Chinese e-bike maker EZGO Technologies jumped 352.75 percent on its first day of trading on the NASDAQ on Tuesday, triggering three meltdowns.
The company, which went public at a offering price of $4, opened at $10.59 and closed at $18.11. It issued 2.8 million shares through the IPO to raise $11.2 million.
The company is headquartered in Changzhou, Jiangsu Province, and offers businesses including lithium battery processing and trading, lithium battery and e-bike leasing, e-bike manufacturing and sales, and e-bike smart charging pile operation.
The company's total operating revenue reached US$5.194 million in fiscal 2019, a year-on-year increase of 62.7%. Among them, lithium battery and e-bike rental service are the main revenue sources, accounting for 83% and 74% of the total revenue, respectively.
In 2019, the company's gross margin was 61.2%. However, by 2020, the company's gross margin declined.
EZGO's explanation for the decreased gross margin is the increase in costs of manufacturing and purchasing electric bicycles in its e-bike business.
EZGO, which is now publicly traded, is also facing considerable competitive pressure in the industry. In the global e-bike market, China's Yadea and Aima electric bikes maintain the industry leadership.
By the end of November last year, Yadea’s e-bike sold more than 10 million units in 2020. The shares of Yadea, which trades in Hong Kong, rose 680% last year.