ICZOOM Group Inc. Announces Unaudited Financial Results for First Half of Fiscal Year 2025 | IZM Stock News

, /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 31,20242023(Unaudited)(Unaudited)Variances% of total% of totalAmountrevenueAmountrevenueAmount%RevenuesSales of electronic components$89,068,58098.6%$86,329,51298.4%$2,739,0683.2%Service commission fee1,272,0601.4%1,391,0411.6%(118,981)(8.6)%Total revenue%%%$90,340,640100.0$87,720,553100.0$2,620,0873.0For the six months endedDecember 31,Note20242023EARNINGS/(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 thesixmonths ended December31,2024(Unaudited)2023(Unaudited)Variances%Stock-keeping unit (SKU) available for sale-Semiconductor7,8016,95584612.2%Stock-keeping unit (SKU) available for sale-Equipment and tools1,1851,418(233)(16.4)%Total SKUs8,9868,3736137.3%Besides the changes on the financial statements,Ms. Liu also statedthat the company's developmentis closely linked tothe 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 theCCID 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 athttp://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 StatementsCertain 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.ICZOOMGROUP INC. AND ITS SUBSIDIARIESCONSOLIDATED BALANCE SHEETSDecember 31,June 30,20242024Note(Unaudited)(Audited)ASSETSCURRENT ASSETS:Cash$1,143,940$2,453,728Restricted cash4,531,9183,031,232Notes receivable6,5953,071Accounts receivable333,649,61928,297,491Inventories, net41,093,582339,286Advances to suppliers5982,1344,022,696Prepaid expenses and other current assets73,186,205984,563TOTAL CURRENT ASSETS44,593,99339,132,067Property and equipment, net876,357123,295Right-of-use assets, net1077,523379,101Intangible assets, net9146,473204,033Other non-current assets7,0971,448Deferred tax assets1337,802135,098TOTAL NON-CURRENT ASSETS345,252842,975TOTAL ASSETS$44,939,245$39,975,042LIABILITIES AND SHAREHOLDERS' EQUITYCURRENT LIABILITIES:Short-term bank loans, net11$10,681,158$10,211,264Notes payable11-1,543,465Accounts payable1210,627,8495,263,945Contract liabilities2,700,8213,037,609Due to related parties141,662,294474,544Taxes payable133,147,1483,251,484Lease liabilities1096,690408,001Accrued expenses and other current liabilities510,823404,016TOTAL CURRENT LIABILITIES29,426,78324,594,328TOTAL LIABILITIES29,426,78324,594,328COMMITMENTS AND CONTINGENCIES18SHAREHOLDERS' EQUITYClass A shares, 30,000,000 shares authorized US$0.16 par value, 7,902,495 shares issued andoutstanding and 7,171,858 shares issued and outstanding as of December 31, 2024 and June 30,2024, respectively;161,264,3991,147,497Class B shares, 5,000,000 shares authorized US$0.16 par value, 3,829,500 shares issued andoutstanding as of December 31, 2024 and June 30, 202416612,720612,720Additional paid-in capital19,956,95619,956,956Statutory reserve16624,097624,097Accumulated deficit(6,825,655)(7,606,597)Accumulated other comprehensive (loss)/ income(120,055)646,041TOTAL SHAREHOLDERS' EQUITY15,512,46215,380,714TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$44,939,245$39,975,042ICZOOMGROUP INC. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVEINCOME/(LOSS) (UNAUDITED)For the six months endedDecember 31,Note20242023Revenue, netSales of electronic components$89,068,580$86,329,512Service commission fees1,272,0601,391,041Total revenue, net90,340,64087,720,553Cost of revenue87,381,97985,533,907Gross profit2,958,6612,186,646OPERATING EXPENSESSelling expenses799,330776,007General and administrative expenses1,634,1971,523,002Total operating expenses2,433,5272,299,009INCOME/(LOSS) FROM OPERATIONS525,134(112,363)OTHER INCOME (EXPENSES)Foreign exchange transaction gain/(loss)480,084(559,655)Interest expense(210,574)(351,806)Short-term investment income7,06259,174Subsidy income36,34611,409Other expenses, net(90,027)(93,481)Total other income/(expenses), net222,891(934,359)INCOME/(LOSS) BEFORE INCOME TAX PROVISION748,025(1,046,722)INCOME TAX BENEFIT1332,917324,977NET INCOME/(LOSS)780,942(721,745)Foreign currency translation adjustments(766,096)836,583TOTAL COMPREHENSIVE INCOME$14,846$114,838EARNINGS/(LOSS) PER ORDINARY SHARE:– BASIC$0.07$(0.07)– DILUTED$0.07$(0.07)WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES*:– BASIC10,828,96710,362,861– DILUTED10,828,96711,094,229ICZOOMGROUP INC. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OFCHANGES IN SHAREHOLDERS' EQUITY FOR THE SIX MONTHS ENDEDDECEMBER 31, 2024 AND 2023 (UNAUDITED)AccumulatedOrdinary Shares, $0.16 par*AdditionalOtherTotalClass AClass BPaid-inStatutoryAccumulatedComprehensiveShareholders'SharesAmountSharesAmountCapitalReserveDeficitIncome/ (Loss)EquityBalance, June 30, 20236,496,874$ 1,039,4993,829,500$ 612,720$18,795,548$624,097$(5,334,300)$(193,368)$15,544,196Share issuance43,7847,005——————7,005Net income for the period——————(721,745)—(721,745)Foreign currency translation adjustment———————836,583836,583Balance, December 31, 20236,540,658$ 1,046,5043,829,500$ 612,720$18,795,548$624,097$(6,056,045)$643,215$15,666,039Balance, June 30, 2024 7,171,858$ 1,147,4973,829,500$ 612,720$19,956,956$624,097$(7,606,597)$646,041$15,380,714Share issuance730,637116,902——————116,902Net loss for the period——————780,942—780,942Foreign currency translation adjustment———————(766,096)(766,096)Balance, December 31, 20247,902,495$ 1,264,3993,829,500$ 612,720$19,956,956$624,097$(6,825,655)$(120,055)$15,512,462ICZOOMGROUP INC. AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITTED)For the six months endedDecember 31,20242023Cash 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 amortization119,175121,588Property and equipment written off-1220Amortization of right-of-use assets299,809297,672Reversal of provision for inventory impairment-(1,851)Amortization of debt issuance costs90,28892,491Deferred income tax provision96,989(345,389)Unrealized exchange loss265,606560,321Changes in operating assets and liabilities:Notes receivable(3,581)-Accounts receivable(5,641,073)28,931,833Inventories(764,667)393,526Advances to suppliers3,040,273(279,267)Prepaid expenses and other current assets(2,234,932)220,639Accounts payable5,374,423(27,737,233)Contract liabilities(318,381)264,015Taxes payable(81,442)297,112Lease liabilities302,913(186,791)Accrued expenses and other current liabilities137,798(2,934,362)Net cash provided by (used in) operating activities1,464,140(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-1,129,600Net cash used in investing activities(22,279)(127,888)Cash flows from financing activities:Proceeds from short-term bank loans9,961,47914,666,970Repayments of short-term bank loans(9,399,183)(14,638,095)Proceeds from loans payable to third-parties-746,000Repayments from loans payable to third-parties-(746,000)Proceeds from banker's acceptance notes payable-2,965,200Repayment of banker's acceptance notes payable(1,543,465)(1,425,200)Proceeds from borrowings from related parties3,176,8056,299,295Repayment of related party borrowings(1,978,854)(4,568,244)Payment for deferred IPO costs-(312,527)Proceeds from sale of common stock116,902-Net cash provided by financing activities333,6842,987,399ICZOOMGROUP INC. AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued)For the six months endedDecember 31,20242023Effect of exchange rate fluctuation on cash and restricted cash(1,584,647)(1,568,816)Net increase in cash and restricted cash190,898264,474Cash and restricted cash at beginning of period5,484,9606,413,367Cash and restricted cash at end of period$5,675,858$6,677,841Supplemental cash flow informationCash paid for income taxes$(5,006)$(98,451)Cash paid for interest$(696,908)$(351,806)Supplemental disclosure of non-cash informationRight-of-use assets obtained in exchange for operating lease obligations$-$105,613SOURCE ICZOOM Group Inc.