ICZOOM Group Inc. Announces Unaudited Financial Results for First Half of Fiscal Year 2025

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Jun 20, 2025, 09:00 ET

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				%				%				%
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 (Unaudited)		2023 (Unaudited)		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 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
TOTAL COMPREHENSIVE INCOME		$	14,846	$	114,838

EARNINGS/(LOSS) PER ORDINARY SHARE:
– BASIC		$	0.07	$	(0.07)
– DILUTED
– DILUTED		$	0.07	$	(0.07)

*WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES:**
– BASIC			10,828,967		10,362,861
– DILUTED
– 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 translation adjustment	—	—	—		—		—		—		—			836,583			836,583
Balance, December 31, 2023	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 translation adjustment	—	—	—		—		—		—		—			(766,096)			(766,096)
Balance, December 31, 2024	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 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
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
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