Business
ZK International Group Co., Ltd. Announces Record Revenue of $86.85 Million, an Increase of 36% for the Fiscal Year 2020
WENZHOU, China, Feb. 9, 2020 /PRNewswire/ -- ZK International Group Co., Ltd. (ZKIN) ("ZK International" or the "Company"), a designer, engineer,
About this update from Zk International Group Co., Ltd
[{"type":"text","content":" WENZHOU, China, Feb. 9, 2020 /PRNewswire/ -- ZK International Group Co., Ltd. (ZKIN) (\"ZK International\" or the \"Company\"), a designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products primarily used for water and gas supplies, today announced its audited financial results for the fiscal year ended September 30, 2020. \nFinancial Highlights for the Fiscal Year 2020\nFor the Fiscal Year Ended September 30,\n($ millions, except per share data)\n2020\n2019\n% Change\nRevenue\n$86.85\n$63.88\n35.9%\nGross profit\n$3.94\n$15.64\n-74.8%\nGross margin\n4.5%\n24.5%\n-19.9 percentage points\nIncome (loss) from operations\n($1.88)\n$8.65\n-121.7%\nOperating income (loss) margin\n-2.2%\n13.5%\n-15.7 percentage points\nNet income (loss) attributable to ZK International\n($0.83)\n$8.11\n-110.2%\nDiluted earnings (loss) per share\n($0.05)\n$0.49\n-110.2%\nNet book value per share\n$2.72\n$2.63\n3.4%\n \nRevenue increased by 35.9% to a record $86.85 million primarily driven by increased sales of stainless steel coil and strip and partially offset by decreased weighted average selling prices (\"ASP\") offered to customers as a temporary sales strategy during the pandemic by providing one-off discount on certain products to some key customers. Gross profit decreased by 74.8% to $3.94 million. Gross margin was 4.5%, compared to 24.5% for the prior fiscal year. The decreases in gross profit and gross margin were primarily due to increased sales percentage of low gross margin products such as stainless steel coil and strip and decreased sales percentage of high gross margin products such as stainless steel piping and fitting products. Loss from operations was $1.88 million, compared to income from operations of $8.65 million for the prior fiscal year. Operating loss margin was 2.2%, compared to operating profit margin of 13.5% for the prior fiscal year. Net loss attributable to ZK International was $0.83 million, or net loss of $0.05 per share. This compared to net income attributable to ZK International of $8.11 million, or $0.49 per share, for the prior fiscal year. Net book value per share was $2.72 as of September 30, 2020, compared to $2.63 as of September 30, 2019. \"While the COVID-19 pandemic caused historic setbacks on the global economy and unprecedented difficulties alo...