CHANGZHOU, China, June
30, 2021 /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 unaudited financial results for the six months ended
March 31, 2021.
Financial Highlights (all results compared to the
prior year period unless otherwise noted)
- Revenues were $9.6
million, an increase of 74.3%
- Units sold reached 34,069, an increase of 96.6%
- Gross margin was 9.7%, compared with 9.6%
- Net loss was $0.3 million,
compared with net loss of $0.6
million
- The Company has cash and cash equivalents of
approximately $7.1 million at
March 31, 2021, compared to
approximately $0.3 million at
September 30, 2020
Management Commentary
Mr. Jianhui Ye, Chief Executive
Officer of EZGO, stated, "The last six months have been a
monumental period in EZGO's development, highlighted by our IPO in
January 2021 and transition from an
expert in battery technology into a manufacturer of e-bicycles. We
reported strong growth in both revenues and the number of units
sold, as the demand for our products has continued to grow due to
greater brand awareness. We achieved this growth despite capacity
restraints that restricted our ability to meet this continued
demand, and as a result, we recently announced the purchase of land
and property that we believe will allow us to initially increase
our production capacity by 100,000 units of two-wheeled e-bicycles.
In addition, the estimated production capacity of the factory
building expected to be built on the remaining land being purchased
is anticipated to be approximately 500,000 units."
Mr. Ye concluded, "In the coming months, we are focused on both
utilizing our increased capacity as well as expanding our marketing
efforts and product development and innovation. We have introduced
15 new two wheeled e-bicycles, mopeds and leisure e-tricycles over
the last six months, while investing in R&D as a means of
integrating our battery expertise with new IoT technology that will
improve performance. We are pleased with our progress made to date
and remain very optimistic about our growth prospects for the
future."
Financial Review for the Six Months Ended March 31, 2021
Net Revenues
Net revenues from continuing operations for the six months
ended March 31, 2021
were approximately $9.6 million,
a 74.3% increase from approximately $5.5 million for the
six months ended March 31, 2020. The
significant increase in revenues were mainly driven by the increase
of sales of e-bicycles, and partially offset by the decrease of
rental revenue.
The following table identifies revenue from continuing
operations and reportable segments for the six months ended
March 31, 2021 and 2020:
|
|
|
|
For the
six months ended March
31,
|
|
|
Change
|
|
|
|
Segment
|
|
2021
|
|
|
%
|
|
|
2020
|
|
|
%
|
|
|
Amount
|
|
|
%
|
|
Sales of
e-bicycles
|
|
E-bicycle sales
segment
|
|
$
|
7,643,039
|
|
|
|
79.6
|
|
|
$
|
3,371,641
|
|
|
|
61.2
|
|
|
$
|
4,271,398
|
|
|
|
126.7
|
|
Sales of
batteries
and battery
packs
|
|
Battery cells and
packs segment
|
|
|
1,148,374
|
|
|
|
12.0
|
|
|
|
1,090,542
|
|
|
|
19.8
|
|
|
|
57,832
|
|
|
|
5.3
|
|
Rental of lithium
batteries and e-
bicycles
|
|
Rental segment
|
|
|
395,656
|
|
|
|
4.1
|
|
|
|
1,048,765
|
|
|
|
19.0
|
|
|
|
(653,109)
|
|
|
|
(62.3)
|
|
Others
|
|
|
|
|
417,687
|
|
|
|
4.3
|
|
|
|
350
|
|
|
|
-
|
|
|
|
417,337
|
|
|
|
119,239.1
|
|
Net
revenues
|
|
|
|
$
|
9,604,756
|
|
|
|
100.0
|
|
|
$
|
5,511,298
|
|
|
|
100.0
|
|
|
$
|
4,093,458
|
|
|
|
74.3
|
|
The e-bicycles sales segment engaged in online and offline sales
of e-bicycles. The revenue of sales of e-bicycles increased to
approximately $7.6 million, or
approximately 126.7%, for the six months ended March 31, 2021 as compared to the same period in
2020, mainly due to the launch of new products, a
rapid growth in the Company's offline e-bicycles sales market,
and the mitigated impact of COVID-19 since the second quarter
of 2020.
The revenue from battery cells and packs segment for the six
months ended March 31, 2021 and 2020
were both approximately $1.1 million, a 5.3%
increase derived from continuing relationships
with long-term customers.
The revenue from rental segment significantly decreased by
approximately $0.7 million, or approximately 62.3%, for the
six months ended March 31, 2021 as
compared to the six months ended March 31,
2020, primarily due to the termination of three rental
contracts from our sublease agents during January, May and
July 2020.
Cost of Revenues
Our cost of revenues significantly increased by
approximately $3.7 million, or approximately 74.0%, to
approximately $8.7 million for the six months ended
March 31, 2021 from
approximately $5.0 million for the six months ended
March 31, 2020, which was primarily
due to the increase of manufacturing and purchase cost of
e-bicycles for sale. The increase was in line with the increase in
our net revenues.
Gross Profit
Gross profit for the six months ended March 31, 2021 and 2020 was
approximately $0.9 million and $0.5 million, representing 9.7% and 9.6% of net
revenues, respectively. The Gross profit margin were
relatively consistent during these two periods primarily
due to the sales of e-bicycles accounting for a large
proportion of our total revenue, thus, the total gross profit rate
converged with that of sales of e-bicycles.
Selling and Marketing Expenses
Our selling and marketing expenses primarily consist of salaries
and benefits expense, advertising expense, and freight
expense. Our selling and marketing expenses increased
by approximately $0.1 million or approximately
58.9%, to approximately $0.4 million for the six months
ended March 31, 2021 from
approximately $0.2 million for the six months ended
March 31, 2020. Such increase
consisted of the increase of salaries and benefits expense and
advertising expense, which resulted from the recruitment of
new salespersons with the Company's business expansion on
sales of e-bicycles and the promotion of sales of
e-bicycles during this period.
General and Administrative Expenses
Our general and administrative expenses decreased by
approximately $48 thousand or approximately 4.9%, to
approximately $0.9 million for the six months ended
March 31, 2021 from
approximately $1.0 million for the six months ended
March 31, 2020. The decrease was
mainly due to lower R&D expenses for the six months ended
March 31, 2021, and partially offset
by an increase in professional fees. However, after the IPO in
January 2021, we plan to invest more
funds in R&D in the future.
Income Tax Expense
Income tax expense amounted to approximately $29
thousand for the six months ended March
31,2021 and income tax benefit amounted to
approximately $0.2 million for the six months ended
March 31, 2020, respectively. The
income tax benefit was recognized as our PRC subsidiaries suffered
deductible loss for the six months ended March 31, 2020, and our PRC subsidiaries had a
taxable income for the six months ended March 31, 2021.
Net Loss
Net loss for the six months ended March 31, 2021 was approximately $0.3 million, compared to approximately
$0.6 million for the same period
in 2020, mainly due to the above reasons.
About EZGO Technologies Ltd.
Leveraging an Internet of Things (IoT) product and service
platform and two E-bicycle brands, "Cenbird" and "Dilang", EZGO has
established a business model centered on the manufacturing and sale
of E-bicycles and E-bicycle rentals, complemented by the
E-bicycle charging pile business. For additional information,
please visit EZGO's website at www.ezgotech.com.cn. Investors can
visit the "Investor Relations" section of EZGO's website at
http://www.ezgotech.com.cn/Investor/.
Exchange Rate
This announcement contains translations of certain Chinese
Renminbi ("RMB") amounts into U.S. dollars ("US$") 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
RMB 6.5518 to US$ 1.00, the exchange rate in effect as of
March 31, 2021, 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"). 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:
Adam Prior
The Equity Group Inc.
Email: aprior@equityny.com
Phone: (212) 836-9606
EZGO TECHNOLOGIES
LTD.
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(In U.S. dollars
except for number of shares)
|
|
|
|
|
|
As of
March 31,
|
|
|
As of September
30,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
7,074,834
|
|
|
322,598
|
|
Restricted
cash
|
|
518,731
|
|
|
17,932
|
|
Short-term
investments
|
|
2,289,447
|
|
|
2,209,261
|
|
Accounts receivable,
net
|
|
4,443,712
|
|
|
6,616,815
|
|
Notes
receivable
|
|
-
|
|
|
1,664,310
|
|
Inventories
|
|
2,849,276
|
|
|
867,752
|
|
Advance to suppliers,
net
|
|
5,731,609
|
|
|
2,701,460
|
|
Amount due from related
parties, current
|
|
3,418,237
|
|
|
577,035
|
|
Prepaid expenses and
other current assets, net
|
|
3,088,006
|
|
|
1,237,249
|
|
Current assets of
discontinued operation
|
|
106,168
|
|
|
102,449
|
|
Total current
assets
|
|
29,520,020
|
|
|
16,316,861
|
|
Property and equipment,
net
|
|
2,439,760
|
|
|
3,109,045
|
|
Amount due from related
parties, noncurrent
|
|
305,260
|
|
|
294,568
|
|
Deferred tax assets,
net
|
|
150,693
|
|
|
97,324
|
|
Total
assets
|
|
32,415,733
|
|
|
19,817,798
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Short-term
borrowings
|
|
304,968
|
|
|
299,315
|
|
Accounts
payable
|
|
527,325
|
|
|
303,305
|
|
Accrued expenses and
other payables
|
|
5,819,035
|
|
|
3,756,657
|
|
Advances from
customers
|
|
680,596
|
|
|
155,378
|
|
Income tax
payable
|
|
850,620
|
|
|
748,003
|
|
Amount due to related
parties
|
|
992
|
|
|
754,283
|
|
Current liabilities of
discontinued operation
|
|
672,349
|
|
|
655,712
|
|
Total current
liabilities
|
|
8,855,885
|
|
|
6,672,653
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
8,855,885
|
|
|
6,672,653
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Ordinary shares (par
value of $0.001 per share; 100,000,000 shares authorized;
10,838,500 and 7,800,000
shares issued and outstanding as of March 31, 2021 and September
30, 2020, respectively)
|
|
10,839
|
|
|
7,800
|
|
Subscription
receivable
|
|
(7,800)
|
|
|
(7,800)
|
|
Receivables from a
shareholder
|
|
(4,421,056)
|
|
|
(4,737,521)
|
|
Additional paid-in
capital
|
|
22,117,639
|
|
|
12,078,058
|
|
Statutory
reserve
|
|
227,303
|
|
|
212,842
|
|
Retained
earnings
|
|
1,202,348
|
|
|
1,575,630
|
|
Accumulated other
comprehensive loss
|
|
(54,039)
|
|
|
(259,547)
|
|
Total EZGO
Technologies Ltd.'s shareholders' equity
|
|
19,075,234
|
|
|
8,869,462
|
|
Non-controlling
interests
|
|
4,484,614
|
|
|
4,275,683
|
|
Total
equity
|
|
23,559,848
|
|
|
13,145,145
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
32,415,733
|
|
|
19,817,798
|
|
EZGO TECHNOLOGIES
LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME
(LOSS)
|
(In U.S. dollars
except for number of shares)
|
|
|
|
|
|
|
For the six months
ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
|
9,604,756
|
|
|
|
5,511,298
|
|
Cost of
revenues
|
|
|
(8,671,115)
|
|
|
|
(4,984,751)
|
|
Gross
profit
|
|
|
933,641
|
|
|
|
526,547
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(392,216)
|
|
|
|
(246,833)
|
|
General and
administrative expenses
|
|
|
(925,429)
|
|
|
|
(973,193)
|
|
Total operating
expenses
|
|
|
(1,317,645)
|
|
|
|
(1,220,026)
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(384,004)
|
|
|
|
(693,479)
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(16,477)
|
|
|
|
(8,542)
|
|
Other income (expense),
net
|
|
|
140,837
|
|
|
|
(83,251)
|
|
Total other income
(expense), net
|
|
|
124,360
|
|
|
|
(91,793)
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before income tax expense
|
|
|
(259,644)
|
|
|
|
(785,272)
|
|
Income tax (expense)
benefit
|
|
|
(29,350)
|
|
|
|
193,443
|
|
Net loss from
continuing operations
|
|
|
(288,994)
|
|
|
|
(591,829)
|
|
Income from
discontinued operation, net of tax
|
|
|
-
|
|
|
|
-
|
|
Net
Loss
|
|
|
(288,994)
|
|
|
|
(591,829)
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
|
(288,994)
|
|
|
|
(591,829)
|
|
Less: net income (loss)
attributable to non-controlling interests from continuing
operations
|
|
|
69,827
|
|
|
|
(105,127)
|
|
Net loss attributable
to EZGO Technologies Ltd.'s shareholders from continuing
operations
|
|
|
(358,821)
|
|
|
|
(486,702)
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operation, net of tax
|
|
|
-
|
|
|
|
-
|
|
Less: net income
attributable to non-controlling interests from discontinued
operation
|
|
|
-
|
|
|
|
-
|
|
Net income attributable
to EZGO Technologies Ltd.'s shareholders from discontinued
operation
|
|
|
-
|
|
|
|
-
|
|
Net loss
attributable to EZGO Technologies Ltd.'s
shareholders
|
|
|
(358,821)
|
|
|
|
(486,702)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to EZGO Technologies Ltd.'s shareholders from continuing operations
per ordinary
share:
|
|
|
|
|
|
|
|
|
-Basic and
diluted
|
|
|
(0.04)
|
|
|
|
(0.06)
|
|
Net income attributable
to EZGO Technologies Ltd.'s shareholders from discontinued
operation per
ordinary share:
|
|
|
|
|
|
|
|
|
-Basic and
diluted
|
|
|
-
|
|
|
|
-
|
|
Net loss attributable
to EZGO Technologies Ltd.'s shareholders per ordinary
share:
|
|
|
|
|
|
|
|
|
-Basic and
diluted
|
|
|
(0.04)
|
|
|
|
(0.06)
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
-Basic and
diluted
|
|
|
8,812,833
|
|
|
|
7,800,000
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before non-controlling interests
|
|
|
(288,994)
|
|
|
|
(591,829)
|
|
Income from
discontinued operation, net of tax
|
|
|
-
|
|
|
|
-
|
|
Net
loss
|
|
|
(288,994)
|
|
|
|
(591,829)
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
344,612
|
|
|
|
(287,874)
|
|
Comprehensive income
(loss)
|
|
|
55,618
|
|
|
|
(879,703)
|
|
Less: Comprehensive
income (loss) attributable to non-controlling interests
|
|
|
208,931
|
|
|
|
(160,053)
|
|
Comprehensive income
(loss) attributable to EZGO Technologies Ltd.'s
shareholders
|
|
|
(153,313)
|
|
|
|
(719,650)
|
|
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SOURCE EZGO Technologies Ltd.