Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 225

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 2
Chunk 225
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%, and 7.0% of the accessories and
components used in all our products for the three months ended December 31, 2024. During the nine months ended December 31, 2024, we worked
with three principal vendors, Xiamen Innolabs Technology Co., Ltd, Depcl Corp., and Anhui Ineo International Trading Co., each of which
respectively supplied approximately 44.8%, 28.7%, and 10.0% of the accessories and components used in all our products for the nine months
ended December 31, 2024.

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 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 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, the immediate impact would likely be negative for the growing e-bike
market.

Regulatory Landscape

We
operate in an industry that is subject to extensive environmental, safety and other laws and regulations, which include products
safety and testing, as well as