20-F: LOBO Technologies Reports FY2025 Results, Net Loss Widens

LOBO Technologies Ltd. reported a net loss of $5.48 million for fiscal year 2025, a significant increase from the $0.85 million net loss in fiscal year 2024, driven by higher operating expenses.

Summary

• LOBO Technologies Ltd. reported revenues of $23.22 million for the fiscal year ended December 31, 2025, an increase of 10% from $21.19 million in 2024.
• The company incurred a net loss of $5.48 million for fiscal year 2025, compared to a net loss of $0.85 million in fiscal year 2024.
• Operating expenses increased by 62.5% to $7.15 million in 2025, primarily due to a significant rise in research and development expenses and increased general and administrative costs associated with being a public company.
• Sales of two-wheeled e-bicycles increased by 23.57% to $13.08 million, while sales of three-wheeled electric vehicles increased by 42.16% to $5.97 million.
• The company's cash and cash equivalents decreased to $0.91 million as of December 31, 2025, from $1.38 million as of December 31, 2024.
• LOBO Technologies is facing a minimum bid price deficiency on the Nasdaq Capital Market, with its share price below $1.00 for 30 consecutive business days, and has until June 15, 2026, to regain compliance.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the widening net loss, increased operating expenses, and the critical Nasdaq bid price deficiency, despite revenue growth.

Positives

• Revenue increased by 10% to $23.22 million in fiscal year 2025.
• Sales of two-wheeled e-bicycles saw a significant increase of 23.57% to $13.08 million.
• Sales of three-wheeled electric vehicles increased by 42.16% to $5.97 million.
• Gross profit margin improved slightly from 12% in 2024 to 13% in 2025.
• The company has a diversified supply chain with no single supplier accounting for more than 10% of total purchases in 2025.

Negatives

• The company reported a net loss of $5.48 million in 2025, a substantial increase from the $0.85 million net loss in 2024.
• Operating expenses surged by 62.5% to $7.15 million in 2025, largely driven by a 125% increase in R&D expenses.
• General and administrative expenses increased by 34.5% to $2.72 million, attributed to costs associated with being a public company.
• Cash and cash equivalents decreased significantly to $0.91 million at the end of 2025.
• The company's Class A Ordinary Shares are currently trading below the $1.00 minimum bid price requirement for Nasdaq listing, with a deficiency notice received from Nasdaq.
• Sales of two-wheeled e-mopeds decreased by 86.10%, and sales of batteries decreased by 33.71%.

Risks

• The company has identified material weaknesses in its internal control over financial reporting, specifically related to accounting records for property, plant, and equipment, and ordinary share transactions, as well as insufficient financial reporting personnel with U.S. GAAP knowledge.
• The company may incur losses in the future and may be unable to achieve or maintain profitability.
• Failure to anticipate or respond to changes in consumer preferences could adversely affect sales and profitability.
• The company faces intense market competition and may be unable to develop and introduce new products in a timely and cost-effective manner.
• The company's products are subject to safety and other standards, and failure to comply could result in prohibition from sale and material adverse effects.
• The company may not be able to prevent others from unauthorized use of its intellectual property.
• The company has identified that its Class A Ordinary Shares are trading below the $1.00 minimum bid price requirement for Nasdaq listing, and has until June 15, 2026, to regain compliance.
• The company does not have insurance coverage, which could expose it to significant costs and business disruption.
• Changes in international trade policies, particularly between the U.S. and China, may adversely impact the business and operating results.
• The company's business and results of operations are heavily influenced by economic, political, and legal developments in China.

Future Outlook

The company's strategic goal is to become a hidden champion in the field of intelligent urban tricycles and off-highway four-wheeled electric shuttles. This will be achieved through continued innovation and launching new products, prioritizing strategic products like intelligent electric urban tricycles and elderly scooters, and strengthening the development of intelligent products. The company also plans to attach importance to customer relationship management and diversify and increase marketing methods.

Management Comments

• The company's success is led by a visionary management team with a unique combination of engineering, design, and management experience, with a strong track record of execution.
• The company adheres to the user-centered product design concept and integrated product development concept in its innovative research and development system.
• The company believes that products can speak everything by themselves.

Industry Context

StockSavvy.ai notes that LOBO Technologies operates in the competitive electric mobility sector, facing established players like AIMA Technology Group Co., LTD and Yadea Group Holdings Ltd. The company's focus on innovation, user-centered design, and diversification of product lines, including solar-powered e-bicycles and intelligent urban tricycles, positions it to compete in a growing market, but also highlights the challenges of R&D investment and market penetration.

Corporate Governance

Related Party Transactions

• Amounts due to related parties (Huiyan Xie, Huajian Xu) are interest-free loans payable to shareholders.
• Huiyan Xie (COO) purchased vehicles from the company for $111,304 in 2025.
• Xing Xia (former Deputy General Manager) sold products to the company for $108,413 in 2024.

Stakeholder Impact

• Shareholders may experience volatility in share price due to Nasdaq bid price deficiency and potential delisting.
• Investors may be concerned about the widening net loss and increased operating expenses.
• Employees are subject to standard employment agreements and company policies.
• Suppliers are managed through a centralized procurement process with framework agreements ensuring adherence to delivery and quality standards.

Next Steps

• Regain compliance with Nasdaq's minimum bid price requirement by June 15, 2026.
• Continue to innovate and launch new products, focusing on intelligent urban tricycles and elderly scooters.
• Strengthen customer relationship management and diversify marketing methods.
• Strengthen cost control measures.
• Implement measures to remediate material weaknesses in internal control over financial reporting.

Key Dates

Recommendation

The company's financial performance has deteriorated significantly, with a substantial increase in net loss and operating expenses. The critical Nasdaq bid price deficiency poses a significant risk of delisting, which would severely impact liquidity and investor confidence. While revenue has grown, it is not sufficient to offset the rising costs and the company's precarious financial position warrants a sell recommendation.

Keywords

LOBO Technologies, Form 20-F, Annual Report, Electric Vehicles, E-bikes, Financial Results, Net Loss, Operating Expenses, Nasdaq Listing, Material Weaknesses