ZK International Group Co., Ltd. Announces Record Revenue of $52.89 Million, an Increase of 6.5% for the First Half of Fiscal Year 2024
ZK International Group Co., (ZKIN) reported record revenue of $52.89 million for the first half of fiscal year 2024, a 6.5% increase from the same period last year. The company, which manufactures stainless steel and carbon steel pipe products, saw increased demand due to real estate market recovery. Despite higher revenue, ZKIN experienced a net loss of $0.48 million, compared to a $0.06 million loss in the previous year. Gross profit rose by 5.68% to $3.35 million, but gross margin slightly declined to 6.33% due to rising raw material costs. The company's financial condition shows a current ratio of 1.55 as of March 31, 2024, with cash and equivalents totaling $5.06 million.
ZK International Group Co., (ZKIN) ha riportato un fatturato record di $52,89 milioni per il primo semestre dell'anno fiscale 2024, con un aumento del 6,5% rispetto allo stesso periodo dell'anno scorso. L'azienda, che produce tubi in acciaio inossidabile e acciaio al carbonio, ha visto un aumento della domanda a causa della ripresa del mercato immobiliare. Nonostante l'aumento del fatturato, ZKIN ha registrato una perdita netta di $0,48 milioni, rispetto a una perdita di $0,06 milioni dell'anno precedente. Il profitto lordo è aumentato del 5,68% a $3,35 milioni, ma il margine lordo è leggermente calato al 6,33% a causa dell'aumento dei costi delle materie prime. La situazione finanziaria dell'azienda mostra un rapporto corrente di 1,55 al 31 marzo 2024, con liquidità e equivalenti pari a $5,06 milioni.
ZK International Group Co., (ZKIN) reportó ingresos récord de $52.89 millones para la primera mitad del año fiscal 2024, un aumento del 6.5% en comparación con el mismo período del año anterior. La empresa, que fabrica productos de tubos de acero inoxidable y acero al carbono, vio un aumento en la demanda debido a la recuperación del mercado inmobiliario. A pesar del aumento de ingresos, ZKIN experimentó una pérdida neta de $0.48 millones, en comparación con una pérdida de $0.06 millones en el año anterior. La ganancia bruta aumentó en un 5.68% a $3.35 millones, pero el margen bruto disminuyó ligeramente al 6.33% debido al aumento de los costos de las materias primas. La situación financiera de la empresa muestra un ratio corriente de 1.55 hasta el 31 de marzo de 2024, con efectivo y equivalentes totalizando $5.06 millones.
ZK International Group Co., (ZKIN)은 2024 회계연도 상반기에 대한 $52.89백만의 기록적인 수익을 보고했으며, 이는 작년 같은 기간에 비해 6.5% 증가한 수치입니다. 스테인리스강 및 탄소강 파이프 제품을 제조하는 이 회사는 부동산 시장 회복 덕분에 수요가 증가했습니다. 수익이 증가했음에도 불구하고, ZKIN은 $0.48백만의 순손실을 경험했으며, 이는 작년의 $0.06백만 손실과 비교됩니다. 총 이익은 5.68% 증가하여 $3.35백만에 이르렀으나, 원자재 비용 상승으로 인해 총 이익률은 6.33%로 약간 감소했습니다. 2024년 3월 31일 기준으로 회사의 재무 상태는 1.55의 유동 비율을 보여주며, 현금 및 기타 자산은 총 $5.06백만입니다.
ZK International Group Co., (ZKIN) a rapporté un chiffre d'affaires record de $52,89 millions pour le premier semestre de l'exercice fiscal 2024, soit une augmentation de 6,5% par rapport à la même période de l'année précédente. L'entreprise, qui fabrique des produits en acier inoxydable et en acier au carbone, a vu la demande augmenter en raison de la reprise du marché immobilier. Malgré la hausse des revenus, ZKIN a subi une perte nette de $0,48 millions, par rapport à une perte de $0,06 millions l'année précédente. Le bénéfice brut a augmenté de 5,68% pour atteindre $3,35 millions, mais la marge brute a légèrement diminué à 6,33% en raison de l'augmentation des coûts des matières premières. La situation financière de l'entreprise montre un ratio courant de 1,55 au 31 mars 2024, avec des liquidités et équivalents totalisant $5,06 millions.
ZK International Group Co., (ZKIN) berichtete von einem Rekordumsatz von $52,89 Millionen für das erste Halbjahr des Geschäftsjahres 2024, was einem Anstieg von 6,5% im Vergleich zum gleichen Zeitraum des Vorjahres entspricht. Das Unternehmen, das Edelstahl- und Kohlenstoffstahlrohrprodukte herstellt, erlebte eine gestiegene Nachfrage aufgrund der Erholung des Immobilienmarktes. Trotz eines höheren Umsatzes verzeichnete ZKIN einen Nettoverlust von $0,48 Millionen, im Vergleich zu einem Verlust von $0,06 Millionen im Vorjahr. Der Bruttogewinn stieg um 5,68% auf $3,35 Millionen, jedoch sank die Bruttomarge leicht auf 6,33% aufgrund steigender Rohstoffkosten. Die finanzielle Situation des Unternehmens weist zum 31. März 2024 ein Verhältnis von 1,55 auf, wobei Bargeld und Äquivalente insgesamt $5,06 Millionen betragen.
- Record revenue of $52.89 million, a 6.5% year-over-year increase
- Gross profit increased by 5.68% to $3.35 million
- Increased demand for piping products due to real estate market recovery
- Current ratio of 1.55, indicating solid short-term liquidity
- Net loss widened to $0.48 million from $0.06 million in the previous year
- Slight decline in gross margin to 6.33% due to rising raw material costs
- Operating loss of $0.16 million compared to operating income of $0.14 million last year
- General and administrative expenses increased by 39.26% to $2.01 million
Insights
ZK International's financial results for H1 FY2024 present a mixed picture. The company achieved record revenue of
The slight decline in gross margin from
The company's financial position shows some strain, with short-term borrowings increasing from
The Chinese real estate market recovery has been a key driver for ZK International's revenue growth. This sector's rebound is significant for the company's piping products demand. However, the sustainability of this recovery remains uncertain, given the ongoing challenges in China's property sector.
The company's strategy of increasing average selling prices (ASP) to offset rising raw material costs demonstrates adaptability but has not fully mitigated the impact on margins. This pricing power, or lack thereof, will be important to watch in future quarters.
The
Investors should closely monitor the company's ability to capitalize on the real estate market recovery while managing costs and improving operational efficiency in a competitive and cost-sensitive industry.
WENZHOU, China, Sept. 30, 2024 /PRNewswire/ -- ZK International Group Co., Ltd. (ZKIN) ("ZK International" or the "Company"), a designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products primarily used for water and gas supplies, today announced its unaudited financial results for the six months ended March 31, 2024.
Financial Highlights for the First Half of Fiscal Year 2024
For the Six Months Ended March 31, | |||||||||||
($ millions, except per share data) | 2024 | 2023 | % Change | ||||||||
Revenue | $ | 52.89 | $ | 49.66 | 6.50 % | ||||||
Gross profit | $ | 3.35 | $ | 3.17 | 5.68 % | ||||||
Gross margin | 6.33 % | 6.38 % | - | ||||||||
Income (loss) from operations | $ | (0.16) | $ | 0.14 | (2.14) % | ||||||
Operating margin | (0.31) % | 0.29 % | |||||||||
Net loss | $ | (0.48) | $ | (0.06) | - | ||||||
Diluted earnings per share | $ | (0.01) | $ | 0.00 | - | ||||||
* pp: percentage point(s) |
- Revenue increased
6.50% to a record 52.89 million for the six months ended March 31, 2024 from approximately for the six months ended March 31, 2023. During the first fiscal half of 2024, we observed an increase of demand for our piping products, primarily attributable to the real estate market recovery during the fiscal period. Raw materials price, especially the price of nikel which is an important component of stainless steel, also increased. To minimize the impact the rise of raw material price, we increased our weighted average selling price ("ASP") during the period.$49.66 million - Gross profit increased by
5.68% to . Gross margin was$3.35 million 6.33% , compared to6.38% for the same period of the prior fiscal period. The rising costs of raw materials, particularly for stainless steel coil which is a key component of our products, has ourpaced the increase of our ASP which led to a slight decline in gross margin. - Loss from operations was
, compared to income from operations of$0.16 million for the same period of the prior fiscal year. Operating margin was -$0.14 million 0.31% , compared to0.29% for the same period of the prior fiscal year. - Net loss was
. This compared to a net loss of$0.48 million for the same period of the prior fiscal year.$0.06 million
Financial Results for the First Half of Fiscal Year 2023
Revenue
Revenue increased by
Gross Profit
Our gross profit increased by 181,368, or
Selling and Marketing Expenses
We incurred
General and Administrative expenses
We incurred
Research and Development Expenses
We incurred
Income (loss) from Operations
As a result of the factors described above, we incurred operating loss of
Other Income (Expenses)
Our interest income and expenses were
Net Income (loss)
As a result of the factors described above, we incurred net loss of
Financial Condition
As of March 31, 2024, cash and cash equivalents, restricted cash and short-term investments totaled
Accounts receivable was
Total current assets and current liabilities were
About ZK International Group Co., Ltd.
ZK International Group Co., Ltd. is a China-based designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products that require sophisticated water or gas pipeline systems. The Company owns 33 patents, 21 trademarks, 2 Technical Achievement Awards, and 10 National and Industry Standard Awards. ZK International is Quality Management System Certified (ISO9001), Environmental Management System Certified (ISO1401), and a National Industrial Stainless Steel Production Licensee that is focused on supplying steel piping for the multi-billion dollar industries of Gas and Water sectors. ZK has supplied stainless steel pipelines for over 2,000 projects, including the Beijing National Airport, the "Water Cube", and "Bird's Nest", which were venues for the 2008 Beijing Olympics. 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 China market but also to international markets such as Europe, East Asia, and Southeast Asia.
For more information please visit 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
ZK International Group Co., Ltd. and Subsidiaries | ||||||||
Consolidated Statements of Income and Comprehensive Income (Loss) | ||||||||
For the Six Months Ended March 31, 2024 and 2023 (Unaudited) | ||||||||
(IN | ||||||||
For the Six Months Ended | ||||||||
2024 | 2023 | |||||||
Revenues | 52,887,156 | $ | 49,655,399 | |||||
Cost of sales | 49,537,146 | 46,486,756 | ||||||
Gross profit | 3,350,010 | 3,168,642 | ||||||
Operating expenses: | ||||||||
Selling and marketing expenses | 880,824 | 963,655 | ||||||
General and administrative expenses | 2,010,566 | 1,443,743 | ||||||
Research and development costs | 622,805 | 619,511 | ||||||
Total operating expenses | 3,514,195 | 3,026,909 | ||||||
Operating Income | 164,185 | 141,734 | ||||||
Other income (expenses): | ||||||||
Interest expenses | (411,045) | (386,527) | ||||||
Interest income | 7,868 | 25,123 | ||||||
Other income (expenses), net | 92,816 | 162,590 | ||||||
Total other income (expenses), net | (310,361) | (198,814) | ||||||
Income (Loss) before income taxes | (474,546) | (57,080) | ||||||
Income tax provision | - | - | ||||||
Net income (loss) | (481,753) | $ | (57,080) | |||||
Net income (loss) attributable to non-controlling interests | 1,663 | |||||||
Net income (loss) attributable to ZK International Group Co., Ltd. | (481,753) | $ | (55,417) | |||||
Net income (loss) | (481,753) | $ | (57,080) | |||||
Other comprehensive income: | ||||||||
Foreign currency translation adjustment | (1,912,369) | |||||||
Total comprehensive income (loss) | (481,753) | (1,969,449) | ||||||
Comprehensive income (loss) attributable to non-controlling interests | (9,284) | (10,076) | ||||||
Comprehensive income attributable to ZK International Group Co., Ltd. | (472,468) | (1,979,525) | ||||||
Basic and diluted earnings per share | ||||||||
Basic | - | - | ||||||
Diluted | - | - | ||||||
Weighted average number of shares outstanding | ||||||||
Basic | 31,445,962 | 30,392,940 | ||||||
Diluted | 31,445,962 | 30,518,893 | ||||||
ZK International Group Co., Ltd. and Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
As of March 31, 2024 and September 30, 2023 (Unaudited) | ||||||||
(IN | ||||||||
2024 (Unaudited) | 2023 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 4,945,913 | $ | 4,994,411 | ||||
Restricted cash | 65,379 | 50,995 | ||||||
Short-term Investment | 48,650 | 48,145 | ||||||
Accounts receivable, net of allowance for doubtful accounts of | 20,556,288 | 14,967,186 | ||||||
Notes receivable | 269,424 | 54,825 | ||||||
Other receivables | 6,022,949 | 383,413 | ||||||
Due from related parties | 1,532,776 | - | ||||||
Inventories | 13,390,249 | 17,937,425 | ||||||
Advance to suppliers | 15,216,014 | 4,810,044 | ||||||
Total current assets | 62,047,642 | 43,246,444 | ||||||
Property, plant and equipment, net | 7,822,460 | 7,836,017 | ||||||
Right-of use asset | 18,573 | 43,840 | ||||||
Intangible assets, net | 1,446,461 | 1,437,384 | ||||||
Long-term accounts receivable | 5,585,636 | 5,527,682 | ||||||
Long-term investment | 302,760 | 285,540 | ||||||
TOTAL ASSETS | $ | 77,223,532 | $ | 58,668,977 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,178,436 | $ | 2,611,220 | ||||
Accrued expenses and other current liabilities | 1,634,393 | 4,964,892 | ||||||
Lease liability - current portion | 21,977 | 21,749 | ||||||
Accrued payroll and welfare | 1,867,631 | 1,918,415 | ||||||
Advance from customers | 16,847,355 | 821,694 | ||||||
Due to related parties | 128,903 | 1,111,001 | ||||||
Convertible debentures | 4,011,224 | 4,011,224 | ||||||
Short-term bank borrowings | 13,336,426 | 9,388,706 | ||||||
Notes payables | - | 41,118 | ||||||
Income tax payable | - | 669 | ||||||
Total current liabilities | 40,026,345 | 24,890,689 | ||||||
Bank borrowings – non-current | 8,617,093 | 8,527,686 | ||||||
Lease liability - long term portion | 11,935 | 11,811 | ||||||
TOTAL LIABILITIES | $ | 48,655,373 | $ | 33,430,186 | ||||
Equity | ||||||||
Common stock, no par value, 50,000,000 shares | ||||||||
Additional paid-in capital | 76,386,898 | 72,886,898 | ||||||
Statutory surplus reserve | 3,176,556 | 3,176,556 | ||||||
Subscription receivable | (125,000) | (125,000) | ||||||
Retained earnings | (48,140,252) | (47,666,657) | ||||||
Accumulated other comprehensive income (loss) | (2,878,739) | (3,190,985) | ||||||
Total equity attributable to ZK International Group Co., Ltd. | 28,419,463 | 25,080,812 | ||||||
Equity attributable to non-controlling interests | 148,696 | 157,980 | ||||||
Total equity | 28,568,159 | 25,238,792 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 77,223,532 | $ | 58,668,977 |
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SOURCE ZK International Group Co., Ltd.
FAQ
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