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         %
                                                                      (Unaudited) (Unaudited)



     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
                                                                                       INCOME/(LOSS) (UNAUDITED)




                                                                                                                                                                                                       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
    translation adjustment


                            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
    2023


                            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)
    translation adjustment


                            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
    2024



                                                                                  
              
            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
                                                                               
       CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)

                                                                                      
              
                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.