EZGO ANNOUNCES FINANCIAL RESULTS FOR THE SIX MONTHS ENDED MARCH 31, 2025
EZGO Technologies Ltd. (Nasdaq: EZGO), a Chinese short-distance transportation solutions provider, reported its financial results for H1 2025. The company saw a significant reduction in net losses to $1.3 million from $4.7 million in H1 2024, while gross margin improved to 10.2% from 8.9%.
Key financial metrics include:
- Net revenues from continuing operations decreased 3.5% to $6.6 million
- Gross profit increased 10.3% to $671,468
- Battery cells and packs revenue declined 5.6% to $5.5 million
- Maintenance service revenue grew 105.2% to $360,350
- Cash and equivalents decreased to $0.4 million from $3.4 million
The company announced plans to dispose of its e-bicycle business due to intense market competition and declining sales. EZGO is strategically shifting focus toward high-value services and lithium battery technology while optimizing its cost structure. The company maintained stable lithium battery pack sales at $4.85 million while experiencing decreased lead-acid battery sales.
EZGO Technologies Ltd. (Nasdaq: EZGO), fornitore cinese di soluzioni per il trasporto a breve distanza, ha comunicato i risultati finanziari del primo semestre 2025. L'azienda ha registrato una significativa riduzione delle perdite nette, scese a 1,3 milioni di dollari rispetto ai 4,7 milioni del primo semestre 2024, mentre il margine lordo 猫 migliorato al 10,2% dal 8,9%.
I principali indicatori finanziari includono:
- I ricavi netti dalle operazioni continuative sono diminuiti del 3,5%, attestandosi a 6,6 milioni di dollari
- Il profitto lordo 猫 aumentato del 10,3%, raggiungendo 671.468 dollari
- I ricavi da batterie e pacchi batteria sono calati del 5,6%, a 5,5 milioni di dollari
- I ricavi dai servizi di manutenzione sono cresciuti del 105,2%, arrivando a 360.350 dollari
- La liquidit脿 e equivalenti sono scesi a 0,4 milioni di dollari da 3,4 milioni
L'azienda ha annunciato l'intenzione di cessare l'attivit脿 di biciclette elettriche a causa della forte concorrenza e del calo delle vendite. EZGO sta strategicamente orientando il proprio focus verso servizi ad alto valore aggiunto e tecnologia delle batterie al litio, ottimizzando al contempo la struttura dei costi. Le vendite di pacchi batteria al litio sono rimaste stabili a 4,85 milioni di dollari, mentre si 猫 registrato un calo nelle vendite di batterie al piombo-acido.
EZGO Technologies Ltd. (Nasdaq: EZGO), proveedor chino de soluciones de transporte de corta distancia, inform贸 sus resultados financieros del primer semestre de 2025. La compa帽铆a registr贸 una reducci贸n significativa en las p茅rdidas netas, que bajaron a 1,3 millones de d贸lares desde 4,7 millones en el primer semestre de 2024, mientras que el margen bruto mejor贸 al 10,2% desde el 8,9%.
Los principales indicadores financieros incluyen:
- Los ingresos netos de operaciones continuas disminuyeron un 3,5%, hasta 6,6 millones de d贸lares
- La ganancia bruta aument贸 un 10,3%, alcanzando 671.468 d贸lares
- Los ingresos por celdas y paquetes de bater铆as cayeron un 5,6%, hasta 5,5 millones de d贸lares
- Los ingresos por servicios de mantenimiento crecieron un 105,2%, llegando a 360.350 d贸lares
- El efectivo y equivalentes disminuyeron a 0,4 millones de d贸lares desde 3,4 millones
La compa帽铆a anunci贸 planes para deshacerse de su negocio de bicicletas el茅ctricas debido a la intensa competencia del mercado y la ca铆da en ventas. EZGO est谩 cambiando estrat茅gicamente su enfoque hacia servicios de alto valor y tecnolog铆a de bater铆as de litio, mientras optimiza su estructura de costos. La empresa mantuvo ventas estables de paquetes de bater铆as de litio en 4,85 millones de d贸lares, aunque experiment贸 una disminuci贸n en las ventas de bater铆as de plomo-谩cido.
EZGO Technologies Ltd. (雮橃姢雼�: EZGO)電� 欷戧淡鞚� 雼卑毽� 鞖挫啞 靻旊（靺� 鞝滉车鞐呾泊搿滌劀 2025雲� 靸侂皹旮� 鞛 鞁れ爜鞚� 氚滍憸頄堨姷雼堧嫟. 須岇偓電� 靾滌啇鞁れ潉 韥矊 欷勳棳 2024雲� 靸侂皹旮� 470毵� 雼煬鞐愳劀 130毵� 雼煬搿� 臧愳唽頄堨溂氅�, 齑濎澊鞚惦鞚� 8.9%鞐愳劀 10.2%搿� 臧滌劆霅橃棃鞀惦媹雼�.
欤检殧 鞛 歆�響滊姅 雼れ潓瓿� 臧欖姷雼堧嫟:
- 瓿勳啀 鞓侅梾鞐愳劀鞚� 靾滊Г於滌潃 3.5% 臧愳唽頃� 660毵� 雼煬
- 齑濎澊鞚奠潃 10.3% 歃濌皜頃� 671,468 雼煬
- 氚绊劙毽� 靺� 氚� 韺� 毵れ稖鞚� 5.6% 臧愳唽頃� 550毵� 雼煬
- 鞙犾氤挫垬 靹滊箘鞀� 毵れ稖鞚� 105.2% 歃濌皜頃� 360,350 雼煬
- 順勱笀 氚� 順勱笀靹� 鞛愳偘鞚� 340毵� 雼煬鞐愳劀 40毵� 雼煬搿� 臧愳唽
須岇偓電� 旃橃棿頃� 鞁滌灔 瓴届焷瓿� 毵れ稖 臧愳唽搿� 鞚疙暣 鞝勱赴鞛愳爠瓯� 靷梾鞚� 毵り皝頃� 瓿勴殟鞚措澕瓿� 氚滍憸頄堨姷雼堧嫟. EZGO電� 瓿犽秬臧�臧�旃� 靹滊箘鞀れ檧 毽姮 氚绊劙毽� 旮办垹鞐� 鞝勲灥鞝侅溂搿� 歆戩頃橂┌ 牍勳毄 甑“ 斓滌爜頇旊ゼ 於旍頃橁碃 鞛堨姷雼堧嫟. 毽姮 氚绊劙毽� 韺� 毵れ稖鞚� 485毵� 雼煬搿� 鞎堨爼鞝侅澊鞐堨溂雮�, 雮╈稌鞝勳 毵れ稖鞚� 臧愳唽頄堨姷雼堧嫟.
EZGO Technologies Ltd. (Nasdaq : EZGO), fournisseur chinois de solutions de transport de courte distance, a publi茅 ses r茅sultats financiers pour le premier semestre 2025. La soci茅t茅 a enregistr茅 une r茅duction significative de ses pertes nettes, passant de 4,7 millions de dollars au premier semestre 2024 脿 1,3 million de dollars, tandis que la marge brute s'est am茅lior茅e, passant de 8,9 % 脿 10,2 %.
Les principaux indicateurs financiers sont :
- Les revenus nets des activit茅s poursuivies ont diminu茅 de 3,5 % pour atteindre 6,6 millions de dollars
- Le b茅n茅fice brut a augment茅 de 10,3 % pour atteindre 671 468 dollars
- Les revenus des cellules et packs de batteries ont baiss茅 de 5,6 % pour s'茅tablir 脿 5,5 millions de dollars
- Les revenus des services de maintenance ont augment茅 de 105,2 % pour atteindre 360 350 dollars
- La tr茅sorerie et 茅quivalents ont diminu茅, passant de 3,4 millions 脿 0,4 million de dollars
La soci茅t茅 a annonc茅 son intention de cesser son activit茅 de v茅los 茅lectriques en raison d'une concurrence intense sur le march茅 et d'une baisse des ventes. EZGO oriente strat茅giquement son attention vers des services 脿 forte valeur ajout茅e et la technologie des batteries au lithium, tout en optimisant sa structure de co没ts. Les ventes de packs de batteries au lithium sont rest茅es stables 脿 4,85 millions de dollars, tandis que les ventes de batteries au plomb-acide ont diminu茅.
EZGO Technologies Ltd. (Nasdaq: EZGO), ein chinesischer Anbieter von Kurzstreckentransportl枚sungen, meldete seine Finanzergebnisse f眉r das erste Halbjahr 2025. Das Unternehmen verzeichnete eine erhebliche Verringerung der Nettoverluste auf 1,3 Millionen US-Dollar gegen眉ber 4,7 Millionen im ersten Halbjahr 2024, w盲hrend die Bruttomarge von 8,9 % auf 10,2 % anstieg.
Wichtige Finanzkennzahlen umfassen:
- Nettoerl枚se aus fortgef眉hrten Gesch盲ftsbereichen sanken um 3,5 % auf 6,6 Millionen US-Dollar
- Bruttogewinn stieg um 10,3 % auf 671.468 US-Dollar
- Ums盲tze mit Batteriezellen und -paketen gingen um 5,6 % auf 5,5 Millionen US-Dollar zur眉ck
- Ums盲tze aus Wartungsdienstleistungen wuchsen um 105,2 % auf 360.350 US-Dollar
- Barmittel und Zahlungsmittel盲quivalente sanken von 3,4 Millionen auf 0,4 Millionen US-Dollar
Das Unternehmen k眉ndigte Pl盲ne an, sein E-Bike-Gesch盲ft aufgrund des intensiven Wettbewerbs und r眉ckl盲ufiger Verkaufszahlen zu ver盲u脽ern. EZGO richtet seinen strategischen Fokus auf hochwertige Dienstleistungen und Lithiumbatterietechnologie aus und optimiert gleichzeitig seine Kostenstruktur. Der Verkauf von Lithiumbatteriepacks blieb mit 4,85 Millionen US-Dollar stabil, w盲hrend der Absatz von Blei-S盲ure-Batterien zur眉ckging.
- Net loss significantly decreased by 72.3% from $4.7 million to $1.3 million
- Gross margin improved from 8.9% to 10.2%
- Maintenance service revenue grew 105.2% with margin increasing to 43.1%
- General and administrative expenses decreased by 34.7% to $1.2 million
- Selling and marketing expenses reduced by 21.1% to $117,772
- Net revenues declined 3.5% to $6.6 million
- Cash and cash equivalents decreased significantly from $3.4 million to $0.4 million
- Battery cells and packs revenue decreased 5.6%
- Electronic control system sales declined 13.9%
- Company continues to suffer recurring net losses
Insights
EZGO shows improved profitability despite revenue decline, with significantly reduced net losses and strategic business restructuring.
EZGO Technologies has made notable progress in its financial performance for the first half of fiscal year 2025, despite ongoing challenges. The company has reduced its net loss substantially from
The company's gross margin expanded from
EZGO's strategic decision to exit the underperforming e-bicycle business is a significant restructuring move. This segment had been classified as a discontinued operation and its losses decreased from
On the concerning side, EZGO's cash position has deteriorated significantly, dropping from
The company's lithium battery segment has remained relatively stable with revenue of
EZGO has also made progress in cost control, with general and administrative expenses decreasing by
While EZGO is making strides toward profitability, the rapid cash burn and continued operating losses indicate that the company still faces substantial challenges in achieving sustainable financial health.
Financial Highlights (all results compared to the prior fiscal year period unless otherwise noted)
- Gross margin from continuing operations increased to
10.2% in first half year of 2025, compared with8.9% in first half year in 2024 and gross profit increased10.3% to$671,468 - Net loss significantly decreased from
$4.7 million $1.3 million - Cash and cash equivalents was approximately
$3.4 million $0.4
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 March 31, 2025
Net Revenues from continuing operations
Net revenues from continuing operations for the six months ended March 31, 2025 were approximately
The following table identifies revenue from continuing operations, as well as reportable segments for the six months ended March 31, 2024 and 2025:
For the six months ended March 31, | Change | |||||||||||||||||||||||||
Segment | 2024 | % | 2025 | % | Amount | % | ||||||||||||||||||||
Sales of battery cells | 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 March 31, 2025 was
The revenue from sales of electronic control systems for six months ended March 31, 2025 was
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 March 31, 2024 and 2025 was
Gross profit margin for six months ended March 31, 2025 increased from
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 March 30, 2025, our Board of Directors approved this disposal of Jiangsu EZGO and its subsidiaries. The VIE and subsidiaries mainly operated in sales of E-bicycles business in PRC. The disposal of the sales of E-bicycles business represented a strategic shifts that had a major impact on our financial results, and met the held-for-sale criteria, which trigger discontinued operations accounting in accordance with ASC 205-20-45. Therefore, the historical financial results of the sales of E-bicycles business were classified as discontinued operation and the related assets and liabilities associated with the discontinued operations of the prior year were reclassified as assets/liabilities held for sale to provide comparable financial information.
Loss from discontinued operations was
Net revenue from discontinued operations mainly consists of the revenue generated from the sales of e-bicycles for the six months ended March 31, 2024 and 2025. Net revenue from discontinued operations decreased by
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
General and administrative expenses from discontinued operations mainly decreased by
Net Loss from continuing and discontinued operations
Net loss from continuing and discontinued operations for the six months ended March 31, 2025 was approximately
Segment Information
We operate in three segments for the six months ended March 31, 2024 and 2025: (i) sales of battery cells and packs, (ii) sales of electronic control system and (iii) others, which mainly included the sales of second-hand machinery, the provision of maintenance services and photovoltaic engineering contracting. The sales of battery cells and packs segment engaged in selling battery packs. The electronic control system and intelligent robot segment engage in selling electronic control systems and intelligent robots. To explore and expand potential customers, we started to provide comprehensive machine maintenance services during 2023, and started to provide second-hand machinery sales during 2024. The revenue from comprehensive machine maintenance service and second-hand machinery sales for six months ended March 31, 2025 was included in others segment for segment reporting.
The following tables present a summary of each reportable segment's revenue and income from continuing operations鈥攅xcluding the e-bicycle sales segment, which is disclosed as a discontinued operation for the six months ended March 31, 2024, and 2025:
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Six months Ended March 31, 2024 | ||||||||||||||||
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 March 31, 2025 | ||||||||||||||||
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 | % | ||||||||
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EZGO TECHNOLOGIES LTD. AND SUBSIDIARIES | ||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET听 | ||||||||
(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.听
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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 April 12, 2024 (Note 15). |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
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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.
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EZGO TECHNOLOGIES LTD. | ||||||||||||||||||||||||||||||||||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||||||||||||||||||||||||||
SIX MONTHS ENDED MARCH 31, 2024 AND 2025 | ||||||||||||||||||||||||||||||||||||||||
(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 | |||||||||||||||||||||
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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 | |||||||||||||||||||||
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* | Giving retroactive effect to the 40 to 1 reverse share split on April 12, 2024 (Note 15). |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
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听
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.
听
EZGO TECHNOLOGIES LTD.听
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 | February 13, |
| 100听% | Investment holding | ||||
Changzhou Langyi Electronic | August 6, 2021 | PRC | 100听% | Investment holding | ||||
EZGO Technologies Group Co., Ltd. | June 12, 2019 | PRC | 100听% | Investment holding | ||||
Jiangsu EZGO Energy Supply Chain | December 10, | PRC | 60听% | Distribution and trade of | ||||
Jiangsu EZGO New Energy | July 14, 2022 | PRC | 100听% | Distribution and trade of | ||||
Sichuan EZGO Energy Technologies | May 9, 2022 | PRC | 100听% | Distribution and trade of | ||||
Tianjin EZGO Electric Technologies | July 13, 2022 | PRC | 100听% | Production and sales of | ||||
Changzhou Youdi Electric Bicycle | July 14, 2022 | PRC | 100听% | Development, operation | ||||
Changzhou Sixun Technology Co., | January 25, 2023 | PRC | 100听% | Investment holding | ||||
Changzhou Higgs Intelligent | January 25, 2023 | PRC | 60听% | Industrial automatic | ||||
Changzhou Zhuyun Technology Co., | March 2, 2023 | PRC | 60听% | Equipment maintenance | ||||
VIE and subsidiaries of VIE* | ||||||||
Jiangsu EZGO Electronic | July 30, 2019 | PRC | VIE | Investment holding | ||||
Changzhou Hengmao Power Battery | May 5, 2014 | PRC |
| Sales of battery packs, | ||||
Changzhou Yizhiying IoT | August 21, 2018 | PRC |
| Development, operation | ||||
Jiangsu Cenbird E-Motorcycle | May 7, 2018 | PRC |
| Development of sales |
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* | The VIE and its subsidiaries are classified as discontinued operation (see Note 12). |
听
EZGO TECHNOLOGIES LTD.听
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS听
(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 November 8, 2039. The following is a summary of the contractual arrangements that provide EZGO with effective control of its VIE and VIE's subsidiaries and enable it to receive substantially all the economic benefits from their operations.
Each VIE Agreements is described below:
Proxy Agreement听
Pursuant to the Proxy Agreement, dated November 8, 2019, among WFOE, Jiangsu EZGO and each equity holder of Jiangsu EZGO, each equity holder irrevocably authorizes WFOE to exercise his or her rights as an equity holder of Jiangsu EZGO, including the right to attend equity holders' meetings, to exercise voting rights and to transfer all or a part of his or her equity interests therein pursuant to the Exclusive Call Option Agreement. During the term of Proxy Agreement, Jiangsu EZGO and all its equity holders may not terminate the agreements except when this agreement or applicable PRC laws provide otherwise.
Exclusive Call Option Agreement
Pursuant to the Exclusive Call Option Agreement, dated November 8, 2019, among WFOE, Jiangsu EZGO and the equity holders of Jiangsu EZGO, each equity holder of Jiangsu EZGO irrevocably granted WFOE an exclusive option to purchase, or to designate other persons to purchase, to the extent permitted by applicable PRC laws, rules, and regulations, all of the equity interest and assets in Jiangsu EZGO from each equity holder. The equity holders of Jiangsu EZGO agree that, without the prior written consent of WFOE, they will not dispose of their equity interests in Jiangsu EZGO or create or allow any encumbrance on their equity interests. The purchase price for the equity interest is to be the minimum permitted by applicable PRC laws, rules and regulations, or the amount that the equity holders actually pay to Jiangsu EZGO for the equity, whichever is lower. The purchase price for the assets is to be the minimum permitted by applicable PRC laws, rules and regulations, or the net book value of the assets, whichever is lower. The Exclusive Call Option Agreement expires when all the equity interest or all the assets are transferred pursuant to the agreement.
Exclusive Management Consulting and Technical Service Agreement ("EMCTSA")
Pursuant to the EMCTSA, dated November 8, 2019, between WFOE and Jiangsu EZGO, Jiangsu EZGO agrees to engage WFOE as its exclusive provider of management consulting, technical support, intellectual property license and relevant services, including all services within Jiangsu EZGO's business scope and decided by WFOE from time to time as necessary. Jiangsu EZGO shall pay WFOE service fees within three months after each fiscal year end. The service fees should be
听
EZGO TECHNOLOGIES LTD.听
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS听
(In
1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)
Equity Pledge Agreement
Pursuant to the Equity Pledge Agreement, dated November 8, 2019, among WFOE, Jiangsu EZGO and the equity holders of Jiangsu EZGO, the equity holders of Jiangsu EZGO pledged the
Loan Agreement
Pursuant to the Loan Agreement, dated November 8, 2019, WFOE agrees to provide Jiangsu EZGO with loans of different amounts with interest of
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.
听
EZGO TECHNOLOGIES LTD.听
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听
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 June 30, 2025, the Company entered into a funding support agreement with Mr. Shuang Wu, under which a line of credit of up to
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听
Effective on March 22, 2024, the Company effected a Reverse Share Split of all of the Company's ordinary shares at a ratio of 1-for-40 so that every forty (40) shares are combined into one (1) share (with the fractional shares rounding off to the nearest whole share). The par values and the authorized shares of the ordinary shares were adjusted as a result of the Reverse Share Split. All numbers of shares and per share data presented in the CFS and related notes have been retroactively restated to reflect the reverse share split stated above, refer to Note 15. The Company issued one full post-Reverse Share Split ordinary share to any shareholder who would have been entitled to receive a fractional share as a result of the process.
(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
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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 鈥� 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 March 31, 2024 and 2025, the Company recorded allowance for credit losses of
(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 September 30 of each year and in between annual tests when an event occurs or circumstances change that could indicate the asset might be impaired. The Company first has the option to assess qualitative factors to determine whether it is more likely than not that the FV of a reporting unit is less than it's carrying amount.
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
听
EZGO TECHNOLOGIES LTD.听
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS听
(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.
听
EZGO TECHNOLOGIES LTD.听
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS听
(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 September 30, 2024 and March 31, 2025, there is no warranty claim by customer and the Company did not accounted provision for warranty cost related to product quality issues in the unaudited condensed consolidated balance sheet as the Company believes that the likelihood of warranty claims is remote or immaterial, based on historical experience, the nature of the products, and other relevant factors.
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.
听
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 March 31, 2024 and 2025, respectively:
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 September 30, 2024 and March 31, 2025.
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鈥擲tock 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.
听
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 November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280)- Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which provides guidance on the enhanced disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, on an annual and interim basis. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of this guidance should be applied retrospectively to all prior periods presented. Early adoption is permitted. The Company, an emerging growth company, does not expect to adopt this guidance early and does not expect the adoption of this ASU to have a material impact on its future consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which requires disaggregated information about a reporting entity's effective tax rate reconciliation, as well as information related to income taxes paid to enhance the transparency and decision usefulness of income tax disclosures. The guidance is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company does not expect to adopt this guidance early and does not expect the adoption of this ASU to have a material impact on its future consolidated financial statements.
In March 2024, the FASB issued ASU No. 2024-02, Codification Improvements-Amendments to Remove References to the Concepts Statements ("ASU 2024-02"). The amendments in this Update affect a variety of Topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance. This update contains amendments to the Codification that remove references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references were used in prior statements to provide guidance in certain topical areas. ASU 2024-02 is effective for public business entities for fiscal years beginning after December 15, 2024. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2025. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company does not expect to adopt this guidance early and does not expect the adoption of this ASU to have a material impact on its future consolidated financial statements.
In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement 鈥� Reporting Comprehensive Income 鈥� Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03") which requires detailed disclosures in the notes to financial statements disaggregating specific expense categories and certain other disclosures to provide enhanced transparency into the nature and function of expenses. The FASB further clarified the effective date in January 2025 with the issuance of ASU 2025-01, Income Statement 鈥� Reporting Comprehensive Income 鈥� Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ("ASU 2025-01"). ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The requirements should be applied on a听prospective basis while retrospective application is permitted. The Group does not expect to adopt this guidance early and does not expect the adoption of this ASU to have a material impact on its future consolidated financial statements.
In March 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2025-02 "Liabilities (405): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 122" ("ASU 2025-02"), which amends the Accounting Standards Codification to remove the text of SEC Staff Accounting Bulletin ("SAB") 121 "Accounting for Obligations to Safeguard Crypto- Assets an Entity Holds for its Platform Users" as it has been rescinded by the issuance of SAB 122. ASU 2025-02 is effective immediately and is not expected to have an impact on the Group's financial statements.
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.
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
3. ACQUISITION
Acquisition of Changzhou Sixun
On January 25, 2023, the Company completed the acquisition of Changzhou Sixun through an equity transfer agreement with certain "non-
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 March 31, 2024 and 2025, the Company recognized
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
4. ACCOUNTS RECEIVABLE, NET
As of September 30, 2024 and March 31, 2025, accounts receivable and allowance for credit losses consisted of the following:
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 September 30, 2024 and March 31, 2025, the overdue accounts receivable, net of allowance for credit losses,听ageing between 180 days and one year were
The movement is the allowance for credit losses for the six months ended March 31, 2024 and 2025:
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 March 31, 2024 and 2025, the Company recorded credit losses of
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
5. INVESTMENTS
As of September 30, 2024 and March 31, 2025, investments consisted of the following:
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 | ||||
听
(1) | In March 2023, the Company acquired |
(2) | In September 2022, the Company acquired |
The movement of the carrying amount of long-term investment was as follows for the six months ended March 31, 2024 and 2025:
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 March 31, 2025, equity method investments held by the Company individually have not met the significance criteria as defined under Rule 10-01(b)(1) of Regulation S-X.
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
6. INVENTORIES, NET
As of September 30, 2024 and March 31, 2025, inventories and reserve of inventories consisted of the following:
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 | ||||
听
(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 March 31, 2024 and 2025:
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 March 31, 2024 and 2025, provisions for inventories of
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
7. ADVANCES TO SUPPLIERS
As of September 30, 2024 and March 31, 2025, advances to suppliers consisted of the following:
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.听PROPERY, PLANT AND EQUIPMENT, NET
As of September 30, 2024 and March 31, 2025, property, plant and equipment, net consisted of the following:
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 | ||||
听
(1) | Addition of |
For the six months ended March 31, 2024 and 2025, depreciation expenses were
9. OTHER NON-CURRENT ASSETS
As of September 30, 2024 and March 31, 2025, other non-current assets consisted of the following:
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 | ||||
听
(1) | The balance is the long-term security deposit to the Bureau of Finance in Wujin Technology Industrial District |
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
10. BORROWINGS
As of September 30, 2024 and March 31, 2025, the bank borrowings were for working capital and capital expenditures. Borrowings consisted of the following:
Creditor | Interest | Borrowing | Maturity | As of | As of | |||||||||||
(Unaudited) | ||||||||||||||||
Bank of Jiangsu (1) | 5.80 | % | 1/25/2024 | 1/25/2025 | 113,999 | - | ||||||||||
Bank of Jiangsu (2) | 3.30 | % | 8/30/2024 | 8/27/2025 | 997,492 | 964,626 | ||||||||||
Bank of Jiangsu (3) | 3.80 | % | 12/19/2023 | 12/15/2024 | 569,995 | - | ||||||||||
Bank of Jiangsu (3) | 3.30 | % | 12/15/2024 | 9/3/2025 | - | 551,215 | ||||||||||
Bank of Nanjing (4) | 3.50 | % | 9/11/2024 | 9/9/2025 | 712,494 | 689,018 | ||||||||||
Agricultural Bank of China (5) | 3.20 | % | 6/26/2024 | 6/16/2025 | 1,424,989 | 1,378,037 | ||||||||||
Agricultural Bank of China (6) | 3.05 | % | 12/29/2023 | 12/21/2024 | 1,367,989 | - | ||||||||||
Total short-term borrowings | $ | 5,186,958 | $ | 3,582,896 | ||||||||||||
Bank of Jiangnan (7) | 4.80 | % | 6/25/2022 | 6/30/2025 | 634,120 | 1,413,866 | ||||||||||
Total long-term borrowings, current | $ | 634,120 | $ | 1,413,866 | ||||||||||||
Bank of Jiangnan (7) | 4.80 | % | 6/25/2022 | 6/21/2030 | 3,925,844 | 2,995,853 | ||||||||||
Bank of Jiangnan (7) | 4.80 | % | 11/15/2023 | 6/21/2030 | 1,823,985 | 1,763,887 | ||||||||||
Bank of Jiangnan (7) | 4.80 | % | 7/18/2024 | 6/21/2030 | 984,667 | 952,223 | ||||||||||
Bank of Jiangnan (7) | 4.80 | % | 2/6/2024 | 6/21/2030 | 726,744 | 702,799 | ||||||||||
Total long-term borrowings, non-current | $ | 7,461,240 | $ | 6,414,762 | ||||||||||||
Total borrowings | $ | 13,282,318 | $ | 11,411,524 | ||||||||||||
听
(1) | On December 14, 2022, Changzhou EZGO obtained a revolving line of credit of |
(2) | On August 30, 2024, Changzhou EZGO obtained a non-revolving loan of |
(3) | On December 19, 2023, Changzhou Higgs obtained a non-revolving loan of |
(4) | On September 11, 2024, Changzhou EZGO entered a non-revolving loan facility of |
听
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
10. BORROWINGS (CONTINUED)
(5) | On June 26, 2024, Changzhou EZGO obtained a non-revolving loan of |
(6) | On December 29, 2023, Jiangsu Supply Chain obtained a non-revolving loan of |
(7) | On June 25, 2023, Jiangsu New Energy obtained a 7-year loan facility of up to |
听
Repayment date听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听听 | Repayment | |||
6/30/2025听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 听 | $ | 613,227 | ||
12/31/2025 | 800,639 | |||
6/30/2026 | 800,639 | |||
12/31/2026 | 802,017 | |||
6/30/2027 | 802,017 | |||
12/31/2027 | 802,017 | |||
6/30/2028 | 802,017 | |||
12/31/2028 | 802,017 | |||
6/30/2029 | 802,017 | |||
12/31/2029 | 802,021 | |||
For the six months ended March 31, 2024 and 2025, the Company recorded interest expenses of
听
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 March 31, 2024 and 2025:
Name | Relationship | |
(a) Shuang Wu | The Legal Representative of Jiangsu New Energy | |
(b) Yan Fang | Non-controlling shareholder of Cenbird E-Motorcycle | |
(c) Jianhui Ye | Chief Executive Officer and a significant | |
(d) Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. | Yan Fang, a non-controlling shareholder of | |
(e) Jiangsu Xinzhongtian Suye Co., Ltd. | Yuxing Liu, the spouse of Yan Fang, serves as | |
(f) Shenzhen Star Asset Management Co., Ltd. | General Partner of Xinyu Star Assets | |
(g) Shenzhen Star Cycling Network Technology Co., Ltd. | Equity investments with | |
(h) Nanjing Mingfeng Technology Co., Ltd. | Equity investments with | |
(i) Shandong Xingneng'an New Energy Technology Co., Ltd. | Equity investments with | |
(j) Jiangsu Youdi Technology Co., Ltd. | Equity investments with | |
(k) Shanghai Mingli New Energy Technology Co., Ltd. | Equity investments with |
Amounts due from related parties
As of September 30, 2024 and March 31, 2025, amounts due from related parties consisted of the following:
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 | ||||||
Jianhui Ye (c)(3) | 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 | ||||
听
(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 September 29, 2026. |
听
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 September 30, 2024 and March 31, 2025, amounts due to related parties consisted of the following:
As of | As of | |||||||
(Unaudited) | ||||||||
Jiangsu Xinzhongtian Suye Co., Ltd. (e) (1)&(2)听 | $ | 418,201 | $ | 1,170,455 | ||||
Shuang Wu (a) (2)&(3) | 1,127,877 | 886,638 | ||||||
Yan Fang (b) (2) | 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 | ||||
听
(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. |
听
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 March 31, 2024 and 2025, the Company had the following material related party transactions:
Related Parties | Nature | Six months ended | ||||||||
2024 | 2025 | |||||||||
(Unaudited) | (Unaudited) | |||||||||
Inventory purchased from related parties | ||||||||||
Jiangsu Xinzhongtian Suye Co., Ltd. (e)听 | 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 | |||||
Shuang Wu (a) | Interest-free loan from a related party | 80,000 | 389,893 | |||||||
Yan Fang (b) | 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 | ||||||||||
Shuang Wu (a) | 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 | |||||||
Yan Fang (b) | Repayment of interest-free loans from a | 81,872 | - | |||||||
Total repayment of loans from听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 | ||||||||||
Shuang Wu (a) | Reimbursement for expenses paid for | $ | 69 | $ | - | |||||
$ | 69 | $ | - | |||||||
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
12. DISCONTINUED OPERATIONS听
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 March 30, 2025, the Company's Board of Directors approved this disposal of Jiangsu EZGO and its subsidiaries. The disposal is expected to be executed through a sale transaction and is anticipated to be completed within 12 months from the date of approval by the Board of Directors. The VIE and subsidiaries mainly operated in sales of e-bicycles business in PRC. The disposal of the sales of e-bicycles business represented strategic shifts of the Company that had a major impact on the Company's financial results, and met the held-for-sale criteria, which trigger discontinued operations accounting in accordance with ASC 205-20-45. Therefore, the historical financial results of the sales of e-bicycles business were classified as discontinued operation and the related assets and liabilities associated with the discontinued operations of the prior year were reclassified as assets/liabilities held for sale to provide comparable financial information.
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.听
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 | ||||||
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
12. DISCONTINUED OPERATIONS听(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: | ||||||||
听 听 听 听Selling and marketing | (157,904) | (84,274) | ||||||
听 听 听 听General and administrative | (1,227,262) | (111,527) | ||||||
听 听 听 听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): | ||||||||
听 听 听 听 Interest expenses | (5,542) | (12,969) | ||||||
听 听 听 听 Interest income | 16,494 | 12,261 | ||||||
听 听 听 听 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 | ||||||
听
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 March 21, 2018, the HK Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the "Bill") which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was announced on the following day. Under the two-tiered profits tax rates regime, the first
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
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
According to Caishui [2021] No.13, announcement of the Ministry of Finance and the State Taxation Administration, which became effective from January 1, 2021, an enterprise engaged in manufacturing business and whose main operating revenue accounts for more than
For qualified small and low-profit enterprises, from January 1, 2022 to December 31, 2022,
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 | ||||
听
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听PRC EIT Law imposes a
As of September 30, 2024 and March 31, 2025, the Company had not recorded any withholding tax on the retained earnings of its foreign invested enterprises in the PRC, since the Company intends to reinvest its earnings to further expand its business in PRC, and its foreign invested enterprises do not intend to declare dividends to their immediate foreign holding companies.
For the six months ended March 31, 2024 and 2025, the effect of income tax rate differences in jurisdictions other than the PRC mainly resulted from the loss in EZGO, which is incorporated in BVI and is not subject to income or capital gains taxes. The effective tax rates are
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 September 30, 2024 and March 31, 2025 was as follows:
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 | ||||
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
听
13. INCOME TAXES (CONTINUED)
For the six months ended March 31, 2024 and 2025, the Company accrued valuation allowance for deferred tax assets of nil and nil, respectively, for which the Company concluded it is more likely than not that these net operating losses would not be utilized in the future. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Company's experience with tax attributes expiring unused and tax planning alternatives. Valuation allowances have been established for deferred tax assets based on a more-likely-than-not threshold.
Accounting for uncertainty tax position
The Company did not identify significant unrecognized tax benefits for the six months ended March 31 2024 and 2025. The Company did not incur any interest and penalties related to potential underpaid income tax expenses. In general, the PRC tax authority has up to five years to conduct examinations of the Company's tax filings. Accordingly, the tax years from 2019 to 2024 of the Company's PRC subsidiaries and VIE and subsidiaries of the VIE remain open to examination by the taxing jurisdictions. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months.
14. SHARE-BASED COMPENSATION
EZGO Technologies Ltd. Incentive Plan (the "EZGO 2022 Plan")
On August 6, 2022, the Board of Directors of EZGO approved the EZGO 2022 Plan. As of September 30, 2024, there was no unvested share under the EZGO 2022 plan. Please refer to the Note 19: Share-based Compensation in the Company's Annual Report on Form 20-F for the year ended September 30, 2024.
EZGO Technologies Ltd. 2025 Equity Incentive Plan (the "EZGO 2025 Plan")
On February 18, 2025, the Board of Directors of EZGO approved the EZGO 2025 Plan. On February 18, 2025, 500,000 restricted shares with 12-month service condition were granted to management under the EZGO 2025 plan, which shall vest after first anniversary of date of grant.
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 March 31, 2025 is as follow:
Number of | Weighted | |||||||
Unvested as of September 30, 2024 | - | |||||||
Granted | 500,000 | 0.51 | ||||||
Vested | - | |||||||
Unvested as of March 31, 2025 | 500,000 | 0.51 | ||||||
As of March 31, 2025, there was unrecognized share-based compensation expenses of
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
听
15. EQUITY
(a) Ordinary shares
The Company was established under the laws of the BVI on January 24, 2019.
On April 12, 2024, the Company effected a reverse share split (the "Reverse Share Split") of the Company's ordinary shares at a ratio of 1-for-40 so that every forty shares are combined into one share (with the fractional shares rounding off to the nearest whole share). All numbers of shares and per share data presented in the unaudited interim condensed consolidated financial statements and related notes have been retroactively restated to reflect the reverse share split stated above.
(b) Statutory reserve and restricted net assets
The Company's PRC subsidiaries are required to reserve
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 September 2023, 8,498,125 common warrants were granted to investors in the Company's public offering with each common warrant to purchase four exchange warrants, by which the investors can purchase up to 33,992,500 ordinary shares at
On April 29, 2024, the Company was named as defendant in a lawsuit in the Supreme Court for the
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
15. EQUITY (CONTINUED)
As of March 31, 2025, there were no Exchange Warrant granted to investors left unexercised.
Following table summarizes the movement of warrant activities during the six months ended March 31, 2024 and 2025, respectively:
Ordinary | Weighted | Contractual | Intrinsic | |||||||||||||
Exchange Warrants Outstanding as of September 30, 2023 | 7,899,412 | $ | 1.13 | 2.95 | $ | - | ||||||||||
Exchange Warrants Exercisable as of September 30, 2023 | 7,899,412 | 1.13 | 2.95 | - | ||||||||||||
Common Warrants Outstanding as of September 30, 2023 | 8,498,125 | 1.13 | 2.95 | - | ||||||||||||
Common Warrants Exercisable as of September 30, 2023 | 8,498,125 | 1.13 | 2.95 | - | ||||||||||||
Exchange Warrants Granted | - | - | - | - | ||||||||||||
Exchange Warrants Exercises | - | - | - | - | ||||||||||||
Exchange Warrants Forfeited | - | - | - | - | ||||||||||||
Exchange Warrants Expired | - | - | - | - | ||||||||||||
Exchange Warrants Outstanding as of March 31, 2024 | 7,899,412 | 1.13 | 2.45 | - | ||||||||||||
Exchange Warrants Exercisable as of March 31, 2024 | 7,899,412 | 1.13 | 2.45 | - | ||||||||||||
Common Warrants Outstanding as of March 31, 2024 | 8,498,125 | 1.13 | 2.45 | - | ||||||||||||
Common Warrants Exercisable as of March 31, 2024 | 8,498,125 | 1.13 | 2.45 | - | ||||||||||||
听
(c) Warrants
Ordinary | Weighted | Contractual | Intrinsic | |||||||||||||
Exchange Warrants Outstanding as of September 30, 2024 | 3,000,000 | $ | 1.62 | 0.33 | $ | - | ||||||||||
Exchange Warrants Exercisable as of September 30, 2024 | 3,000,000 | 1.62 | 0.33 | - | ||||||||||||
Common Warrants Outstanding as of September 30, 2024 (1) | 5,389,126 | 1.78 | 1.95 | - | ||||||||||||
Common Warrants Exercisable as of September 30, 2024 (1) | 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 March 31, 2025 | - | - | - | - | ||||||||||||
Exchange Warrants Exercisable as of March 31, 2025 | - | - | - | - | ||||||||||||
Common Warrants Outstanding as of March 31, 2025 (1) | 5,389,126 | 1.78 | 1.45 | - | ||||||||||||
Common Warrants Exercisable as of March 31, 2025 (1) | 5,389,126 | 1.78 | 1.45 | - | ||||||||||||
听
(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 March 31, 2025, the Company's non-controlling interests included a
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
16. COMMITMENTS AND CONTINGENCIES
Commitments
On May 25, 2023, the Company entered into a construction contract of
In May 2023, the Company entered into procurement agreements for production equipment, scheduled to be installed and operational following the completion of the ongoing construction project. As stipulated in the contracts, is obligated to make an upfront payment of
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 October 21, 2019, Anruida commenced an action against Hengmao Power Battery in Changzhou Wujin District Intermediate People's Court alleging that Hengmao Power Battery defaulted on the contract payment of
On January 6, 2020, Titans commenced an action against Hengmao Power Battery in Changzhou Wujin District Intermediate People's Court alleging that Hengmao Power Battery defaulted on the payment of
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.
听
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鈥攅xcluding the e-bicycle sales segment, which is disclosed as a discontinued operation for the six months ended March 31, 2024, and 2025:
Six months Ended March 31, 2024 | ||||||||||||||||
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 March 31, 2025 | ||||||||||||||||
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 | % | ||||||||
听
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 March 31, 2024 and 2025:
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) | ||||||
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
18. CONCENTRATIONS
Concentrations of credit risk
As of September 30, 2024 and March 31, 2025 cash, cash equivalents and restricted cash balances in the PRC was
Concentrations of customers
The following table sets forth information as to each customer that accounted for
As of September 30, | As of March 31, 2025 | |||||||||||||||
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 |
听
The following table sets forth information as to each customer that accounted for
As of September 30, | As of March 31, 2025 | |||||||||||||||
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 |
听
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
Six months ended March 31, | ||||||||||||||||
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 |
Concentrations of suppliers
The following table sets forth information as to each supplier that accounted for
As of September 30, | As of March 31, 2025 | |||||||||||||||
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 |
听
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
As of September 30, | As of March 31, 2025 | |||||||||||||||
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 |
The following table sets forth information as to each supplier that accounted for
Six months ended March 31, | ||||||||||||||||
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 |
听
EZGO TECHNOLOGIES LTD.
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
19. SUBSEQUENT EVENTS听
On December 30, 2024, the Company received notification from the Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that the minimum closing bid price per share for its ordinary shares, par value
On March 14, 2025, Changzhou EZGO and Jiangsu Yiwo Investment Co., Ltd. ("Jiangsu Yiwo") entered into an Equity Investment Agreement, pursuant to which Jiangsu Yiwo was approved to make a capital contribution of
The Company performed an evaluation of subsequent events through July 1, 2025, which was the date of the issuance of the unaudited interim condensed consolidated financial statements , and determined there were no other events that would have required adjustment or disclosure in the unaudited interim condensed consolidated financial statements.
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
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