Business
EZGO ANNOUNCES FINANCIAL RESULTS FOR THE SIX MONTHS ENDED MARCH 31, 2023
CHANGZHOU, China, Aug. 7, 2023 /PRNewswire/ -- EZGO Technologies Ltd. (Nasdaq: EZGO) ("EZGO" or "we", "our", or the "Company"), a leading short-distance
About this update from Ezgo Technologies Ltd.
[{"type":"text","content":"CHANGZHOU, China, Aug. 7, 2023 /PRNewswire/ -- EZGO Technologies Ltd. (Nasdaq: EZGO) (\"EZGO\" or \"we\", \"our\", or the \"Company\"), a leading short-distance transportation solutions provider in China, today announced its unaudited financial results for the six months ended March 31, 2023.\nFinancial Highlights (all results compared to the prior year period unless otherwise noted)\nRevenues were $5.2 million, a decrease of 14.4%Units sold of e-bicycle reached 20,479, a decrease of 21.1%Units sold of batteries and battery packs reached 8,964, a decrease of 24.2%Gross margin was 3.5%, compared with 4.7%Net loss was $5.0 million, compared with $2.7 millionThe Company has cash and cash equivalents of approximately $2.3 million at March 31, 2023, compared to approximately $4.4 million at September 30, 2022Management Commentary\nFor the six months ended March 31, 2023, mainland China experienced a transition from strict control of the COVID-19 pandemic to a full deregulation. Right after the full deregulation, most of the population was infected with the COVID-19 virus. Most industries nearly came to a halt in operations from late November 2022 to early January 2023, gradually returning to normal operations during China's 2023 Spring Festival in late January 2023. During this period, the production and business activities in all departments of the Company were severely impacted, resulting in a decline in our semi-annual revenue compared to the same period last year and an increase in losses.\nIn addition to macroeconomic factors, increased competition in the e-bicycles industry, after business constraints were eased in China also led to a significant decline in sales of our products and gross profit in February and March 2023. Two of our major competitors also initiated a new round of price cuts resulting in even greater downward pressure on our product sales.\nBased on management's assessment of macroeconomics and industrial competition, along with our own resource endowment, management has adjusted our business strategies as follows: (i) we halted the production of low and middle-end products and focused on the design, development, and production of mid-to-high-speed electric motorcycles through joint ventures or partnerships; (ii) we further enhanced the development and market promotion of lithium battery products for low-speed ...