EZGO ANNOUNCES FINANCIAL RESULTS FOR THE SIX MONTHS ENDED MARCH 31, 2025
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E-mailFinancial 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 ofSeptember 30, 2024 andMarch 31, 2025 , respectively.
Management Commentary
While we are suffering recurring net loss, we successfully boosted our gross profit and narrowed our net losses from
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
Net Revenues from continuing operations
Net revenues from continuing operations for the six months ended
The following table identifies revenue from continuing operations, as well as reportable segments for the six months ended
For the six months ended | Change | |||||||||||||||||||||||||
Segment | 2024 | % | 2025 | % | Amount | % | ||||||||||||||||||||
Sales of battery cells | Battery cells and | $ | 5,847,751 | 85.9 | $ | 5,518,183 | 84.0 | $ | (329,568) | (5.6) | ||||||||||||||||
Sales of electronic | Electronic control | 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 | $ | 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
The revenue from sales of electronic control systems for six months ended
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
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
Gross Profit
Gross profit for the six months ended
Gross profit margin for six months ended
Selling and Marketing Expenses
Our selling and marketing expenses decreased by
General and Administrative Expenses
Our general and administrative expenses decreased by
Research and Development Expenses
Our research and development expenses decreased slightly by
Other Expense/(income), Net
We recorded other expense, net of
Income Tax (Benefits)/Expense, Net
We recorded income tax benefits of
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
Loss from discontinued operations was
Net revenue from discontinued operations mainly consists of the revenue generated from the sales of e-bicycles for the six months ended
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
General and administrative expenses from discontinued operations mainly decreased by 90.9% to
Net Loss from continuing and discontinued operations
Net loss from continuing and discontinued operations for the six months ended
Segment Information
We operate in three segments for the six months ended
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
Six months Ended | ||||||||||||||||
Battery | Electronic | 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 | (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 | ||||||||||||||||
Battery | Electronic | 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 | (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 | ||||||||
As of | As of | |||||||
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 | 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 | ||||||||
Six Months Ended | ||||||||
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 | (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 | (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 | (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 | (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 |
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 | ||||||||
Six Months Ended | ||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
(In | ||||||||||||||||||||||||||||||||||||||||
Ordinary | Subscription | Additional | Statutory | Accumulated | Accumulated | Total | Non- | Total | ||||||||||||||||||||||||||||||||
Share | Amount | receivables | capital | reserve | deficits | loss | equity | interest | equity | |||||||||||||||||||||||||||||||
Balance as | 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 | 938 | 38 | - | 360,699 | - | - | - | 360,737 | - | 360,737 | ||||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | (4,052,557) | - | (4,052,557) | (611,857) | (4,664,414) | ||||||||||||||||||||||||||||||
Foreign | - | - | - | - | - | - | 416,112 | 416,112 | 59,455 | 475,567 | ||||||||||||||||||||||||||||||
Balance as | 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 | |||||||||||||||||||||
Ordinary | Subscription | Additional | Statutory | Accumulated | Accumulated | Total | Non- | Total | ||||||||||||||||||||||||||||||||
Share | Amount | receivables | capital | reserve | deficits | loss | equity | interest | equity | |||||||||||||||||||||||||||||||
Balance as | 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 | - | - | - | 21,250 | - | - | - | 21,250 | - | 21,250 | ||||||||||||||||||||||||||||||
Warrant | 3,000,000 | 120,000 | - | (120,000) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Imputed | - | - | - | (408,994) | - | - | - | (408,994) | - | (408,994) | ||||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | (1,136,007) | - | (1,136,007) | (120,845) | (1,256,852) | ||||||||||||||||||||||||||||||
Foreign | - | - | - | - | - | - | (1,997,072) | (1,997,072) | (2,888) | (1,999,960) | ||||||||||||||||||||||||||||||
Balance as | 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 |
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 | ||||||||
Six Months Ended | ||||||||
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: | ||||||||
Proceeds from short-term borrowings | 2,581,039 | - | ||||||
Repayments of short-term borrowings | (735,457) | (1,438,292) | ||||||
Proceeds from long-term borrowings | 2,483,903 | - | ||||||
Loans from related parties | 80,000 | 389,893 | ||||||
Repayments of loans from related parties | - | (622,338) | ||||||
Repayment of loans from third parties | - | (1,382,973) | ||||||
Net cash provided by (used in) financing activities from continuing operations | 4,409,485 | (3,053,710) | ||||||
Net cash provided by financing activities from discontinued operation | 113,260 | 36,428 | ||||||
Net cash provided by (used in) financing activities | 4,522,745 | (3,017,282) | ||||||
Effect of exchange rate changes | 3,272 | 310,143 | ||||||
Net decrease in cash, cash equivalents and restricted cash | (16,596,676) | (4,068,623) | ||||||
Cash, cash equivalents and restricted cash, at beginning of the period | 17,253,995 | 4,459,307 | ||||||
Cash, cash equivalents and restricted cash, at end of the period | $ | 657,319 | $ | 390,684 | ||||
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated | ||||||||
Cash and cash equivalents | $ | 656,468 | $ | 389,903 | ||||
Restricted cash | 851 | 781 | ||||||
Total cash, cash equivalents, and restricted cash | $ | 657,319 | $ | 390,684 | ||||
Less: cash and cash equivalents from the discontinued operations, end of the period | 16,443 | 18,122 | ||||||
Cash and cash equivalent from the continuing operations, end of the period | 640,876 | 372,562 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Income tax paid | $ | 12,450 | $ | 9,996 | ||||
Interest paid | $ | 30,121 | $ | 73,001 | ||||
Warrant shares exercised via cashless option | $ | - | $ | 120,000 | ||||
Recognition of right-of use assets and lease liabilities | $ | 70,688 | $ | 2,685 | ||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
1. ORGANIZATION AND PRINCIPAL ACTIVITIES
EZGO Technologies Ltd. ("EZGO"), is a holding company incorporated under the laws of the
Name | Date of | Place of | Percentage of | Principal activities | ||||
Subsidiaries | ||||||||
China EZGO Group Ltd. ("EZGO |
|
| 100 % | Investment holding | ||||
Changzhou Langyi Electronic | PRC | 100 % | Investment holding | |||||
EZGO Technologies Group Co., Ltd. | PRC | 100 % | Investment holding | |||||
Jiangsu EZGO Energy Supply Chain |
| PRC | 60 % | Distribution and trade of | ||||
Jiangsu EZGO New Energy | PRC | 100 % | Distribution and trade of | |||||
Sichuan EZGO Energy Technologies | PRC | 100 % | Distribution and trade of | |||||
Tianjin EZGO Electric Technologies | PRC | 100 % | Production and sales of | |||||
Changzhou Youdi Electric Bicycle | PRC | 100 % | Development, operation | |||||
Changzhou Sixun Technology Co., | PRC | 100 % | Investment holding | |||||
Changzhou Higgs Intelligent | PRC | 60 % | Industrial automatic | |||||
Changzhou Zhuyun Technology Co., | PRC | 60 % | Equipment maintenance | |||||
VIE and subsidiaries of VIE* | ||||||||
Jiangsu EZGO Electronic | PRC | VIE | Investment holding | |||||
Changzhou Hengmao Power Battery | PRC | 80.87% | Sales of battery packs, | |||||
Changzhou Yizhiying IoT | PRC | 100% | Development, operation | |||||
Jiangsu Cenbird E-Motorcycle | PRC | 51% | Development of sales |
* | The VIE and its subsidiaries are classified as discontinued operation (see Note 12). |
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)
The VIE contractual arrangements
Current PRC laws and regulations impose restrictions or prohibitions on foreign ownership of companies that engage in value-added telecommunication services, and certain other businesses. Changzhou EZGO is considered a foreign-invested enterprise. To comply with PRC laws and regulations, EZGO conducts part of its business in PRC through Jiangsu EZGO and its subsidiaries, based on a series of contractual arrangements. These contractual arrangements expire on
Each VIE Agreements is described below:
Proxy Agreement
Pursuant to the Proxy Agreement, dated
Exclusive Call Option Agreement
Pursuant to the Exclusive Call Option Agreement, dated
Exclusive Management Consulting and Technical Service Agreement ("EMCTSA")
Pursuant to the EMCTSA, dated
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)
Equity Pledge Agreement
Pursuant to the Equity Pledge Agreement, dated
Loan Agreement
Pursuant to the Loan Agreement, dated
Spousal Consent Letter
The spouses of individual equity holders of Jiangsu EZGO each signed Spousal Consent Letters. Under the Spousal Consent Letter, the signing spouse unconditionally and irrevocably agreed to the execution by his or her spouse of the above-mentioned Equity Pledge Agreement, Exclusive Call Option Agreement and Proxy Agreement, and that his or her spouse may perform, amend or terminate such agreements without his or her consent. In addition, in the event that the spouse obtains any equity interest in Jiangsu EZGO held by his or her spouse for any reason, he or she agrees to be bound by and sign any legal documents substantially similar to the contractual arrangements entered into by his or her spouse, as may be amended from time to time.
Due to the declining performance of sales of e-bicycle business, the Company determined to dispose the variable interest entity, Jiangsu EZGO Electronic Technologies Co., Ltd., and its subsidiaries with no plan to acquire a new variable interest entity. 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. The financial information of the VIE and its subsidiaries were disclosed in Note 12.
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of presentation
The accompanying CFS are prepared in accordance with accounting principles generally accepted in
The accompanying unaudited interim condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in
Liquidity
The Company's liquidity is based on its ability to enhance its operating cash flow position, obtain capital financing from equity interest investors, initial public offering, and borrow funds to fund its general operations and capital expenditure. The Company's ability to continue as a going concern is dependent on management's ability to execute its business plan successfully, which includes increasing market acceptance of our products to boost its sales volume to achieve economies of scale while applying more effective marketing strategies and cost control measures to better manage operating cash flow position and obtaining funds from outside sources of financing to generate positive financing cash flows.
The going concern assumption contemplates the realization of assets and the settlement of liabilities in the normal course of business. As of the reporting date, the Company has taken steps to strengthen its liquidity position. On
Based on the Company's current working capital, access to undrawn credit facilities, and financial support from related parties, the Company estimates that it will have sufficient liquidity to meet its obligations and operating requirements for at least the twelve months and accordingly these financial statements have been prepared on a going concern basis.
(b) Consolidation
The CFS include the financial statements of EZGO, its subsidiaries, VIE and VIE's subsidiaries for which EZGO is the primary beneficiary. Consolidation of subsidiaries begins from the date the Company obtains control of the subsidiaries and ceases when the Company loses control of the subsidiaries. All inter-company transactions, balances and unrealized gains or losses on transitions among the Company and its subsidiaries were eliminated in consolidation.
A non-controlling interest in a subsidiary of the Company is the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the Unaudited Interim Condensed Consolidated Balance Sheets and net loss and other comprehensive loss attributable to non-controlling shareholders is presented as a separate component on the Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss.
(c) Reverse Share Split
Effective on
(d) Discontinued operation
A discontinued operation may include a component of an entity or a group of components of an entity, or a business or non-profit activity. A disposal of a component of an entity or a group of components of an entity is reported in discontinued operation if the disposal results from strategic shift that has (or will have) a major effect on an entity's operations and financial results when any of the following occurs: (1) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; (3) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). For any component classified as held for sale or disposed of by sale or other than by sale that qualify for presentation as a discontinued operation in the period, the Company has reported the assets and liabilities of the discontinued operation as assets of discontinued operation, and liabilities of discontinued operation in the Unaudited Interim Condensed Consolidated Balance Sheets. The results of discontinued operation were reflected separately in the Unaudited Interim Condensed Consolidated Statements of Operations as a single line item for all periods presented in accordance with
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(e) Short-term investments
Short-term investments include fixed deposit receipt, which is classified based on the nature and characteristics. Fixed deposit receipt is measured at amortized cost, which is classified as held-to-maturity debt investments in accordance with ASC topic 310 ("ASC 310"), Receivables.
(f) Credit losses
In accordance with Accounting Standards Update ("ASU") 2016-13 "Financial Instruments – Credit Losses" (Topic 326), the Company estimates and records an expected lifetime credit loss by using an aging schedule method in combination with current situation adjustment, which replaces the previous incurred loss impairment model. The expected credit loss impairment model requires the entity to recognize its estimate of expected credit losses for affected financial assets using an allowance for credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.
The Company's accounts receivable, notes receivable, amounts due from related parties and certain receivables which are included in prepaid expenses and other current assets line items in the balance sheet are within the scope of ASC Topic 326. The Company uses an aging schedule method in combination with current situation adjustment, to determine the loss rate of receivable balances and evaluate the expected credit losses on an individual basis. When establishing the loss rate, the Company makes the assessment based on various factors, including aging of receivable balances, historical experience, creditworthiness of debtor, current economic conditions, reasonable and supportable forecasts of future economic, and other factors that may affect the Company's ability to collect from the debtors. The Company also applies current situation adjustment to provide specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected.
(g) Accounts receivable, net
Accounts receivable, net are stated at the original amount less allowances for credit losses. Accounts receivable are recognized in the period when the Company has provided services to its customers and when its right to consideration is unconditional. For the six months ended
(h) Goodwill, net
Goodwill is the excess of the purchase price over fair value ("FV") of the identifiable assets and liabilities acquired in a business combination.
Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of
If the Company decides, as a result of its qualitative assessment, that it is more likely than not that the FV of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the FV of each reporting unit with its carrying amount, including goodwill. A goodwill impairment charge will be recorded for the amount by which a reporting unit's carrying value exceeds its FV, but not to exceed the carrying amount of goodwill. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units and determining the FV of each reporting unit. The judgment in estimating the FV of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of FV for each reporting unit. The Company recognized
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(i) Long term investments, net
Long-term investments are the Company's equity investments in privately held companies accounted for equity method, and equity investments without readily determinable FVs.
(1) Equity investments accounted for using the equity method
Equity investments are comprised of investments in privately held companies. The Company uses the equity method to account for an equity investment over which it has the ability to exert significant influence but does not otherwise have control. The Company records equity method investments at the cost of acquisition, plus the Company's share in undistributed earnings and losses since acquisition. For equity investments over which the Company does not have significant influence or control, the cost method of accounting is used.
The Company has historically provided financial support to certain equity investees in the form of loans. If the Company's share of the undistributed losses exceeds the carving amount of an investment accounted for by the equity method, the Company continues to report losses up to the investment carrying amount, including any loans balance due from the equity investees.
The Company asses its equity investment and loans to equity investees for impairment on a periodic basis by considering factors including, but not limited to, current economic and market conditions, the operating performance of the investees including current earnings trends, the technological feasibility of the investee's products and technologies, the general market conditions in the investee's industry or geographic area, factors related to the investee's ability to remain in business, such as the investee's liquidity, debt ratios, cash bur rate, and other company-specific information including recent financing rounds. If it has been determined that the equity investment is less than its related FV and that is decline is other-than-temporary, the carrying value of the investment and loan to equity investee is adjusted downward to reflect these declines in value.
(2) Equity investment without readily determinable FVs
Equity investment without readily determinable FVs refers to the investment over which the Company does not have the ability to exercise significant influence through the investments in common stock or in substance common stock, are accounted for under the measurement alternative upon the adoption of ASU 2016-01 (the "Measurement Alternative"). Under the Measurement Alternative, the carrying value is measured at purchase cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. All gains and losses on these investments, realized and unrealized, are recognized in the consolidated statements of operations. The Company makes an assessment of whether an investment is impaired based on performance and financial position of the investee as well as other evidence of market value at each reporting date. Such assessment includes, but is not limited to, reviewing the investee's cash position, recent financing, as well as the financial and business performance. The Company recognizes an impairment loss equal to the difference between the carrying value and FV in the unaudited interim condensed consolidated statements of operations.
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(j) Revenue recognition
The Company recognizes revenues in accordance with ASC 606, "Revenue from Contracts with Customers" ("ASC 606"). The Company's revenues are mainly generated from 1) sales of products, 2) maintenance services and 3) other services.
The core principle of ASC Topic 606 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:
Step 1: Identify the contract with the customers
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when the company satisfies a performance obligation
Revenue recognition policies are discussed as follows:
Revenue from sales of products
The Company sells products to different customers, primarily battery cells and packs, e-bicycles (see Note 12 Discontinued Operation), electronic control systems and second-hand machinery. The Company identifies one performance obligation in providing the products for a fixed consideration as stated in the sales contract. The Company presents the revenue generated from its sales of products on a gross basis as the Company acts as the principal. The revenue is recognized when the Company satisfies the performance obligation by transferring the promised product to the customers upon acceptance by customers.
The Company generally provides different warrant periods for different products: a six-month warranty period for battery packs, and a one-year warranty period for electronic control systems. The customers are required to perform product quality check upon acceptance of delivery and the warranty covers only production defects. Customers do not have the option to purchase a warranty separately, nor does a warranty provide services other than a warranty. Therefore, warranty costs are considered as accrued performance costs rather than performance obligations. As of
Revenue from maintenance services
The Company provides comprehensive machine maintenance services, usually through a separate contract specified for the provision of maintenance services. In accordance with the detailed requirements in the contract, the Company implements a targeted maintenance strategy for machines in need of repair. The Company identifies one performance obligation in providing maintenance service for a fixed consideration as stated in the sales contract. The Company presents the revenue generated from its sales of products on a gross basis as the Company acts as the principal. The revenue is recognized when the Company satisfies the performance obligation by completion of maintenance service upon acceptance by customers.
Revenue from other services
The Company also provides other services, mainly including photovoltaic engineering contracting. The Company identifies one performance obligation in the provision of services in the contract, and recognizes revenue when the Company satisfies the performance obligation upon acceptance by customers. For photovoltaic engineering contracting, the Company does not directly engage in the construction but rather serves as an intermediatory to connect the party awarding the contract with suitable contractors. Therefore, the Company presents the revenue from photovoltaic engineering contracting on a net basis as the Company acts as an agent.
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(j) Revenue recognition (continued)
The following table identifies the disaggregation of the Company's revenues from continuing operations for the six months ended
Six months ended | ||||||||
2024 | 2025 | |||||||
(Unaudited) | (Unaudited) | |||||||
Battery cells and packs segment | ||||||||
Sales of products | $ | 5,847,751 | $ | 5,518,183 | ||||
Electronic control system sales segment | ||||||||
Sales of products | 739,390 | 636,356 | ||||||
Others | ||||||||
Maintenance services | 175,627 | 360,350 | ||||||
Other services | 41,194 | 50,478 | ||||||
Net revenues | $ | 6,803,962 | $ | 6,565,367 | ||||
Contract balance
Contract liabilities primarily consist of advances from customers.
Advances from customers amounted to
Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable is revenue recognized for amounts invoiced and/or prior to invoicing when the Company has satisfied its performance obligation and has unconditional right to the payment. The Company has no contract assets as of
The Company applied a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The Company has no material incremental costs of obtaining contracts with customers and the Company expects the benefit of those costs to be longer than one year.
(k) Share-based compensation
The Company applies ASC 718, Compensation—Stock Compensation ("ASC 718"), to account for all of its share-based payments. In accordance with ASC 718, the Company determines whether an award should be classified and accounted for as a liability award or equity award. All the Company's grants of share-based awards were classified as equity awards and are recognized in the financial statements based on their grant date FVs.
The Company elected to recognize compensation expense using the straight-line method for all awards granted with graded vesting based on service conditions. The Company also elected to account for forfeitures as they occur. Previously recognized compensation cost for the awards is reversed in the period that the award is forfeited.
(l) Warrants
The Company accounts for the warrants issued in connection with equity-linked instruments under authoritative guidance on accounting from ASC 480, Distinguishing Liabilities from Equity and ASC 815, Derivatives and Hedging. The Company classifies warrants in its unaudited interim condensed consolidated balance sheet as an equity based on the nature and characteristics of each warrant issued. Accordingly, the Company evaluated and classified the warrant instrument under equity treatment at its assigned value.
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m) Recent Accounting Standards
The Company is an "emerging growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.
In
In
In
In
In
Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the CFS upon adoption. The Company does not discuss recent standards that are not anticipated to have an impact on or are unrelated to its CFS.
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
3. ACQUISITION
Acquisition of Changzhou Sixun
On
The transaction constitutes a business combination for accounting purposes and is accounted for using the acquisition method under ASC 805. The Company is deemed to be the accounting acquirer. The Company completed the valuations necessary to assess the FV of the acquired assets and liabilities with the assistance from an independent valuation firm, resulting from which the amounts of goodwill were determined and recognized as of the acquisition dates.
Goodwill arising from the acquisition of Changzhou Sixun
As of | As of | |||||||
(Unaudited) | ||||||||
Beginning balance | $ | 3,057,943 | $ | 1,780,569 | ||||
Goodwill impairment | (1,362,441) | - | ||||||
Foreign currency translation adjustment | 85,067 | (58,668) | ||||||
Ending balance | $ | 1,780,569 | $ | 1,721,901 | ||||
For six months ended
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
4. ACCOUNTS RECEIVABLE, NET
As of
As of | As of | |||||||
(Unaudited) | ||||||||
Accounts receivable | $ | 7,909,633 | $ | 6,796,864 | ||||
Less: allowance for credit losses | (107,598) | (134,868) | ||||||
Accounts receivable, net | $ | 7,802,035 | $ | 6,661,996 | ||||
Accounts receivable are considered overdue after 180 days, the general credit term the Company offers to customers. As of
The movement is the allowance for credit losses for the six months ended
Six months ended | ||||||||
2024 | 2025 | |||||||
(Unaudited) | (Unaudited) | |||||||
Balance at beginning of period | $ | 2,810 | $ | 107,598 | ||||
Changes in credit losses | 78,788 | 30,926 | ||||||
Foreign currency translation adjustment | (122) | (3,656) | ||||||
Balance at the end of period | $ | 81,476 | $ | 134,868 | ||||
For the six months ended
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
5. INVESTMENTS
As of
As of | As of | |||||||
(Unaudited) | ||||||||
Short-term investments: | ||||||||
Fixed deposit receipt | $ | 1,557,104 | $ | - | ||||
Total short-term investments | 1,557,104 | - | ||||||
Long-term investments: | ||||||||
Investments accounted for using the equity method (1) | 11,510,894 | 11,038,160 | ||||||
Investments without readily determinable FVs (2) | 6,467,256 | 6,254,168 | ||||||
Total long-term investments | 17,978,150 | 17,292,328 | ||||||
Impairment loss of long-term equity investments | (3,120,994) | (3,018,161) | ||||||
Total long-term investments, net | 14,857,156 | 14,274,167 | ||||||
Total investments | $ | 16,414,260 | $ | 14,274,167 | ||||
(1) | In |
(2) | In |
The movement of the carrying amount of long-term investment was as follows for the six months ended
Six months ended | ||||||||
2024 | 2025 | |||||||
(Unaudited) | (Unaudited) | |||||||
Beginning balance | $ | 10,674,801 | $ | 14,857,156 | ||||
Addition of investments without readily determinable FVs | 2,775,311 | - | ||||||
Proportionate share of the equity investee's net loss | (45,906) | (93,799) | ||||||
Foreign currency translation adjustment | 106,663 | (489,190) | ||||||
Ending balance | $ | 13,510,869 | $ | 14,274,167 | ||||
For the six months ended
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
6. INVENTORIES, NET
As of
As of | As of | |||||||
(Unaudited) | ||||||||
Finished goods (1) | $ | 217,248 | $ | 4,404,291 | ||||
Work in progress (2) | 31,492 | 30,455 | ||||||
Raw materials (3) | 316,887 | 410,445 | ||||||
Subtotal | 565,627 | 4,845,191 | ||||||
Less: provision for inventories | (42,687) | (50,352) | ||||||
Inventories, net | $ | 522,940 | $ | 4,794,839 | ||||
(1) | Finished goods included battery packs and electronic control systems. |
(2) | Work in progress included work in progress of electronic control systems. |
(3) | Raw materials included components and parts for manufacturing electronic control systems and the provision of maintenance service. |
The movement of provision for inventories was as follows for the six months ended
Six months ended | ||||||||
2024 | 2025 | |||||||
(Unaudited) | (Unaudited) | |||||||
Balance at beginning of period | $ | 88,818 | $ | 42,687 | ||||
Current period addition | 99,138 | 30,507 | ||||||
Charge off | (56,917) | (21,405) | ||||||
Foreign currency translation adjustment | 851 | (1,437) | ||||||
Balance at the end of period | $ | 131,890 | $ | 50,352 | ||||
For the six months ended
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
7. ADVANCES TO SUPPLIERS
As of
As of | As of | |||||||
(Unaudited) | ||||||||
Prepayment for purchase of battery packs | $ | 16,637,595 | $ | 10,747,807 | ||||
Others | 251,990 | 209,687 | ||||||
Advances to supplier | $ | 16,889,585 | $ | 10,957,494 | ||||
8. PROPERY, PLANT AND EQUIPMENT, NET
As of
As of | As of | |||||||
(Unaudited) | ||||||||
Construction in progress (1) | $ | 7,766,316 | $ | 7,950,283 | ||||
Vehicles | 116,328 | 112,495 | ||||||
Furniture, fixtures and office equipment | 25,044 | 25,789 | ||||||
Subtotal | 7,907,688 | 8,088,567 | ||||||
Less: accumulated depreciation | (63,122) | (76,278) | ||||||
Property, plant and equipment, net | $ | 7,844,566 | $ | 8,012,289 | ||||
(1) | Addition of |
For the six months ended
9. OTHER NON-CURRENT ASSETS
As of
As of | As of | |||||||
(Unaudited) | ||||||||
Prepayment for purchase of customized equipment | $ | 7,257,752 | $ | 7,018,617 | ||||
Prepaid construction fee | 1,238,336 | 2,492,343 | ||||||
Long-term security deposit for land use right (1) | 630,504 | 609,730 | ||||||
Other non-current assets | $ | 9,126,592 | $ | 10,120,690 | ||||
(1) | The balance is the long-term security deposit to the Bureau of Finance in |
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
10. BORROWINGS
As of
Creditor | Interest | Borrowing | Maturity | As of | As of | |||||||||||
(Unaudited) | ||||||||||||||||
Bank of Jiangsu (1) | 5.80 | % | 113,999 | - | ||||||||||||
Bank of Jiangsu (2) | 3.30 | % | 997,492 | 964,626 | ||||||||||||
Bank of Jiangsu (3) | 3.80 | % | 569,995 | - | ||||||||||||
Bank of Jiangsu (3) | 3.30 | % | - | 551,215 | ||||||||||||
Bank of Nanjing (4) | 3.50 | % | 712,494 | 689,018 | ||||||||||||
Agricultural Bank of China (5) | 3.20 | % | 1,424,989 | 1,378,037 | ||||||||||||
Agricultural Bank of China (6) | 3.05 | % | 1,367,989 | - | ||||||||||||
Total short-term borrowings | $ | 5,186,958 | $ | 3,582,896 | ||||||||||||
Bank of Jiangnan (7) | 4.80 | % | 634,120 | 1,413,866 | ||||||||||||
Total long-term borrowings, current | $ | 634,120 | $ | 1,413,866 | ||||||||||||
Bank of Jiangnan (7) | 4.80 | % | 3,925,844 | 2,995,853 | ||||||||||||
Bank of Jiangnan (7) | 4.80 | % | 1,823,985 | 1,763,887 | ||||||||||||
Bank of Jiangnan (7) | 4.80 | % | 984,667 | 952,223 | ||||||||||||
Bank of Jiangnan (7) | 4.80 | % | 726,744 | 702,799 | ||||||||||||
Total long-term borrowings, non-current | $ | 7,461,240 | $ | 6,414,762 | ||||||||||||
Total borrowings | $ | 13,282,318 | $ | 11,411,524 | ||||||||||||
(1) | On |
(2) | On |
(3) | On |
(4) | On |
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
10. BORROWINGS (CONTINUED)
(5) | On |
(6) | On |
(7) | On |
Repayment date | Repayment | |||
6/30/2025 | $ | 613,227 | ||
800,639 | ||||
800,639 | ||||
802,017 | ||||
802,017 | ||||
802,017 | ||||
802,017 | ||||
802,017 | ||||
802,017 | ||||
802,021 | ||||
For the six months ended
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
11. RELATED PARTY TRANSACTIONS AND BALANCES
The following is a list of related parties which the Company has transactions with during the six months ended
Name | Relationship | |
(a) | The Legal Representative of Jiangsu New Energy | |
(b) | Non-controlling shareholder of Cenbird E-Motorcycle | |
(c) | Chief Executive Officer and a significant | |
(d) Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. |
| |
(e) Jiangsu Xinzhongtian Suye Co., Ltd. |
| |
(f) Shenzhen Star Asset Management Co., Ltd. |
| |
(g) Shenzhen Star Cycling Network Technology Co., Ltd. | Equity investments with 42% shareholding | |
(h) Nanjing Mingfeng Technology Co., Ltd. | Equity investments with 30% shareholding | |
(i) Shandong Xingneng'an New Energy Technology Co., Ltd. | Equity investments with 25% shareholding | |
(j) Jiangsu Youdi Technology Co., Ltd. | Equity investments with 29% shareholding | |
(k) Shanghai Mingli New Energy Technology Co., Ltd. | Equity investments with 40% shareholding |
Amounts due from related parties
As of
As of | As of | |||||||
(Unaudited) | ||||||||
Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. (d) (1) | $ | 3,726,245 | $ | 2,505,112 | ||||
Shandong Xingneng'an New Energy Technology Co., Ltd. (i) (1)&(2) | 2,738,913 | 2,119,433 | ||||||
Shenzhen Star Cycling Network Technology Co., Ltd. (g) (2) | 767,625 | 754,527 | ||||||
Jiangsu Youdi Technology Co., Ltd. (j)(2) | 316,832 | 318,160 | ||||||
679 | 389 | |||||||
Total amount due from related parties, current | 7,550,294 | 5,697,621 | ||||||
Less: amount due from related parties, current, of discontinued operations | (4,578,844) | (3,328,447) | ||||||
Amount due from related parties, current, of continuing operations | 2,971,450 | 2,369,174 | ||||||
Shanghai Mingli New Energy Technology Co., Ltd. (k) (4) | 4,132,467 | 6,565,231 | ||||||
Amounts due from a related party, non-current | $ | 4,132,467 | $ | 6,565,231 | ||||
(1) | The balance mainly is prepayments for purchasing battery cells and e-bicycles. |
(2) | The balance mainly is loans with annual interest as stated in contracts to associates. The annual interest rates of |
(3) | The balance mainly is advances made to the management for the Company's daily operational purposes. As of |
(4) | The balance is an interest-free loan with a maturity date of |
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
11. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED)
Amounts due to related parties
As of
As of | As of | |||||||
(Unaudited) | ||||||||
Jiangsu Xinzhongtian Suye Co., Ltd. (e) (1)&(2) | $ | 418,201 | $ | 1,170,455 | ||||
1,127,877 | 886,638 | |||||||
19,183 | 24,063 | |||||||
Shenzhen Star Asset Management Co., Ltd. (f) (2) | 19,926 | 19,896 | ||||||
Nanjing Mingfeng Technology Co., Ltd. (h) (4) | 494 | 478 | ||||||
Total amount due to related parties | 1,585,681 | 2,101,530 | ||||||
Less: amount due to related parties, of discontinued operations | (279,175) | (1,195,892) | ||||||
Amount due to related parties, of continuing operations | $ | 1,306,506 | $ | 905,638 | ||||
(1) | The balance mainly was the payable for purchasing e-bicycles. |
(2) | The balance mainly was interest-free loans from related parties. |
(3) | The balance mainly was the expenses paid by related parties on behalf of the Company for daily operation. |
(4) | The balance mainly was payable for payment received on behalf of a related party. |
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
11. RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED)
Related party transactions
For the six months ended
Related Parties | Nature | Six months ended | ||||||||
2024 | 2025 | |||||||||
(Unaudited) | (Unaudited) | |||||||||
Inventory purchased from related parties | ||||||||||
Jiangsu Xinzhongtian Suye Co., Ltd. (e) | Purchase of e-bicycles | $ | 267,919 | $ | 1,323,097 | |||||
Changzhou Cenbird Electric Bicycle | Purchase of e-bicycles | 639,086 | 966,506 | |||||||
Total inventory purchased from related | 907,005 | 2,289,603 | ||||||||
Less: inventory purchased from related | (907,005) | (2,289,603) | ||||||||
Inventory purchased from continuing | $ | - | $ | - | ||||||
Loans to related parties | ||||||||||
Shanghai Mingli New Energy Technology | Loan to a related party | $ | - | $ | 2,904,243 | |||||
Shanghai Mingli New Energy Technology | Imputed interest on related party loan | - | 84,342 | |||||||
Shandong Xingneng'an New Energy | Loan to a related party | 2,775,311 | 138,297 | |||||||
Shandong Xingneng'an New Energy | Interest receivable from a related party | 116,457 | 35,811 | |||||||
Shenzhen Star Cycling Network Technology | Interest receivable from a related party | 12,280 | 12,238 | |||||||
Jiangsu Youdi Technology Co., Ltd. (j) | Interest receivable from a related party | 10,612 | 10,607 | |||||||
Jiangsu Youdi Technology Co., Ltd. (j) | Loan to a related party | 3,654 | 1,203 | |||||||
Total loans to related parties | 2,918,314 | 3,186,741 | ||||||||
Less: loans to related parties from | (12,280) | (12,238) | ||||||||
Loans to related parties from continuing | $ | 2,906,034 | $ | 3,174,503 | ||||||
Collection of loan to a related party | ||||||||||
Shandong Xingneng'an New Energy | Collection of loan to a related party | $ | - | $ | 691,486 | |||||
Total collection of loan to a related party | $ | - | $ | 691,486 | ||||||
Loans from related parties | ||||||||||
Jiangsu Xinzhongtian Suye Co., Ltd. (e) | Interest-free loan from a related party | $ | 538,410 | $ | 584,085 | |||||
Interest-free loan from a related party | 80,000 | 389,893 | ||||||||
Interest-free loan from a related party | 35,552 | 5,532 | ||||||||
Total loans from related parties | 653,962 | 979,510 | ||||||||
Less: loans from related parties from | (573,962) | (589,617) | ||||||||
Loans from related parties from | $ | 80,000 | $ | 389,893 | ||||||
Repayment of loans from related parties | ||||||||||
Repayment of interest-free loans from a | $ | - | $ | 622,338 | ||||||
Jiangsu Xinzhongtian Suye Co., Ltd. (e) | Repayment of interest-free loans from a | 378,830 | 553,189 | |||||||
Repayment of interest-free loans from a | 81,872 | - | ||||||||
Total repayment of loans from related | 460,702 | 1,175,527 | ||||||||
Less: repayment of loans from related parties | (460,702) | (553,189) | ||||||||
Repayment of loans from related parties | $ | - | $ | 622,338 | ||||||
Others | ||||||||||
Reimbursement for expenses paid for | $ | 69 | $ | - | ||||||
$ | 69 | $ | - | |||||||
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
12. DISCONTINUED OPERATIONS
Due to the declining performance of sales of e-bicycle business, the Company determined to dispose the variable interest entity, Jiangsu EZGO Electronic Technologies Co., Ltd. ("Jiangsu EZGO"), and its subsidiaries. On
The following tables set forth the assets, liabilities, results of operations and cash flows of the discontinued operations, which were included in the Company's unaudited condensed consolidated financial statements.
As of | As of | |||||||
(Unaudited) | ||||||||
Cash and cash equivalents | $ | 54,365 | $ | 17,341 | ||||
Restricted cash | 842 | 781 | ||||||
Accounts receivable, net | 509,458 | 2,305,995 | ||||||
Inventories, net | 1,717 | 821 | ||||||
Advances to suppliers, net | 164 | 158 | ||||||
Amounts due from related parties, current | 4,578,844 | 3,328,447 | ||||||
Prepaid expenses and other current assets | 1,454,735 | 485,091 | ||||||
Current assets of discontinued operation | 6,600,125 | 6,138,634 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 33,137 | 13,667 | ||||||
Right-of-use assets, net | 48,241 | 34,803 | ||||||
Long-term investments, net | 1,407,619 | 1,300,172 | ||||||
Non-current assets of discontinued operation | 1,488,997 | 1,348,642 | ||||||
Total assets of discontinued operation | $ | 8,089,122 | $ | 7,487,276 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,067,018 | $ | 1,050,123 | ||||
Advances from customers | 228,415 | 220,766 | ||||||
Income tax payable | 726,796 | 702,849 | ||||||
Lease liabilities, current | 24,262 | 23,915 | ||||||
Amounts due to related parties, current | 279,175 | 1,195,892 | ||||||
Accrued expenses and other payables | 4,697,057 | 4,524,877 | ||||||
Total current liabilities of discontinued operation | 7,022,723 | 7,718,422 | ||||||
Non-current liabilities: | ||||||||
Lease liabilities, non-current | 23,069 | 10,237 | ||||||
Total non-current liabilities of discontinued operation | 23,069 | 10,237 | ||||||
Total liabilities of discontinued operation | 7,045,792 | 7,728,659 | ||||||
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
12. DISCONTINUED OPERATIONS (CONTINUED)
Six Months Ended | ||||||||
2024 | 2025 | |||||||
(Unaudited) | (Unaudited) | |||||||
Net revenues | $ | 1,771,339 | $ | 752,748 | ||||
Cost of revenues | (1,892,416) | (736,438) | ||||||
Gross (loss) profit | (121,077) | 16,310 | ||||||
Operating expenses: | ||||||||
Selling and marketing | (157,904) | (84,274) | ||||||
General and administrative | (1,227,262) | (111,527) | ||||||
Research and development | (5,161) | - | ||||||
Total operating expenses | (1,390,327) | (195,801) | ||||||
Loss from discontinued operations | (1,511,404) | (179,491) | ||||||
Other income (expenses): | ||||||||
Interest expenses | (5,542) | (12,969) | ||||||
Interest income | 16,494 | 12,261 | ||||||
Non-operating income, net | 28,001 | 14,573 | ||||||
Total other income, net from discontinued operations | 38,953 | 13,865 | ||||||
Loss from discontinued operations before income taxes and share of loss of equity | (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) | ||||||
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 | $ | (1,008,218) | $ | (176,482) | ||||
Six Months Ended | ||||||||
2024 | 2025 | |||||||
(Unaudited) | (Unaudited) | |||||||
Net cash provided by operating activities from discontinued operations | $ | 138,853 | $ | 750,707 | ||||
Net cash provided by investing activities from discontinued operations | 427,990 | 203,511 | ||||||
Net cash provided by financing activities from discontinued operation | 113,260 | 36,428 | ||||||
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
13. INCOME TAXES
BVI
The Company is incorporated in the BVI. Under the current laws of the BVI, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the BVI.
On
PRC
Under the PRC Enterprise Income Tax Law (the "EIT Law"), the standard enterprise income tax rate for domestic enterprises and foreign invested enterprises is 25%. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose "de facto management body" is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% on its global income. The Implementing Rules of the EIT Law merely define the location of the "de facto management body "as" the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, property, of a non-PRC company is located." Based on a review of surrounding facts and circumstances, the Company does not believe that it is likely that its operations outside of the PRC should be considered as a resident enterprise for PRC tax purposes for six months ended
In accordance with the implementation rules of EIT Laws, a qualified "High and New Technology Enterprise" ("HNTE") is eligible for a preferential tax rate of 15%. The HNTE certificate is effective for a period of three years. An entity could re-apply for the HNTE certificate when the prior certificate expires. Changzhou Higgs obtained its HNTE status in
According to Caishui [2021] No.13, announcement of the Ministry of Finance and the State Taxation Administration, which became effective from
For qualified small and low-profit enterprises, from
The components of the income tax benefit from continuing operations are:
Six Months Ended | ||||||||
2024 | 2025 | |||||||
(Unaudited) | (Unaudited) | |||||||
Current | $ | - | $ | 9,492 | ||||
Deferred | (79,488) | 11,842 | ||||||
Total income tax (benefit) expense | $ | (79,488) | $ | 21,334 | ||||
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
13. INCOME TAXES (CONTINUED)
The reconciliations of the statutory income tax rate and the Company's effective income tax rate are as follows:
Six Months Ended | ||||||||
2024 | 2025 | |||||||
(Unaudited) | (Unaudited) | |||||||
Net loss before income tax benefit from continuing operations | $ | (3,169,032) | $ | (912,941) | ||||
PRC statutory tax rate | 25 | % | 25 | % | ||||
Income tax at statutory tax rate | (792,258) | (228,235) | ||||||
Effect of income tax rate differences in jurisdictions other than the PRC | 219,352 | 159,490 | ||||||
Expenses not deductible for tax purpose and non-taxable income | 446,514 | 122,386 | ||||||
Additional deduction of R&D expenses | (23,719) | (22,507) | ||||||
Effect of preferential tax rates | 1,322 | (12,261) | ||||||
Effect of utilization of tax loss carried forward | 305 | 2,461 | ||||||
Effect on valuation allowance | 68,996 | - | ||||||
Income tax (benefit) expense | $ | (79,488) | $ | 21,334 | ||||
The current PRC EIT Law imposes a 10% withholding income tax for dividends distributed by foreign invested enterprises to their immediate holding companies outside the PRC. A lower withholding tax rate will be applied if there is a tax treaty arrangement between the PRC and the jurisdiction of the foreign holding company. Distributions to holding companies in HK that satisfy certain requirements specified by the PRC tax authorities, for example, will be subject to a 5% withholding tax rate.
As of
For the six months ended
The tax effect of temporary difference under ASC Topic 740 "Accounting for Income Taxes" that gives rise to deferred tax asset and liability as of
As of | As of | |||||||
(Unaudited) | ||||||||
Deferred tax assets: | ||||||||
Tax loss carry forwards | $ | 182,690 | $ | 158,050 | ||||
Other-than-temporary impairment | 780,249 | 754,540 | ||||||
Credit loss allowance | 21,997 | 26,425 | ||||||
Reserve for inventory | 6,403 | 7,558 | ||||||
Less: disposal of a subsidiary | (314) | - | ||||||
Deferred tax assets, net | $ | 991,025 | $ | 946,573 | ||||
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
13. INCOME TAXES (CONTINUED)
For the six months ended
Accounting for uncertainty tax position
The Company did not identify significant unrecognized tax benefits for the six months ended
14. SHARE-BASED COMPENSATION
EZGO Technologies Ltd. Incentive Plan (the "EZGO 2022 Plan")
On
EZGO Technologies Ltd. 2025 Equity Incentive Plan (the "EZGO 2025 Plan")
On
The estimated FV of restricted shares granted was the closing price of the Company's ordinary shares traded in the Stock Exchange on grant date.
A summary of activities of the restricted shares for the six months ended
Number of | Weighted | |||||||
Unvested as of | - | |||||||
Granted | 500,000 | 0.51 | ||||||
Vested | - | |||||||
Unvested as of | 500,000 | 0.51 | ||||||
As of
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
15. EQUITY
(a) Ordinary shares
The Company was established under the laws of the BVI on
On
(b) Statutory reserve and restricted net assets
The Company's PRC subsidiaries are required to reserve 10% of their net profit after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital. This statutory reserve is not distributable in the form of cash dividends.
Relevant PRC statutory laws and regulations permit the payment of dividends by the Company's PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Furthermore, registered share capital and capital reserve accounts are also restricted from distribution. As a result of these PRC laws and regulations, the Company's PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances. The Company's restricted net assets, comprising of the registered paid-in capital and statutory reserve of Company's PRC subsidiaries, were
(c) Warrants
In
On
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
15. EQUITY (CONTINUED)
As of
Following table summarizes the movement of warrant activities during the six months ended
Ordinary | Weighted | Contractual | Intrinsic | |||||||||||||
Exchange Warrants Outstanding as of | 7,899,412 | $ | 1.13 | 2.95 | $ | - | ||||||||||
Exchange Warrants Exercisable as of | 7,899,412 | 1.13 | 2.95 | - | ||||||||||||
Common Warrants Outstanding as of | 8,498,125 | 1.13 | 2.95 | - | ||||||||||||
Common Warrants Exercisable as of | 8,498,125 | 1.13 | 2.95 | - | ||||||||||||
Exchange Warrants Granted | - | - | - | - | ||||||||||||
Exchange Warrants Exercises | - | - | - | - | ||||||||||||
Exchange Warrants Forfeited | - | - | - | - | ||||||||||||
Exchange Warrants Expired | - | - | - | - | ||||||||||||
Exchange Warrants Outstanding as of | 7,899,412 | 1.13 | 2.45 | - | ||||||||||||
Exchange Warrants Exercisable as of | 7,899,412 | 1.13 | 2.45 | - | ||||||||||||
Common Warrants Outstanding as of | 8,498,125 | 1.13 | 2.45 | - | ||||||||||||
Common Warrants Exercisable as of | 8,498,125 | 1.13 | 2.45 | - | ||||||||||||
(c) Warrants
Ordinary | Weighted | Contractual | Intrinsic | |||||||||||||
Exchange Warrants Outstanding as of | 3,000,000 | $ | 1.62 | 0.33 | $ | - | ||||||||||
Exchange Warrants Exercisable as of | 3,000,000 | 1.62 | 0.33 | - | ||||||||||||
Common Warrants Outstanding as of | 5,389,126 | 1.78 | 1.95 | - | ||||||||||||
Common Warrants Exercisable as of | 5,389,126 | 1.78 | 1.95 | - | ||||||||||||
Exchange Warrants Granted | - | - | - | - | ||||||||||||
Exchange Warrants Exercises | (3,000,000) | 1.62 | - | - | ||||||||||||
Exchange Warrants Forfeited | - | - | - | - | ||||||||||||
Exchange Warrants Expired | - | - | - | - | ||||||||||||
Exchange Warrants Outstanding as of | - | - | - | - | ||||||||||||
Exchange Warrants Exercisable as of | - | - | - | - | ||||||||||||
Common Warrants Outstanding as of | 5,389,126 | 1.78 | 1.45 | - | ||||||||||||
Common Warrants Exercisable as of | 5,389,126 | 1.78 | 1.45 | - | ||||||||||||
(1) | Upon effectiveness of the Reverse Share Split at a ratio of 1-for-40, the number of Common Warrant was adjusted |
(d) Non-controlling interests
As of
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
16. COMMITMENTS AND CONTINGENCIES
Commitments
On
In
Legal Proceedings
From time to time, the Company may be subject to legal proceedings, investigations and claims incidental to the conduct of business. The Company currently have two contract disputes with our suppliers, Jiangsu Anruida New Material Company Limited ("Anruida") and Zhuhai Titans New Power Electric Co., Ltd. ("Titans").
On
On
Other than disclosed above, the Company are not a party to, nor are we aware of, any legal proceedings, investigations or claims which, in the opinion of our management, are likely to have a material adverse effect on our business, financial condition or results of operations.
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
17. SEGMENT REPORTING
ASC Topic 280, "Segment Reporting," establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise that engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly evaluated by the Company's chief operating decision maker, or group, in deciding how to allocate resources and assess performance.
The Company's chief operating decision maker ("CODM") has been identified as the Chief Financial Officer. The Company's CODM, chief executive officer, measures the performance of each segment based on metrics of revenue and profit before taxes from operations and uses these results to evaluate the performance of, and to allocate resources to each of the segments. As most of the Company's long-lived assets are located in the PRC and most of the Company's revenues are derived from the PRC, no geographical information is presented. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information.
Historically, the Company determined it operates in three segments: (1) sales of battery cells and packs, (2) sales of electronic control system and (3) others, which mainly included the sales of second-hand machinery, the provision of maintenance services and photovoltaic engineering contracting.
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
Six months Ended | ||||||||||||||||
Battery cells | Electronic | 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 | (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 | ||||||||||||||||
Battery cells | Electronic | 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 | (88,207) | (95,106) | (729,628) | (912,941) | ||||||||||||
Segment gross profit margin | 4.5 | % | 41.7 | % | 38.9 | % | 10.2 | % | ||||||||
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
17. SEGMENT REPORTING (CONTINUED)
The following table presents the reconciliation from reportable segment income to the consolidated income from continuing operations before income taxes for the six months ended
Six months ended | ||||||||
2024 | 2025 | |||||||
(Unaudited) | (Unaudited) | |||||||
Net revenues | ||||||||
Battery cells and packs sales | $ | 5,847,751 | $ | 5,518,183 | ||||
Electronic control system sales | 739,390 | 636,356 | ||||||
Others | 216,821 | 410,828 | ||||||
Total net revenues | 6,803,962 | 6,565,367 | ||||||
Cost of revenues | ||||||||
Battery cells and packs sales | 5,592,773 | 5,271,930 | ||||||
Electronic control system sales | 416,635 | 370,868 | ||||||
Others | 185,670 | 251,101 | ||||||
Total cost of revenues | 6,195,078 | 5,893,899 | ||||||
Gross profit | ||||||||
Battery cells and packs sales | 254,978 | 246,253 | ||||||
Electronic control system sales | 322,755 | 265,488 | ||||||
Others | 31,151 | 159,727 | ||||||
Total Gross profit | 608,884 | 671,468 | ||||||
Reconciliation of profit or loss: | ||||||||
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) | ||||||
Fair value changes in contingent asset | (310,667) | - | ||||||
Impairment loss of goodwill | (1,362,044) | - | ||||||
Other income | 277,151 | 122,977 | ||||||
Loss from continuing operations before income tax and share of loss of equity | $ | (3,169,032) | $ | (912,941) | ||||
Loss from discontinued operations before income tax and share of loss of equity | (1,472,451) | (165,626) | ||||||
Loss before income tax and share of loss of equity method investments | (4,641,483) | (1,078,567) | ||||||
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
18. CONCENTRATIONS
Concentrations of credit risk
As of
Concentrations of customers
The following table sets forth information as to each customer that accounted for 10% or more of total accounts receivable as of
As of | As of | |||||||||||||||
Customer | Amount | % of | Amount | % of | ||||||||||||
(Unaudited) | ||||||||||||||||
A | $ | 2,850,542 | 37 | % | $ | 2,677,706 | 40 | % | ||||||||
B | 2,484,807 | 32 | % | 1,421,155 | 21 | % | ||||||||||
C | * | * | 874,542 | 13 | % | |||||||||||
D | 948,763 | 12 | % | * | * | |||||||||||
Total | $ | 6,284,112 | 81 | % | $ | 4,973,403 | 74 | % | ||||||||
* | The percentage is below 10% |
The following table sets forth information as to each customer that accounted for 10% or more of total advances from customers as of
As of | As of | |||||||||||||||
Customer | Amount | % of | Amount | % of | ||||||||||||
(Unaudited) | ||||||||||||||||
E | $ | * | * | $ | 21,229 | 20 | % | |||||||||
F | * | * | 10,335 | 10 | % | |||||||||||
G | 18,524 | 13 | % | * | * | |||||||||||
H | 15,946 | 11 | % | * | * | |||||||||||
Total | $ | 34,470 | 24 | % | $ | 31,564 | 30 | % | ||||||||
* | The percentage is below 10% |
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
18. CONCENTRATIONS (CONTINUED)
The following table sets forth information as to each customer that accounted for 10% or more of total revenues for the six months ended
Six months ended | ||||||||||||||||
2024 | 2025 | |||||||||||||||
Customer | Amount | % of | Amount | % of | ||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
B | $ | 3,118,446 | 46 | % | $ | 1,714,509 | 26 | % | ||||||||
A | 1,811,277 | 27 | % | 1,712,237 | 26 | % | ||||||||||
C | * | * | 1,485,858 | 23 | % | |||||||||||
I | * | * | 880,424 | 13 | % | |||||||||||
J | 931,801 | 14 | % | * | * | |||||||||||
Total | $ | 5,861,524 | 87 | % | $ | 5,793,028 | 88 | % | ||||||||
* | The percentage is below 10% |
Concentrations of suppliers
The following table sets forth information as to each supplier that accounted for 10% or more of total accounts payable as of
As of | As of | |||||||||||||||
Supplier | Amount | % of | Amount | % of | ||||||||||||
(Unaudited) | ||||||||||||||||
A | $ | 48,903 | 26 | % | $ | 47,291 | 29 | % | ||||||||
B | 33,275 | 17 | % | 32,467 | 20 | % | ||||||||||
C | * | * | % | 20,200 | 13 | % | ||||||||||
D | 44,630 | 23 | % | * | * | |||||||||||
Total | $ | 126,808 | 66 | % | $ | 99,958 | 62 | % | ||||||||
* | The percentage is below 10% |
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
18. CONCENTRATIONS (CONTINUED)
The following table sets forth information as to each third party that accounted for 10% or more of total advances to suppliers as of
As of | As of | |||||||||||||||
Supplier | Amount | % of | Amount | % of | ||||||||||||
(Unaudited) | ||||||||||||||||
E | $ | 5,479,056 | 32 | % | $ | 5,208,955 | 48 | % | ||||||||
F | 3,938,938 | 23 | % | 1,802,497 | 16 | % | ||||||||||
G | 1,644,050 | 10 | % | 1,180,602 | 11 | % | ||||||||||
H | 4,209,185 | 25 | % | 1,122,012 | 10 | % | ||||||||||
Total | $ | 15,271,229 | 90 | % | $ | 9,314,066 | 85 | % | ||||||||
* | The percentage is below 10% |
The following table sets forth information as to each supplier that accounted for 10% or more of total purchases for the six months ended
Six months ended | ||||||||||||||||
2024 | 2025 | |||||||||||||||
Supplier | Amount | % of | Amount | % of | ||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
H | $ | 1,594,471 | 17 | % | $ | 2,925,067 | 29 | % | ||||||||
F | 2,121,255 | 23 | % | 2,815,761 | 27 | % | ||||||||||
I | * | * | 1,584,037 | 15 | % | |||||||||||
G | * | * | 1,358,763 | 13 | % | |||||||||||
E | 2,947,545 | 31 | % | * | * | |||||||||||
J | 1,507,114 | 16 | % | * | * | |||||||||||
Total | $ | 8,170,385 | 87 | % | $ | 8,683,628 | 84 | % | ||||||||
* | The percentage is below 10% |
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
19. SUBSEQUENT EVENTS
On
On
The Company performed an evaluation of subsequent events through
About EZGO Technologies Ltd.
EZGO's vision is to build a leading short-distance transportation solution provider and intelligent manufacturer in
Exchange Rate
This document contains translations of certain Chinese Renminbi ("RMB") amounts into
Safe Harbor Statement
This document 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
View original content:https://www.prnewswire.com/news-releases/ezgo-announces-financial-results-for-the-six-months-ended-march-31-2025-302495844.html
SOURCE EZGO Technologies Ltd.
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