholders dropped to $147,174 from $1.7 million.
JIANGSU, CHINA, Feb. 17, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- EZGO Technologies Ltd. (Nasdaq: EZGO) (“the Company” or “EZGO”), a leading short-distance transportation solutions provider in China, today announced that, for the fiscal year ended September 30, 2020, the Company generated revenue of
This increase in revenue was driven mainly by an
The Company’s cost of revenue for fiscal 2020 significantly increased by approximately
As the increase in revenue was less than the increase in cost of revenue, gross profit for fiscal 2020 was
There was an increase in operating expenses of about
As a result of the decreased gross profit and these increased expenses, the Company’s net income attributable to shareholders for fiscal 2020 was
As of September 30, 2020, the Company had cash and cash equivalents of
Recently, on January 26, 2021, the Company improved its cash position and working capital with the completion of its initial public offering in which the Company raised
“We are pleased to announce our fiscal 2020 results,” said Chief Executive Officer Mr. Jianhui Ye. “Despite challenges posed by the pandemic, we completed our construction of a new e-bicycle production line and significantly increased our manufacturing capacity for e-bicycles and e-tricycles.
“Assuming an average consumer purchase price of approximately
e-bicycleand projected sales of about 100,000 units, this gives us a possible revenue target of around
This goal, according to Mr. Ye, will likely be supported by steady increases in the growing demand for e-bicycles in both China and Southeast Asia, as well as other regions of the globe.
For additional information on EZGO Technologies’ fiscal 2020 performance, please refer to the company's 20-F filing at http://www.ezgotech.com.cn/en/index.html or www.sec.gov.
About EZGO Technologies Ltd.
Leveraging an Internet of Things (IoT) product and service platform and two e-bicycle brands, “Cenbird” and “Dilang,” EZGO has established a business model centered on the manufacturing and sale of electronic bicycles and batteriesand e-bicycle rentals, complemented by battery cell trading and a charging pile business. Currently, the Company (i) designs, manufactures, rents and sells e-bicycles and e-tricycles; (ii) rents and sells lithium batteries; (iii) sells, franchises and operates smart charging piles for e-bicycles and other electronic devices; and (iv) trades lithium cells.
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 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:
Rick Eisenberg
Eisenberg Communications
Email: eiscom@msn.com
Phone: (+1) 917-691-8934
INCOME STATEMENT
| For the years ended September 30, | ||||||||||||
| 2018 | 2019 | 2020 | ||||||||||
| Net revenues | $ | 3,191,560 | $ | 5,194,259 | $ | 16,838,508 | ||||||
| Cost of revenues | (1,667,824 | ) | (2,014,308 | ) | (15,052,826 | ) | ||||||
| Gross profit | 1,523,736 | 3,179,951 | 1,785,682 | |||||||||
| Selling and marketing expenses | (5,221 | ) | (119,210 | ) | (490,985 | ) | ||||||
| General and administrative expenses | (458,613 | ) | (812,863 | ) | (1,418,674 | ) | ||||||
| Total operating expenses | (463,834 | ) | (932,073 | ) | (1,909,659 | ) | ||||||
| Income (loss) from operations | 1,059,902 | 2,247,878 | (123,977 | ) | ||||||||
| Interest income (expense), net | 311 | (18,865 | ) | (20,906 | ) | |||||||
| Other income, net | 63,464 | 424,484 | 518,953 | |||||||||
| Total other income, net | 63,775 | 405,619 | 498,047 | |||||||||
| Income from continuing operations before income tax expense | 1,123,677 | 2,653,497 | 374,070 | |||||||||
| Income tax expense | (286,905 | ) | (723,384 | ) | (97,148 | ) | ||||||
| Net income from continuing operations | 836,772 | 1,930,113 | 276,922 | |||||||||
| (Loss) income from discontinued operation, net of tax | (203,023 | ) | 261,324 | - | ||||||||
| Net income | 633,749 | 2,191,437 | 276,922 | |||||||||
| Net income from continuing operations | 836,772 | 1,930,113 | 276,922 | |||||||||
| Less: net income attributable to non-controlling interests from continuing operations | 160,037 | 403,334 | 129,748 | |||||||||
| Net income attributable to EZGO Technologies Ltd.’s shareholders from continuing operations | 676,735 | 1,526,779 | 147,174 | |||||||||
| (Loss) income from discontinued operation, net of tax | (203,023 | ) | 261,324 | - | ||||||||
| Less: net (loss) income attributable to non-controlling interests from discontinued operation | (38,829 | ) | 49,980 | - | ||||||||
| Net (loss) income attributable to EZGO Technologies Ltd.’s shareholders from discontinued operation | (164,194 | ) | 211,344 | - | ||||||||
| Net income attributable to EZGO Technologies Ltd.’s shareholders | $ | 512,541 | $ | 1,738,123 | $ | 147,174 | ||||||
| Net income from continuing operations per ordinary share: | ||||||||||||
| Basic and diluted | $ | 0.09 | $ | 0.20 | $ | 0.02 | ||||||
| Net (loss) income from discontinued operation per ordinary share: | ||||||||||||
| Basic and diluted | $ | (0.02 | ) | $ | 0.03 | $ | - | |||||
| Net income per ordinary share: | ||||||||||||
| Basic and diluted | $ | 0.07 | $ | 0.23 | $ | 0.02 | ||||||
| Weighted average shares outstanding | ||||||||||||
| Basic and diluted | 7,800,000 | 7,800,000 | 7,800,000 | |||||||||
BALANCE SHEET
| As of September 30, | ||||||||||||
| 2018 | 2019 | 2020 | ||||||||||
| Balance Sheet Data: | ||||||||||||
| Cash and cash equivalents | $ | 5,570 | $ | 3,633,645 | $ | 322,598 | ||||||
| Total assets | 13,700,498 | 19,171,950 | 19,817,798 | |||||||||
| Total liabilities | 7,081,518 | 6,840,965 | 6,672,653 | |||||||||
| Total EZGO Technologies Ltd.’s shareholders’ equity | 3,652,813 | 8,226,779 | 8,869,462 | |||||||||
| Non-controlling interests | 2,966,167 | 4,104,206 | 4,275,683 | |||||||||
| Total equity | 6,618,980 | 12,330,985 | 13,145,145 | |||||||||
FAQ
What were EZGO's revenue figures for fiscal year 2020?
How did EZGO's net income change in 2020?
What factors contributed to EZGO's revenue increase in 2020?
What is EZGO's revenue target for fiscal 2021?
How has EZGO's cash position changed following its IPO?
