Fly-E Group, Inc. Announces Fiscal Year 2024 Financial Results
Fly-E, an electric vehicle company, announced its financial results for fiscal year 2024. The company reported a 47.9% increase in net revenues, reaching $32.2 million, and a 58.1% rise in gross profit to $13.1 million. The gross profit margin improved to 40.7%. Net income grew by 37.5% to $1.9 million, while EBITDA rose by 43.2% to $3.5 million. Despite inflationary pressures, income from operations increased by 41% to $3.3 million. The company highlighted its strategies, including pricing optimization, supplier diversification, logistics improvements, and product portfolio enhancements, as key drivers of this growth. Fly-E also completed its IPO in June 2024, raising $10.35 million. The company plans to continue expanding its sales network and investing in its Fly E-Bike app to enhance customer experience.
- Net revenues increased by 47.9% to $32.2 million.
- Gross profit surged by 58.1% to $13.1 million.
- Gross profit margin improved to 40.7%.
- Income from operations rose by 41% to $3.3 million.
- Net income grew by 37.5% to $1.9 million.
- EBITDA increased by 43.2% to $3.5 million.
- Successful IPO in June 2024 raised $10.35 million.
- Inflation led to higher labor and raw material costs, impacting profitability.
Insights
Fly-E Group, Inc.'s fiscal year 2024 financial results reveal considerable growth and resilience, particularly in a challenging macroeconomic environment with rising inflation.
Revenue and Profit Growth: The company reported
Expense Management: However, the company's operating expenses surged by
Cash Flow and IPO Proceeds: The positive cash flow from operating activities, amounting to
Overall, these results paint a positive picture for Fly-E's financial health, with strong revenue growth and a solid liquidity position offering a promising outlook for future expansion and innovation.
Expansion and Market Position: Fly-E's plan to expand into new territories through online sales is a strategic move to capitalize on the growing global demand for electric vehicles (EVs). This approach not only mitigates the risks associated with physical retail expansion but also broadens Fly-E’s market reach. The rise in both retail and wholesale revenue suggests a diversified distribution strategy, further strengthening its market presence.
Product Diversification: The emphasis on diversifying product offerings to meet evolving customer demands is another positive aspect. This not only caters to a wider audience but also mitigates the risk of over-reliance on a single product category. The continuous upgrade of their product portfolio reflects a conscious effort to stay competitive in a rapidly evolving market.
Brand Image and Customer Experience: Fly-E's focus on brand image and customer experience, particularly through their Fly E-Bike app, aligns well with current consumer expectations for technologically integrated products. This could drive customer loyalty and repeat purchases, contributing to long-term growth.
In summary, Fly-E’s strategic initiatives in market expansion, product diversification and customer experience enhancement position the company well for sustained growth.
Mr. Zhou (Andy) Ou, Chairman and Chief Executive Officer of Fly-E, remarked, "We are thrilled to present our robust inaugural financial results for fiscal year 2024 following our IPO in June 2024. Our net revenues and gross profit surged by an impressive
Fiscal Year 2024 Financial Highlights
- Net revenues were
$32.2 million 47.9% from$21.8 million - Gross profit was
$13.1 million 58.1% from$8.3 million - Gross margin was
40.7% in fiscal year 2024, increased from38.1% in fiscal year 2023. - Income from operations was
$3.3 million 41.0% from$2.3 million - Net income was
$1.9 million 37.5% from$1.4 million - Basic and diluted earnings per share were
$0.09 $0.06 - EBITDA was
$3.5 million 43.2% from$2.4 million
Fiscal Year 2024 Financial Results
Net Revenues
Net revenues were
Retail sales revenue was
Cost of Revenues
Cost of revenues was
Gross Profit
Gross profit was
Total Operating Expenses
Total operating expenses were
- Selling expenses were
$5.9 million $3.7 million $1.6 million $1.4 million $2.4 million $1.7 million $1.1 million $15,756 $0.16 million $0.13 million - General and administrative expenses were
$3.9 million $2.3 million $0.4 million $0.3 million $1.0 million $0.7 million $1.1 million $0.5 million $0.2 million $0.1 million
Net Income
Net income was
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were
EBITDA
EBITDA was
Financial Condition
As of March 31, 2024, the Company had cash of
Net cash provided by operating activities was
Net cash used in investing activities was
Net cash used in financing activities was
Recent Development
On June 7, 2024, the Company completed its initial public offering (the "Offering") of 2,250,000 shares of common stock, at a price of
About Fly-E Group, Inc.
Fly-E Group, Inc. is an electric vehicle company that is principally engaged in designing, installing and selling smart electric motorcycles, electric bikes, electric scooters and related accessories under the brand "Fly E-Bike." The Company's commitment is to encourage people to incorporate eco-friendly transportation into their active lifestyles, ultimately contributing towards building a more environmentally friendly future. For more information, please visit the Company's website: https://investors.flyebike.com.
Non-GAAP Financial Measures
To supplement the Company's financial information presented in accordance with the generally accepted accounting principles in
The Company uses EBITDA (earnings before interest, taxes, depreciation, and amortization) to evaluate its operating performance. The Company believes EBITDA provides additional insight into its underlying, ongoing operating performance and facilitates year-to-year comparisons by excluding the earnings impact of interest, tax, depreciation and amortization and that presenting EBITDA is more representative of its operational performance and may be more useful for investors.
The Company reconciles its non-GAAP financial measure to its net income, which is its most directly comparable financial measure calculated and presented in accordance with
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct. The Company cautions investors that actual results may differ materially from the anticipated results, and that the forward-looking statements contained in this press release are subject to the risks set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the section under "Risk Factors" of its most recent Annual Report on Form 10-K for the fiscal year ended March 21, 2024, filed with the SEC on June 28, 2024. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.
For investor and media inquiries, please contact:
Fly-E Group, Inc.
Investor Relations Department
Email: ir@flyebike.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
FLY-E GROUP, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Expressed in | ||||||||
March 31, | March 31, | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash | $ | 1,403,514 | $ | 358,894 | ||||
Accounts receivable | 212,804 | 389,077 | ||||||
Accounts receivable – related parties | 326,914 | 136,565 | ||||||
Inventories, net | 5,364,060 | 3,838,754 | ||||||
Prepayments and other receivables | 588,660 | 782,819 | ||||||
Prepayments and other receivables – related parties | 240,256 | — | ||||||
Total Current Assets | 8,136,208 | 5,506,109 | ||||||
Property and equipment, net | 1,755,022 | 785,285 | ||||||
Security deposits | 781,581 | 424,942 | ||||||
Deferred IPO costs | 502,198 | 75,819 | ||||||
Deferred tax assets, net | 35,199 | 211,100 | ||||||
Operating lease right-of-use assets | 16,000,742 | 10,261,556 | ||||||
Intangible assets, net | 36,384 | — | ||||||
Long-term prepayment for property | 450,000 | — | ||||||
Long-term prepayment for software development– related parties | 1,279,000 | — | ||||||
Total Assets | $ | 28,976,334 | $ | 17,264,811 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 1,180,796 | $ | 1,005,401 | ||||
Current portion of long-term loan payables | 1,213,242 | 412,224 | ||||||
Accrued expenses and other payables | 925,389 | 365,662 | ||||||
Other payables – related parties | 92,229 | 332,481 | ||||||
Operating lease liabilities – current | 2,852,744 | 1,836,737 | ||||||
Taxes payable | 1,530,416 | 959,456 | ||||||
Total Current Liabilities | 7,794,816 | 4,911,961 | ||||||
Long-term loan payables | 412,817 | 723,228 | ||||||
Long-term loan payables – related parties | — | 150,000 | ||||||
Operating lease liabilities – non-current | 13,986,879 | 8,979,193 | ||||||
Total Liabilities | 22,194,512 | 14,764,382 | ||||||
Commitment and Contingencies | ||||||||
Stockholders' Equity | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 220,000 | 220,000 | ||||||
Additional Paid-in Capital | 2,400,000 | — | ||||||
Shares Subscription Receivable | (219,998) | (219,998) | ||||||
Retained Earnings | 4,395,649 | 2,500,427 | ||||||
Accumulated other comprehensive loss | (13,829) | — | ||||||
Total FLY-E Group, Inc. Stockholders' Equity | 6,781,822 | 2,500,429 | ||||||
Total Liabilities and Stockholders' Equity | $ | 28,976,334 | $ | 17,264,811 | ||||
* | Shares and per share data are presented on a retroactive basis to reflect the nominal share issuance |
FLY-E GROUP, INC. | ||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Expressed in | ||||||||
For the Years Ended | ||||||||
2024 | 2023 | |||||||
Revenues | $ | 32,205,666 | $ | 21,774,937 | ||||
Cost of Revenues | 19,099,120 | 13,485,405 | ||||||
Gross Profit | 13,106,546 | 8,289,532 | ||||||
Operating Expenses | ||||||||
Selling Expenses | 5,914,786 | 3,667,227 | ||||||
General and Administrative Expenses | 3,931,203 | 2,309,927 | ||||||
Total Operating Expenses | 9,845,989 | 5,977,154 | ||||||
Income from Operations | 3,260,557 | 2,312,378 | ||||||
Other Expenses, net | (30,352) | (11,524) | ||||||
Interest Expenses, net | (152,050) | (100,387) | ||||||
Income Before Income Taxes | 3,078,155 | 2,200,467 | ||||||
Income Tax Expense | (1,182,933) | (821,896) | ||||||
Net Income | $ | 1,895,222 | $ | 1,378,571 | ||||
Other Comprehensive Income (Loss) | ||||||||
Foreign currency translation adjustment | (13,829) | — | ||||||
Total Comprehensive Income | $ | 1,881,393 | $ | 1,378,571 | ||||
Earnings per Share* | $ | 0.09 | $ | 0.06 | ||||
Weighted Average Number of Common Stock | ||||||||
– Basic and Diluted* | 22,000,000 | 22,000,000 | ||||||
* | Shares and per share data are presented on a retroactive basis to reflect the nominal share issuance |
FLY-E GROUP, INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Expressed in | ||||||||
For the Years Ended | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 1,895,222 | $ | 1,378,571 | ||||
Adjustments to reconcile net income to net cash provided by operating | ||||||||
Loss on disposal of property, and equipment | 46,084 | — | ||||||
Depreciation expense | 272,708 | 145,783 | ||||||
Amortization expense | 1,648 | — | ||||||
Deferred income taxes expenses | 176,093 | 448,800 | ||||||
Amortization of operating lease right-of-use assets | 2,277,910 | 1,905,028 | ||||||
Loss from termination of operating lease | 5,957 | — | ||||||
Inventories reserve | 456,209 | 151,378 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 176,273 | (334,752) | ||||||
Accounts receivable – related parties | (190,349) | (136,565) | ||||||
Inventories | (1,981,515) | 615,394 | ||||||
Prepayments and other receivables | 194,160 | (637,630) | ||||||
Prepayments for operation services to related parties | (60,000) | — | ||||||
Security deposits | (422,240) | (130,680) | ||||||
Accounts payable | 2,489,025 | (70,928) | ||||||
Accrued expenses and other payables | 334,726 | (105,097) | ||||||
Operating lease liabilities | (1,933,760) | (1,697,190) | ||||||
Taxes payable | 570,769 | 225,027 | ||||||
Net cash provided by operating activities | 4,308,920 | 1,757,139 | ||||||
Cash flows from investing activities | ||||||||
Purchases of equipment | (1,253,555) | (442,915) | ||||||
Purchases of property rights | (38,032) | — | ||||||
Prepayments for property | (450,000) | — | ||||||
Prepayment for purchasing software from a related party | (1,279,000) | — | ||||||
Payment received from a related party | 111,500 | — | ||||||
Advance to a related party | (291,756) | — | ||||||
Net cash used in investing activities | (3,200,843) | (442,915) | ||||||
Cash flows from financing activities | ||||||||
Borrowing from loan payables | 1,095,000 | 1,500,000 | ||||||
Repayments of loan payables | (639,367) | (278,222) | ||||||
Repayments on other payables - related parties | (290,252) | (2,496,323) | ||||||
Payments of related party loan | (150,000) | — | ||||||
Deferred IPO Cost | (201,379) | (75,819) | ||||||
Capital contributions from Stockholders | 136,370 | — | ||||||
Net cash used in financing activities | (49,628) | (1,350,364) | ||||||
Net changes in cash | 1,058,449 | (36,140) | ||||||
Effect of exchange rate changes on cash | (13,829) | — | ||||||
Cash at beginning of the year | 358,894 | 395,034 | ||||||
Cash at the end of the year | $ | 1,403,514 | $ | 358,894 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for interest expense | $ | 152,050 | $ | 100,341 | ||||
Cash paid for income taxes | $ | 435,881 | $ | 148,064 | ||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||
Settlement of accounts payable by related parties | $ | 50,000 | $ | — | ||||
Settlement of accounts payable by capital contribution | $ | 2,263,630 | $ | — | ||||
Purchase of vehicle funded by loan | $ | 34,974 | $ | — | ||||
Unpaid deferred IPO cost | $ | 225,000 | $ | 11,717 | ||||
Termination of operating lease right-of-use assets and operating lease | $ | (2,814,235) | — | |||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 10,771,688 | $ | 4,082,664 | ||||
The following table sets forth the components of our EBITDA for the years ended March 31, 2024 and 2023:
For the Year Ended March 31, | ||||||||||||||||
2024 | 2023 | Change | Percentage | |||||||||||||
Net Income from Operations | $ | 1,895,222 | $ | 1,378,571 | $ | 516,651 | 37.5 | % | ||||||||
Income Tax Provision | 1,182,933 | 821,896 | 361,037 | 43.9 | % | |||||||||||
Depreciation | 272,708 | 145,783 | 126,925 | 87.1 | % | |||||||||||
Interest Expenses | 152,050 | 100,387 | 51,663 | 51.5 | % | |||||||||||
Amortization | 1,648 | — | 1,648 | 100 | % | |||||||||||
EBITDA | $ | 3,504,561 | $ | 2,446,637 | $ | 1,057,924 | 43.2 | % | ||||||||
Percentage of Revenue | 10.9 | % | 11.2 | % | (0.3) | % | ||||||||||
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SOURCE Fly-E Group, Inc.
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