Autozi Internet Technology (Global) Ltd. Reports Impressive Financial Growth in First Half of Fiscal Year 2025

On September 5, 2025, Autozi Internet Technology (Global) Ltd. (NASDAQ: AZI) released its unaudited financial results for the first half of fiscal year 2025, revealing notable growth in revenues and a strategic pivot in company focus.

Financial Highlights

In the six months leading up to March 31, 2025, Autozi experienced a 65.9% increase in total revenues, reaching $79.9 million compared to just $48.1 million during the same timeframe in fiscal year 2024. This revenue surge was significantly driven by the company’s robust performance in auto parts and accessories sales, demonstrating a strategic shift towards higher-margin products.

For the first time, auto parts and accessories accounted for a staggering 98.7% of overall revenues, up from 48.5% in the previous year. The company's gross profit also saw significant improvements, rising to $1.4 million from a mere $0.1 million last year, reflecting an enhanced gross margin which climbed to 1.7%. This improvement signals the effectiveness of Autozi’s focus on the automotive accessory market.

However, the road has not been entirely smooth. The company reported an operating loss of $8.1 million, a widening from $2.1 million, mainly attributed to rising operating expenses, which were influenced by both one-off costs associated with financing and stock-based compensations.

Chairman’s Insights

In a letter addressed to shareholders, Dr. Houqi Zhang, the chairman and CEO of Autozi, emphasized the company's commitment to sustainability and long-term growth. He outlined the strategic focus on the auto parts and accessories segment, underscoring its resilience and potential for value generation. The letter also highlighted the importance of shifting away from lower-margin businesses like new car sales and insurance, which have seen a decline in revenues by $23.9 million.

Dr. Zhang elaborated on two main strategic directions for the company’s future: electrification and servicization. He pointed out that the ongoing shift in China’s automotive landscape, wherein electric vehicle sales have overtaken those of traditional fuel-powered cars, presents a tremendous opportunity for alignment with the emerging technological advancements in EV components.

Servicization is also a key focus, with plans to create a next-generation automotive supply chain service platform. This platform aims to provide expansive capitalization opportunities by partnering with high-quality enterprises in the auto industry, enhancing digital capabilities to streamline supply chain processes, and pursuing international growth to establish a broader revenue base.

Revenue Breakdown and Cost Analysis

Autozi reported revenue growth primarily due to increased sales in auto parts and accessories amounting to $55.6 million. However, the cost of goods sold also rose to $78.5 million, reflecting a 63.5% increase mostly because of the larger procurement volumes required for enhancing the auto parts business.

Despite the growth in revenues, the margins highlight the challenges of scaling operations efficiently. Operating expenses surged to $9.5 million, attributing to significant investments in marketing, administrative functions, and higher compensation for the workforce, all pivotal in spearheading the company's ambitious growth plans.

Future Outlook

Autozi acknowledges the challenges ahead, particularly concerning profitability and liquidity. An accumulated deficit of $134.8 million raises questions about the company's long-term sustainability. In response, management is focusing on enhancing operational efficiency, cost control measures, and exploring avenues for additional capital funding.

The roadmap laid out by Autozi positions it as a formidable player in China’s automotive market, aligning business strategies toward innovation, electrification, and robust supply chain practices, which could pave the way for enhanced shareholder value in the coming years.

In conclusion, while the journey ahead is fraught with challenges, the steadfast approach of Autozi Internet Technology (Global) Ltd. provides optimism for a potential turnaround, marked by profoundly strategic financial management and a clear focus on high-growth sectors in the automotive landscape.