The company's core business model is under extreme pressure, evidenced by a 70.19% year-over-year revenue decline and deeply negative operating margins of -16.24%.
| Metric | Jun'24 | Jun'23 | Jun'22 | Jun'21 |
|---|
| Sales/Revenue | 45.98M | 154.23M | 129.95M | 10.65M |
| Revenue Growth % | -70.19% | 18.68% | 1119.9% | - |
| Cost of Goods Sold | 39.55M | 146M | 121.1M | 9.21M |
| COGS % of Revenue | 86.01% | 94.67% | 93.19% | 86.47% |
| Gross Profit | 6.43M | 8.23M | 8.84M | 1.44M |
| Gross Margin % | 13.99% | 5.33% | 6.81% | 13.53% |
| Gross Profit Growth % | -21.85% | -6.96% | 513.7% | - |
| Operating Expenses | 13.9M | 27.45M | 16.15M | 9.31M |
| OpEx % of Revenue | 30.23% | 17.8% | 12.43% | 87.42% |
| Selling, General & Admin | 10.39M | 23.35M | 10.65M | 5.03M |
| SG&A % of Revenue | 22.6% | 15.14% | 8.19% | 47.19% |
| Research & Development | 1.33M | 2.37M | 5.41M | 4.29M |
| R&D % of Revenue | 2.9% | 1.53% | 4.16% | 40.23% |
| Other Operating Expenses | 2.18M | 1.74M | 98.68K | 0 |
| Operating Income | -7.47M | -19.22M | -7.31M | -7.87M |
| Operating Margin % | -16.24% | -12.47% | -5.62% | -73.89% |
| Operating Income Growth % | 61.16% | -163.09% | 7.17% | - |
| EBITDA | -5M | -17.17M | -6.61M | -7.16M |
| EBITDA Margin % | -10.87% | -11.13% | -5.09% | -67.25% |
| EBITDA Growth % | 70.88% | -159.71% | 7.72% | - |
| D&A (Non-Cash Add-back) | 2.47M | 2.06M | 696.5K | 707.42K |
| EBIT | -2.97M | -16.59M | -6.32M | -7.87M |
| Net Interest Income | -1.13M | -788.07K | -261.67K | 8.15K |
| Interest Income | 0 | 0 | 0 | 8.15K |
| Interest Expense | 1.13M | 788.07K | 261.67K | 0 |
| Other Income/Expense | 3.37M | 1.84M | 725.24K | 47.7K |
| Pretax Income | -4.1M | -17.38M | -6.58M | -7.82M |
| Pretax Margin % | -8.92% | -11.27% | -5.07% | -73.45% |
| Income Tax | -46.05K | 248.42K | 0 | 0 |
| Effective Tax Rate % | 1.12% | -1.43% | 0% | 0% |
| Net Income | -4.06M | -17.63M | -6.58M | -7.82M |
| Net Margin % | -8.82% | -11.43% | -5.07% | -73.45% |
| Net Income Growth % | 77% | -167.87% | 15.87% | - |
| Net Income (Continuing) | -4.06M | -17.63M | -6.58M | -7.82M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.10 | -0.45 | -0.17 | -0.20 |
| EPS Growth % | 77.78% | -164.71% | 15% | - |
| EPS (Basic) | -0.10 | -0.45 | -0.17 | -0.20 |
| Diluted Shares Outstanding | 38.75M | 38.75M | 39M | 39M |
| Basic Shares Outstanding | 38.75M | 38.75M | 39M | 39M |
| Dividend Payout Ratio | - | - | - | - |
Liquidity and going-concern risk
According to recent financial disclosures, WETO experienced a staggering 70.19% year-over-year revenue decline, which suggests a fundamental breakdown in the company's core institutional contract model or a significant shift in how the firm recognizes its top-line performance within the competitive Chinese mobility landscape.
The precipitous drop in revenue indicates that the firm's reliance on localized industrial and educational contracts may be failing to provide the recurring stability initially anticipated. Investors should monitor whether this decline reflects a strategic pivot toward higher-margin services or a loss of market share to better-capitalized regional incumbents.
As reported in financial filings, the company maintains a thin gross margin of approximately 14%, a figure that highlights the inherent difficulty of operating as an asset-light intermediary in a market where fleet operators hold significant leverage over pricing and service availability.
This narrow margin profile leaves virtually no room for operational errors or unexpected cost spikes in fuel and labor. The inability to expand these margins suggests that the firm lacks the necessary scale or proprietary technology to exert meaningful pricing power over its third-party transportation partners.
Based on the reported figures, WETO's operating margins remain deeply negative at -16.24%, indicating that administrative and customer acquisition expenses are consistently outpacing the limited gross profits generated by the company's current service offerings in the Zhejiang province.
The lack of positive operating leverage implies that the current business model is not yet self-sustaining, requiring constant capital infusion to cover overhead. Without a significant increase in route density or a transition to a more efficient software-led model, the path to profitability appears increasingly narrow.
With only $2.78 million in cash and equivalents, the company faces a critical liquidity threshold that, as noted in recent regulatory filings, may force management to seek dilutive financing or risk an inability to meet ongoing operational obligations in the near term.
Short-sellers would likely focus on the mismatch between the company's cash burn rate and its shrinking revenue base, which suggests that the current capital structure is insufficient for long-term survival. The lack of a clear path to positive cash flow warrants extreme caution regarding the company's going-concern status.
Quick answers to the most common questions about buying WETO stock.
For fiscal year 2023, Webus International Limited Ordinary Shares (WETO) reported total revenue of $46.0M. This represents a 331.6% increase compared to $10.7M in 2020.
Webus International Limited Ordinary Shares (WETO) reported a net loss of $4.1M for the fiscal year ending 2023.
Webus International Limited Ordinary Shares (WETO) reported an operating income of $-7.5M, resulting in an operating profit margin of -16.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Webus International Limited Ordinary Shares (WETO) generated $6.4M in gross profit for the year, representing a gross profit margin of 14.0%. This demonstrates the company's core pricing power and production efficiency.