EZGO ANNOUNCES FINANCIAL RESULTS FOR THE SIX MONTHS ENDED MARCH 31, 2025
CHANGZHOU, China, July 1, 2025 /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, 2025.
Financial Highlights (all results compared to the prior fiscal year period unless otherwise noted)
Gross margin from continuing operations increased to 10.2% in first half year of 2025, compared with 8.9% in first half year in 2024 and gross profit increased 10.3% to $671,468 in first half year of 2025.
Net loss significantly decreased from $4.7 million in the first half year in 2024 to $1.3 million in the first half year of 2025.
Cash and cash equivalents was approximately $3.4 million and $0.4 and million as of September 30, 2024 and March 31, 2025, respectively.
Management Commentary
While we are suffering recurring net loss, we successfully boosted our gross profit and narrowed our net losses from $4.7 million in the first half year of 2024 to $1.3 million in the first half year of 2025. During the six months ending on March 31, 2025, the revenue from sales of battery cells and packs slightly decreased mainly due to the tense competition in lead-acid battery market, and we are trying to promote other types of battery cells and packs sales, such as lithium battery and energy storage battery. We're leveraging maintenance service growth to compensate for lower electronic control system sales. Looking ahead, we are strategically shifting resources away from underperforming areas. After careful consideration, we decided to dispose of our e-bicycle business, which had been facing intense market competition and declining sales.
We're intensifying our focus on high-value services and lithium battery technology while optimizing our cost structure. Market competition remains intense, but our streamlined portfolio and efficiency gains position us to capitalize on recovery opportunities.
Financial Review for the Six Months Ended March 31, 2025
Net Revenues from continuing operations
Net revenues from continuing operations for the six months ended March 31, 2025 were approximately $6.6 million, a 3.5% decrease from approximately $6.8 million for the six months ended March 31, 2024. The decrease in revenues was mainly driven by the decrease in sales of cells and packs and sales of electronic control systems, and partially offset by the increase of maintenance service revenue.
The following table identifies revenue from continuing operations, as well as reportable segments for the six months ended March 31, 2024 and 2025:
For the six months ended March 31,
Change
Segment
2024
%
2025
%
Amount
%
Sales of battery cells and packs
Battery cells and packs segment
$
5,847,751
85.9
$
5,518,183
84.0
$
(329,568)
(5.6)
Sales of electronic control system
Electronic control system sales segment
739,390
10.9
636,356
9.7
(103,034)
(13.9)
Others
Others
216,821
3.2
410,828
6.3
194,007
89.5
Total net revenue from continuing operations
$
6,803,962
100.0
$
6,565,367
100.0
$
(238,595)
(3.5)
The revenue from sales of battery cells and packs for six months ended March 31, 2025 was $5,518,183, compared to $5,847,751 for six months ended March 31, 2024, representing a slight decrease of 5.6%, which was mainly due to the decrease in sales volume of lead-acid battery due to intensified competition. Overall, the revenue generated from the sales of lithium battery packs was $4,851,428 for the six months ended March 31, 2025, which remains stable compared with the six months ended March 31, 2024. The revenue generated from the sales of the lead-acid battery packs was $373,750 for the six months ended March 31,2025 compared $931,801 for the six months ended March 31, 2024.
The revenue from sales of electronic control systems for six months ended March 31, 2025 was $636,356, decreased by 13.9% compared with the six months ended March 31, 2024, owing to the decreased sales volume due to the downward market environment and the lower price of Changzhou Higgs to maintain the market share.
The revenue from others segment mainly consists of maintenance service revenue. Driven by the customer base accumulated from the electronic control system sales business over the past two years and the growing market demand, the maintenance service revenue increased from $175,627 for six months ended March 31, 2024 to $360,350 for six months ended March 31, 2025, representing an increase of 105.2%.
Cost of Revenues
Cost of revenues consists primarily of purchase cost of battery packs, purchase of components of the electronic control system, depreciation, maintenance, and other overhead expenses.
Our cost of revenues decreased by $301,179, or 4.9%, to $5,893,899 for six months ended March 31,2025 from $6,195,078 for six months ended March 31, 2024, which was primarily due to the decreased sales of battery cells and packs. The change in cost of revenue directly corresponded with the change in revenue from the sales of battery cells and packs segment.
Gross Profit
Gross profit for the six months ended March 31, 2024 and 2025 was $608,884 and $671,468, or 8.9% and 10.2% of net revenues, respectively.
Gross profit margin for six months ended March 31, 2025 increased from 8.9% to 10.2%, primarily due to the higher margin of maintenance service. The increase in gross profit margin of maintenance service increased to 43.1% for the six months ended March 31, 2025 from 24.5% for the six months ended March 31, 2024, which was mainly due to the further amortization of fixed costs with increased revenues and the higher unit price of maintenance labor hours. The gross profit margin from sales of battery cells and packs increased slightly from 4.4% to 4.5% for six months ended March 31, 2025.
Selling and Marketing Expenses
Our selling and marketing expenses decreased by $31,451, or approximately 21.1%, to $117,772 for the six months ended March 31, 2025 from $149,223 for the six months ended March 31, 2024, which was attributable to a decrease of $15,745 in employee payroll expense driven by the decrease in sales department headcount.
General and Administrative Expenses
Our general and administrative expenses decreased by $637,656, or approximately 34.7%, to $1,200,042 for the six months ended March 31, 2025 from $1,837,698 for the six months ended March 31, 2024. The decrease was primarily driven by the decrease in share-based compensation expense of $339,488 and the liquidated damages expense of $138,766 for the six months ended March 31, 2024.
Research and Development Expenses
Our research and development expenses decreased slightly by $5,863, or 1.5%, to $389,572 for the six months ended March 31, 2025 from $395,435 for the six months ended March 31, 2025, which remains relatively stable.
Other Expense/(income), Net
We recorded other expense, net of $1,395,560 and other income, net of $122,977 for the six months ended March 31, 2024 and 2025, respectively. The significant decrease in other expense, net is primarily attributable to the decrease in impairment loss of goodwill, which was approximately $1.4 million for the six months ended March 31, 2024, compared to nil for the six months ended March 31, 2025.
Income Tax (Benefits)/Expense, Net
We recorded income tax benefits of $79,488 and income tax expense of $21,334 for the six months ended March 31, 2024 and 2025, respectively. The reason was due to the shift from the recognition of deferred tax assets for the six months ended March 31, 2024 to the recognition of deferred tax liabilities for the six months ended March 31, 2025, owing to the decrease of interest income from related parties.
Loss from discontinued operations
Due to the declining performance of sales of e-bicycle business, we determined to dispose the variable interest entity, Jiangsu EZGO Electronic Technologies Co., Ltd. ("Jiangsu EZGO"), and its subsidiaries. On March 30, 2025, our Board of Directors approved this disposal of Jiangsu EZGO and its subsidiaries. The VIE and subsidiaries mainly operated in sales of E-bicycles business in PRC. The disposal of the sales of E-bicycles business represented a strategic shifts that had a major impact on our financial results, and met the held-for-sale criteria, which trigger discontinued operations accounting in accordance with ASC 205-20-45. Therefore, the historical financial results of the sales of E-bicycles business were classified as discontinued operation and the related assets and liabilities associated with the discontinued operations of the prior year were reclassified as assets/liabilities held for sale to provide comparable financial information.
Loss from discontinued operations was $1.5 million and $0.2 million for the six months ended 2024 and 2025, respectively. The decrease in loss from discontinued operations mainly resulted from the shift from gross loss for the six months ended 2024 to gross profit for the six months ended 2025, and the decrease in general and administrative expenses from discontinued operations:
Net revenue from discontinued operations mainly consists of the revenue generated from the sales of e-bicycles for the six months ended March 31, 2024 and 2025. Net revenue from discontinued operations decreased by 57.5% to $752,748 for six months ended March 31, 2025 from $1,771,339 for six months ended March 31, 2024, mainly due to the decline sales volume of the e-bicycles resulted from the fierce competition of the e-bicycle industry.
Cost of revenues from discontinued operations mainly consists of the purchase cost of e-bicycles and the depreciation cost for charging piles rental business. Cost of revenues from discontinued operations decreased by 61.1% to $736,438 for six months ended March 31, 2025 from $1,892,416 for six months ended March 31, 2024. The decrease in the cost of sales of e-bicycles was in line with the decrease in its revenues. The cost of charging piles rental business, which generated minimal revenue, dropped significantly, driven by the decrease in depreciation cost from the charging piles disposed in June 2024. Consequently, the gross profit from discontinued operations shifted from a gross loss of $121,077 for the six months ended March 31, 2024 to a gross profit of $16,310 for the six months ended March 31, 2025.
General and administrative expenses from discontinued operations mainly decreased by 90.9% to $111,527 for six months ended March 31, 2025 from $1,227,262 for the six months ended March 31, 2024, which was primarily due to the decrease in credit losses for accounts receivable and advances to suppliers. For the six months ended March 31, 2025, the credit losses for accounts receivable and advances to suppliers for discontinued operations amounted to $1,590 and nil, respectively, compared to $946,578 and $209,046 for the six months ended March 31, 2024, respectively.
Net Loss from continuing and discontinued operations
Net loss from continuing and discontinued operations for the six months ended March 31, 2025 was approximately $1.3 million, compared to approximately $4.7 million for the same period in 2024, as a result of the explanations discussed above.
Segment Information
We operate in three segments for the six months ended March 31, 2024 and 2025: (i) sales of battery cells and packs, (ii) sales of electronic control system and (iii) others, which mainly included the sales of second-hand machinery, the provision of maintenance services and photovoltaic engineering contracting. The sales of battery cells and packs segment engaged in selling battery packs. The electronic control system and intelligent robot segment engage in selling electronic control systems and intelligent robots. To explore and expand potential customers, we started to provide comprehensive machine maintenance services during 2023, and started to provide second-hand machinery sales during 2024. The revenue from comprehensive machine maintenance service and second-hand machinery sales for six months ended March 31, 2025 was included in others segment for segment reporting.
The following tables present a summary of each reportable segment's revenue and income from continuing operations—excluding the e-bicycle sales segment, which is disclosed as a discontinued operation for the six months ended March 31, 2024, and 2025:
Six months Ended March 31, 2024
Batterycellsand packssalessegment
Electroniccontrolsystemsalessegment
Others
Total
Revenue from external customers
$
5,847,751
$
739,390
$
216,821
$
6,803,962
Segment loss before tax and share of loss of equity method investments
(172,846)
(1,825,115)
(1,171,071)
(3,169,032)
Segment gross profit margin
4.4
%
43.7
%
14.4
%
8.9
%
Six months Ended March 31, 2025
Batterycellsand packssalessegment
Electroniccontrolsystemsalessegment
Others
Total
Revenue from external customers
$
5,518,183
$
636,356
$
410,828
$
6,565,367
Segment loss before tax and share of loss of equity method investments
(88,207)
(95,106)
(729,628)
(912,941)
Segment gross profit margin
4.5
%
41.7
%
38.9
%
10.2
%
EZGO TECHNOLOGIES LTD. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
(In U.S. dollars except for number of shares)
As ofSeptember 30,2024
As ofMarch 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
3,417,796
$
372,562
Restricted cash
986,304
-
Short-term investments
1,557,104
-
Accounts receivable, net
7,802,035
6,661,996
Notes receivable
14,250
169,521
Inventories, net
522,940
4,794,839
Advances to suppliers
16,889,585
10,957,494
Amounts due from related parties, current
2,971,450
2,369,174
Prepaid expenses and other current assets
642,070
861,393
Current assets of discontinued operation
6,600,125
6,138,634
Total current assets
41,403,659
32,325,613
Non-current assets:
Amounts due from a related party, non-current
4,132,467
6,565,231
Property, plant and equipment, net
7,844,566
8,012,289
Intangible assets, net
2,057,625
1,691,355
Land use right, net
1,677,007
1,604,945
Right-of-use assets, net
-
2,030
Goodwill, net
1,780,569
1,721,901
Deferred tax assets, net
991,025
946,573
Long-term investments, net
14,857,156
14,274,167
Other non-current assets
9,126,592
10,120,690
Non-current assets of discontinued operation
1,488,997
1,348,642
Total non-current assets
43,956,004
46,287,823
Total assets
$
85,359,663
$
78,613,436
LIABILITIES
Current liabilities:
Short-term borrowings
$
5,186,958
$
3,582,896
Long-term borrowings, current
634,120
1,413,866
Accounts payable
190,315
160,524
Advances from customers
143,723
103,596
Income tax payable
93,777
85,626
Lease liabilities, current
-
2,719
Amounts due to related parties, current
1,306,506
905,638
Accrued expenses and other payables
2,313,724
876,198
Current liabilities of discontinued operation
7,022,723
7,718,422
Total current liabilities
16,891,846
14,849,485
Non-current liabilities:
Long-term borrowings
7,461,240
6,414,762
Non-current liabilities of discontinued operation
23,069
10,237
Total non-current liabilities
7,484,309
6,424,999
Total liabilities
24,376,155
21,274,484
Commitments and contingencies (Note 16)
EQUITY
Ordinary shares (par value of $0.04 per share; 100,000,000 shares authorized; 2,675,172 and 5,675,172 shares issued and outstanding as of September 30, 2024 and March 31, 2025, respectively)
107,007
227,007
Subscription receivable
(7,800)
(7,800)
Additional paid-in capital
82,176,550
81,668,806
Statutory reserve
366,071
366,071
Accumulated deficits
(22,087,948)
(23,223,955)
Accumulated other comprehensive loss
(1,986,591)
(3,983,663)
Total EZGO Technologies Ltd.'s shareholders' equity
58,567,289
55,046,466
Non-controlling interests
2,416,219
2,292,486
Total equity
60,983,508
57,338,952
Total liabilities and equity
$
85,359,663
$
78,613,436
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
EZGO TECHNOLOGIES LTD. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In U.S. dollars except for number of shares)
Six Months Ended March 31,
2024
2025
Net revenues
$
6,803,962
$
6,565,367
Cost of revenues -Third parties
(6,195,078)
(5,785,506)
Cost of revenues -Related parties
-
(108,393)
Gross profit
608,884
671,468
Operating expenses:
Selling and marketing
(149,223)
(117,772)
General and administrative
(1,837,698)
(1,200,042)
Research and development
(395,435)
(389,572)
Total operating expenses
(2,382,356)
(1,707,386)
Loss from operations
(1,773,472)
(1,035,918)
Other income (expenses):
Interest expenses
(30,121)
(73,002)
Interest income
267,992
64,887
Non-operating income, net
39,280
131,092
Fair value changes in contingent asset
(310,667)
-
Impairment loss of goodwill
(1,362,044)
-
Total other (expenses) income, net
(1,395,560)
122,977
Loss from continuing operations before income taxes and share of loss of equity method investments
(3,169,032)
(912,941)
Income tax benefit (expense)
79,488
(21,334)
Share of loss of equity method investments
(45,906)
(93,799)
Net loss from continuing operations
(3,135,450)
(1,028,074)
Loss from operations of discontinued operations before income taxes and share of loss of equity method investments
(1,472,451)
(165,626)
Income tax expenses
-
-
Share of loss of equity method investments
(56,513)
(63,152)
Net loss from discontinued operations
(1,528,964)
(228,778)
Net loss
$
(4,664,414)
$
(1,256,852)
Net loss from continuing operations
$
(3,135,450)
$
(1,028,074)
Less: Net loss attributable to non-controlling interests from continuing operations
(91,111)
(68,549)
Net loss attributable to EZGO Technologies Ltd.'s shareholders from continuing operations
(3,044,339)
(959,525)
Net loss from discontinued operations
(1,528,964)
(228,778)
Less: Net loss attributable to non-controlling interests from discontinued operations
(520,746)
(52,296)
Net loss attributable to EZGO Technologies Ltd.'s shareholders from discontinued operation
(1,008,218)
(176,482)
Net loss attributable to EZGO Technologies Ltd.'s shareholders
$
(4,052,557)
$
(1,136,007)
Net loss from continuing operations per ordinary share:
Basic and diluted*
$
(1.19)
$
(0.19)
Net loss from discontinued operation per ordinary share:
Basic and diluted*
$
(0.40)
$
(0.04)
Net loss per ordinary share:
Basic and diluted*
$
(1.59)
$
(0.23)
Weighted average shares outstanding
Basic and diluted*
2,552,576
4,960,610
*
Giving retroactive effect to the 40 to 1 reverse share split on April 12, 2024 (Note 15).
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
EZGO TECHNOLOGIES LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In U.S. dollars except for number of shares)
Six Months Ended March 31,
2024
2025
Net loss from continuing operations before non-controlling interests
$
(3,135,450)
$
(1,028,074)
Loss from discontinued operation, net of tax
(1,528,964)
(228,778)
Net loss
(4,664,414)
(1,256,852)
Other comprehensive income (loss)
Foreign currency translation adjustment
475,567
(1,999,960)
Comprehensive loss
(4,188,847)
(3,256,812)
Less: Comprehensive loss attributable to non-controlling interests
(552,402)
(123,733)
Comprehensive loss attributable to EZGO Technologies Ltd.'s shareholders
$
(3,636,445)
$
(3,133,079)
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
EZGO TECHNOLOGIES LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
SIX MONTHS ENDED MARCH 31, 2024 AND 2025
(In U.S. dollars except for number of shares)
Ordinaryshares*
Subscription
Additionalpaid-in
Statutory
Accumulated
Accumulatedothercomprehensive
TotalEZGO'sshareholders'
Non-controlling
Total
Share
Amount
receivables
capital
reserve
deficits
loss
equity
interest
equity
Balance as of September 30, 2023
2,552,576
$
102,103
$
(7,800)
$
81,801,967
$
335,477
$
(14,772,562)
$
(4,066,713)
$
63,392,472
$
3,090,125
$
66,482,597
Share-based compensation
938
38
-
360,699
-
-
-
360,737
-
360,737
Net loss
-
-
-
-
-
(4,052,557)
-
(4,052,557)
(611,857)
(4,664,414)
Foreign currency translation adjustment
-
-
-
-
-
-
416,112
416,112
59,455
475,567
Balance as of March 31, 2024 (Unaudited)
2,553,514
$
102,141
$
(7,800)
$
82,162,666
$
335,477
$
(18,825,119)
$
(3,650,601)
$
60,116,764
$
2,537,723
$
62,654,487
Ordinaryshares
Subscription
Additionalpaid-in
Statutory
Accumulated
Accumulatedothercomprehensive
Total EZGO'sshareholders'
Non-controlling
Total
Share
Amount
receivables
capital
reserve
deficits
loss
equity
interest
equity
Balance as of September 30, 2024
2,675,172
$
107,007
$
(7,800)
$
82,176,550
$
366,071
$
(22,087,948)
$
(1,986,591)
$
58,567,289
$
2,416,219
$
60,983,508
Share-based compensation
-
-
-
21,250
-
-
-
21,250
-
21,250
Warrant shares exercised via cashless option
3,000,000
120,000
-
(120,000)
-
-
-
-
-
-
Imputed interest on related party loan
-
-
-
(408,994)
-
-
-
(408,994)
-
(408,994)
Net loss
-
-
-
-
-
(1,136,007)
-
(1,136,007)
(120,845)
(1,256,852)
Foreign currency translation adjustment
-
-
-
-
-
-
(1,997,072)
(1,997,072)
(2,888)
(1,999,960)
Balance as of March 31, 2025 (Unaudited)
5,675,172
$
227,007
$
(7,800)
$
81,668,806
$
366,071
$
(23,223,955)
$
(3,983,663)
$
55,046,466
$
2,292,486
$
57,338,952
*
Giving retroactive effect to the 40 to 1 reverse share split on April 12, 2024 (Note 15).
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
EZGO TECHNOLOGIES LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. dollars)
Six Months EndedMarch 31,
2024
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss from continuing operation
$
(3,135,450)
$
(1,028,074)
Net loss discontinued operation
(1,528,964)
(228,778)
Adjustments to reconcile net loss to net cash used in operating activities:
Allowance for credit losses
78,788
30,926
Imputed interest on a related party loan
-
(84,342)
Provision for inventories
42,221
30,507
Depreciation and amortization
332,367
332,349
Share-based compensation
360,738
21,250
Gain on short-term investments
-
(17,778)
Fair value changes in contingent asset
310,667
-
Loss from long-term investment
45,906
93,799
Impairment loss of goodwill
1,362,044
-
Deferred tax (benefit) expense
(79,488)
11,842
Changes in operating assets and liabilities:
Accounts receivable
(1,161,307)
855,207
Notes receivable
(44,837)
(156,298)
Advances to suppliers
(4,185,829)
5,394,854
Inventories
(3,429,869)
(4,335,000)
Amounts due from related parties, current
(13,419)
377,310
Prepaid expenses and other current assets
(1,292,014)
(241,306)
Accounts payable
3,552
(23,604)
Advances from customers
217,523
(35,519)
Income tax payable
(5,384)
(5,080)
Amounts due to related parties, current
-
(410,459)
Accrued expenses and other payables
(255,268)
(606,455)
Net cash (used in) provided by operating activities from continuing operations
(10,849,059)
204,129
Net cash provided by operating activities from discontinued operations
138,853
750,707
Net cash (used in) provided by operating activities
(10,710,206)
954,836
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment
(3,342,151)
(443,009)
Prepayment for construction in progress
-
(1,299,447)
Proceed from redemption of a short-term investment
-
1,574,882
Purchase of a short-term investment
(1,500,000)
-
Prepayment for intent long-term investment
(3,219,361)
-
Loans to related parties
(2,778,965)
(3,043,743)
Collection of loans to related parties
-
691,486
Net cash used in investing activities from continuing operations
(10,840,477)
(2,519,831)
Net cash provided by investing activities from discontinued operations
427,990
203,511
Net cash used in investing activities
(10,412,487)
(2,316,320)
CASH FLOWS FROM FINANCING ACTIVITIES:
