Inno Holdings Inc. (NASDAQ: INHD)

INNO HOLDINGS INC. is an innovative technology company engaged in the business of recycled consumer electronic devices. The company sources and purchases pre owned smartphones and tablets from suppliers and sells these devices to wholesalers that re sell them to wholesale and or retail customers in Southeast Asia, Middle East Asia, Europe and other regions. INNO HOLDINGS INC. conducts its operations through 2 Hong Kong based wholly owned subsidiaries, Lear Group Limited and Baymax High Technology Co., Limited. Prior to the 2nd quarter of 2025 the company also operated a cold formed steel business but it discontinued that line and sold all ownership in the related subsidiaries.

Revenue is generated almost exclusively from the sale of recycled consumer electronic devices. For the fiscal year ended September 30, 2025, revenues from recycled iPhones represented 100% of total sales while tablets such as iPads contributed a negligible share. The company sells to wholesale customers who then distribute the devices to their own wholesale and/or retail networks across Southeast Asia, Middle East Asia, Europe and other regions. INNO HOLDINGS INC. relies on a limited number of suppliers; 2 suppliers accounted for all purchases during the year ended September 30, 2025, sourcing pre owned devices from network carriers, corporations and individuals. Management intends to broaden the supplier base while maintaining strict quality standards and plans to expand the product offering to include laptops such as MacBook, smartwatches and headphones in the future.

The recycled consumer electronic wholesale industry in Hong Kong is competitive and relatively fragmented, with approximately 1,000 wholesalers engaged in sourcing, grading, refurbishing and resale of pre owned devices. Major competitors include Guang Yi Co. Ltd., which focuses on international wholesaling of cellphones and other electronic devices across various grades; Brightway Trading Co., which specializes in cell phones returned by customers and sources devices from Europe, the United Kingdom and the United States; and CommNet Telecom Limited, a Hong Kong based firm that imports and exports brand new and used cell phones, primarily sourcing from the United States and the United Kingdom. INNO HOLDINGS INC. differentiates itself by purchasing and selling high quality Like New products that show minimal signs of use, which supports efficient inspection and testing and results in low return rates. The company employs dynamic inventory level management, adjusting stock in response to market trends and price fluctuations to optimize turnover. Fast response to customer needs is facilitated by a leased warehouse in Hong Kong that holds ready to ship inventory, enabling quick packaging and delivery via third party couriers. A flexible pricing algorithm incorporates current market prices, historical transaction data, order size, product specifications and quantity to balance demand and profitability. The strategic location of Hong Kong, a duty free port and major global hub, allows efficient inbound receipt and outbound dispatch of recycled electronic devices worldwide. Additionally, the company's subsidiaries hold the Radio Dealers License (Unrestricted), permitting them to trade radio communications apparatus and related components.

INNO HOLDINGS INC. derives all of its revenue from wholesale customers. These wholesalers purchase recycled consumer electronic devices from the company and subsequently resell them in Southeast Asia, Middle East Asia, Europe and other regions.