EZGO Technologies Ltd. Reports Fiscal 2020 Financial Results

JIANGSU, CHINA, Feb. 17, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- EZGO Technologies Ltd. (Nasdaq: EZGO) (“the Company” or “EZGO”), a leading short-distance transportation solutions provider in China, today announced that, for the fiscal year ended September 30, 2020, the Company generated revenue of $16,838,508, a 224% improvement on revenue of $5,194,259 generatedin the fiscal year ended September 30, 2019.

This increase in revenue was driven mainly by an $11.0 million increase in sales of the Company’s electric bicycles and a $3.1 million increase in its sales of lithium batteries, partially offset by a $2.2 million decrease from the rental of lithium batteries and a $1.1 million decrease in revenue from battery cell trading.

The Company’s cost of revenue for fiscal 2020 significantly increased by approximately $13 million, or 647%, which was primarily due to the increase of manufacturing and purchase costs of e-bicycles for sale and the increase of purchase costs of batteries for sale.

As the increase in revenue was less than the increase in cost of revenue, gross profit for fiscal 2020 was $1,785,682, or 11% of net revenue, compared with $3,179,951, or 61% of net revenue, for fiscal 2019.

There was an increase in operating expenses of about $978,000 for additional salespersons, advertising, and R&D costs for the design of e-bicycles.

As a result of the decreased gross profit and these increased expenses, the Company’s net income attributable to shareholders for fiscal 2020 was $147,174, or $0.02 per share, compared to net income attributable to shareholders of $1,738,123, or $0.23 per share, for fiscal 2019. 

As of September 30, 2020, the Company had cash and cash equivalents of $322,598 and total working capital of $9,644,208, compared with cash and cash equivalents of $3,633,645 and total working capital of $9,860,560 at September 30, 2019.Recently, on January 26, 2021, the Company improved its cash position and working capital with the completion of its initial public offering in which the Company raised $11.2 million, less underwriting discounts, commissions and other related expenses.

“We are pleased to announce our fiscal 2020 results,” said Chief Executive Officer Mr. Jianhui Ye. “Despite challenges posed by the pandemic, we completed our construction of a new e-bicycle production line and significantly increased our manufacturing capacity for e-bicycles and e-tricycles. 

“Assuming an average consumer purchase price of approximately $200 per e-bicycleand projected sales of about 100,000 units, this gives us a possible revenue target of around $20 million for our e-bicycles alone in fiscal 2021.”

This goal, according to Mr. Ye, will likely be supported by steady increases in the growing demand for e-bicycles in both China and Southeast Asia, as well as other regions of the globe.

For additional information on EZGO Technologies’ fiscal 2020 performance, please refer to the company's 20-F filing at http://www.ezgotech.com.cn/en/index.html or www.sec.gov.

About EZGO Technologies Ltd.Leveraging an Internet of Things (IoT) product and service platform and two e-bicycle brands, “Cenbird” and “Dilang,” EZGO has established a business model centered on the manufacturing and sale of electronic bicycles and batteriesand e-bicycle rentals, complemented by battery cell trading and a charging pile business. Currently, the Company (i) designs, manufactures, rents and sells e-bicycles and e-tricycles; (ii) rents and sells lithium batteries; (iii) sells, franchises and operates smart charging piles for e-bicycles and other electronic devices; and (iv) trades lithium cells.

Safe Harbor StatementThis press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the short-distance transportation solutions market in China and the other international markets the Company plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets the Company plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward‐looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:At the Company: Shawn Wen Email: [email protected]. Phone: (+86) 13502829216 Investor Relations: Rick Eisenberg Eisenberg Communications Email: [email protected] Phone: (+1) 917-691-8934

INCOME STATEMENT

		For the years endedSeptember 30,
		2018				2019				2020
Net revenues		$	3,191,560			$	5,194,259			$	16,838,508
Cost of revenues			(1,667,824	)			(2,014,308	)			(15,052,826	)
Gross profit			1,523,736				3,179,951				1,785,682
Selling and marketing expenses			(5,221	)			(119,210	)			(490,985	)
General and administrative expenses			(458,613	)			(812,863	)			(1,418,674	)
Total operating expenses			(463,834	)			(932,073	)			(1,909,659	)
Income (loss) from operations			1,059,902				2,247,878				(123,977	)
Interest income (expense), net			311				(18,865	)			(20,906	)
Other income, net			63,464				424,484				518,953
Total other income, net			63,775				405,619				498,047
Income from continuing operations before income tax expense			1,123,677				2,653,497				374,070
Income tax expense			(286,905	)			(723,384	)			(97,148	)
Net income from continuing operations			836,772				1,930,113				276,922
(Loss) income from discontinued operation, net of tax			(203,023	)			261,324				-
Net income			633,749				2,191,437				276,922
Net income from continuing operations			836,772				1,930,113				276,922
Less: net income attributable to non-controlling interests from continuing operations			160,037				403,334				129,748
Net income attributable to EZGO Technologies Ltd.’s shareholders from continuing operations			676,735				1,526,779				147,174
(Loss) income from discontinued operation, net of tax			(203,023	)			261,324				-
Less: net (loss) income attributable to non-controlling interests from discontinued operation			(38,829	)			49,980				-
Net (loss) income attributable to EZGO Technologies Ltd.’s shareholders from discontinued operation			(164,194	)			211,344				-
Net income attributable to EZGO Technologies Ltd.’s shareholders		$	512,541			$	1,738,123			$	147,174
Net income from continuing operations per ordinary share:
Basic and diluted		$	0.09			$	0.20			$	0.02
Net (loss) income from discontinued operation per ordinary share:
Basic and diluted		$	(0.02	)		$	0.03			$	-
Net income per ordinary share:
Basic and diluted		$	0.07			$	0.23			$	0.02
Weighted average shares outstanding
Basic and diluted			7,800,000				7,800,000				7,800,000

BALANCE SHEET

		As of September 30,
		2018				2019				2020
Balance Sheet Data:
Cash and cash equivalents		$	5,570			$	3,633,645			$	322,598
Total assets			13,700,498				19,171,950				19,817,798
Total liabilities			7,081,518				6,840,965				6,672,653
Total EZGO Technologies Ltd.’s shareholders’ equity			3,652,813				8,226,779				8,869,462
Non-controlling interests			2,966,167				4,104,206				4,275,683
Total equity			6,618,980				12,330,985				13,145,145

Source: EZGO Technologies Ltd.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Fisker (FSR) files form 10-K, sees more job cuts, reiterates going concern doubts
• Greenlane Holdings Inc. (GNLN) Receives Nasdaq Non-compliance Notice
• Staffing 360 Solutions (STAF) Receives Nasdaq Non-compliance Notice