ZK International Group Co., Ltd. announced its financial results for the fiscal year ended September 30, 2024, reporting a 405% increase in gross profit. The company's gross profit reached $6.55 million, a significant rise from $1.30 million in the prior fiscal year. This led to an improved gross profit margin of 6.05% for 2024, up from 1.16% in 2023.
Despite a 3.05% decrease in total revenue to $108.20 million from $111.60 million in fiscal year 2023, the company substantially reduced its net loss by 95.44%. The net loss attributable to ZK International was $2.78 million, or $0.08 per share, a considerable improvement from the $61.06 million net loss, or $1.94 per share, in fiscal year 2023.
The reduction in net loss was primarily attributed to a 97.16% decrease in operational losses, largely due to lower one-off asset impairment costs incurred in fiscal year 2023. These impairments included a $53.20 million write-off for its long-term investment in CG Malta and software platforms like xSigma Trading, MaximNFT, and the Defi Exchange, with CG Malta ceasing operations on November 27, 2023.
The increase in gross profit was mainly driven by a rise in the weighted average selling price, which was partially offset by rising costs. The company expects to achieve a gross profit margin in the range of 10% to 12% for the 2025 fiscal year. This outlook is based on continued increases in average selling prices, leveraging market recovery and expanded market share.
Chairman Jiancong Huang commented on the steadily improving business climate, marking a turning point for ZK International. He highlighted the company's resilience and strategic focus during challenging times. The company anticipates significant growth in the next few years, including increased profit margins and net profit, as it strengthens its global presence and drives innovation.
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