EZGO ANNOUNCES FINANCIAL RESULTS FOR FISCAL YEAR 2024

Financial Performance - Net revenues for Fiscal Year 2024 were $21.1 million, a 32.7$15.9 million in Fiscal Year 2023, driven by higher sales of battery packs [7][9] - Gross profit increased by 32.5% to $1.5 million, with gross margin slightly decreasing from 7.2$8.1 million, up 11.4% from $7.3 million in Fiscal Year 2023, primarily due to increased impairment of long-term equity investment [8][21] - Cash and cash equivalents decreased significantly to$3.5 million as of September 30, 2024, compared to $17.3 million a year earlier [8][22] Business Segments - Battery packs and cells segment revenue surged 97.9$16.3 million, driven by increased market acceptance of lithium battery packs and large orders from major customers [9][10] - E-bicycle sales declined 32.2% to $2.9 million due to industry competition and the impact of the "Nanjing EV Charging Station Massive Fire" accident [3][11] - Electronic control system and intelligent robot sales decreased 40.2$1.4 million, with electronic control system sales increasing 211.4% while intelligent robot sales dropped significantly [12] Strategic Developments - The company shifted its business focus towards lithium-ion batteries (LIB) for low-speed e-bicycles, intensifying product development and partnerships with LIB manufacturers [3][4] - E-bicycle business transitioned from channel marketing to direct client marketing, focusing on the sharing and rental market [4] - The company invested in research and development for intelligent robotics, aiming to build a new product matrix despite the segment being in the market introduction phase [6] Operational Highlights - Research and development expenses increased 37.0% to $0.9 million, focusing on engineering vehicle wireless measurement and control systems [19] - Selling and marketing expenses decreased 9.5$0.6 million, primarily due to reduced advertising and business promotion expenses [16][17] - General and administrative expenses decreased 8.3% to $4.3 million, mainly due to reduced share-based compensation and depreciation expenses [18] Market and Industry Context - The company faced challenges in the e-bicycle market due to the "Nanjing EV Charging Station Massive Fire" accident, which led to a wait-and-see attitude among dealers and consumers [3] - Increased emphasis on environmental protection and construction safety within the industrial machinery sector boosted electronic control system sales [12] - The company's lithium battery pack sales volume increased by 256.5% year-over-year, reflecting strong market demand for high-performance battery solutions [10]