Business
ZK International Group Co., Ltd. Announces Record Revenue of $49.66 Million, an Increase of 15.77% for the First Half of Fiscal Year 2023
WENZHOU, China, Sept. 29, 2023 /PRNewswire/ -- ZK International Group Co., Ltd. (ZKIN) ("ZK International" or the "Company"), a designer, engineer,
About this update from Zk International Group Co., Ltd
[{"type":"text","content":"WENZHOU, China, Sept. 29, 2023 /PRNewswire/ -- ZK International Group Co., Ltd. (ZKIN) (\"ZK International\" or the \"Company\"), a designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products primarily used for water and gas supplies, today announced its unaudited financial results for the six months ended March 31, 2023. \n\nFinancial Highlights for the First Half of Fiscal Year 2023\nFor the Six Months Ended March 31,\n($ millions, except per share data)\n2023\n2022\n% Change\nRevenue\n$\n49.66\n$\n42.89\n15.77\n%\nGross profit\n$\n3.17\n$\n3.97\n-20.13\n%\nGross margin\n6.38\n%\n9.25\n%\n-2.87\n% pp*\nIncome from operations\n$\n0.14\n$\n0.24\n-41.91·\n%\nOperating margin\n0.29\n%\n0.57\n%\n-0.28\n% pp*\nNet income (loss)\n$\n(0.06)\n$\n0.001\n0.00\n%\nDiluted earnings per share\n$\n0.00\n$\n0.00\n0.00\n%\nNet book value per share\n$\n2.85\n$\n2.89\n-1.45\n%\n* pp: percentage point(s)\nRevenue increased 15.77% to a record $49.66 million for the six months ended March 31, 2023 from approximately $42.89 million for the six months ended March 31, 2022. During the first fiscal half of 2023, we observed an increase of raw materials, especially the price of nikel which is an important component of stainless steel. To minimize the impact the rise of raw material price, we increased our weighted average selling price (\"ASP\") during the period. The increase of sales is also attributable to the recovery of domestic demand and we achieved an overall increase in sales volume during the six months ended March 31, 2022.Gross profit decreased by 20.13% to $3.17 million. Gross margin was 6.38%, compared to 9.25% for the same period of the prior fiscal period. The decrease of gross profit was primarily due to increased raw material cost, especially the cost of stainless steel coil which is the main material for our products. Though we have increased ASP of our products, we supplied to certain customers on fixed price basis that cannot be adjusted until the existing contract expires.Income from operations was $0.14 million, compared to income from operations of $0.24 million for the same period of the prior fiscal year. Operating margin was 0.29%, compared to 0.57% for the same period of the prior fiscal year. The decrease of operating margin was primarily due to decreased gross m...