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