Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 887

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 4
Chunk 887
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 sales staff. Each of our retail stores has a minimum of two employees,
and additional office employees will be hired to support retail stores in customer service and marketing. In addition, to maintain excellent
customer service in our retail stores, each store will have at least one trained repair professional. Effective management of payroll
expenses remains crucial to our ability to grow revenue and enhance our financial results, especially as we navigate a reduced workforce.

Vendor and Supply Management

During the year ended March 31, 2025, we worked
with two principal vendors, Xiamen Innolabs Technology Co., Ltd and Depcl Corp., each of which respectively supplied approximately 41.9%
and 32.3% of the accessories and components used in all our products for the year ended March 31, 2025.

We have implemented a centralized vendor management
system that streamlines purchasing, enhances our negotiating power and maintains strong vendor relationships. We believe this approach
delivers cost savings, improved risk management and increased negotiating power, ultimately benefiting our operating results. Changes
in costs related to our major vendors can significantly affect our financial condition and operating results.

Market Trends, Competition and Tariff

We operate in a rapidly growing EV market with
a special focus on E-motorcycles, E-bikes and E-scooters. However, increased competition may pressure prices and margins, reducing sales
volume, revenues, and sales margin for us. Additionally, marketing and advertising costs may rise as we differentiate ourselves and maintain
our market position. Moreover, competitors may impact customer acquisition and retention, satisfaction and loyalty. While we believe
we maintain competitive advantages in several areas, including brand, product design and quality, smart features, omnichannel retail
model, customer satisfaction and loyalty, we must continuously innovate, invest in research and development and marketing to maintain
our competitive edge and unique selling points. Recently, the U.S. government issued executive orders imposing tariffs on products from
key international suppliers, citing national security and public health concerns. These tariffs are expected to impact a wide range of
imported goods, including components used in e-bike and e-scooter manufacturing. While some agreements have temporarily delayed their
implementation, ongoing trade tensions could lead to supply chain disruptions, increased costs, and pricing pressures within the industry.
Tariffs on e-bikes and e-scooters or their components would likely increase prices for consumers, and create challenges for U.S. manufacturers
and retailers. While there could be long-term opportunities for domestic production,