Business
ZK International Group Announces 405% Gross Profit Increase for the Fiscal Year 2024
WENZHOU, China, Jan. 27, 2025 /PRNewswire/ -- ZK International Group Co., Ltd. (ZKIN) ("ZK International" or the "Company"), a leader in high-performance
About this update from Zk International Group Co., Ltd
[{"type":"text","content":"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%.\n\n \n \n \n \n \n \n\n \nFinancial Highlights for the Fiscal Year 2024\nFor the Fiscal Year Ended September 30,\n($ millions, except per share data)\n2024\n2023\n% Change\nRevenue\n$108.20\n$111.60\n-3.05 %\nGross profit\n$6.55\n$1.30\n405.02 %\nGross margin\n6.5 %\n1.16 %\n4.89 percentage points\nIncome (loss) from operations\n($1.72)\n($60.44)\n97.16 %\nOperating income (loss) margin\n-1.59 %\n-54.16 %\n52.57 percentage points\nNet income (loss) attributable to ZK International\n($2.78)\n($61.06)\n95.44 %\nDiluted earnings (loss) per share\n($0.08)\n($1.94)\n95.88 %\nNet book value per share\n$0.82\n$0.80\n2.50 %\nRevenue\nRevenues decreased by $3,399,809, or 3.05%, to $108,199,877 for the year ended September 30, 2024, from $111,599,686 for the year ended September 30, 2023. The decrease in revenues was primarily driven by the following factors:\n1) During the fiscal year 2024, we observed a recovery in the real estate market, which fueled increased demand. This contrasts with the market pressure faced in fiscal year 2023, particularly due to the downturn in the Chinese real estate market, exacerbated by the collapse of Evergrande. The recovery in 2024 provided us with more favorable sales opportunities. In response to rising raw material costs, the company increased its weighted average selling price (ASP) to sustain profit margins. However, the price increases led to the loss of price-sensitive customers and heightened market competition, which ultimately resulted in a decline in overall sales and adversely affected revenue.\n2) During the fiscal year 2024, raw material prices continued to rise, particularly the price of nickel used in stainless steel, which increased production costs. This situation differed from the fluctuations in raw material prices observed in fiscal year 2023. During the 2023 fiscal year, nickel prices surged by 33.33% and the company responded by lowering sales prices to expand...