Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 13

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 13
---
 China and the United States. For the years ended March 31, 2025 and 2024, over 50% and 50%
of the parts were sourced from China, respectively. For the year ended March 31, 2025 and 2024, we sourced over 40% and over 40%
of our vehicle components from the United States, respectively. Although we rely on certain principal vendors in China and the United States
for most of our components, we believe there are multiple sources for each of our critical components.

To ensure a secure and reliable
supply chain, we have implemented a centralized vendor management system that consolidates all vendor management activities under a centralized
team. This approach enables us to streamline our purchasing process, enhance our negotiating power and maintain better relationships with
our vendors.

We are currently working with
two principal vendors, Xiamen Innolabs Technology Co., Ltd. (“XFT”) and Depcl Corp. (previously known as Fly Wing E-Bike Inc.),
each of which respectively supplied approximately 42% and 32% of our accessories and components during the year ended March 31, 2025.
During the year ended March 31, 2024, our top three principal vendors included Depcl Corp, XFT, and Anhui Ineo International Trading
Co., Ltd., each of which respectively supplied approximately 36%, 21% and 13% accessories and components. Our principal vendors are responsible
for sourcing all the parts used in our vehicles from various suppliers, and they also oversee the quality control process. We maintain
close relationships with our principal vendors to ensure that we have access to high-quality accessories and components for our EVs at
competitive prices and receive reliable and timely deliveries. We work closely with them to improve our supply chain efficiency and reduce
costs.

Our centralized vendor management
system also helps us to manage risk more effectively by identifying potential risks and developing strategies to mitigate them. Rather
than dealing with the original suppliers, we monitor the performance of our principal vendors, which enables us to quickly identify and
address any problems and manage the supply resources more efficiently. Our system ensures each critical product component is supported
by at least three vendors, thereby minimizing the risk of supply chain disruptions. This approach helps us to reduce the risk of supply
chain disruptions, which can have a significant impact on our business operations.

After importing the accessories
and components, we assemble them into our vehicles in a leased facility located