EZGO secures $1.84M deal for security robots in China

CHANGZHOU, China - EZGO Technologies Ltd. (NASDAQ:EZGO), a provider of short-distance transportation solutions, has announced a procurement agreement with Hangzhou Huiyu Zhichuang Industrial Co., Ltd., a subsidiary of the Huiyu Holdings Group.

The deal, valued at approximately $1.84 million (13.46 million RMB), involves the sale of twelve security patrol robots and one intelligent patrol platform for use in an industrial park in Hangzhou, Zhejiang.

The company has committed to deliver and install these high-tech security robots, equipped with features such as self-navigation, live video streaming, and face detection, within nine months. These robots are intended to enhance security measures at the Huiyu Intelligent Innovation Park, which spans over 189,564 square meters and is designed to house digital economy enterprises.

EZGO's Chairman and CEO, Mr. Jianhui Ye, expressed confidence in the agreement's potential to foster ongoing business with Huiyu Group and to secure sustained orders and sales. This sale follows a previous successful delivery of ten robots to PIESAT Information Technology Co., Ltd. in September 2023.

Mr. Ye highlighted the transaction as a testament to EZGO's strong research and development capabilities and its strategic marketing efforts aimed at diversifying its customer base.

EZGO Technologies, leveraging IoT platforms and two e-bicycle brands, "EZGO" and "Cenbird," has established a business model that includes the design, manufacturing, and sale of electric vehicles, intelligent robots, and related accessories.

The information provided is based on a press release statement from EZGO Technologies Ltd.

EZGO Technologies Ltd. stands as a compelling case study in the realm of short-distance transportation solutions, as evidenced by its recent procurement agreement. To further understand EZGO's financial health and market position, let's delve into some key metrics and insights from InvestingPro.

InvestingPro Data highlights that EZGO has a market capitalization of $4.01 million, which is relatively small, indicating a potential high-risk, high-reward investment opportunity. The company's Price / Book ratio, as of the last twelve months ending Q4 2023, is notably low at 0.1, suggesting that the stock might be undervalued relative to its assets. However, a cause for concern is the negative revenue growth of -8.45% over the same period, which could signal challenges in the company's ability to increase sales.

Amidst this financial backdrop, InvestingPro Tips provide a nuanced perspective. EZGO is trading at a low Price / Book multiple, which could attract investors looking for undervalued stocks. Additionally, the company holds more cash than debt, providing some financial stability. On the flip side, EZGO is quickly burning through cash and has been experiencing weak gross profit margins of 7.16%, which could be a red flag for its operational efficiency.

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Investors considering EZGO should note that the stock has been subject to high price volatility, with the price having fallen significantly over the last year, including a -96.41% return. This volatility is further underscored by the fact that the stock is trading near its 52-week low, with the price at just 2.18% of its 52-week high.

For those seeking a more comprehensive analysis, InvestingPro offers additional tips on EZGO. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a total of 17 InvestingPro Tips for EZGO, providing deeper insights into the company's performance and prospects.

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