Ezagoo Ltd, a company specializing in e-commerce trading and value-added services through WeChat applications, has released its Form 10-Q report for the third quarter of 2025. The report provides a detailed overview of the company's financial performance and operational highlights, reflecting both challenges and strategic focuses in the current fiscal year.
Financial Highlights
Revenues: $67,037,000, reflecting a decrease from $105,699,000 for the nine months ended September 30, 2024, primarily due to a decline in commission income from LSM.
Gross (Loss) Profit: $(6,383,000), compared to $1,295,000 for the nine months ended September 30, 2024, indicating a shift to a gross loss due to higher costs of revenues.
Operating Loss: $(416,795,000), slightly improved from $(432,402,000) for the nine months ended September 30, 2024, due to reduced operating expenses.
Net Loss: $(332,448,000), compared to $(396,932,000) for the nine months ended September 30, 2024, reflecting a decrease in net loss primarily due to other income.
Weighted Average Number of Common Shares Outstanding – Basic and Diluted: 119,956,826, consistent with the previous period.
Business Highlights
Revenue Segments: The company generated revenue from three main sources: e-commerce trading of goods and products on the ZCZX WeChat Application, e-commerce value-added services in the LSM WeChat Application, and travel planning services. The trading income from e-commerce business was $67,037 for the nine months ended September 30, 2025.
Operational Focus: The company is focusing on the operation of the ZCZX and LSM WeChat applications, which are key platforms for their e-commerce activities.
Cost Structure: Costs of revenues include costs of goods sold, sales commissions, and salaries related to the e-commerce trading of health and beauty products on the ZCZX WeChat application. The company is managing these costs to align with its operational focus.
Sales and Marketing Expenses: The main components of sales and marketing expenses include compensation for employees engaged in sales and marketing, as well as spending on advertising and promotional activities to support services and the Xindian platform.
General and Administrative Expenses: These expenses include compensation for employees in finance, human resources, and other administrative functions, as well as professional services fees and office expenses.
Future Outlook: The company is dependent on improving profitability and continuing financial support from its stockholders to sustain operations. Management believes that existing shareholders or external financing will provide additional cash to meet obligations as they become due.
VIE Structure: The company operates under a Variable Interest Entity (VIE) structure to comply with PRC laws, allowing it to exercise control over Beijing Ezagoo Zhicheng Internet Technology Limited and its branch, ensuring it receives economic benefits and absorbs risks.
SEC Filing: