ZK International Wins a $75 million bid in "High Quality Drinking Water Household Project"

Rhea-AI Summary

ZK International Group Co., Ltd. (ZKIN) has won a $75 million contract for the Shenzhen Water Market Project, part of a larger $600 million investment. This project includes supplying stainless steel pipes for high-quality drinking water and community network renovations. ZK International aims to secure about 40% of the project, equating to $30 million in sales. CEO Jiancong Huang noted challenges from the COVID-19 pandemic, fluctuating nickel prices, and supply chain issues but expressed confidence in the company's future capabilities and market positioning.

Positive

• Won a $75 million bid for the Shenzhen Water Market Project.
• Anticipates $30 million in sales from this project, contributing to overall revenue.
• Company's strong commitment to overcoming pandemic-related challenges enhances investor confidence.
• Aiming to enter additional projects in China's water supply market.

Negative

• Facing challenges due to the COVID-19 pandemic and supply chain issues.
• Fluctuating nickel prices pose potential cost challenges.

WENZHOU, China, Aug. 9, 2022 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) ("ZKIN", "ZK International" or the "Company"), is pleased to announce that ZK International continues its success with procuring projects throughout China. Recently, ZK International has won a $75 million bid in the project known as the "Shenzhen Water Market Project", where companies bided to be the supplier of the stainless-steel pipes and fittings supplier of "High Quality Drinking Water Household Project" (Phase 7 and 8) and "Community Water Supply Network Renovation Project" (phase 7 and 8).

The total investment of these projects is approximately around US$600 million, of which stainless steel pipes and fittings account for 17% of the total investment being made of about US$75 Million dollars. ZK International anticipates it will supply approximately 40% of the projects, giving ZK approximately US$30 million dollars in sales.

Mr. Jiancong Huang, Chairman and CEO of ZK International stated, "Despite many adverse factors such as the COVID-19 pandemic shut-downs in China, soaring nickel price, supply chain challenges, and the fluctuations in the capital markets, our management team and all of our employees at ZKIN remain committed to overcome these challenges.  The success of winning these bids and enduring the various stages of the bidding process is a testament to our excellent sales and marketing team who continue to bring profit to ZKIN despite these challenges."

Mr. Jiancong Huang, contines, "ZK International's team will continue to strive to provide customers with competitive, safe and reliable piping system products and related solutions and services in China and internationally.  The Company is targeting the global construction water supply markets, gas, home decoration, firefighting, HVAC, siphon drainage and other fields. In the future, ZK International expects to win additional bids on various projects in China. We look forward to sharing these good news in the near future."

About ZK International Group Co., Ltd.

ZK International Group Co., Ltd. is a China-based engineering company building and investing in innovative technologies for the modern world. With a focus on designing and implementing next-generation solutions through industrial, environmental and software engineering, ZKIN owns 28 patents, 21 trademarks, 2 Technical Achievement Awards, and 10 National and Industry Standard Awards.  

ZKIN's core business is to engineer and manufacture patented high-performance stainless steel and carbon steel pipe products that effectively deliver high quality, highly sustainable and environmentally sound drinkable water to the Chinese, Asia and European markets.  ZK International is Quality Management System Certified (ISO9001), Environmental Management System Certified (ISO1401), and a National Industrial Stainless Steel Production Licensee.  It has supplied stainless steel pipelines for over 2,000 projects, which include the Beijing National Airport, the "Water Cube" and "Bird's Nest", which were venues for the 2008 Beijing Olympics.  ZK International is preparing to capitalize on the $850 Billion commitment made by the Chinese Government to improve the quality of water, which has been stated to be 70% unfit for human contact.  

In 2018, ZKIN established its wholly owned xSigma Corporation to develop innovative software solutions that support its core operations while exploring new opportunities in smart contracts, distributed ledgers, supply chain management and blockchain architecture. The xSigma Labs team is made up of world-class developers and engineers formerly of Facebook, Google, Amazon, Ripple and 1inch, most recently launching its first DeFi project in the Fall of 2020. 

In March of 2021, ZKIN announced the formation of its new wholly owned subsidiary, xSigma Entertainment Limited. It was established as part of ZK's integrated network of companies focused on developing and investing in innovative software technology platforms. xSigma Entertainment's mandate is to acquire assets in the high-growth US gaming market.  xSigma Entertainment aims to increase shareholder value by targeting and investing in early-stage online gambling businesses that are poised for exponential growth and exits. 

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 U.S. Private Securities Litigation Reform Act of 1995. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict and many of which are beyond the control of ZK International.  Actual results may differ from those projected in the forward-looking statements due to risks and uncertainties, as well as other risk factors that are included in the Company's filings with the U.S. Securities and Exchange Commission. Although ZK International believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized.  In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by ZK International or any other person that their objectives or plans will be achieved. ZK International does not undertake any obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Di Chen
Cell Number: +86 15057357883
Email: super.di@live.cn

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SOURCE ZK International Group Co., Ltd.

FAQ

What recent project did ZK International Group win?

ZK International Group won a $75 million bid for the Shenzhen Water Market Project.

What percentage of the Shenzhen Water Market Project is ZK International expected to supply?

ZK International is expected to supply approximately 40% of the Shenzhen Water Market Project.

How much in sales does ZK International anticipate from the Shenzhen Water Market Project?

ZK International anticipates approximately $30 million in sales from the project.

What is the total investment in the Shenzhen Water Market Project?

The total investment in the Shenzhen Water Market Project is approximately $600 million.

What challenges is ZK International facing?

ZK International is facing challenges related to the COVID-19 pandemic, fluctuating nickel prices, and supply chain issues.