ZK International Group Announces 405% Gross Profit Increase for the Fiscal Year 2024
ZK International Group (ZKIN) reported significant financial improvements for fiscal year 2024 ended September 30. Despite a 3.05% revenue decrease to $108.20 million, the company achieved a remarkable 405% increase in gross profit to $6.55 million, with gross margin improving to 6.5% from 1.16%.
The company substantially reduced its net loss by 95.44% to $2.78 million, compared to $61.06 million in FY2023. Loss per share improved to $0.08 from $1.94. The improved performance was primarily driven by increased weighted average selling prices and reduced one-off asset impairment costs.
Looking ahead, ZKIN expects gross profit margins of 10-12% for FY2025, supported by increased public sector investment and market recovery. The company plans to continue raising average selling prices to improve margins, leveraging its expanded market share and favorable market conditions.
ZK International Group (ZKIN) ha riportato significativi miglioramenti finanziari per l'anno fiscale 2024 terminato il 30 settembre. Nonostante una diminuzione del 3,05% dei ricavi a $108,20 milioni, l'azienda ha raggiunto un aumento straordinario del 405% nel profitto lordo, salendo a $6,55 milioni, con un margine lordo che è migliorato al 6,5% rispetto all'1,16%.
L'azienda ha ridotto sostanzialmente la sua perdita netta del 95,44%, portandola a $2,78 milioni, rispetto ai $61,06 milioni dell'anno fiscale 2023. La perdita per azione è migliorata a $0,08 da $1,94. Le prestazioni migliorate sono state principalmente spinte dall'aumento dei prezzi di vendita medi ponderati e dalla diminuzione dei costi di impairment degli asset una tantum.
Guardando al futuro, ZKIN prevede margini di profitto lordo del 10-12% per l'anno fiscale 2025, supportati da un aumento degli investimenti del settore pubblico e dal recupero del mercato. L'azienda intende continuare ad aumentare i prezzi di vendita medi per migliorare i margini, sfruttando la sua quota di mercato ampliata e le condizioni di mercato favorevoli.
ZK International Group (ZKIN) informó mejoras financieras significativas para el año fiscal 2024 finalizado el 30 de septiembre. A pesar de una disminución del 3,05% en los ingresos a $108,20 millones, la empresa logró un notable aumento del 405% en el beneficio bruto, alcanzando los $6,55 millones, con un margen bruto que mejoró al 6,5% desde el 1,16%.
La compañía redujo sustancialmente su pérdida neta en un 95,44%, llevándola a $2,78 millones, en comparación con $61,06 millones en el año fiscal 2023. La pérdida por acción mejoró a $0,08 desde $1,94. El rendimiento mejorado fue impulsado principalmente por el aumento de los precios de venta promedio ponderados y la reducción de los costos de deterioro de activos extraordinarios.
De cara al futuro, ZKIN espera márgenes de beneficio bruto del 10-12% para el año fiscal 2025, respaldados por un aumento de la inversión del sector público y la recuperación del mercado. La empresa planea continuar aumentando los precios de venta promedio para mejorar los márgenes, aprovechando su cuota de mercado ampliada y las condiciones del mercado favorables.
ZK International Group (ZKIN)은 9월 30일 종료된 2024 회계연도를 위한 중요한 재무 개선을 보고했습니다. 수익이 3.05% 감소하여 1억 820만 달러에 도달했음에도 불구하고, 회사는 405%의 놀라운 총이익 증가를 달성하여 655만 달러에 이르렀고, 총 마진은 1.16%에서 6.5%로 개선되었습니다.
회사는 순손실을 95.44% 줄여 278만 달러로 감소시켰습니다. 이는 2023 회계연도의 6106만 달러와 비교됩니다. 주당 손실은 1.94달러에서 0.08달러로 개선되었습니다. 향상된 성과는 주로 가중 평균 판매 가격의 증가와 일회성 자산 손상 비용의 감소에 의해 주도되었습니다.
앞으로 ZKIN은 2025 회계연도에 대해 10-12%의 총이익 마진을 예상하고 있으며, 이는 공공 부문 투자 증가와 시장 회복에 의해 지원됩니다. 회사는 시장 점유율 확대와 유리한 시장 조건을 활용하여 마진을 개선하기 위해 평균 판매 가격을 계속 높일 계획입니다.
ZK International Group (ZKIN) a rapporté des améliorations financières significatives pour l'exercice fiscal 2024 terminé le 30 septembre. Malgré une baisse de 3,05% des revenus à 108,20 millions de dollars, l'entreprise a réalisé une augmentation remarquable de 405% du bénéfice brut, atteignant 6,55 millions de dollars, avec une marge brute s'améliorant à 6,5% contre 1,16%.
L'entreprise a considérablement réduit sa perte nette de 95,44%, la ramenant à 2,78 millions de dollars, contre 61,06 millions de dollars pour l'exercice 2023. La perte par action s'est améliorée à 0,08 $ contre 1,94 $. L'amélioration des performances a été principalement due à l'augmentation des prix de vente moyens pondérés et à la réduction des coûts d'amortissement des actifs exceptionnels.
En regardant vers l'avenir, ZKIN prévoit des marges de bénéfice brut de 10 à 12 % pour l'exercice 2025, soutenues par une augmentation des investissements du secteur public et la reprise du marché. L'entreprise envisage de continuer à augmenter les prix de vente moyens pour améliorer les marges, en tirant parti de sa part de marché élargie et des conditions de marché favorables.
ZK International Group (ZKIN) hat signifikante finanzielle Verbesserungen für das zum 30. September abgeschlossene Geschäftsjahr 2024 gemeldet. Trotz eines Rückgang der Einnahmen um 3,05% auf 108,20 Millionen Dollar erzielte das Unternehmen einen bemerkenswerten Anstieg des Bruttogewinns um 405% auf 6,55 Millionen Dollar, während die Bruttomarge von 1,16% auf 6,5% stieg.
Das Unternehmen verringerte seinen Nettoverlust um 95,44% auf 2,78 Millionen Dollar im Vergleich zu 61,06 Millionen Dollar im Geschäftsjahr 2023. Der Verlust pro Aktie verbesserte sich von 1,94 Dollar auf 0,08 Dollar. Die verbesserte Leistung wurde hauptsächlich durch den Anstieg der gewichteten Durchschnittspreise und die reduzierten einmaligen Abschreibungskosten für Vermögenswerte vorangetrieben.
Blickt man in die Zukunft, erwartet ZKIN für das Geschäftsjahr 2025 Bruttogewinnmargen von 10-12%, unterstützt durch steigende Investitionen des öffentlichen Sektors und eine Markterholung. Das Unternehmen plant, die durchschnittlichen Verkaufspreise weiter zu erhöhen, um die Margen zu verbessern und dabei seine erhöhte Marktanteile und günstigen Marktbedingungen zu nutzen.
- 405% increase in gross profit to $6.55 million
- 95.44% reduction in net loss to $2.78 million
- Gross margin improved to 6.5% from 1.16%
- 97.16% decrease in operating loss to $1.72 million
- Projected gross margin of 10-12% for FY2025
- 3.05% decrease in revenue to $108.20 million
- Net loss of $2.78 million despite improvements
- Loss of price-sensitive customers due to price increases
- Rising raw material costs, particularly nickel prices
Insights
ZK International's FY2024 results reveal a remarkable financial transformation, highlighted by a 405% surge in gross profit to
- Strategic pricing optimization: The company successfully leveraged its expanded market share to implement price increases, boosting gross margins from
1.16% to6.05% - Operational normalization: The elimination of
$53.2M in one-time impairment charges from FY2023 significantly improved the bottom line - Market recovery: Renewed strength in China's real estate sector has provided tailwinds for demand
Looking ahead, management's projection of 10-12% gross margins for FY2025 appears achievable given current momentum and increased public sector investment. However, investors should monitor several key risk factors:
- Raw material cost pressures, particularly nickel prices, which could compress margins if not properly managed through pricing
- Competitive dynamics in the Chinese pipe market, as price increases may face resistance
- Execution of the company's market share retention strategy while implementing further price increases
The reduction in net loss to
WENZHOU,
Financial Highlights for the Fiscal Year 2024
For the Fiscal Year Ended September 30, | ||||||
($ millions, except per share data) | 2024 | 2023 | % Change | |||
Revenue | -3.05 % | |||||
Gross profit | 405.02 % | |||||
Gross margin | 6.5 % | 1.16 % | 4.89 percentage points | |||
Income (loss) from operations | ( | ( | 97.16 % | |||
Operating income (loss) margin | -1.59 % | -54.16 % | 52.57 percentage points | |||
Net income (loss) attributable to ZK International | ( | ( | 95.44 % | |||
Diluted earnings (loss) per share | ( | ( | 95.88 % | |||
Net book value per share | 2.50 % | |||||
Revenue
Revenues decreased by
1) During the fiscal year 2024, we observed a recovery in the real estate market, which fueled increased demand. This contrasts with the market pressure faced in fiscal year 2023, particularly due to the downturn in the Chinese real estate market, exacerbated by the collapse of Evergrande. The recovery in 2024 provided us with more favorable sales opportunities. In response to rising raw material costs, the company increased its weighted average selling price (ASP) to sustain profit margins. However, the price increases led to the loss of price-sensitive customers and heightened market competition, which ultimately resulted in a decline in overall sales and adversely affected revenue.
2) During the fiscal year 2024, raw material prices continued to rise, particularly the price of nickel used in stainless steel, which increased production costs. This situation differed from the fluctuations in raw material prices observed in fiscal year 2023. During the 2023 fiscal year, nickel prices surged by
3) During Q1 of 2025 fiscal year, we have further increased our sales prices and improved our gross margin mainly attributable to the increased investment led by the public sector. The Company expects to have a gross profit margin in the range of
Gross Profit
Our gross profit increased by
For the 2025 fiscal year, the company will continue to raise the ASP, which will significantly improve our gross margin, by taking advantage of the market recovery and expanded market share of the company's products.
Loss from Operations
Our loss from operations decreased by
During 2023 fiscal year, the Company recorded asset impairment cost of
For the 2021 and 2022 fiscal years, CG Malta achieved high growth with its online gaming services launched in more than 10 states in US with high growth rate of Real Money Handle and First-Time Depositor. However, during the 2023 fiscal year, the competition of gaming market has been increasingly intense. Market bullishness and valuations peaked in early-2023 and declined rapidly from there, preventing CG Malta from raising further capital to execute its business plan. For the best interest of the Company's shareholder, the Company decided to stop funding CG Malta and instead demanded the management team of CG Malta took active measures to achieve organic growth and healthy cash flow. However, the business was unable to raise the capital required to fund the business plan, and therefore the shareholders of CG Malta passed shareholder resolution on November 27, 2023 to cease operations of CG Malta and wind up the entity. For the year ended September 30, 2023, the Company has written off the investment in CG Malta.
During 2023 fiscal year, the Company evaluated the recoverability of the three platforms, including Defi Exchange, xSigma Trading, and MaximNFT and concluded that the carrying value of the three platforms may not be recoverable as it projects that the platform is likely to have continuing losses and it's more likely than not this platform will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. For the year ended September 30, 2023, the Company wrote off the carrying value of the three platforms.
Net Loss Attributable to ZK International
Net loss attributable to ZK International was
Net book value
Net book value per share was
Mr. Jiancong Huang, Chairman of ZK International, commented, "The business climate is steadily improving, marking a turning point for ZK International. The improvement in our financial performance for the Fiscal Year end of FY2024 underscores our resilience and strategic focus during challenging times. With market conditions recovering, our expanded market share, enhanced operational strategies, and commitment to innovation and quality position us to capitalize on this momentum. As we strengthen our global presence and drive innovation, we anticipate significant growth in the next few years, including increased profit margins and net profit. ZK International is entering an exciting new era of expansion, and we are confident in achieving sustainable growth and creating long-term value for our shareholders.
About ZK International Group Co., Ltd.
ZK International Group Co., Ltd. is a
Emphasizing superior properties and durability of its steel piping, ZK International is providing a solution for the delivery of high quality, highly sustainable, environmentally sound drinkable water not only to the
Learn more about ZK International's innovative solutions and market leadership by visiting www.ZKInternationalGroup.com. Additionally, please follow the Company on Twitter, Facebook, YouTube, and Weibo. For further information on the Company's SEC filings please visit www.sec.gov.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the
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SOURCE ZK International Group Co., Ltd.
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