Ispire Technology, Inc. Secures ODM Relationship with Leading Global E-Cigarette Brand

Rhea-AI Summary

Ispire Technology announced that its subsidiary, Aspire Science and Technology , has secured an ODM relationship with a leading global e-cigarette brand. Under this agreement, Ispire will supply 3 million units per month, totaling over 33 million units in fiscal year 2025. This deal is expected to generate more than $100 million in annual revenue, with the first shipment slated for July 2024. Co-CEO Michael Wang emphasized that this partnership highlights Ispire's technological and manufacturing capabilities, reinforcing their status as a leader in e-cigarette device design and manufacturing.

Positive

• Secured ODM relationship with a leading global e-cigarette brand, expanding market presence.
• Expected supply of over 33 million units in fiscal year 2025 indicates strong demand.
• Projected annual revenue from this deal exceeds $100 million, enhancing financial stability.
• First shipment scheduled for July 2024, ensuring immediate revenue generation.
• Consistent monthly purchase orders of 3 million units, providing predictable cash flow.

Negative

• Dependence on a single customer for significant revenue, posing a risk if the customer relationship deteriorates.

Company Expects to Supply More Than 33 million Units in Fiscal Year 2025

LOS ANGELES, June 4, 2024  /PRNewswire/ -- Ispire Technology Inc. ("Ispire" or the "Company") (NASDAQ: ISPR), a leader in the development and commercialization of vaping technology and precision dosing, announced its wholly-owned subsidiary, Aspire Science and Technology Limited, has secured an original design manufacture (ODM) relationship with a leading global e-cigarette brand (the "Customer").

The Company has begun receiving monthly purchase orders for 3 million units per-month, which are expected to remain consistent over the next 12 months at a value of over $100 million in annual top-line revenue to Ispire. The first order will be shipped in July 2024. Ispire expects the relationship to grow significantly in the following years as the Customer continues to place purchase orders with the Company.  

"This Customer's confidence in our ODM business highlights our focus on technology and manufacturing expertise," said Ispire Co-Chief Executive Officer Michael Wang. "This supply agreement highlights the scale of production and quality that Ispire is capable of, showing that we are recognized as a global leader in e-cigarette device design and manufacturing. Entering into the international e-cigarette ODM space with a partner of this caliber further solidifies our approach to global nicotine strategy."

For more information visit  https://ispiretechnology.com/.

About Ispire Technology Inc.

Ispire is engaged in the research and development, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis vaping products. The Company's operating subsidiaries own or license more than 400 patents worldwide. Ispire's branded e-cigarette products are marketed under the Aspire name and are sold worldwide (except in the U.S., People's Republic of China and Russia) primarily through its global distribution network. The Company also engages in original design manufacture (ODM) relationships with e-cigarette brands and retailers worldwide. The Company's cannabis products are marketed under the Ispire brand name primarily on an ODM basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware in the US, Europe and South Africa, it also has commenced marketing activities and customer engagement in Canada and Latin America. For more information, visit www.ispiretechnology.com or follow Ispire on  Instagram, LinkedIn, Facebook, Twitter and YouTube.

Forward Looking Statements

 This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act") as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "would," "could," "seek," "intend," "plan," "goal," "project," "estimate," "anticipate," "strategy," "future," "likely" or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: the Company's ability to collect its accounts receivable in a timely manner, the Company's business strategies, the ability of the Company to market to the Ispire ONE™, Ispire ONE's success if meeting its goals, the ability of its customers to derive the anticipated benefits of the Ispire ONE™ and the success of their products on the markets; the Ispire ONE™ proving to be safe, and the risk and uncertainties described in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Cautionary Note on Forward-Looking Statements" and the additional risk described in Ispire's Annual Report on Form 10-K for the year ended June 30, 2023 and any subsequent filings which Ispire makes with the U.S. Securities and Exchange Commission. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in the press release relate only to events or information as of the date on which the statements are made in the press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

IR Contacts:
For more information, kindly contact:
Investor Relations
Sherry Zheng
718.213.7386
ir@ispiretechnology.com

KCSA Strategic Communications

Phil Carlson
212.896.1233
ispire@kcsa.com

PR Contact:
Ellen Mellody
570.209.2947
EMellody@kcsa.com

View original content:https://www.prnewswire.com/news-releases/ispire-technology-inc-secures-odm-relationship-with-leading-global-e-cigarette-brand-302161981.html

SOURCE Ispire Technology Inc.

FAQ

What new deal has Ispire Technology announced?

Ispire Technology has announced an ODM relationship with a leading global e-cigarette brand.

How many units is Ispire expected to supply in fiscal year 2025?

Ispire is expected to supply over 33 million units in fiscal year 2025.

What is the projected annual revenue from Ispire's new ODM deal?

The projected annual revenue from the new ODM deal is over $100 million.

When will Ispire's first shipment under the new deal be made?

The first shipment will be made in July 2024.

What does the new deal say about Ispire's market position?

The new deal reinforces Ispire's status as a leader in e-cigarette device design and manufacturing.

How consistent are the purchase orders expected to be in the new ODM deal?

The purchase orders are expected to be consistent at 3 million units per month over the next 12 months.