ICZOOM Group Inc. Announces Unaudited Financial Results for First Half of Fiscal Year 2025
HONG KONG, June 20, 2025 /PRNewswire/ -- ICZOOM Group Inc. (NASDAQ:IZM) (the "Company" or "ICZOOM"), a B2B electronic component products e-commerce platform, announced its unaudited financial results for the six months ended December 31, 2024, on June 18, 2025.
Amidst a continuously evolving market environment, ICZOOM executed effectively in line with its initial expectation. ICZOOM achieved positive revenue growth with total revenue increased by 3.0% from $87,720,553 for the six months ended December 31, 2023 to $90,340,640 for the six months ended December 31, 2024. ICZOOM successfully turned a profit, with diluted earnings per share (EPS) reaching USD $0.07 for the six months ended December 31, 2024, increased from a loss of USD 0.07 per share for the six months ended December 31, 2023.
For the six months ended December 31, | ||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(Unaudited) | (Unaudited) | Variances | ||||||||||||||||||
% of total | % of total | |||||||||||||||||||
Amount | revenue | Amount | revenue | Amount | % | |||||||||||||||
Revenues | ||||||||||||||||||||
Sales of electronic components | $ | 89,068,580 | 98.6 | % | $ | 86,329,512 | 98.4 | % | $ | 2,739,068 | 3.2 | % | ||||||||
Service commission fee | 1,272,060 | 1.4 | % | 1,391,041 | 1.6 | % | (118,981) | (8.6) | % | |||||||||||
Total revenue | % | % | % | |||||||||||||||||
$ | 90,340,640 | 100.0 | $ | 87,720,553 | 100.0 | $ | 2,620,087 | 3.0 | ||||||||||||
For the six months ended | ||||||||||
December 31, | ||||||||||
Note | 2024 | 2023 | ||||||||
EARNINGS/(LOSS) PER ORDINARY SHARE: | ||||||||||
– BASIC | $ | 0.07 | $ | (0.07) | ||||||
– DILUTED | $ | 0.07 | $ | (0.07) | ||||||
Ms. Duanrong Liu, the Co-Founder and Chief Operating Officer of ICZOOM, highlighted that ICZOOM's positive performance during the six months ended December 31, 2024 is primarily attributable to the increased stock-keeping unit ("SKUs") and new customers, which increased by 7.3% from 8,373 different products for the six months ended December 31, 2023 to 8,986 different products for the six months ended December 31, 2024, as well as the number of new customers rose by 16 or 15.1% from 106 as of December 31, 2023 to 122 as of December 31, 2024.
For the six months ended December 31, | ||||||||||||||||
2024 | 2023 | Variances | % | |||||||||||||
Stock-keeping unit (SKU) available for sale-Semiconductor | 7,801 | 6,955 | 846 | 12.2 | % | |||||||||||
Stock-keeping unit (SKU) available for sale-Equipment and tools | 1,185 | 1,418 | (233) | (16.4) | % | |||||||||||
Total SKUs | 8,986 | 8,373 | 613 | 7.3 | % | |||||||||||
Besides the changes on the financial statements, Ms. Liu also stated that the company's development is closely linked to the growth of China's automotive electronics industry.
According to the 2025-2030 Development Status and Investment Strategy Research Report on China's Automotive Electronics Industry released by the CCID Industry Research Institute, the size of China's automotive electronics market reached approximately RMB 1.22 trillion (approximately $ 171.83 billion) in 2024, representing a growth of 10.95% compared to the previous year.
Please refer to the Company's unaudited interim financial results, that can be found at http://ir.iczoomex.com/index.html. The company uses its website as a tool to disclose important information about the Company and to comply with its disclosure obligations under Regulation Fair Disclosure.
About ICZOOM Group Inc.
ICZOOM Group Inc. (NASDAQ:IZM) is primarily engaged in sales of electronic component products to customers in Hong Kong and mainland China through its B2B e-commerce platform. These products are primarily used by China based small and medium-sized enterprises ("SMEs") in the consumer electronic industry, Internet of Things ("IoT"), automotive electronics and industry control segments. By utilizing latest technologies, the Company's platform collects, optimizes and presents product offering information from suppliers of all sizes, all transparent and available to its SME customers to compare and select. In addition to the sales of electronic component products, the Company also provides services to customers such as temporary warehousing, logistic and shipping, and customs clearance. For more information, please visit the Company's website:
http://ir.iczoomex.com/index.html.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "we believe," "we intend," "may," "should," "will," "could" and similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.
ICZOOM GROUP INC. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | |||||||||
December 31, | June 30, | ||||||||
2024 | 2024 | ||||||||
Note | (Unaudited) | (Audited) | |||||||
ASSETS | |||||||||
CURRENT ASSETS: | |||||||||
Cash | $ | 1,143,940 | $ | 2,453,728 | |||||
Restricted cash | 4,531,918 | 3,031,232 | |||||||
Notes receivable | 6,595 | 3,071 | |||||||
Accounts receivable | 3 | 33,649,619 | 28,297,491 | ||||||
Inventories, net | 4 | 1,093,582 | 339,286 | ||||||
Advances to suppliers | 5 | 982,134 | 4,022,696 | ||||||
Prepaid expenses and other current assets | 7 | 3,186,205 | 984,563 | ||||||
TOTAL CURRENT ASSETS | 44,593,993 | 39,132,067 | |||||||
Property and equipment, net | 8 | 76,357 | 123,295 | ||||||
Right-of-use assets, net | 10 | 77,523 | 379,101 | ||||||
Intangible assets, net | 9 | 146,473 | 204,033 | ||||||
Other non-current assets | 7,097 | 1,448 | |||||||
Deferred tax assets | 13 | 37,802 | 135,098 | ||||||
TOTAL NON-CURRENT ASSETS | 345,252 | 842,975 | |||||||
TOTAL ASSETS | $ | 44,939,245 | $ | 39,975,042 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
CURRENT LIABILITIES: | |||||||||
Short-term bank loans, net | 11 | $ | 10,681,158 | $ | 10,211,264 | ||||
Notes payable | 11 | - | 1,543,465 | ||||||
Accounts payable | 12 | 10,627,849 | 5,263,945 | ||||||
Contract liabilities | 2,700,821 | 3,037,609 | |||||||
Due to related parties | 14 | 1,662,294 | 474,544 | ||||||
Taxes payable | 13 | 3,147,148 | 3,251,484 | ||||||
Lease liabilities | 10 | 96,690 | 408,001 | ||||||
Accrued expenses and other current liabilities | 510,823 | 404,016 | |||||||
TOTAL CURRENT LIABILITIES | 29,426,783 | 24,594,328 | |||||||
TOTAL LIABILITIES | 29,426,783 | 24,594,328 | |||||||
COMMITMENTS AND CONTINGENCIES | 18 | ||||||||
SHAREHOLDERS' EQUITY | |||||||||
Class A shares, 30,000,000 shares authorized US$0.16 par value, 7,902,495 shares issued and | |||||||||
outstanding and 7,171,858 shares issued and outstanding as of December 31, 2024 and June 30, | |||||||||
2024, respectively; | 16 | 1,264,399 | 1,147,497 | ||||||
Class B shares, 5,000,000 shares authorized US$0.16 par value, 3,829,500 shares issued and | |||||||||
outstanding as of December 31, 2024 and June 30, 2024 | 16 | 612,720 | 612,720 | ||||||
Additional paid-in capital | 19,956,956 | 19,956,956 | |||||||
Statutory reserve | 16 | 624,097 | 624,097 | ||||||
Accumulated deficit | (6,825,655) | (7,606,597) | |||||||
Accumulated other comprehensive (loss)/ income | (120,055) | 646,041 | |||||||
TOTAL SHAREHOLDERS' EQUITY | 15,512,462 | 15,380,714 | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 44,939,245 | $ | 39,975,042 | |||||
ICZOOM GROUP INC. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE | |||||||||||
For the six months ended | |||||||||||
December 31, | |||||||||||
Note | 2024 | 2023 | |||||||||
Revenue, net | |||||||||||
Sales of electronic components | $ | 89,068,580 | $ | 86,329,512 | |||||||
Service commission fees | 1,272,060 | 1,391,041 | |||||||||
Total revenue, net | 90,340,640 | 87,720,553 | |||||||||
Cost of revenue | 87,381,979 | 85,533,907 | |||||||||
Gross profit | 2,958,661 | 2,186,646 | |||||||||
OPERATING EXPENSES | |||||||||||
Selling expenses | 799,330 | 776,007 | |||||||||
General and administrative expenses | 1,634,197 | 1,523,002 | |||||||||
Total operating expenses | 2,433,527 | 2,299,009 | |||||||||
INCOME/(LOSS) FROM OPERATIONS | 525,134 | (112,363) | |||||||||
OTHER INCOME (EXPENSES) | |||||||||||
Foreign exchange transaction gain/(loss) | 480,084 | (559,655) | |||||||||
Interest expense | (210,574) | (351,806) | |||||||||
Short-term investment income | 7,062 | 59,174 | |||||||||
Subsidy income | 36,346 | 11,409 | |||||||||
Other expenses, net | (90,027) | (93,481) | |||||||||
Total other income/(expenses), net | 222,891 | (934,359) | |||||||||
INCOME/(LOSS) BEFORE INCOME TAX PROVISION | 748,025 | (1,046,722) | |||||||||
INCOME TAX BENEFIT | 13 | 32,917 | 324,977 | ||||||||
NET INCOME/(LOSS) | 780,942 | (721,745) | |||||||||
Foreign currency translation adjustments | (766,096) | 836,583 | |||||||||
TOTAL COMPREHENSIVE INCOME | |||||||||||
$ | 14,846 | $ | 114,838 | ||||||||
EARNINGS/(LOSS) PER ORDINARY SHARE: | |||||||||||
– BASIC | $ | 0.07 | $ | (0.07) | |||||||
– DILUTED | |||||||||||
$ | 0.07 | $ | (0.07) | ||||||||
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES*: | |||||||||||
– BASIC | 10,828,967 | 10,362,861 | |||||||||
– DILUTED | |||||||||||
10,828,967 | 11,094,229 | ||||||||||
ICZOOM GROUP INC. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE SIX MONTHS ENDED DECEMBER 31, 2024 AND 2023 (UNAUDITED) | ||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Ordinary Shares, $0.16 par* | Additional | Other | Total | |||||||||||||||||||||||||
Class A | Class B | Paid-in | Statutory | Accumulated | Comprehensive | Shareholders' | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Reserve | Deficit | Income/ (Loss) | Equity | ||||||||||||||||||||
Balance, June 30, 2023 | 6,496,874 | $ 1,039,499 | 3,829,500 | $ 612,720 | $18,795,548 | $ | 624,097 | $ | (5,334,300) | $ | (193,368) | $ | 15,544,196 | |||||||||||||||
Share issuance | 43,784 | 7,005 | — | — | — | — | — | — | 7,005 | |||||||||||||||||||
Net income for the period | — | — | — | — | — | — | (721,745) | — | (721,745) | |||||||||||||||||||
Foreign currency | — | — | — | — | — | — | — | 836,583 | 836,583 | |||||||||||||||||||
Balance, December 31, | 6,540,658 | $ 1,046,504 | 3,829,500 | $ 612,720 | $18,795,548 | $ | 624,097 | $ | (6,056,045) | $ | 643,215 | $ | 15,666,039 | |||||||||||||||
Balance, June 30, 2024 | 7,171,858 | $ 1,147,497 | 3,829,500 | $ 612,720 | $19,956,956 | $ | 624,097 | $ | (7,606,597) | $ | 646,041 | $ | 15,380,714 | |||||||||||||||
Share issuance | 730,637 | 116,902 | — | — | — | — | — | — | 116,902 | |||||||||||||||||||
Net loss for the period | — | — | — | — | — | — | 780,942 | — | 780,942 | |||||||||||||||||||
Foreign currency | — | — | — | — | — | — | — | (766,096) | (766,096) | |||||||||||||||||||
Balance, December 31, | 7,902,495 | $ 1,264,399 | 3,829,500 | $ 612,720 | $19,956,956 | $ | 624,097 | $ | (6,825,655) | $ | (120,055) | $ | 15,512,462 | |||||||||||||||
ICZOOM GROUP INC. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITTED) | |||||||
For the six months ended | |||||||
December 31, | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income /(loss) | $ | 780,942 | $ | (721,745) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 119,175 | 121,588 | |||||
Property and equipment written off | - | 1220 | |||||
Amortization of right-of-use assets | 299,809 | 297,672 | |||||
Reversal of provision for inventory impairment | - | (1,851) | |||||
Amortization of debt issuance costs | 90,288 | 92,491 | |||||
Deferred income tax provision | 96,989 | (345,389) | |||||
Unrealized exchange loss | 265,606 | 560,321 | |||||
Changes in operating assets and liabilities: | |||||||
Notes receivable | (3,581) | - | |||||
Accounts receivable | (5,641,073) | 28,931,833 | |||||
Inventories | (764,667) | 393,526 | |||||
Advances to suppliers | 3,040,273 | (279,267) | |||||
Prepaid expenses and other current assets | (2,234,932) | 220,639 | |||||
Accounts payable | 5,374,423 | (27,737,233) | |||||
Contract liabilities | (318,381) | 264,015 | |||||
Taxes payable | (81,442) | 297,112 | |||||
Lease liabilities | 302,913 | (186,791) | |||||
Accrued expenses and other current liabilities | 137,798 | (2,934,362) | |||||
Net cash provided by (used in) operating activities | 1,464,140 | (1,026,221) | |||||
Cash flows from investing activities: | |||||||
Purchase of property and equipment | (16,371) | (70,490) | |||||
Purchase of intangible assets | (5,908) | (57,398) | |||||
Purchase of short-term investments | - | (1,129,600) | |||||
Proceeds upon maturity of short-term investments | - | 1,129,600 | |||||
Net cash used in investing activities | (22,279) | (127,888) | |||||
Cash flows from financing activities: | |||||||
Proceeds from short-term bank loans | 9,961,479 | 14,666,970 | |||||
Repayments of short-term bank loans | (9,399,183) | (14,638,095) | |||||
Proceeds from loans payable to third-parties | - | 746,000 | |||||
Repayments from loans payable to third-parties | - | (746,000) | |||||
Proceeds from banker's acceptance notes payable | - | 2,965,200 | |||||
Repayment of banker's acceptance notes payable | (1,543,465) | (1,425,200) | |||||
Proceeds from borrowings from related parties | 3,176,805 | 6,299,295 | |||||
Repayment of related party borrowings | (1,978,854) | (4,568,244) | |||||
Payment for deferred IPO costs | - | (312,527) | |||||
Proceeds from sale of common stock | 116,902 | - | |||||
Net cash provided by financing activities | 333,684 | 2,987,399 | |||||
ICZOOM GROUP INC. AND ITS SUBSIDIARIES For the six months ended December 31, | |||||||||
2024 | 2023 | ||||||||
Effect of exchange rate fluctuation on cash and restricted cash | (1,584,647) | (1,568,816) | |||||||
Net increase in cash and restricted cash | 190,898 | 264,474 | |||||||
Cash and restricted cash at beginning of period | 5,484,960 | 6,413,367 | |||||||
Cash and restricted cash at end of period | |||||||||
$ | 5,675,858 | $ | 6,677,841 | ||||||
Supplemental cash flow information | |||||||||
Cash paid for income taxes | $ | (5,006) | $ | (98,451) | |||||
Cash paid for interest | |||||||||
$ | (696,908) | $ | (351,806) | ||||||
Supplemental disclosure of non-cash information | |||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | - | $ | 105,613 | |||||
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SOURCE ICZOOM Group Inc.