Ezagoo Limited, a Nevada-based company, reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenues of $125.2 million, down from $166.4 million in 2023. The decrease in revenue was primarily attributed to the cessation of operations for its LSM WeChat application and a reduction in commission income, which fell to $6.1 million from $47.1 million the previous year. The company’s net loss also decreased to $585,330 from $907,126, reflecting reduced operational costs, particularly in salaries.
The company underwent notable strategic changes during the fiscal year, including the decision to shut down its Xindian application in April 2023 due to high competition and unsatisfactory operating data. This decision was part of a broader strategy to focus on its ZCZX WeChat application, which has been generating the majority of its trading income. As of December 31, 2024, Ezagoo had a working capital deficit of $3.57 million, an increase from $3.15 million in the previous year, indicating ongoing liquidity challenges.
Operationally, Ezagoo's employee count remained stable at 28, with all employees based in Beijing and Changsha. The company aims to expand its user base significantly, targeting over 500 million users across 300 cities in Mainland China within the next three to five years. However, the company faces intense competition from established players like TikTok and RED, which could hinder its growth prospects. The filing also noted that the company has not experienced any material cybersecurity incidents, although it has implemented measures to manage cybersecurity risks.
Looking ahead, Ezagoo's management expressed concerns about its ability to continue as a going concern, emphasizing the need for additional capital to support operations and growth. The company plans to enhance its marketing efforts and improve its operational efficiency to attract more users and customers. However, the ongoing economic conditions in China, including the impact of the COVID-19 pandemic and regulatory challenges, pose significant risks to its future performance. The company has not paid dividends and does not anticipate doing so in the near future, as it intends to retain earnings for business expansion.
About Ezagoo Ltd
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