EZGO Technologies Ltd (NASDAQ: EZGO) reported improved financial performance for the six months ended March’2021. The company reported a net loss of $0.3 million, as compared to the loss of $0.6 million in the corresponding period last year.
Revenue growth was supported by higher volume.
During the six months ended March’21, EZGO Technologies reported a substantial increase in revenue, primarily supported by higher volume. Revenue during the period increased by 74.3% compared to the six months ended March’20, primarily driven by 96.6% year on year increase in sales volume, as demand grew sharply. The total unit sold stood at 34,069 (e-bicycle). The benefit of the same was partially offset by the decline in the rental revenue (declined 62.3%). Gross margin improved marginally by 10 bps to 9.7%, as sales of e-bicycle (has better margin) accounted for a larger portion of revenue. Despite the strong revenue and marginal improvement in the gross margin, the company reported loss but narrowed compared to the previous year.
IPO proceeds led to an increase in cash balance
EZGO Technologies reported a sharp increase in overall cash balance at the end of March’21 to $7.1 million, as against $0.3 million in September’20, which was supported by the Initial Public Offerings (IPO) in January’21. With the sharp increase in cash and cash equivalents, the company would increase its investment in research and development in the coming months.
New products and marketing efforts to drive growth
EZGO Technologies will be focussed on utilising its capacity to the optimum level and launching a new product. The company has introduced 15 new products (two wheeled e-bicycles, leisure e-tricycles and mopeds) over the last six months. The company focuses on investing in research and development to integrate their expertise of battery with IoT technology, and is expected to improve company’s performance in the time to come.