/C O R R E C T I O N -- ICZOOM/

Rhea-AI Summary

ICZOOM Details Accelerated Growth and Steady Market Expansion Strategy. Profitability and $290.4 million in revenue for fiscal year 2022. Highly scalable and asset-light business model. Focused on serving small and medium-sized enterprises in China's electronic component market. Aim to drive profitable revenue growth. Anonymous trading platform and customizable SaaS software. Digital transformation essential for resilience. Huge market potential with over 3 million potential customers.

Positive

• Profitability and $290.4 million in revenue for fiscal year 2022
• Highly scalable and asset-light business model
• Focused on serving small and medium-sized enterprises in China's electronic component market
• Aim to drive profitable revenue growth
• Huge market potential with over 3 million potential customers

Negative

• None.

In the news release, ICZOOM Details Accelerated Growth and Steady Market Expansion Strategy, issued 18-Sep-2023 by ICZOOM over PR Newswire, we are advised by the company that in the company boilerplate, ICZOOM Group Inc.'s stock ticker should read "IZM" rather than "ICZ" as originally issued inadvertently. The complete, corrected release follows:

ICZOOM Details Accelerated Growth and Steady Market Expansion Strategy

Highly Scalable, Asset-Light Business at the Epicenter of the Global Semiconductor Market Driving Growth and Profitability

HONG KONG, Sept. 20, 2023 /PRNewswire/ -- ICZOOM Group Inc. (Nasdaq: IZM) (the "Company" or "ICZOOM"), a B2B electronic component products e-commerce platform, today provided details on the Company's accelerated growth and steady market expansion strategy, as the Company leverages its strengthened balance sheet and fortified global brand following its successful listing on Nasdaq earlier this year.

Mr. Lei Xia, who founded ICZOOM 11 years ago and serves as its Chief Executive Officer, commented, "We built ICZOOM's core platform at the epicenter of the semiconductor industry's explosive global market growth. Our first-mover advantage and success in establishing our B2B e-Commerce platform is clearly evident in our profitability and $290.4 million in revenue for the fiscal year 2022. By focusing on serving the historically underserved small and medium-sized enterprises in China's large and growing electronic component market, we have created a differentiated business model that is both highly scalable and asset-light, as our customer base and the number of electronic components both continue to grow."

For ICZOOM, going public was not the end but a new starting point. Mr. Xia added, "From the first day of the Company's establishment to the present, our goal has not changed - to provide a robust e-Commerce platform for small and medium-sized microelectronics companies to help them purchase electronic components, reduce procurement costs, and improve procurement efficiency."

Mr. Xia noted, "We are firmly positioned for accelerated growth and steady market expansion as we continue to execute our business strategy, with plans to prudently leverage our strengthened balance sheet in support of the extensive growth opportunities in front of the company. We are benefiting from high demand for our anonymous trading platform and believe we are firmly on track to drive profitable revenue growth over the coming years. With broader market drivers including AI's (artificial intelligence's) proliferation across all industries, electronic component growth in industrial robotics, automotive electronics, enhanced communications and computing, and intelligent consumer devices, our goal is to deploy resources in support of the opportunities with the high return of investment for ICZOOM and shareholders, as we continue to support small and medium-sized enterprises in China's large and growing electronic component market."

ICZOOM's anonymous transaction-matching platform, and modular and customizable SaaS software help small and medium-sized enterprises harness the electronic component purchasing power previously only enjoyed by much larger companies. This is in direct contrast to general-purpose software or tools that cannot effectively improve quality and efficiency in the process of digital transformation.

Digital transformation moved from a general trend to an urgent necessity with the onset of the recent global pandemic, which brought on widespread electronics component shortages, production line and factory closures, and persistent supply chain, transportation, and logistics disruptions worldwide. It became clear that companies that previously invested in and underwent digital upgrades were able to adapt faster and were more resilient in the face of never-before-seen electronics component shortages and market fluctuations.

Some industry experts once pointed out that judging whether an industry is suitable for matching transactions depends on whether the upstream and downstream enterprises in the industry are scattered, and whether the products or services are disaggregated. In fact, this statement fits the characteristics of ICZOOM's target customer group. Based on public data, there are believed to be more than 3 million small, medium and microelectronic companies in China, while there are only 3,000 leading electronics companies. Since the purchase volume of small, medium, and micro enterprises is very disaggregated, they rarely get the support of large distributors, large agents, and original equipment manufacturers (OEM).

These same small, medium, and microelectronic companies, however, can form a long-tail market with a huge scale and broad prospects. Although the demand of a single small and micro company is extremely small, when these companies are aggregated, an extremely large market is created. In addition, there are many types and models of electronic components, and each specific type of product can have different demand levels and patterns. No matter how large a supplier is, the products it provides cannot cover all market needs. Objectively speaking, the upstream and downstream disperse electronic components industry can benefit from and foster the matching transaction model, which has been ICZOOM's focus.

"ICZOOM is not a distributor, an agency model or a stockpile," Mr. Xia added. "There is no deposit required to enter ICZOOM's platform, and the platform will not conduct bidding promotions. Only when a transaction between two parties is completed will a commission be charged by ICZOOM. This flexibility has helped increase transaction volume. With that said, while we have been building our business for the past 11 years, we have only scratched the market's surface. Among the more than 3 million electronics companies in China, our more than 1,000 current customers represent just a fraction of the potential opportunity."

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.

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SOURCE ICZOOM