F-1: Lobo EV Technologies Files for Resale of 2.485 Million Ordinary Shares

Lobo EV Technologies has filed a registration statement for the resale of up to 2,485,000 ordinary shares by a selling shareholder, Streeterville Capital, LLC.

Summary

• Lobo EV Technologies is registering 2,485,000 ordinary shares for resale by Streeterville Capital, LLC.
• These shares include 1,635,000 shares issuable upon conversion of a convertible promissory note and 850,000 pre-delivery shares.
• The convertible note was issued on December 10, 2024, with a principal amount of $1,635,000 and a 7% annual interest rate.
• The company will not receive any proceeds from the sale of these shares by the selling shareholder.
• As of January 3, 2025, Lobo EV had 8,630,000 ordinary shares outstanding, with a last reported sale price of $1.90 per share.
• The selling shareholder may offer the shares from time to time through public or private transactions at prevailing market prices or negotiated prices.
• The company is an emerging growth company and a foreign private issuer, which allows for reduced reporting requirements.
• Lobo EV is a holding company with operations conducted through subsidiaries in China.
• The company's mission is to provide safer, smarter, and affordable electric vehicles.
• The company's vision is to become a market leader in the EV industry by leveraging design and intelligent technology.

Sentiment

Score: 5

Explanation: The document is neutral, focusing on the details of the share resale and the company's operations. While it highlights both strengths and challenges, it does not express a strong positive or negative sentiment.

Positives

• The company is an innovative electric vehicle manufacturer and seller.
• Lobo EV has accumulated industry resources and an experienced management team.
• The company has a user-centered product design philosophy.
• Lobo EV employs an innovative marketing strategy.
• The company is a provincial Hi-Tech company and Eagle-company verified by local government and a golden plus supplier verified by Alibaba.com.

Negatives

• The company faces intense competition from major players with significant funding.
• Failure to implement a cost leadership strategy could lead to loss of market channels and losses.
• Failure to provide differentiated products could result in loss of users and market share.
• The company may struggle to attract and retain talented employees.
• The company is dependent on dealers for sales and distribution of its products.

Risks

• The company may incur losses in the future.
• Success depends on continued innovation and successful launches of new products.
• The company has a limited operating history as an integrated group.
• Failure to adapt to changing customer requirements or industry standards could adversely affect the business.
• The company relies heavily on dealers for sales and distribution.
• Changes in China's economic, political, or social conditions could have a material adverse effect.
• Uncertainties in the interpretation and enforcement of PRC laws could limit legal protections.
• The company relies on dividends from PRC subsidiaries, which may be limited.
• Fluctuations in exchange rates could have a material adverse effect.
• PRC regulations on loans and investments may delay or prevent the use of offshore offering proceeds.
• Governmental control of currency conversion may limit the company's ability to utilize revenues.
• PRC regulations on offshore investment activities may limit the company's ability to increase capital or distribute profits.
• The company may be classified as a PRC resident enterprise, resulting in unfavorable tax consequences.
• The company faces uncertainty regarding indirect transfers of equity interests in PRC resident enterprises.
• The company's leased property interest may be defective.
• The Chinese government may exert more oversight and control over overseas offerings.
• The company's ordinary shares may be delisted under the HFCA Act if the PCAOB cannot inspect its auditors.
• There is no guarantee that an active trading market for the company's ordinary shares will continue.
• The trading price of the company's ordinary shares could be volatile.
• The company does not expect to pay dividends in the foreseeable future.
• Investors will experience immediate and substantial dilution in the net tangible book value per share.
• The company may have to pay damages to the investor if it fails to comply with certain provisions of the securities purchase agreement.
• The conversion of the convertible note or future sales of ordinary shares may further dilute the company's securities and adversely impact the price of its ordinary shares.

Future Outlook

The company's strategic goal is to become a hidden champion in the field of intelligent urban tricycles and e-carts through efforts in the next decade. The company plans to continue to innovate and launch new products, attach importance to customer relationship management, diversify and increase marketing methods, and strengthen cost control.

Management Comments

• Our mission is to provide daily commuters with safer, smarter, and affordable e-bicycles, e-tricycles and e-carts.
• Our vision is to provide commuters with affordable and high-quality EV and become a market leader in our industry by leveraging our design and intelligent technology.

Industry Context

The electric vehicle industry in China is large and growing, with increasing competition and technological advancements. The market for two-wheeled electric vehicles is showing signs of slowing down in China, while the global market continues to expand. The demand for leisure models of three-wheeled electric vehicles is growing, while the domestic sales of electric off-highway four-wheeled shuttles are decreasing due to current policies, with a primary reliance on exports.

Comparison to Industry Standards

• The document mentions that the Chinese electric two-wheeled vehicle market experienced a growth in annual sales revenue from approximately $10.9 billion in 2017 to $16.6 billion in 2023, representing a CAGR of approximately 7.3%.
• The sales volume of electric two-wheeled vehicles in China increased from approximately 30 million units in 2017 to approximately 56.0 million units in 2023.
• The export value of China's electric two-wheeled vehicle industry was approximately $5.5 billion in 2019 and $4.5 billion in 2023.
• The sales volume of three-wheeled electric vehicles in China increased from approximately 7.0 million units in 2017 to approximately 14.2 million units in 2023.
• The market scale of off-highway four-wheeled electric shuttles in China is expected to reach approximately US$3.87 billion in 2028, representing a CAGR of approximately 6.3% compared to the market scale in 2022.
• The sales volume of China's off-highway four-wheeled electric shuttles increased from approximately 1.1 million units in 2017 to approximately 2.1 million units in 2023.
• The sales revenue of China's off-highway four-wheeled electric shuttles industry increased from approximately US$1.2 billion in 2017 to approximately US$3.9 billion in 2028, reflecting a CAGR of approximately 11.2%.

Stakeholder Impact

• Shareholders may experience dilution due to the resale of shares.
• The company's ability to raise capital may be affected by the resale.
• The company's reputation and brand awareness may be impacted by the resale.
• The company's employees may be affected by the company's performance and growth.

Next Steps

• The selling shareholder may offer the shares for resale from time to time.
• The company will continue to execute its growth strategies.
• The company will continue to monitor and comply with regulatory requirements.

Key Dates

Keywords

electric vehicles, EV, e-bicycles, e-mopeds, e-tricycles, e-carts, China, resale, convertible note, Streeterville Capital, ordinary shares, IPO