Ispire Technology Inc. Earns ISO Certifications for its Malaysia Manufacturing Facility
Award of Multiple ISO Certifications Are Important Steps in the Company's Global Gross-Margin Expansion Strategy
LOS ANGELES, Jan. 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 that its subsidiary, Ispire Malaysia Sdn Bhd, received ISO9001: 2015 Quality Management System, ISO14001: 2015 Environmental Management System, ISO13485: 2016 Quality Management System Medical Device certifications for its 31,000 sq ft manufacturing facility in Malaysia. Ispire is a leader in vaping technology, research and development and design and innovation that is forging the worldwide industry standard for vaporized products. The Company offers a complete line of cartridges, pod systems, disposables and batteries.
"Earning three ISO certifications at our Malaysian manufacturing facility is a testament to our team's ability to quickly bring the facility up to some of the highest standards in the industry, allowing us to expand our gross margins, geopolitically derisk our production and service other businesses who need manufacturing for their vape hardware," said Ispire Technology Co-Chief Executive Officer Michael Wang. "Currently, our Malaysian manufacturing facility has already received initial orders and is quickly moving into production readiness. As the facility ramps up production, our gross margin is expected to increase due to the lack of a tariff when assembling products in Malaysia and then shipping them to the U.S. This is in contrast to the 25% tariff incurred when shipping finished products from China. Additionally, by owning the factory, we also expect to be able to realize a profit on product assembly, which was formerly outsourced to a third party. We anticipate that these efficiency improvements will help drive gross-margin growth across the Company's full array of high-quality vaping products."
ISO (International Organization for Standardization) certifications play a crucial role in the manufacturing industry by setting international standards for quality, safety, efficiency and other aspects of operations. ISO certifications help Ispire's manufacturing facilities improve their processes, reduce errors and enhance product quality, leading to higher customer satisfaction. By adhering to these standards, Ispire Malaysia's manufacturing facility will be able to streamline its operations, reduce waste and optimize resource utilization, leading to improved productivity and cost savings for the Company. Since ISO certifications are also recognized globally and indicate that Ispire Malaysia's manufacturing facility meets specific standards and guidelines, the certifications also have the potential to make it easier for the Company to access global markets.
Wang concluded, "We want to leverage third-party factories as well as our own manufacturing to ensure we have an uninterrupted global supply chain. Having our own factory infrastructure in Malaysia is expected to allow us to maximize gross margin on key high-volume products. By consistently delivering high-quality vaping products and services aligned with ISO standards, we expect that this will also increase customer satisfaction and loyalty, leading to repeat business and positive word-of-mouth recommendations."
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 200 patents received or filed globally. Ispire's tobacco products are marketed under the Aspire brand 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's cannabis products are marketed under the Ispire brand name primarily on an original design manufacturer (ODM) basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware only in the U.S., and it recently commenced its marketing activities in Canada and Europe. 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 ONEtm, Ispire ONEtm's success if meeting its goals, the ability of its customers to derive the anticipated benefits of the Ispire ONEtm and the success of their products on the markets; the Ispire ONEtm 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
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212.896.1233
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PR Contact:
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SOURCE Ispire Technology Inc.
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