18 • June 2024 • Powersports Business

HISUN Motors USA recently unveiled two new UTVs that will be available exclusively at Lowe ’ s . The AXIS X550 and XS750 mark a milestone in the company ’ s initiative to provide reliable machines designed to meet the demands of everyday use .

The AXIS X550 boasts a SOHC engine , while the XS750 features a DOHC engine . Each model has a versatile four-wheel drive system , adjustable nitrogen-assisted shocks and dual A-arm front and rear suspensions . The new machines also feature all-terrain six-ply tires , 14� premium black alloy wheels , a 3,500 pound nylon rope winch and 1,500 pounds of towing capacity , allowing them to tackle even the most demanding jobs .

The XS750 comes standard with a keyless push start and electric power steering ( EPS ). Both models offer front and rear cameras , a scratch-resistant poly windshield , half poly doors , and LED headlights and taillights , ensuring convenience and safety . Riders can seamlessly stay connected with dual 10−inch color touch screens that feature Bluetooth connectivity , Apple CarPlay , FM / AM Radio and integrated door speakers .

The X550 model comes with an SOHC engine and is priced at $ 9,999 . Both UTVs will be sold exclusively at Lowe ’ s .

“ With the AXIS X550 and XS750 , we ’ re thrilled to offer standard premium features and advanced technology not found on any other models in the market , priced at $ 9,999 ( X550 ) and $ 11,999 ( XS750 ),” says Ryan Daugherty , senior vice president of HISUN Motors USA .

Jason Sun , CEO of HISUN Motors USA , shares , “ We are committed to delivering

exceptional quality and performance in all of our products . The AXIS X550 and XS750 embody this commitment , offering reliability , versatility and customization options

The AXIS XS750 features a DOHC engine and 4WD , along with several other standard features . Photo courtesy of HISUN Motors USA

that exceed expectations .”

The AXIS X550 and XS750 lineup will be sold exclusively at Lowe ’ s stores and available in red , nardo gray and True Timber camo .

“ Q1 of 2024 was highlighted by our successful IPO and Nasdaq listing , along with substantial top and bottom line growth on strong sales and margin improvement for our diversified and comprehensive product portfolio ,” says David Shan , founder , chairman and CEO of Massimo Group . “ Our production crew is able to produce over 3,000 vehicles each month , a significant jump from previous output levels .”

“ We signed an ongoing national agreement with a global omnichannel retailer for the youth series Mini Tractor and Mini 125 Go Kart to be sold in stores ,” Shan continues . “ The retailer ’ s online marketplace currently features over 100 Massimo products , and with the expanded partnership , the two products will now be eligible to be stocked at over 1,300 stores in 13 states beginning in May .”

* While Supplies Last

Massimo also entered an agreement with Fleet Farm to sell six UTV , ATV and youth series products in stores and feature them on the retailer ’ s online marketplace .

“ Our focus on distribution channel expansion has resulted in over 2,800 retail locations promoting our brand in 48 states where our products are distributed and will continue to drive sales across our full motor product line of Massimo vehicles .”

FIRST QUARTER 2024 RESULTS In Q1 2024 , revenues increased by $ 11.3 million ( 60 %) to $ 30.2 million , compared to $ 18.8 million . The increase in revenue was driven by Massimo ’ s expansion at major chain stores and its dealer network .

Revenue from sales of UTVs , ATVs and

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P-22 LIMITED 90 HP

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P-22 LIMITED 150 HP electric bikes increased by $ 12.2 million ( 74.1 %) from $ 16.5 million in Q1 2023 to $ 28.7 million in Q1 2024 . The revenue increase was attributable to the expansion into more large retail stores in the U . S . and to a shift in sales strategy , focusing mostly on in-store sales .

Revenue from sales of pontoon boats decreased by $ 0.9 million ( 38.2 %) from $ 2.4 million in Q1 2023 to $ 1.5 million in Q1 2024 . The decrease in revenue was due to a shift from retailing in Q1 2023 to dealer sales in Q1 2024 , and the dealers have experienced more difficulty amid the current high-interest rate environment obtaining floorplan financing for customers from providers such as Northpoint .

Gross profit increased by $ 4.8 million , ( 86.1 %) from $ 5.6 million in Q1 2023 to $ 10.5 million in Q1 2024 . Gross profit margin was

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34.7 % in Q1 2024 , as compared with 29.8 % in the prior year quarter . The increase in the gross profit margin was attributable to higher net sales partly due to decreased returns and the lower cost of sales due to reduced freight costs in the first quarter of 2024 compared to the previous year .

The cost of revenue on UTVs , ATVs and electric bikes increased by $ 7.2 million ( 63.7 %) from $ 11.3 million in Q1 2023 to $ 18.5 million in Q1 2024 . Gross profit increased by $ 5.0 million ( 96.7 %) from $ 5.2 million in Q1 2023 to $ 10.2 million in Q124 . Gross profit margin increased by 4.1 % from 31.6 % in Q1 2023 to 35.7 % in Q1 2024 . Massimo says the increased cost of revenue was in line with the increase in sales . The increase in gross profit margin was mainly due to a significant decline in global container freight compared to last year .

Cost of revenue on pontoon boats decreased by $ 0.7 million ( 36.4 %) from $ 1.9 million from Q1 2023 to $ 1.2 million in Q1 2024 , and gross profit decreased by $ 0.2 million ( 46.7 %) from $ 0.4 million in Q1 2023 to $ 0.2 million in Q1 2024 . Gross profit margin decreased by 2.4 % from 17.6 % in Q1 2023 to 15.2 % in Q1 2024 .

Selling and marketing expenses increased by $ 0.3 million ( 13.3 %) from $ 2.0 million in Q1 2023 to $ 2.2 million in Q1 2024 . This is due to fact that the chargebacks from new big-box customers have increased due to increased sales .

General and administrative expenses increased by $ 1.1 million ( 37.2 %) from $ 3.0 million in Q1 2023 to $ 4.1 million in Q1 2024 . The increase was mainly due to increased rent expense and professional fees .

Total operating expenses increased 31.1 % to $ 6.5 million for Q1 2024 compared to $ 4.9 million in the prior year first quarter .

Net income for Q1 2024 was $ 3.2 million , or $ 0.08 per basic and diluted share , as compared to net income of $ 0.5 million , or $ 0.01 per basic and diluted share , in Q1 2023 .

On April 24 , Massimo closed its initial public offering with aggregate gross proceeds , before deducting underwriting discounts and commissions and other offering expenses payable by Massimo , of $ 5.85 million .

Net cash used by operating activities was $ 0.6 million for Q1 2024 compared to $ 0.8 million in Q1 2023 , due to increased accounts receivable and inventory .