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

Core Viewpoint - ZK International Group Co., Ltd. reported a revenue increase of 6.50% for the first half of fiscal year 2024, driven by a recovery in the real estate market, despite facing rising raw material costs and a net loss for the period [2][3][4]. Financial Performance - Revenue for the six months ended March 31, 2024, was $52.89 million, up from $49.66 million in the same period of 2023, marking a 6.50% increase [2][3]. - Gross profit rose by 5.68% to $3.35 million, with a gross margin of 6.33%, slightly down from 6.38% in the prior year due to increased raw material costs [2][4]. - The company incurred an operating loss of $0.16 million, compared to an operating income of $0.14 million in the previous year, resulting in an operating margin of -0.31% [2][6]. - Net loss for the period was $0.48 million, compared to a net loss of $0.06 million for the same period in the prior year [2][6]. Cost Structure - Selling and marketing expenses decreased by 8.60% to $0.88 million, attributed to reduced marketing activities [4][5]. - General and administrative expenses increased by 39.26% to $2.01 million, primarily due to higher consulting fees and employee salaries [5]. - Research and development expenses slightly increased by 0.53% to $0.62 million [5]. Financial Condition - As of March 31, 2024, total current assets were $62.05 million, with current liabilities of $40.03 million, resulting in a current ratio of 1.55 [7]. - Cash and cash equivalents totaled $5.06 million, with short-term bank borrowings increasing to $13.34 million from $9.39 million as of September 30, 2023 [7]. - Accounts receivable rose to $20.56 million, while inventories decreased to $13.39 million [7]. Company Overview - ZK International is a designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products, focusing on the water and gas supply sectors [8][9]. - The company holds 33 patents and has supplied stainless steel pipelines for over 2,000 projects, including significant venues for the 2008 Beijing Olympics [8].