ZK International(US:ZKIN) Prnewswireยท2025-09-29 21:00Core Viewpoint - ZK International Group Co., Ltd. reported a significant decline in financial performance for the first half of fiscal year 2025, primarily due to decreased demand for piping products linked to a slow recovery in the real estate market, resulting in a 24.37% drop in revenue compared to the previous year [1][2]. Financial Performance - Revenue decreased by $12.89 million, or 24.37%, to $39.996 million for the six months ended March 31, 2025, from $52.887 million for the same period in 2024 [2][16]. - Gross profit fell by $1.16 million, or 34.74%, to $2.186 million, with a gross margin of 5.47%, down from 6.33% in the prior year [3][16]. - The operating loss increased to $0.49 million from a loss of $0.16 million in the same period last year, resulting in an operating margin of (1.22)% compared to (0.31)% [3][8]. - Net loss was $0.802 million, compared to a net loss of $0.482 million for the same period in 2024, marking an increase in net loss of $0.320 million [10][17]. Cost Management - Selling and marketing expenses slightly increased by $862, or 0.10%, to $881,686 for the six months ended March 31, 2025 [5]. - General and administrative expenses decreased by $614,100, or 30.54%, to $1.396 million, primarily due to reductions in consulting and employee-related costs [6]. - Research and development expenses decreased by $225,871, or 36.27%, to $396,934 [7]. Financial Condition - As of March 31, 2025, total cash and cash equivalents, restricted cash, and short-term investments amounted to $1.61 million, down from $4.16 million as of September 30, 2024 [10]. - Accounts receivable decreased to $19.82 million from $22.39 million, while inventories increased to $15.49 million from $13.53 million [10]. - The current ratio was 1.22 as of March 31, 2025, compared to 1.26 as of September 30, 2024, indicating a slight decline in liquidity [11].