ICZOOM Group Inc. Released 2023 Interim Financial Results
- None.
- None.
-The company sustained positive net income for the six months ended December 31, 2022 -
Mr. Lei Xia, the CEO and the Chairman of the Board of Directors of ICZOOM, commented, "Despite a challenging environment, we've managed to sustain a stable position for the first half of the fiscal year 2023. Our total revenue reached
First Half of the Fiscal Year 2023 Financial and Operational Highlights
- Total revenues were
, compared to$120.2 million for the same period of last fiscal year.$140.5 million - Net income was
, compared to$0.9 million for the same period of last fiscal year.$1.1 million - Total customers were 653, compared to 770 for the same period of last fiscal year.
First Half of the Fiscal Year 2023 Financial Results
Revenues
Total revenue was
Revenue from sales of electronic components was
Service commission fee revenues were
Cost of Revenues
Cost of revenues was
Gross Profit and Gross Margin
Gross profit was
Operating Expenses
Total operating expenses were
- Selling expenses were
for the six months ended December 31, 2022, almost the same as selling expenses for the same period of last fiscal year.$0.9 million - General and administrative expenses were
for the six months ended December 31, 2022, decreased by$1.4 million 7.0% from for the same period of last fiscal year. The decrease was mainly due to the decrease in our salary and employee benefit expense and stock-based compensation expenses as a result of the reduced headcount.$1.5 million
Other Income (Expenses)
Net other income was
Net Income
Net income was $0.93 million for the six months ended December 31, 2022, compared to
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were
Balance Sheet
As of December 31, 2022, the Company had cash of
Cash Flow
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
Recent Development
On March 18, 2023, the Company announced the closing of its initial public offering (the "Offering") of 1,500,000 Class A ordinary shares at a public offering price of
About ICZOOM Group Inc.
ICZOOM Group Inc. is primarily engaged in sales of electronic component products to customers in
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
For more information, please contact:
ICZOOM Group Inc.
Investor Relations
Email: investors@iczoom.com
ICZOOM GROUP INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
December 31, | June 30, | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 866,077 | $ | 1,134,416 | ||||
Restricted cash | 3,950,020 | 1,817,607 | ||||||
Short-term investments | 1,436 | 1,490 | ||||||
Notes receivable | - | 18,000 | ||||||
Accounts receivable, net | 83,124,017 | 76,020,296 | ||||||
Inventories, net | 30,780 | 365,615 | ||||||
Advances to suppliers | 1,358,170 | 6,613,280 | ||||||
Prepaid expenses and other current assets | 1,738,870 | 2,432,913 | ||||||
TOTAL CURRENT ASSETS | 91,069,370 | 88,403,617 | ||||||
Property and equipment, net | 158,125 | 119,244 | ||||||
Right-of-use asset, net | 549,444 | 692,571 | ||||||
Intangible assets, net | 330,380 | 378,338 | ||||||
Other non-current assets | 11,150 | 14,491 | ||||||
Deferred tax assets | 134,171 | 24,751 | ||||||
TOTAL NON-CURRENT ASSETS | 1,183,270 | 1,229,395 | ||||||
TOTAL ASSETS | $ | 92,252,640 | $ | 89,633,012 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term bank loans, net | $ | 12,646,565 | $ | 11,760,387 | ||||
Short-term borrowings- third-party loans | 300,000 | 100,000 | ||||||
Accounts payable | 59,767,305 | 59,558,743 | ||||||
Deferred revenue | 2,807,848 | 3,651,700 | ||||||
Due to related parties | 954,277 | 349,684 | ||||||
Taxes payable | 3,023,859 | 2,675,002 | ||||||
Operating lease liability, current | 250,106 | 232,221 | ||||||
Accrued expenses and other current liabilities | 808,809 | 329,924 | ||||||
TOTAL CURRENT LIABILITIES | 80,558,769 | 78,657,661 | ||||||
Operating lease liabilities, non-current | 344,815 | 480,436 | ||||||
TOTAL NON-CURRENT LIABILITY | 344,815 | 480,436 | ||||||
TOTAL LIABILITIES | 80,903,584 | 79,138,097 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares, | ||||||||
Class A shares, 30,000,000 shares authorized, 4,996,874 shares issued and | 799,499 | 799,499 | ||||||
Class B shares, 5,000,000 shares authorized, 3,829,500 shares issued and | 612,720 | 612,720 | ||||||
Additional paid-in capital | 14,557,811 | 14,499,213 | ||||||
Statutory reserve | 624,097 | 624,097 | ||||||
Accumulated deficit | (6,158,753) | (7,085,470) | ||||||
Accumulated other comprehensive income | 913,682 | 1,044,856 | ||||||
TOTAL SHAREHOLDERS' EQUITY | 11,349,056 | 10,494,915 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 92,252,640 | $ | 89,633,012 | ||||
* Retrospectively restated for effect of 1-for-4 reverse split on November 2020 and 1-for-2 reverse split on August | ||||||||
The accompanying notes are an integral part of these consolidated financial statements |
ICZOOM GROUP INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(UNAUDITED) | ||||||||
For the six months ended | ||||||||
2022 | 2021 | |||||||
Revenue, net | ||||||||
Sales of electronic components, net of sales taxes and value added taxes | $ | 118,348,676 | $ | 138,531,453 | ||||
Service commission fees, net of sales taxes and value added taxes | 1,858,830 | 1,993,615 | ||||||
Total revenue, net | 120,207,506 | 140,525,068 | ||||||
Cost of revenue | 117,108,678 | 136,299,375 | ||||||
Gross profit | 3,098,828 | 4,225,693 | ||||||
OPERATING EXPENSES | ||||||||
Selling expenses | 899,314 | 921,587 | ||||||
General and administrative expenses | 1,382,358 | 1,487,099 | ||||||
Total operating expenses | 2,281,672 | 2,408,686 | ||||||
INCOME FROM OPERATIONS | 817,156 | 1,817,007 | ||||||
OTHER INCOME (EXPENSES) | ||||||||
Foreign exchange transaction gain (loss) | 418,866 | (14,213) | ||||||
Interest expense | (234,738) | (236,444) | ||||||
Short-term investment income | 6,913 | 23,981 | ||||||
Subsidy income | 31,826 | 181,086 | ||||||
Loss from termination of the VIE agreements | - | (205,250) | ||||||
Other expenses, net | (112,254) | (86,716) | ||||||
Total other income (expenses), net | 110,613 | (337,556) | ||||||
INCOME BEFORE INCOME TAX PROVISION | 927,769 | 1,479,451 | ||||||
PROVISION FOR INCOME TAXES | 1,052 | 374,863 | ||||||
NET INCOME | 926,717 | 1,104,588 | ||||||
Foreign currency translation adjustments | (131,174) | 873,622 | ||||||
TOTAL COMPREHENSIVE INCOME | $ | 795,543 | $ | 1,978,210 | ||||
EARNINGS PER ORDINARY SHARE: | ||||||||
– BASIC | $ | 0.10 | $ | 0.13 | ||||
– DILUTED | $ | 0.10 | $ | 0.11 | ||||
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES*: | ||||||||
– BASIC | 8,826,374 | 8,826,374 | ||||||
– DILUTED | 9,547,346 | 9,748,141 | ||||||
* Retrospectively restated for effect of 1-for-4 reverse split on November 2020 and 1-for-2 reverse split on August | ||||||||
The accompanying notes are an integral part of these consolidated financial statements |
ICZOOM GROUP INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(UNAUDITED) | ||||||||
For the six months ended | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 926,717 | $ | 1,104,588 | ||||
Adjustments to reconcile net income to net cash provided by operating | ||||||||
Depreciation and amortization | 89,128 | 88,572 | ||||||
Loss (gain) from disposal of equipment | 1,146 | — | ||||||
Amortization of right-of-use assets | 118,026 | — | ||||||
Provision for inventory impairment | 1,851 | — | ||||||
Amortization of share-based compensation | 58,598 | 161,096 | ||||||
Amortization of debt issuance costs | 110,219 | 84,095 | ||||||
Deferred income tax provision | (109,627) | (7,760) | ||||||
Unrealized exchange (loss) gain | (477,112) | 166,912 | ||||||
Loss from termination of the VIE agreements | — | 205,250 | ||||||
Changes in operating assets and liabilities: | ||||||||
Notes receivable | 18,000 | — | ||||||
Accounts receivable | (8,401,208) | 2,389,739 | ||||||
Inventories | 336,052 | 1,328,520 | ||||||
Advances to suppliers | 5,255,103 | 138,623 | ||||||
Prepaid expenses and other current assets | 689,583 | (457,815) | ||||||
Other noncurrent assets | — | — | ||||||
Accounts payable | 130,523 | (4,366,567) | ||||||
Deferred revenue | (738,116) | (412,749) | ||||||
Taxes payable | 421,917 | 577,378 | ||||||
Operating Lease liabilities | (117,736) | — | ||||||
Accrued expenses and other current liabilities | (218,230) | (983,728) | ||||||
Net cash (used in) provided by operating activities | (1,905,166) | 16,154 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (74,420) | (10,124) | ||||||
Proceeds from disposal of PPE | 3,096 | — | ||||||
Purchase of intangible assets | (23,186) | (1,485) | ||||||
Purchase of short-term investments | (2,701,116) | (14,625,930) | ||||||
Proceeds upon maturity of short-term investments | 2,701,116 | 15,554,979 | ||||||
Net cash (used in) provided by investing activities | (94,510) | 917,440 | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from short-term bank loans | 14,145,794 | 15,053,570 | ||||||
Repayments of short-term bank loans | (12,841,626) | (20,200,000) | ||||||
Proceeds from loans payable to third-parties | 360,000 | 700,000 | ||||||
Repayments from loans payable to third-parties | (160,000) | (370,000) | ||||||
Proceeds from banker's acceptance notes payable | — | 1,500,000 | ||||||
Repayment of banker's acceptance notes payable | — | (1,500,035) | ||||||
Proceeds from borrowings from related parties | 608,589 | 448,238 | ||||||
Payment for deferred IPO costs | (88,810) | — | ||||||
Repayment of related party borrowings | — | (589,396) | ||||||
Net cash provided by (used in) financing activities | 2,023,947 | (4,957,623) | ||||||
Effect of exchange rate fluctuation on cash and restricted cash | 1,839,803 | 342,622 | ||||||
Net increase (decrease) in cash and restricted cash | 1,864,074 | (3,681,407) | ||||||
Cash and restricted cash at beginning of period | 2,952,023 | 6,808,190 | ||||||
Cash and restricted cash at end of period | $ | 4,816,097 | $ | 3,126,783 | ||||
Supplemental cash flow information | ||||||||
Cash paid for income taxes | $ | (61,473) | $ | (56,593) | ||||
Cash paid for interest | $ | (234,738) | $ | (236,444) | ||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | — | $ | — | ||||
The accompanying notes are an integral part of these consolidated financial statements |
View original content:https://www.prnewswire.com/news-releases/iczoom-group-inc-released-2023-interim-financial-results-301881874.html
SOURCE ICZOOM Group Inc.
FAQ
What is the total revenue for ICZOOM Group Inc. for the six months ended December 31, 2022?
What is the net income for ICZOOM Group Inc. for the six months ended December 31, 2022?
How many customers did ICZOOM Group Inc. have for the six months ended December 31, 2022?
What was the percentage decrease in total revenue for ICZOOM Group Inc. compared to the same period last fiscal year?