Business
ZK International Group Co., Ltd. Announces Record Revenue of $40.17 Million, an Increase of 27.4% for the First Half of Fiscal Year 2020
WENZHOU, China, Sept. 4, 2020 /PRNewswire/ -- ZK International Group Co., Ltd. (ZKIN) ("ZK International" or the "Company"), a designer, engineer,
About this update from Zk International Group Co., Ltd
[{"type":"text","content":" WENZHOU, China, Sept. 4, 2020 /PRNewswire/ -- ZK International Group Co., Ltd. (ZKIN) (\"ZK International\" or the \"Company\"), a designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products primarily used for water and gas supplies, today announced its unaudited financial results for the six months ended March 31, 2020. \nFinancial Highlights for the First Half of Fiscal Year 2020\n \nFor the Six Months Ended March 31,\n($ millions, except per share data)\n2020\n2019\n% Change\nRevenue\n$40.17\n$31.54\n27.4%\nGross profit\n$3.21\n$8.08\n-60.3%\nGross margin\n8.0%\n25.6%\n-17.6 pp*\nIncome from operations\n$0.34\n$4.53\n-92.5%\nOperating margin\n0.8%\n14.4%\n-13.6 pp*\nNet income attributable to ZK International\n$0.09\n$3.84\n-97.7%\nDiluted earnings per share\n$0.01\n$0.23\n-95.7%\nNet book value per share\n$2.66\n$2.63\n1.1%\n* pp: percentage point(s)\nRevenue increased 27.4% to a record $40.17 million due to increased orders that drove increased sales volume. Gross profit decreased by 60.3% to $3.21 million. Gross margin was 8.0%, compared to 25.6% for the same period of the prior fiscal year. The decreases in gross profit and gross margin were due to management's decision to provide one-off discount on certain products in order to move inventory that certain customers were unable to fulfill due to COVID-19. Therefore, certain products were sold at deep discounts to some key customers. Income from operations was $0.34 million, compared to $4.53 million for the same period of the prior fiscal year. Operating margin was 0.8%, compared to 14.4% for the same period of the prior fiscal year. Net income attributable to ZK International was $0.09 million, or $0.01 per share. This compared to net income attributable to ZK International of $3.84 million, or $0.23 per share, for the same period of the prior fiscal year. Net book value per share was $2.66 as of March 31, 2020, compared to $2.63 as of September 30, 2019. Mr. Jiancong Huang, Chairman and Chief Executive Officer of ZK International, commented, \"Bucking the trend of a declining economy during the second quarter of 2020 as China battled the COVID-19 pandemic, we are pleased to report record revenue increase for the first half of fiscal year 2020. With revenue increasing by 27.4% and across the $40 million mark...