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.”

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