ZK International Group Co., Ltd. announced its unaudited financial results for the six months ended March 31, 2025, reporting a decrease in revenue and an increased net loss. Revenue declined by 24.37% to $39.99 million from $52.89 million in the first half of fiscal year 2024. This decrease was primarily due to a slow recovery in the real estate market, which impacted demand for piping products.
Gross profit for the period decreased by 34.63% to $2.19 million from $3.35 million in the prior year's first half. The gross profit margin also declined to 5.47% from 6.33%. This reduction was attributed to the revenue decline amid the real estate market sector and persistent raw material costs outpacing cost optimization efforts.
The company incurred an operating loss of $0.49 million, an increase from an operating loss of $0.16 million in the first half of fiscal year 2024. Net loss for the six months ended March 31, 2025, increased by 66.48% to $0.80 million, compared to a net loss of $0.48 million in the same period of 2024. Diluted earnings per share were -$0.02, compared to -$0.01 previously.
Cash and cash equivalents, along with restricted cash and short-term investments, totaled $1.61 million as of March 31, 2025, down from $4.16 million as of September 30, 2024. Short-term bank borrowings increased to $11.19 million from $10.26 million over the same period. The current ratio stood at 1.22, a slight decrease from 1.26 as of September 30, 2024.
Despite the revenue and profit declines, the company managed to reduce general and administrative expenses by 30.54% to $1.40 million, mainly due to lower consulting and employee-related costs. Research and development expenses also decreased by 36.27% to $0.40 million. These cost management efforts partially mitigated the impact of reduced sales.
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