Autozi Internet Technology (Global) Ltd. Reports First Half Fiscal Year 2025 Financial Results

Rhea-AI Summary

Autozi (NASDAQ:AZI), a leading Chinese automotive service provider, reported mixed H1 FY2025 financial results. Revenue surged 65.9% year-over-year to US$79.9 million, primarily driven by auto parts and accessories sales, which now represent 98.7% of total revenue, up from 48.5% in the prior year.

While gross profit improved to US$1.4 million with margin expansion to 1.7% from 0.2%, operating loss widened to US$8.1 million due to one-off financing costs and share-based compensation. Net loss increased 11.6% to US$5.3 million. The company faces substantial going concern issues with an accumulated deficit of US$134.8 million and negative working capital of US$19.0 million.

Strategically, Autozi is focusing on electrification and servicization through three pillars: capitalization, digitalization, and globalization.

Positive

• Revenue grew significantly by 65.9% YoY to US$79.9 million
• Auto parts and accessories business expanded to 98.7% of total revenue
• Gross profit increased to US$1.4 million with margin improvement to 1.7%
• Gained US$4.4 million from favorable litigation outcome
• Strategic shift towards higher-margin auto parts and EV components business

Negative

• Operating loss widened significantly to US$8.1 million from US$2.1 million
• Net loss increased 11.6% to US$5.3 million
• Accumulated deficit of US$134.8 million and negative working capital of US$19.0 million
• Substantial going concern issues raised by auditors
• Operating expenses surged 336.9% to US$9.5 million

Insights

Financial Analyst

Autozi achieved 66% revenue growth but faces concerning losses and a going concern warning that threatens its survival.

Autozi's H1 FY2025 results present a mixed financial picture with significant strategic shifts. Revenue jumped 65.9% to $79.9 million, driven by the company's strategic pivot to auto parts and accessories, which now represent 98.7% of total revenue compared to 48.5% a year ago. This dramatic business model transformation has yielded some positive results, with gross profit increasing to $1.4 million from just $0.1 million and gross margin improving to 1.7% from 0.2%.

However, beneath these improvements lie serious concerns. Operating losses widened substantially to $8.1 million from $2.1 million, with operating expenses ballooning 336.9% to $9.5 million. While management attributes part of this increase to one-time financing costs and non-cash share-based compensation, the magnitude is troubling. Net loss increased 11.6% to $5.3 million.

Most alarming is the explicit going concern warning. With an accumulated deficit of $134.8 million and negative working capital of $19.0 million, Autozi's auditors have raised substantial doubt about its ability to continue operations. Management's remediation plans—seeking extensions on debt obligations, improving operational efficiency, and raising additional capital—acknowledge the severity of the situation but provide no guarantees.

The company's strategic vision focusing on EV components and building a "next-generation automotive supply chain service platform" sounds promising but requires significant capital to execute—capital the company is struggling to secure. Despite the impressive revenue growth, Autozi faces a fundamental challenge: it's burning through cash faster than it can generate profits, creating an unsustainable financial trajectory that threatens its long-term viability.

BEIJING, Sept. 5, 2025 /PRNewswire/ -- Autozi Internet Technology (Global) Ltd. ("Autozi" or the "Company") (Nasdaq: AZI), one of the leading and fast-growing lifecycle automotive service providers in China, today announced its unaudited financial results for the six months ended March 31, 2025.

First Half of Fiscal Year 2025 Financial Highlights

• Total revenues increased 65.9% year-over-year to US$79.9 million, compared with US$48.1 million in the same period of fiscal year 2024, driven by strong growth in auto parts and accessories sales.
• Gross profit improved to US$1.4 million, compared with US$0.1 million in the same period of fiscal year 2024, with gross margin rising to 1.7% from 0.2%.
• Operating loss widened to US$8.1 million, compared with US$2.1 million in the same period of fiscal year 2024. The increased operating expenses in the first half of fiscal year 2025 included certain one-off and non-cash expenses, such as expenses related to financing activities and share-based compensations.
• Net loss was US$5.3 million, an increase of 11.6% from a net loss of US$4.7 million in the same period of fiscal year 2024.

Chairman's Letter to Shareholders

Dear Shareholders,

The first half of fiscal year 2025 was a pivotal period for Autozi as we continued to reshape our business and strengthen the foundation for sustainable, long-term growth. Our strategy has been clear: concentrate resources on the auto parts and accessories business, a business where we see scale, resilience, and long-term value creation, while deliberately scaling down lower-margin business including new car sales and insurance.

This disciplined focus has already delivered tangible results. Our revenues increased by nearly 66% year-over-year, driven almost entirely by the rapid expansion of our core auto parts and accessories business, which grew to represent 98.7% of total revenues in the first half of fiscal year 2025 compared with 48.5% in the prior-year period. This dramatic shift in business mix underscores the effectiveness of our strategic repositioning and highlights the growing importance of our auto parts and accessories platform.

We also made meaningful progress in improving our profitability. Gross profit increased significantly from the prior year, and gross margin expanded as the revenue contribution from the higher-margin auto parts and accessories business increased. While operating expenses were higher, a substantial portion of the increase stemmed from one-time financing costs and non-cash share-based compensation. Excluding these items, our underlying loss narrowed considerably, reflecting stronger operational discipline and a higher-quality margin profile.

These results have given us the confidence to move forward decisively with our long-term strategic vision, which rests on two major directions. The first is electrification. As electric vehicle sales in China have already surpassed those of fuel-powered cars, we see enormous potential in aligning Autozi with this structural shift by developing capabilities in EV core components. The second is servicization. We are building a next-generation automotive supply chain service platform anchored by three pillars:

• Capitalization: leveraging our status as a public company to partner with and support high-quality enterprises across the automotive value chain;
• Digitalization: applying technology to enhance supply chain efficiency, visibility, and scalability for our partners and customers;
• Globalization: expanding beyond China to help leading Chinese brands compete on the global stage, while broadening Autozi's revenue base and exposure to international markets.

Together, these two strategic directions provide a powerful roadmap for Autozi's evolution. They will enable us to move into higher-margin, innovation-driven businesses while developing recurring service revenues, creating a more resilient and scalable business model that we believe will drive lasting shareholder value.

We recognize that the road ahead will include challenges. Like many growth companies, we continue to face near-term pressures on profitability and liquidity. However, we are addressing these challenges with urgency and discipline. By focusing on our core strengths, improving efficiency, and executing on well-defined strategic initiatives, I am confident that Autozi is well-positioned to navigate short-term volatility while advancing toward long-term value creation.

On behalf of the Board of Directors and the management team, I extend my deepest gratitude to our shareholders, employees, and partners for their trust and support. Your vote of confidence motivates us to push forward with clarity and conviction. Together, we are building a stronger Autozi, one that will play a leading role in the innovation, globalization, and electrification of the automotive industry.

Dr. Houqi Zhang
Founder, Chairman, and Chief Executive Officer of Autozi

First Half of Fiscal Year 2025 Financial Results

Revenues

Revenues were US$79.9 million for the six months ended March 31, 2025, an increase of 65.9% or US$31.7 million compared with US$48.1 million in the same period of fiscal year 2024. The increase was primarily driven by a US$55.6 million increase in revenues from auto parts and accessories sales, which accounted for 98.7% of the Company's total revenues in the first half of fiscal year 2025 compared to 48.5% in the same period of fiscal year 2024, reflecting the Company's focus on this revenue stream. Higher procurement levels, particularly in lubricating oils, provided cost advantages and supported market expansion. This growth was partially offset by a combined US$23.9 million decline in revenues from new car sales and automotive insurance-related services, as the Company scaled down and temporarily suspended these lower-margin businesses in response to intensified market competition.

Cost of Revenues

Cost of revenues was US$78.5 million for the six months ended March 31, 2025, an increase of 63.5% or US$30.5 million from US$48.0 million in the same period of fiscal year 2024. The increase was mainly attributable to a US$54.3 million rise in costs related to auto parts and accessories sales as the Company further expanded this business, partially offset by a US$23.8 million reduction in costs associated with new car sales and automotive insurance-related services.

Gross Profit

Gross profit was US$1.4 million for the six months ended March 31, 2025, compared with US$0.1 million in the same period of fiscal year 2024. Gross margin improved to 1.7% from 0.2% a year ago. The year-over-year increase of US$1.2 million in gross profit was mainly attributable to a US$1.3 million improvement in auto parts and accessories margins, supported by larger procurement volumes and stronger bargaining power with upstream suppliers.

Operating Expenses

Operating expenses were US$9.5 million for the six months ended March 31, 2025, compared with US$2.2 million in the same period of fiscal year 2024, representing an increase of 336.9% or US$7.3 million. The increase was primarily due to a significantly higher revenue contribution from the auto parts and accessories business, which incurred higher selling and marketing expenses. In addition, the increase in operating expenses during the first half of fiscal 2025 also included certain one-off financing-related expenses and non-cash share-based compensation expenses..

• General and administrative expenses increased by 422.4% to US$7.3 million, compared with US$1.4 million in the prior-year period. The increase was driven by (i) a US$3.2 million increase in consulting and professional service fees, of which approximately US$2.7 million related to financing activities in February 2025 and other financing activities; and (ii) a US$1.9 million increase in share-based compensation for management and administrative personnel.
  
  
• Selling and marketing expenses rose by 332.7% to US$1.6 million, compared with US$0.4 million in the prior-year period. The increase was mainly attributable to US$0.7 million in share-based compensation for sales personnel and US$0.5 million in promotional and entertainment expenses as the Company expanded business development activities for its auto parts and accessories business.
  
  
• Research and development expenses were US$0.6 million, up 51.0% from US$0.4 million in the same period of 2024. The increase was primarily due to an additional US$0.3 million in share-based compensation for to recruite and maintain top research and development talents.

Other expenses or income, net

Other income, net was US$2.8 million for the six months ended March 31, 2025, compared with other expenses, net of US$2.7 million in the same period of fiscal year 2024. The year-over-year variance was primarily driven by a gain of US$4.4 million recognized following the favorable final judgment in litigation with Hunan Tianhuan Economic Development Co., Ltd., which released the Company from obligations to pay certain penalties and legal fees related to the repurchase of mezzanine equity. This gain was partially offset by a US$0.6 million increase in interest expenses associated with new financing obtained in February 2025.

Net loss

As a result of the foregoing, the Company recorded a net loss of US$5.3 million for the six months ended March 31, 2025, compared with a net loss of US$4.7 million in the same period of 2024.

Going Concern

For the six months ended March 31, 2024 and 2025, the Company incurred net loss of US$4.7 million and US$5.3 million, respectively. As of March 31, 2025, the Company had an accumulated deficit of US$134.8 million and negative working capital of US$19.0 million. These conditions raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the date that the unaudited condensed consolidated financial statements are issued.

The Company has funded the operations and capital needs primarily through the net proceeds received from capital contributions, bank borrowings and the initial public offering. To meet the cash requirements for the next 12 months from the issuance date of this interim financial information, the Company is undertaking a combination of the remediation plans:

(a) The Company is seeking an extension of liabilities including bank loans, convertible bonds and corresponding interests to be paid until the funding shortage issue is resolved.

(b) The Company is focusing on the improvement of operation efficiency, implementation of strict cost control and budget and enhancement internal controls to create synergy of the Company's resources.

(c) The Company plans to raise additional capital, including among others, obtaining debt and equity financing, to support our operating.

The management plan cannot alleviate the substantial doubt of the Company's ability to continue as a going concern. There can be no assurance that the Company will be successful in achieving strategic plans, that the future capital raises will be sufficient to support its ongoing operations, or that any additional financing will be available in a timely manner or with acceptable terms, if at all. If the Company is unable to raise sufficient financing or events or circumstances occur such that the Company does not meet the strategic plans, or that it is unsuccessful in increasing profit and reducing operating losses, it would have a material adverse effect on the Company's financial position, results of operations, cash flows, and ability to achieve intended business objectives.

The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Accordingly, the unaudited condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business.

About Autozi Internet Technology (Global) Ltd.

Autozi Internet Technology (Global) Ltd. is a leading, fast-growing provider of lifecycle automotive services in China. Founded in 2010, Autozi offers a comprehensive range of high-quality, affordable, and professional automotive products and services through both online and offline channels across the country. Leveraging its advanced online supply chain cloud platform and SaaS solutions, Autozi has built a dynamic ecosystem that connects key participants across the automotive industry. This interconnected network enables more efficient collaboration and streamlined processes throughout the entire supply chain, positioning Autozi as a key driver of innovation and growth in the automotive services sector.

Forward-Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. These forward-looking statements speak only as of the date of this announcement, and the Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, as actual results may be impacted by a variety of factors, including without limitation, changes in macroeconomic conditions, industry dynamics, competitive landscape, regulatory requirements, the Company's ability to successfully implement its growth strategies and effectively manage costs and operations, and unforeseen business challenges. The Company encourages investors to review other factors that may affect its future results in the Company's registration statement, periodic reports, including its Annual Report on Form 20-F and Current Report on Form 6-K, and in its other filings with the SEC.

Contact Information

Autozi Internet Technology (Global) Ltd.
Ms. Jiabing Song
Email: boardoffice@autozi.com 

 

AUTOZI INTERNET TECHNOLOGY (GLOBAL) LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars in thousands, except for share and per share data, or otherwise noted)
		As of September 30,				As of March 31,
		2024				2025
ASSETS
Current assets
Cash and cash equivalents		$	1,972			$	349
Restricted cash			501				-
Accounts receivable, net			417				239
Advance to suppliers, net			6,513				6,904
Inventories			3,270				1,387
Prepayments, receivables and other assets, net			8,120				7,430
Amounts due from related parties, net			294				61
Total current assets			21,087				16,370
Non-current assets
Property, equipment and software, net			427				353
Operating lease right-of-use assets			343				215
Total non-current assets			770				568
TOTAL ASSETS		$	21,857			$	16,938
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities
Short-term borrowings		$	8,131			$	8,546
Convertible bonds			4,346				4,203
Accounts payable			2,868				2,092
Deferred revenues			6,545				4,187
Accrued expenses and other current liabilities			17,189				16,025
Payable to redeemable non-controlling interests			16,616				-
Lease liabilities, current			530				160
Amounts due to related parties			767				202
Total current liabilities			56,992				35,415
Non-current liabilities
Lease liabilities, non-current			42				-
Total non-current liabilities			42				-
TOTAL LIABILITIES			57,034				35,415
Commitments and contingencies							-
Shareholders' deficit
Class A ordinary shares (US$0.000001 par value; 480,000,000,000 and 480,000,000,000 shares authorized as of September 30, 2024 and March 31, 2025, respectively; 70,386,100 shares and 82,586,100 shares issued as of September 30, 2024 and March 31, 2025, respectively; 70,386,100 shares and 76,800,739 shares outstanding as of September 30, 2024 and March 31, 2025, respectively)			-				-
Class B ordinary shares (US$0.000001 par value; 20,000,000,000 and 20,000,000,000 shares authorized as of September 30, 2024 and March 31, 2025; 34,595,100 and 31,795,100 shares issued and outstanding as of September 30, 2024 and March 31, 2025, respectively)			-				-
Additional paid-in capital			84,824				89,332
Accumulated deficit			(129,532)				(134,771)
Accumulated other comprehensive income			10,967				12,115
Total AUTOZI shareholders' deficit			(33,741)				(33,324)
Non-controlling interests			(1,436)				14,847
Total shareholders' deficit			(35,177)				(18,477)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT		$	21,857			$	16,938

 

AUTOZI INTERNET TECHNOLOGY (GLOBAL) LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In U.S. dollars in thousands, except for share and per share data, or otherwise noted)
		For the six months ended March 31,
		2024				2025
		(Unaudited)				(Unaudited)
Revenues		$	48,142			$	79,871
Cost of revenues			(48,031)				(78,511)
Gross profit			111				1,360
Operating expenses
Selling and marketing expenses			(364)				(1,575)
General and administrative expenses			(1,395)				(7,288)
Research and development expenses			(412)				(622)
Total operating expenses			(2,171)				(9,485)
Operating loss			(2,060)				(8,125)
Other (expense) income
Litigation related (expenses) income			(1,438)				4,381
Interest expenses, net			(1,333)				(1,926)
Other income, net			101				392
Total other (expenses) income, net			(2,670)				2,847
Loss before income tax expenses			(4,730)				(5,278)
Income tax expenses			-				-
Net loss		$	(4,730)			$	(5,278)
Less: net (loss) income attributable to non-controlling interests			(177)				(39)
Less: net loss attributable to mezzanine equity			(69)				-
Less: accretion of mezzanine equity to redemption value			5,558				-
Net loss attributable to the Company's ordinary shareholders		$	(10,042)			$	(5,239)
Net loss			(4,730)				(5,278)
Foreign currency translation difference, net of tax of nil			(1,522)				1,470
Total comprehensive loss		$	(6,252)			$	(3,808)
Less: total comprehensive (loss) income attributable to non-controlling interests			(185)				283
Comprehensive loss attributable to the Company		$	(6,067)			$	(4,091)
Net loss per share of non-redeemable ordinary shares - Basic and diluted			(0.10)				(0.05)
Weighted average shares of outstanding non-redeemable ordinary shares			73,580,500				106,059,912
Net earnings per share of redeemable ordinary shares - Basic and diluted			0.09				-
Weighted average shares of outstanding redeemable ordinary shares			28,900,700				-

 

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SOURCE Autozi Internet Technology (Global) Ltd.

FAQ

What were Autozi's (AZI) key financial results for H1 FY2025?

Autozi reported revenue growth of 65.9% to US$79.9 million, while net loss increased to US$5.3 million. Gross profit improved to US$1.4 million with a margin of 1.7%.

Why did Autozi's (AZI) operating expenses increase in H1 FY2025?

Operating expenses increased 336.9% to US$9.5 million due to one-off financing-related expenses, non-cash share-based compensation, and higher selling and marketing expenses for the auto parts business.

What are the main concerns about Autozi's (AZI) financial stability?

The company faces significant going concern issues with an accumulated deficit of US$134.8 million, negative working capital of US$19.0 million, and ongoing net losses, raising substantial doubt about its ability to continue operations.

What is Autozi's (AZI) new strategic focus?

Autozi is focusing on electrification in EV core components and servicization through three pillars: capitalization, digitalization, and globalization of their automotive supply chain platform.

How has Autozi's (AZI) business mix changed in H1 FY2025?

Auto parts and accessories sales now represent 98.7% of total revenue, up from 48.5% in the prior year, as the company scaled down lower-margin businesses like new car sales and insurance services.