WENZHOU, China, Feb. 7, 2025 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) ("ZK International" or the "Company"), a leading engineering Company focused on high-performance steel products, announces that its previously scheduled shareholder conference call, originally planned for February 7, 2025, has been cancelled and the company will reschedule the event at a later date. The Company remains committed to providing its shareholders and interested parties with the most comprehensive and up- ...

Core Viewpoint - ZK International Group Co., Ltd. is launching xSigma Wallet, a next-generation crypto banking wallet aimed at facilitating the purchase of memecoins and cryptocurrencies using various payment methods, including credit cards and digital wallets [1][2][5]. Group 1: Product Features - xSigma Wallet will allow users to buy popular cryptocurrencies instantly with credit cards and Apple Pay [10]. - The wallet will introduce a xSigma Visa credit card, enabling users to top up their balance with cryptocurrencies [2][10]. - It will provide secure, non-custodial storage for memecoins and major cryptocurrencies [10]. - The wallet will offer simple fiat-to-crypto on-ramp services, allowing users to buy memecoins with minimal effort [10]. Group 2: Market Demand and Strategy - There is strong market demand for memecoins, as evidenced by the record-breaking $400 million trading volume on the first day of a competing app [5]. - The launch of xSigma Wallet is part of xSigma Corp.'s strategy to remain relevant in blockchain innovation and digital infrastructure [6]. - The company aims to set the standard for compliant and seamless on-ramp solutions in the evolving digital asset market [6]. Group 3: Regulatory Compliance and Global Reach - xSigma Wallet will be regulated in the U.S. and will serve customers in over 170 countries, ensuring compliance with financial regulations [3]. - The wallet is being developed by the xSigma team, with regulated financial services provided by a white-label provider [3].

WENZHOU, China, Jan. 29, 2025 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) ("ZK International" or the "Company"), a leading engineering Company focused on high-performance steel products, announces a 1-for-7 reverse split of its ordinary shares approved by the Company's Board of Directors on January 14, 2025. Beginning on January 31, 2025, the Company's ordinary shares will begin trading on the NASDAQ Stock Market on an adjusted basis, reflecting the reverse stock split, under the exiting ...

WENZHOU, China, Jan. 28, 2025 /PRNewswire/ -- ZK International Group Co., Ltd. (NASDAQ: ZKIN) ("ZK International" or the "Company"), a leader in high-performance stainless steel and carbon steel pipe solutions, is excited to invite its shareholders and interested parties to a special conference call to discuss the Company's latest achievements, major upcoming news, and strategic growth plans for the future.After achieving an astounding 405% increase in gross profit, reaching revenues of $108.20 Million, and ...

Regulatory Compliance and Risks - ZK International's current auditor, Fortune CPA, Inc., is not subject to PCAOB inspection, which poses risks for compliance under the HFCAA[16] - The PCAOB announced it secured complete access to inspect audit firms in mainland China and Hong Kong in 2022, but future inspections remain uncertain[15] - ZK International has not been identified under the HFCAA, but potential delisting risks exist if the PCAOB cannot inspect its auditor for two consecutive years[16] - The approval requirements from the China Securities Regulatory Commission for future offerings may pose additional risks to the company's ability to raise capital[24] - New cybersecurity laws and regulations may affect the company's ability to conduct business and accept foreign investments[98] - Approval from the CSRC may be required for future offerings, which could impact the company's ability to list on overseas exchanges[99] - The CSRC has implemented new filing procedures for overseas securities offerings by PRC domestic enterprises, effective March 31, 2023[102] - The PRC government has issued new regulations emphasizing the need for stricter oversight of overseas listings by PRC-based companies, which may hinder the company's ability to raise additional capital[120] Operational and Market Risks - The company operates through subsidiaries primarily based in China, which exposes it to significant legal and operational risks due to Chinese government regulations[18] - Recent regulatory actions in China may impact the company's ability to conduct business and accept foreign investments, leading to potential depreciation of its ordinary shares[18] - The PRC Data Security Law and Personal Information Protection Law may affect the company's operations, although it currently does not require approval from PRC authorities for foreign investments[22] - The company faces scrutiny and negative publicity related to U.S.-listed Chinese companies, which could harm its business operations and reputation[26] - The Chinese government's influence over business operations may lead to significant changes in the company's operational landscape and financial stability[21] - The company's operations are significantly influenced by political, economic, and social conditions in China, which could adversely affect its competitive position and demand for products[27] - Trade barriers and taxes may reduce the company's ability to conduct business internationally, potentially harming profitability due to decreased sales in targeted emerging markets[28] - The ongoing COVID-19 pandemic has materially impacted operations in Zhejiang Province, with future financial conditions remaining uncertain[34] - The company faces intense competition in the pipe and fitting products market, which could pressure margins and adversely affect financial conditions[35] - Supply chain disruptions due to fragmentation and local protectionism in China may adversely impact the company's manufacturing capabilities and distribution[40] Financial Performance and Capital Structure - The company relies on dividends from its subsidiaries for cash needs, which could be limited by regulatory constraints on dividend payments[17] - The company's reliance on dividends from PRC subsidiaries for cash needs may be restricted by PRC regulations, affecting its ability to fund operations and pay dividends to shareholders[33] - Revenue is primarily generated in Renminbi, which is not freely convertible, potentially limiting the ability to pay dividends due to currency exchange restrictions[80] - A withholding tax rate of up to 10% applies to dividends paid to non-PRC-resident enterprises, which may be reduced to 5% under certain conditions[81] - The company may face delays or restrictions in making loans or capital contributions to its PRC subsidiaries due to PRC regulations[83] - Loans to PRC subsidiaries must be registered with the local SAFE and cannot exceed statutory limits[84] - Future capital contributions to PRC subsidiaries are subject to registration or approval by MOFCOM, which may affect the ability to use proceeds from future offerings[85] - The company does not expect to pay any cash dividends in the foreseeable future, as earnings will be used for business operations[65] - The company recorded a foreign currency translation adjustment loss of $861,280 for the fiscal year ended September 30, 2024, compared to a gain of $(549,332) in 2023 and a loss of $(5,504,385) in 2022[126] - The company is subject to a preferential income tax rate of 15% as a certified high-tech enterprise, but may face challenges from PRC taxing authorities regarding tax liabilities[136] Shareholder and Market Dynamics - The market price of the company's ordinary shares has been volatile, which could affect its ability to issue additional shares or obtain financing[47] - The company is not in compliance with Nasdaq's minimum bid price requirement of $1.00 per share and has until February 10, 2025, to regain compliance[48] - A reverse share split ratio of 1-for-7 was approved by the board on January 14, 2025, to help regain compliance with Nasdaq listing rules[48] - The concentration of ownership among officers and directors, who beneficially own approximately 24% of outstanding shares, may impact management decisions and shareholder outcomes[185] - The ordinary shares may face suspension and delisting from Nasdaq if compliance with listing rules is not regained, potentially leading to trading difficulties in the over-the-counter market[208] - A determination that the ordinary shares constitute a "penny stock" could impose stricter trading rules, resulting in reduced trading activity and lower prices[208] Management and Operational Challenges - The company is heavily reliant on senior management and key personnel, with potential risks associated with their loss or competition for their services[159][161] - The company may face significant costs and business disruptions due to insufficient insurance coverage for natural disasters or accidents[172] - The company is subject to increased legal and financial compliance costs due to public company regulations, which may strain resources and divert management's attention[190] - The company may experience litigation risks due to increased visibility of its business and financial condition as a public entity[191] - The company may face competitive disadvantages due to the obligation to disclose information publicly, which private competitors are not required to do[195] Economic and Industry Factors - The company is susceptible to fluctuations in general economic conditions, which could adversely affect operating results and revenue growth[169] - A slowdown in the Chinese economy, particularly in the real estate and hospitality sectors, could negatively affect demand for the company's products, which rely on consumer spending[140] - Revenue is at risk of decreasing if the construction industry, which is a primary market for the company's products, experiences a prolonged slowdown[142] - Fluctuations in the availability and cost of raw materials could materially affect the company's earnings and production capabilities[143][144] - The company experienced net cash usage of $6,475,650 in operating activities for the fiscal year ended September 30, 2024, indicating potential liquidity challenges[146] - Two vendors accounted for 51% of total purchases in the fiscal year ended September 30, 2024, highlighting dependency on key suppliers[147] - The company plans to explore strategic acquisitions to support growth, but may face challenges in identifying suitable candidates and integrating them effectively[153][154]

WENZHOU, China, Jan. 27, 2025 /PRNewswire/ -- ZK International Group Co., Ltd. (ZKIN) ("ZK International" or the "Company"), a leader in high-performance stainless steel and carbon steel pipe solutions, is pleased to announce a significant turnaround in its financial performance for the fiscal year ended September 30, 2024, achieving 405% increase in gross profit while also decreasing its net loss significantly by 95.44%.Financial Highlights for the Fiscal Year 2024 For the Fiscal Year Ended September 3 ...

WENZHOU, China, Oct. 3, 2024 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) ("ZK International" or the "Company") is proud to announce that it has secured a significant contract with Shenzhen Gas Group for the Shenzhen Municipal Infrastructural Gas Pipeline Procurement Project. This project, valued at approximately $4.47 million, will involve the provision of state-of-the-art crimped carbon steel pipes and fittings for gas engineering in multi-story residential buildings across Shenzhen.Thi ...

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 2024For the Six Months Ended March 31, ($ millions, except per share data) ...

WENZHOU, China, Aug. 13, 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 audited financial results for the fiscal year ended September 30, 2023.Financial Highlights for the Fiscal Year 2023For the Fiscal Year EndedSeptember 30, ($ millions, except per share data) 2023 202 ...

Regulatory Environment - ZK International is not expected to be identified under the Holding Foreign Companies Accountable Act (HFCAA) and its current auditor, Fortune CPA, Inc., is subject to PCAOB inspections[13]. - The PCAOB announced it secured complete access to inspect and investigate PCAOB-registered public accounting firms in mainland China and Hong Kong in 2022[12]. - Recent regulatory actions in China may create uncertainties regarding the ability to list on U.S. exchanges, potentially leading to significant depreciation of the company's ordinary shares[19]. - The approval from Chinese authorities may be required for future offerings, which could hinder the company's ability to operate and offer securities[23]. - Intense scrutiny of U.S.-listed Chinese companies may negatively impact the company's operations and reputation, potentially affecting investor confidence[27]. - The PRC Data Security Law and Personal Information Protection Law may impose new compliance requirements, affecting the company's operations and ability to attract foreign investments[21]. - The Measures for Cybersecurity Review (2021) require online platform operators with over one million users' personal information to undergo a cybersecurity review before listing in foreign markets[102]. - The Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies, effective March 31, 2023, mandates filing procedures for PRC domestic enterprises seeking to list overseas, which could hinder future offerings[110]. - The PRC government may strengthen oversight over overseas offerings, which could hinder the company's ability to raise additional capital[131]. - The SEC has taken the position that certain cryptocurrencies may be classified as securities, impacting regulatory obligations for trading[208]. - If a stablecoin offered on xSigma's platform is deemed a security, the company could face legal or regulatory actions[208]. - The CFTC generally classifies cryptocurrencies as commodities, which may also subject xSigma Corporation to regulatory scrutiny[208]. Financial Stability and Operations - The company relies on dividends from its subsidiaries for cash needs, and any limitations on these payments could affect its financial stability[16]. - The company operates without a variable interest entity structure, which presents unique risks to investors[16]. - The company conducts substantially all of its operations in China, making it significantly influenced by the political, economic, and social conditions in the region[28]. - The company faces risks related to trade barriers and taxes that may reduce its ability to conduct international business, potentially harming profitability[29]. - There are uncertainties regarding the enforcement of laws in China, which could adversely affect the company's operations and financial performance[31]. - The PRC government imposes controls on currency conversion, which may affect the company's ability to pay dividends in foreign currencies[32]. - The company relies on dividends from its PRC subsidiaries to meet cash needs, and any limitations on these payments could impact financial stability[35]. - The ongoing COVID-19 pandemic has materially impacted operations in Zhejiang Province, with future effects on financial condition remaining uncertain[36]. - The company operates in a highly competitive industry, facing pressure on margins from both regional and importing manufacturers[37]. - Fluctuations in the availability and prices of raw materials could materially increase costs and lower earnings[38]. - Supply chain disruptions due to local protectionism and other factors could adversely impact the company's ability to produce and deliver products[41]. - The company may incur liability for unpaid taxes, including interest and penalties, as it faces challenges from PRC taxing authorities regarding tax amounts due[147]. - The company may require additional capital to support business growth and may need to engage in equity or debt financings[152]. - The company’s financial condition and results of operations may be adversely affected by failure to make adequate contributions to employee benefit plans as required by PRC regulations[143]. - The company’s ability to produce and deliver products may be adversely impacted by disruptions in the supply chain of raw materials[160]. Corporate Governance and Management - The company is heavily dependent on senior management and key personnel for its operations, with a particular reliance on the CEO Jiancong Huang[173]. - The company may face challenges in retaining key employees and customers post-acquisition, which could impact future earnings[168]. - The company’s ability to manage growth effectively is critical, as failure to do so could strain resources and adversely affect business prospects[169]. Market and Competitive Risks - The company is exploring strategic acquisitions in the PRC to complement its existing business, but currently has no commitments or agreements in place[167]. - The company’s growth strategy includes enhancing research and development capabilities, improving information technology systems, and increasing marketing and sales activities[169]. - The company acknowledges that the adoption of cryptocurrencies may slow or not develop as anticipated, which would negatively impact its business and financial results[201]. - The cryptocurrency market is subject to significant volatility, and the trading volume of digital assets can be influenced by various factors, including market conditions and regulatory changes[196][198]. - The online gaming and interactive entertainment industry, which includes CG Malta Holding Limited, presents significant uncertainty and business risks due to evolving regulations and competition[192][193]. Revenue Generation and Financial Performance - The company is dependent on the volume of transactions on its stablecoin exchange platform, with low trading volume posing risks to revenue generation[48]. - xSigma Corporation's revenue is dependent on the transaction volume conducted on its stablecoin exchange platform, and failure to grow this volume could adversely affect its business and financial condition[194]. - For the fiscal years ended September 30, 2023, 2022, and 2021, xSigma Corporation decided not to recognize revenue for its token SIG due to low trading volume and unstable market price[195]. - The stablecoin exchange platform launched by xSigma Corporation in February 2021 aims to generate commission revenue based on transaction fees, which could be a flat fee or a percentage of the transaction value[195]. - xSigma Corporation's stablecoin exchange currently supports the exchange of DAI, USDC, and USDT, which are fiat-backed stablecoins but not considered legal tender[200]. Taxation and Compliance - PRC regulations require subsidiaries to set aside at least 10% of their net income after taxes as statutory surplus reserves until the cumulative amount reaches 50% of their registered capital[75]. - A withholding tax rate of up to 10% applies to dividends payable by Chinese companies to non-PRC-resident enterprises, which could affect cash distributions[90]. - The 10% withholding tax rate may be reduced to 5% under certain conditions, but obtaining the necessary tax resident certificate is not guaranteed[91]. - The company may be classified as a "Resident Enterprise" under the PRC Enterprise Income Tax Law, which could subject it to a 25% tax rate on worldwide income[119]. - If classified as a "Resident Enterprise," dividends from PRC subsidiaries would be considered "tax-exempt income," but a 10% withholding tax may apply to dividends paid to non-PRC stockholders[121]. - The company has no current non-China source income, but future developments could lead to adverse tax consequences if such income is generated[121]. - The RMB is subject to government controls on currency conversion, which may restrict the ability to remit foreign currency for dividends or other payments[133]. - For the fiscal year ended September 30, 2023, the company reported a foreign currency translation adjustment loss of $(542,114)[136]. Cybersecurity and Data Protection - The company implements know-your-customer (KYC) procedures to mitigate risks associated with outdated or misleading information from users, but cannot fully guarantee the accuracy of such information[56]. - xSigma Collectibles must safeguard customers' fiat and crypto assets; failure to do so could lead to significant financial losses and reputational harm[57]. - xSigma Corporation has implemented know-your-customer (KYC) procedures to prevent sales of CFD and crypto assets to U.S. persons[210]. - The company will reject all account applications with any U.S. exposure, including U.S. citizens or residents[211]. - xSigma Trading will establish a blacklist of IP addresses to block users from U.S. sanctioned countries[211]. - The company faces risks related to outdated or inaccurate client information provided during the account registration process[210]. - xSigma Corporation cannot fully confirm the accuracy of client information beyond reasonable efforts, which may lead to compliance risks[210].