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LOS ANGELES - Ispire Technology Inc. (NASDAQ: ISPR), a leader in vaping technology with a market capitalization of $152 million, has announced through its Malaysian subsidiary, Ispire Malaysia Sdn Bhd, adherence to all Malaysian laws and regulations amidst recent scrutiny over its manufacturing activities in the country. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, though its stock has experienced significant volatility in recent months. The subsidiary emphasizes that its Johor-based facility is focused solely on export, without involving the production or distribution of nicotine or cannabis products within Malaysia.
Ispire Malaysia has stated that its operations in Johor are dedicated to producing semi-finished vaporizer hardware, which are designed strictly for export markets. The company has made it clear that no nicotine or cannabis-containing liquids or gels are produced or distributed from its Malaysian operations. Additionally, the facility does not manufacture medical devices, though it is equipped to produce certified components if required in the future, following a comprehensive regulatory review.
Michael Wang, Co-CEO of Ispire Technology Inc., asserted the company’s commitment to transparency and regulatory cooperation, reinforcing that their manufacturing processes are fully export-oriented. Ispire also plans to implement advanced safety features in its products, such as blockchain-based age-gating and geo-fencing technology, to comply with adult-use restrictions. These technologies are currently under review by the U.S. Food and Drug Administration.
Despite the company’s global presence, with more than 400 patents worldwide, and a diverse range of e-cigarette and cannabis vaping products, Ispire Malaysia’s operations remain distinct from its U.S. activities, where cannabis-related products are legal and marketed accordingly. The company generated revenue of $144.7 million in the last twelve months, though InvestingPro analysis indicates challenging market conditions with the stock down over 60% in the past year. Discover more insights about ISPR and 1,400+ other stocks with InvestingPro’s comprehensive research reports.
With a significant investment exceeding USD 50 million, Ispire Malaysia aims to become a leading manufacturing hub in Southeast Asia, contributing to job creation and technological advancement in alignment with Malaysia’s industrial development objectives. While the company shows promise in its operational expansion, InvestingPro’s Financial Health Score indicates current challenges, with analysts projecting a decline in net income this year. InvestingPro subscribers have access to over 10 additional key insights and detailed financial metrics for ISPR.
This announcement follows recent media reports and public discourse regarding Ispire’s business conduct in Malaysia. The company has clarified its position and operations based on a press release statement, intending to maintain high standards of compliance, safety, and corporate responsibility.
In other recent news, Ispire Technology Inc. reported its Q3 2025 financial results, revealing a net loss of $10.9 million, or $0.19 per share, which fell short of the forecasted $0.15 EPS profit. The company also reported revenue of $26.2 million, significantly below the expected $65 million, marking a 12.7% year-over-year decline. Additionally, Ispire has been granted an interim license by the Malaysian Government to manufacture nicotine products, marking it as the first company to receive such approval in Malaysia. This development is part of Ispire’s strategy to diversify its production base and mitigate geopolitical risks. In another significant move, the company appointed Jie "Jay" Yu as its new Chief Financial Officer amid efforts to cut costs, including a $3.6 million reduction in payroll and plans to reduce operating expenses by $6.6 million over the next three months. The company is also transitioning certain operations to Malaysia to become more agile in global dealings. Furthermore, Ispire launched new products and is shifting its manufacturing operations from China to Malaysia, which is expected to enhance production capabilities. These recent developments are part of Ispire’s broader strategy to expand its market reach and improve financial stability.
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