Autozi Internet Technology (Global) Ltd. - SEC 20-F Annual Report Summary for Investors

1. Business Overview (What Autozi Does & Key Developments) Autozi Internet Technology (Global) Ltd. operates an online platform primarily within the automotive sector. They primarily sell auto parts and accessories, facilitate new car sales, and provide automotive insurance-related services. They also offer various other consumer products and services through their digital ecosystem.

The company achieved a significant milestone with its Initial Public Offering (IPO) on August 28, 2024. This transition to a public company provides access to public capital markets and enhances its visibility.

2. Risk Factors Investors should consider several key risks that could impact Autozi's business and financial performance:

• Customer Concentration: Reliance on a few key customers poses a significant risk. This concentration makes the company vulnerable to changes in these customers' business, purchasing patterns, or relationships.
• Complex Debt Management & Convertible Debt Implications: Autozi actively manages its debt structure, particularly convertible notes, as evidenced by a "Securities Purchase Agreement" and a "Second Waiver Agreement." This could signal financial pressures, a need to extend payment deadlines, or changes that might dilute existing shareholders if notes convert to equity under revised terms. The potential for shareholder dilution from convertible debt or new equity issuance to satisfy debt obligations presents a material risk.
• Intense Competition: The automotive parts and services market, both online and offline, is highly competitive. Autozi competes with established players, new entrants, and traditional businesses.
• Economic Downturns: A slowdown in the global or Chinese economy could reduce consumer spending on vehicles, auto parts, and related services, negatively impacting Autozi's revenue and profitability.
• Supply Chain Disruptions: Reliance on global supply chains for auto parts exposes the company to risks from geopolitical events, trade disputes, natural disasters, or public health crises, potentially leading to increased costs or product shortages.
• Regulatory Changes in China/Hong Kong: Operating in China and Hong Kong exposes Autozi to evolving and potentially stringent regulations concerning e-commerce, data privacy, anti-monopoly, foreign investment, and environmental standards. Changes in these regulations could increase compliance costs, restrict operations, or impact market access and profitability.
• Technology and Cybersecurity Risks: As an online platform, Autozi faces risks related to data breaches, system outages, and the continuous need to invest in and adapt to new technologies to maintain competitiveness.

3. Management Discussion and Analysis (MD&A) Highlights The MD&A section of a 20-F offers management's perspective on the company's financial condition and operational results. Key highlights from this summary include:

• Initial Public Offering (IPO): The successful IPO on August 28, 2024, represents a significant corporate event. It provides access to public capital markets, enhances the company's profile, and is expected to support future growth initiatives.
• Debt Restructuring and Management: Management actively manages the company's debt structure, particularly convertible notes, as indicated by the "Securities Purchase Agreement" and "Second Waiver Agreement." This suggests ongoing efforts to optimize the capital structure and manage financial obligations.
• Equity Incentive Plan: The establishment of a 2024 Equity Incentive Plan, set for October 31, 2024, demonstrates management's strategy to motivate and retain key employees by aligning their interests with shareholder value. This common practice fosters long-term commitment and performance.

4. Financial Health: Cash, Debt, and Liquidity The company has bank borrowings from various banks (Beijing Zhongguancun Bank, Bank of Beijing, Bank of China, Industrial and Commercial Bank of China, China CITIC Bank, China Construction Bank, and Changsha Rural Commercial Bank) and convertible notes.

Additional Notes: Autozi operates under the tax laws of the PRC (China) and Hong Kong. These regulations can impact its financial results and operational structure.