J CAPITAL RESEARCH
  • Home
  • Company Reports
    • AAN
    • ACMR
    • AMLI
    • AOS
    • AXTI
    • BGNE
    • Boohoo.com
    • BTBT
    • BTCM
    • BTMD
    • CBAT
    • CCRC
    • CDXC
    • ENPH
    • FANH
    • FFIE >
      • FFIE Site Visits
    • FFX
    • GDS
    • HUT
    • HVN
    • Ideanomics
    • INOD
    • IPO
    • ISPR
    • LK
    • LKE
    • MARA
    • MARK
    • MQ
    • MVST
    • Nearmap
    • NNE
    • Northern Dynasty
    • NovaGold
    • SRNE
    • STAA
    • TPIC
    • UXIN
    • WiseTech
    • YMM
    • YRIV
  • In the News
  • Terms of Service
  • Contact
    • Receive Public Reports
    • Press Inquiries
    • Twitter
  • 中文
  • Join our list
  • Our Substack: The Dispatch

Insider Enrichment Scheme,
and ~30% of Revenue May Be Fabricated

ISPR

Initiation Report: November 30, 2023
J Capital Research ("J Cap") is a stock-research company. J Cap has analyzed the U.S.-listed company Ispire Technology Inc. (“ISPR”) and is hereby publishing the outcome and the conclusions of our analysis, based on publicly available information. We may be short shares of ISPR, and, for this reason, there might be a conflict of interest.
  • We believe that ISPR exists to enrich insiders via undisclosed related parties.
  • ISPR appears to line its chairman’s pockets by overpaying the Shenzhen factory he owns. While ISPR loses money per vape, the Shenzhen company earns net profit of 11%, resulting in millions to ISPR’s chairman. While competitors sport 70% gross margins, ISPR lags, at 16%.
  • Original Chinese documents suggest to us that a big chunk of supply may be fabricated. While the sole, related-party supplier grew sales at just 12%, ISPR reports they’ve bought 41% more. The majority of ISPR’s COGS goes unpaid. It’s typical of a China hustle to show growth through big contracts with related parties that don’t get paid.
  • Over 30% of sales are made by an undisclosed related-party - and we think a lot of those sales could be fake.



Picture
Vape store in central London. Where's the Ispire/Aspire product?
Use of J Capital Research reports is limited by the Terms of Use on its website, which can be found here. These Terms of Use govern current reports published by J Capital Research and supersede any prior Terms of Use for older reports of J Capital Research, which you may download from the J Capital Research website.
  • The co-CEO, a cannabis entrepreneur, has been accused of extortion and violations of drug law. A whistleblower at Michael Wang’s former company raised concerns about a “genetic consulting” payment. Wang wrote back “just make sure no one knows about this.” 
  • Money is tight. Cash and equivalents of $25.7 mln could last less than one year, and the company needs several million for capex. ISPR tells shareholders it needs new factories to improve margins. But those factories appear to be just pass-throughs for the chairman’s Shenzhen factory.
  • ISPR was brought public by Tiger Securities and other brokerages for small Chinese companies. Tiger’s top 14 losers saw a 38.7% drawdown within three months of IPO.
  • A recent big movement in the stock, from $7.93 to $16.30, was unjustified by any announcement, coverage upgrade, or fundamental change and makes us question whether there is price manipulation behind the curtain.
Download our full report
Undisclosed related party
© 2025 J Capital Research USA LLC. All rights reserved. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of J Capital. Use of this publication by authorized users is subject to the J Capital Authorized User Content Agreement available here. 
  • Home
  • Company Reports
    • AAN
    • ACMR
    • AMLI
    • AOS
    • AXTI
    • BGNE
    • Boohoo.com
    • BTBT
    • BTCM
    • BTMD
    • CBAT
    • CCRC
    • CDXC
    • ENPH
    • FANH
    • FFIE >
      • FFIE Site Visits
    • FFX
    • GDS
    • HUT
    • HVN
    • Ideanomics
    • INOD
    • IPO
    • ISPR
    • LK
    • LKE
    • MARA
    • MARK
    • MQ
    • MVST
    • Nearmap
    • NNE
    • Northern Dynasty
    • NovaGold
    • SRNE
    • STAA
    • TPIC
    • UXIN
    • WiseTech
    • YMM
    • YRIV
  • In the News
  • Terms of Service
  • Contact
    • Receive Public Reports
    • Press Inquiries
    • Twitter
  • 中文
  • Join our list
  • Our Substack: The Dispatch