WENZHOU, China, Feb. 1, 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 audited financial results for the fiscal year ended September 30, 2022.
Financial Highlights for the Fiscal Year 2022
|
For the Fiscal Year Ended |
||||||||||||
|
($ millions, except per share data) |
2022 |
2021 |
% Change |
|||||||||
|
Revenue |
$ |
102.39 |
$ |
99.41 |
3.00 |
% |
||||||
|
Gross profit |
$ |
7.60 |
$ |
6.47 |
17.38 |
% |
||||||
|
Gross margin |
7.42 |
% |
6.51 |
% |
0.91 |
|||||||
|
Loss from operations |
$ |
(3.96) |
$ |
(3.65) |
8.51 |
% |
||||||
|
Operating loss margin |
(3.87) |
% |
(3.68) |
% |
-0.19 |
|||||||
|
Net loss attributable to ZK |
||||||||||||
|
International |
$ |
(6.08) |
$ |
(3.80) |
60.06 |
% |
||||||
|
Diluted loss per share |
$ |
(0.21) |
$ |
(0.17) |
23.53 |
% |
||||||
|
Net book value per share |
$ |
2.80 |
$ |
3.08 |
-9.09 |
% |
||||||
- Revenues increased by $2,984,419 or 3.00%, to $102,391,636 for the year ended September 30, 2022 from $99,407,217 for the year ended September 30, 2021. The growth was primarily driven by the increased weighted average selling price (“ASP”) during the fiscal year 2022. We observed the rise of raw material prices, recovery of market demand for construction materials and the shortages of supply in the current market. Overall, we had 34.26% increase of ASP in steel strip, 29.00% increase in steel pipe, and 33.71% increase in pipe fittings during 2022 fiscal year.
- Gross profit increased by 17.38% to $7.60 million. Gross margin was 7.42%, compared to 6.5% for the prior fiscal year. The increase of gross profit was primarily due to increased weighted average selling prices.
- During the fiscal year 2022, our Chinese subsidiaries returned to profitability with net income after tax of $2.71 million.
- Loss from operations was $3.96 million, compared to loss from operations of $3.65 million for the prior fiscal year. The decrease of operational loss was mainly due to the one-off asset impairment cost of intangible asset and stock-based compensation incurred during 2022 fiscal year for the expenses related to our new business operations and subsidiaries.
- Net loss attributable to ZK International was $6.08 million, or net loss of $0.21 per share. This compared to net loss attributable to ZK International of $3.80 million, or $0.17 per share, for the prior fiscal year.
- Net book value per share was $2.80 as of September 30, 2022, compared to $3.08 as of September 30, 2021.
Mr. Jiancong Huang, Chairman of ZK International, commented, “We are pleased with our record revenue growth to break the $100 million mark while having an increased gross margin. Our financial results in 2022 were largely driven by the market recovery from the pandemic and worldwide construction material supply shortage. The Chinese government also continues to focus on improving water and gas infrastructure. Our ability to work closely with the local government and provide sophisticated piping solutions for major projects is key to our growth trajectory. We anticipate that our business will continue to grow and expand both domestically and internationally into the next fiscal year.”
Mr. Huang continued, “Building on the foundation of our core steel pipe business domestically, we are excited to provide additional value to our shareholders with plans to grow our core steel pipe business internationally. Being one of the leaders in our industry has brought many other international opportunities for gas and water infrastructure needs, so it will be our goal in 2023 to seek out these international opportunities while building our sales and profitability domestically. We are confident that ZK is going to continue to provide its existing and future shareholders with a value propisition for a long time to come.”
Financial Results for the Fiscal Year 2022
Revenues
Revenues increased by $2,984,419 or 3.00%, to $102,391,636 for the year ended September 30, 2022 from $99,407,217 for the year ended September 30, 2021. The increase in revenues was primarily driven by the following factors:
1) During the fiscal year 2022, 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 fiscal year 2022.
2) During 2022 fiscal year, the average selling price of electrolytic nickel decreased by 0.33% from RMB 114,092 per ton in fiscal year 2021 to RMB 113,716 in fiscal year 2022; the average selling price of steel strip increased by 34.26% from RMB 15.12 per kilogram in fiscal year 2021 to RMB 20.3 in fiscal year 2022; the average selling price of steel pipe increased by 29.00% from RMB 108.73 per piece in fiscal year 2021 to RMB 140.26 in fiscal year 2022; the average selling price of pipe fittings increased by 33.71% from RMB 16.94 each in fiscal year 2021 to RMB 22.65 in fiscal year 2022.
3) Due to the rise of product prices, we had an overall decrease in sales volume. The sales volume of steel strip decreased by 62.98% from 2227.19 tons in fiscal year 2021 to 753.91 tons in fiscal year 2022; Sales of pipes decreased by 25.28% from 793,480 in fiscal year 2021 to 592,919 in fiscal year 2022; The sales volume of pipe fittings decreased by 22.16% from 9,126,002 pieces in fiscal year 2021 to 7,103,894 pieces in fiscal year 2022.
Gross Profit
Our gross profit increased by $1,124,411 or 17.38% to $7,595,599 for the year ended September 30, 2022 from $6,471,188 for the year ended September 30, 2021. Gross profit margin was 7.42% for the year ended September 30, 2022, as compared to 6.51% for the year ended September 30, 2021. The increase of gross profit was primarily due to increased weighted average selling prices which is attributable to the rise of raw material prices and market demand recovery over the construction materials and supply shortages on the current market compared to the fiscal year 2021.
Operating Expenses
We incurred $2,380,429 in selling and marketing expenses for the fiscal year ended September 30, 2022, compared to $3,117,906 for the fiscal year ended September 30, 2021. Selling and marketing expenses decreased by $737,477, or 23.65%, during the fiscal year ended September 30, 2022 compared to the fiscal year ended September 30, 2021. This decrease is primarily due to decreases in sales payroll expenses, compensation for the sales personnel, freight expenses, and technical service fee during the year.
We incurred $5,421,575 in general and administrative expenses for the fiscal year ended September 30, 2022, compared to $5,772,710 for the fiscal year ended September 30, 2021. General and administrative expenses decreased by $351,136, or 6.08%, for the fiscal year ended September 30, 2022 compared to the fiscal year ended September 30, 2021. The slight decrease is mainly attributable to the decreased stock-based compensation incurred during the fiscal year 2022.
During the fiscal year ended September 30, 2021, the Company entered into a series of consulting agreements with third-party entity and individuals to develop and implement a defi exchange platform, which is a stablecoin DEX (decentralized exchange) and liquidity mining platform, available at https://xsigma.fi. During 2022 fiscal year, the Company evalutated the recoverability of the Defi platform pursuant to ASC 360-10-35-21 and concluded that the carrying value of the Defi Exchange may not be recoverable as it projects that the platform is likely to have continuing losses and it’s more likely than not this platform will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company wrote off the carrying value of the platform and recorded a loss of $2,771,019. There was no asset impairment cost during the fiscal year ended September 30, 2021
We incurred $987,186 in research and development expenses for the fiscal year ended September 30, 2022, compared to $1,234,161 for the fiscal year ended September 30, 2021. R&D expenses decreased by $246,975, or 20.01%, for the fiscal year ended September 30, 2022 compared to the fiscal year ended September 30, 2021. The decrease was primarily due to the decreased research and development activities during fiscal year 2022.
Income(loss) from Operations
As a result of the factors described above, operating loss was $3,964,610 for the fiscal year ended September 30, 2022, compared to operating loss of $3,653,589 for the fiscal year ended September 30, 2021, an increase of operating loss of $311,021 or approximately 8.51%.
Other Income (Expenses)
Our interest income and expenses were $109,290 and $3,451,665, respectively, for the fiscal year ended September 30, 2022, compared to interest income and expenses of $13,733 and $1,196,648, respectively, for the fiscal year ended September 30, 2021. We also had government grant of $ 496,740 for financial support to the Company under local government’s innovation incentive programs which was recorded as other income in our Statement of Operations.
Net Income (loss) and earnings (loss) per share
As a result of the factors described above, our net loss for the fiscal year ended September 30, 2022 was $6,054,266 compared to net loss of $3,802,271 for the fiscal year ended September 30, 2021, an increase in loss of $2,251,995 or approximately 59.23%.
After deducting for non-controlling interests, net loss attributable to ZK International was $6.08 million, or net loss of $0.21 per share, for the fiscal year 2022. This compared to net loss attributable to ZK International of $3.80 million, or $0.17 per share, for the prior fiscal year.
About ZK International Group Co., Ltd.
ZK International Group Co., Ltd. is a China-based designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products that require sophisticated water or gas pipeline systems. The Company owns 33 patents, 21 trademarks, 2 Technical Achievement Awards, and 10 National and Industry Standard Awards. ZK International is Quality Management System Certified (ISO9001), Environmental Management System Certified (ISO1401), and a National Industrial Stainless Steel Production Licensee that is focused on supplying steel piping for the multi-billion dollar industries of Gas and Water sectors. ZK has supplied stainless steel pipelines for over 2,000 projects, including the Beijing National Airport, the “Water Cube”, and “Bird’s Nest”, which were venues for the 2008 Beijing Olympics.
Emphasizing superior properties and durability of its steel piping, ZK International is providing a solution for the delivery of high quality, highly sustainable, environmentally sound drinkable water not only to the China market but also to international markets such as Europe, East Asia, and Southeast Asia.
For more information please visit www.ZKInternationalGroup.com. Additionally, please follow the Company on Twitter, Facebook, YouTube, and Weibo. For further information on the Company’s SEC filings please visit www.sec.gov.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate” or “continue” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are not guarantee of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict and many of which are beyond the control of ZK International. Actual results may differ from those projected in the forward-looking statements due to risks and uncertainties, as well as other risk factors that are included in the Company’s filings with the U.S. Securities and Exchange Commission. Although ZK International believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by ZK International or any other person that their objectives or plans will be achieved. ZK International does not undertake any obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
|
ZK INTERNATIONAL GROUP CO., LTD |
||||||
|
CONSOLIDATED BALANCE SHEETS |
||||||
|
(IN U.S. DOLLARS) |
||||||
|
As of September 30, |
||||||
|
2022 |
2021 |
|||||
|
Assets |
||||||
|
Current assets |
||||||
|
Cash and cash equivalents |
$ |
7,515,147 |
$ |
13,525,298 |
||
|
Restricted cash |
101,992 |
77,906 |
||||
|
Short-term Investment |
915,616 |
2,560,760 |
||||
|
Accounts receivable, net of allowance for doubtful accounts of $255,322 and $2,221,870, |
28,362,933 |
27,124,959 |
||||
|
Notes receivable |
49,611 |
— |
||||
|
Other receivables and prepayments |
2,360,539 |
2,158,120 |
||||
|
Inventories |
21,141,501 |
20,689,252 |
||||
|
Advance to suppliers |
6,322,592 |
12,567,368 |
||||
|
Total current assets |
66,769,931 |
78,703,663 |
||||
|
Property, plant and equipment, net |
7,124,587 |
8,004,855 |
||||
|
Right-of use asset |
30,998 |
54,166 |
||||
|
Intangible assets, net |
11,415,451 |
8,749,987 |
||||
|
Deferred tax assets |
320,164 |
353,460 |
||||
|
Long-term deposit |
— |
12,472,847 |
||||
|
Long-term prepayment |
10,447,395 |
— |
||||
|
Long-term accounts receivable |
7,522,188 |
— |
||||
|
Long-term investment |
25,292,866 |
25,323,323 |
||||
|
TOTAL ASSETS |
$ |
128,923,580 |
$ |
133,662,301 |
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||
|
Current liabilities: |
||||||
|
Accounts payable |
$ |
10,066,758 |
$ |
2,159,731 |
||
|
Accrued expenses and other current liabilities |
6,949,772 |
6,875,769 |
||||
|
Lease liability – current portion |
10,754 |
26,332 |
||||
|
Accrued payroll and welfare |
1,880,377 |
1,853,019 |
||||
|
Advance from customers |
1,758,800 |
5,666,214 |
||||
|
Due to related parties |
2,052,403 |
1,072,335 |
||||
|
Convertible debentures |
3,352,311 |
2,823,364 |
||||
|
Short-term bank borrowings |
16,257,820 |
21,394,761 |
||||
|
Other borrowing – short term portion |
– |
283,758 |
||||
|
Notes payables |
702,889 |
— |
||||
|
Income tax payable |
817,059 |
2,354,832 |
||||
|
Total current liabilities |
43,848,943 |
44,510,115 |
||||
|
Lease liability – long term portion |
10,256 |
27,834 |
||||
|
TOTAL LIABILITIES |
$ |
43,859,199 |
$ |
44,537,949 |
||
|
Equity |
||||||
|
Common stock, no par value, 50,000,000 shares authorized, 30,392,940 and 28,918,177 shares |
||||||
|
Additional paid-in capital |
70,872,765 |
63,374,085 |
||||
|
Statutory surplus reserve |
3,176,556 |
2,914,602 |
||||
|
Subscription receivable |
(125,000) |
(125,000) |
||||
|
Retained earnings |
13,394,137 |
19,737,504 |
||||
|
Accumulated other comprehensive income (loss) |
(2,640,753) |
2,898,594 |
||||
|
Total equity attributable to ZK International Group Co., Ltd. |
84,677,705 |
88,799,785 |
||||
|
Equity attributable to non-controlling interests |
386,676 |
324,567 |
||||
|
Total equity |
85,064,381 |
89,124,352 |
||||
|
TOTAL LIABILITIES AND EQUITY |
$ |
128,923,580 |
$ |
133,662,301 |
||
|
The accompanying notes are an integral part of these consolidated financial statements. |
||||||
|
ZK INTERNATIONAL GROUP CO., LTD |
|||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
|||||||||
|
(IN U.S. DOLLARS, EXCEPT SHARE DATA) |
|||||||||
|
For the year ended September 30, |
|||||||||
|
2022 |
2021 |
2020 |
|||||||
|
Revenues |
$ |
102,391,636 |
$ |
99,407,217 |
$ |
86,846,791 |
|||
|
Cost of sales |
(94,796,037) |
(92,936,029) |
(82,903,989) |
||||||
|
Gross profit |
7,595,599 |
6,471,188 |
3,942,802 |
||||||
|
Operating expenses: |
|||||||||
|
Selling and marketing expenses |
2,380,429 |
3,117,906 |
2,215,651 |
||||||
|
General and administrative expenses |
5,421,575 |
5,772,710 |
2,482,972 |
||||||
|
Asset impairment costs |
2,771,019 |
— |
— |
||||||
|
Research and development costs |
987,186 |
1,234,161 |
1,123,555 |
||||||
|
Total operating expenses |
11,560,209 |
10,124,777 |
5,822,178 |
||||||
|
Operating loss |
(3,964,610) |
(3,653,589) |
(1,879,376) |
||||||
|
Other income (expenses): |
|||||||||
|
Interest expenses |
(3,451,665) |
(1,196,648) |
(1,000,554) |
||||||
|
Interest income |
109,290 |
13,733 |
7,192 |
||||||
|
Gain on disposal of subsidiary, net |
– |
— |
536,612 |
||||||
|
Income (loss) on investment |
– |
50,649 |
(256,937) |
||||||
|
Other income (expense), net |
(88,125) |
431,438 |
327,845 |
||||||
|
Total other expenses, net |
(3,430,500) |
(700,828) |
(385,842) |
||||||
|
Loss before income taxes |
(7,395,110) |
(4,354,417) |
(2,265,218) |
||||||
|
Income tax recovery |
1,340,844 |
552,146 |
1,428,202 |
||||||
|
Net loss |
$ |
(6,054,266) |
$ |
(3,802,271) |
$ |
(837,016) |
|||
|
Net (loss) income attributable to non- |
(27,147) |
2,757 |
11,402 |
||||||
|
Net (loss) income attributable to ZK |
(6,081,413) |
(3,799,514) |
$ |
(825,614) |
|||||
|
Net (loss) income |
(6,054,266) |
$ |
(3,802,271) |
$ |
(837,016) |
||||
|
Other comprehensive income (loss): |
|||||||||
|
Foreign currency translation adjustment |
(5,504,385) |
2,423,439 |
2,319,048 |
||||||
|
Total comprehensive loss |
$ |
(11,558,651) |
$ |
(1,378,832) |
$ |
1,482,032 |
|||
|
Comprehensive loss (income) attributable to non- |
(62,109) |
(14,773) |
(6,136) |
||||||
|
Comprehensive income attributable to ZK |
$ |
(11,620,760) |
$ |
(1,393,605) |
$ |
1,475,896 |
|||
|
Basic and diluted earnings (loss) per share |
|||||||||
|
Basic |
$ |
(0.21) |
$ |
(0.17) |
$ |
(0.05) |
|||
|
Diluted |
(0.21) |
(0.17) |
(0.05) |
||||||
|
Weighted average number of shares |
|||||||||
|
Basic |
29,305,828 |
21,873,594 |
16,558,037 |
||||||
|
Diluted |
29,431,781 |
22,633,819 |
16,558,037 |
||||||
|
The accompanying notes are an integral part of these consolidated financial statements. |
|||||||||
|
ZK INTERNATIONAL GROUP CO., LTD |
||||||||||||||||
|
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
||||||||||||||||
|
FOR THE YEARS ENDED SEPTEMBER 30, 2022, 2021 AND 2020 |
||||||||||||||||
|
(IN U.S. DOLLARS, EXCEPT SHARE DATA) |
||||||||||||||||
|
Accumulated |
||||||||||||||||
|
Additional |
other |
Non- |
||||||||||||||
|
paid-in |
Subscription |
Statutory |
Retained |
comprehensive |
controlling |
Total |
||||||||||
|
Shares |
capital |
Receivable |
surplus reserve |
earnings |
income (loss) |
interests |
equity |
|||||||||
|
Balance at |
16,558,037 |
18,049,630 |
— |
2,904,699 |
24,372,535 |
(1,808,825) |
299,666 |
43,817,705 |
||||||||
|
Disposal of |
3,992 |
3,992 |
||||||||||||||
|
Foreign currency |
2,301,510 |
17,538 |
2,319,048 |
|||||||||||||
|
Net income |
(825,614) |
(11,402) |
(837,016) |
|||||||||||||
|
Balance at |
16,558,037 |
18,049,630 |
— |
2,904,699 |
23,546,921 |
492,685 |
309,794 |
45,303,729 |
||||||||
|
Issuance of |
7,080,762 |
24,884,560 |
(125,000) |
24,759,560 |
||||||||||||
|
Common stock |
4,374,176 |
11,443,067 |
11,443,067 |
|||||||||||||
|
Issuance of |
355,202 |
1,345,056 |
1,345,056 |
|||||||||||||
|
Stock-based |
550,000 |
9,542,783 |
9,542,783 |
|||||||||||||
|
Unearned |
(1,891,011) |
(1,891,011) |
||||||||||||||
|
Foreign currency |
2,405,909 |
17,530 |
2,423,439 |
|||||||||||||
|
Net income |
9,903 |
(3,809,417) |
(2,757) |
(3,802,271) |
||||||||||||
|
Balance at |
28,918,177 |
63,374,085 |
(125,000) |
2,914,602 |
19,737,504 |
2,898,594 |
324,567 |
89,124,352 |
||||||||
|
Stock incentive |
1,407,200 |
1,688,640 |
1,688,640 |
|||||||||||||
|
Stock issued in |
67,563 |
116,781 |
116,781 |
|||||||||||||
|
Fair value |
678,782 |
678,782 |
||||||||||||||
|
Stock-based |
5,603,615 |
5,603,615 |
||||||||||||||
|
Unearned |
(589,138) |
(589,138) |
||||||||||||||
|
Foreign currency translations |
(5,539,347) |
34,962 |
(5,504,385) |
|||||||||||||
|
Net income |
261,954 |
(6,343,367) |
27,147 |
(6,054,266) |
||||||||||||
|
Balance at |
30,392,940 |
70,872,765 |
(125,000) |
3,176,556 |
13,394,137 |
(2,640,753) |
386,676 |
85,064,381 |
||||||||
|
The accompanying notes are an integral part of these consolidated financial statements. |
||||||||||||||||
|
ZK INTERNATIONAL GROUP CO., LTD |
|||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
|
(IN U.S. DOLLARS) |
|||||||||
|
For the year ended September 30, |
|||||||||
|
2022 |
2021 |
2020 |
|||||||
|
Cash Flows from Operating Activities: |
|||||||||
|
Net loss |
$ |
(6,054,266) |
$ |
(3,802,271) |
$ |
(837,016) |
|||
|
Adjustments to reconcile net income to net cash used in operating activities: |
|||||||||
|
Depreciation expense |
672,368 |
568,038 |
438,467 |
||||||
|
Amortization expense |
830,481 |
481,763 |
11,366 |
||||||
|
Right of use assets |
— |
(53,634) |
— |
||||||
|
Loss on disposal of fixed assets |
— |
— |
7,608 |
||||||
|
Bad debt expense |
227,837 |
92,032 |
— |
||||||
|
Inventory provision |
— |
— |
103,942 |
||||||
|
Write-off of advance to suppliers |
— |
108,395 |
100,684 |
||||||
|
Deferred tax benefits |
— |
406,064 |
(406,637) |
||||||
|
Gain on accounts receivable factoring, net of discount |
(451,047) |
— |
— |
||||||
|
Gain on disposal of subsidiary |
— |
— |
(536,612) |
||||||
|
Loss on investment |
— |
— |
214,114 |
||||||
|
Impairment on intangible assets |
2,771,019 |
— |
— |
||||||
|
Change in unrecognized tax benefits |
(1,428,458) |
(918,038) |
(1,021,565) |
||||||
|
Stock compensation expense |
2,674,807 |
1,351,082 |
— |
||||||
|
Interest expense of convertible notes |
1,324,510 |
210,173 |
— |
||||||
|
Interest expense of financing lease |
— |
44,458 |
— |
||||||
|
Changes in operating assets and liabilities: |
|||||||||
|
Accounts receivable |
(12,059,620) |
5,804,654 |
(4,800,889) |
||||||
|
Other receivables and prepayments |
(260,755) |
1,345,520 |
(793,936) |
||||||
|
Notes receivable |
(53,853) |
201,187 |
206,465 |
||||||
|
Inventories |
(2,606,504) |
2,021,789 |
103,123 |
||||||
|
Advance to suppliers |
5,493,624 |
(8,297,301) |
2,933,852 |
||||||
|
Accounts payable |
8,803,924 |
(8,662,576) |
5,582,787 |
||||||
|
Notes payable |
762,986 |
(159,823) |
(153,824) |
||||||
|
Accrued expenses and other current liabilities |
752,241 |
2,428,410 |
(484,477) |
||||||
|
Accrued payroll and welfare |
219,178 |
211,632 |
140,497 |
||||||
|
Advance from customers |
(3,662,097) |
3,162,961 |
(198,358) |
||||||
|
Income tax payable |
– |
(77,214) |
(149,386) |
||||||
|
Lease liability |
(28,595) |
53,635 |
— |
||||||
|
Net cash provided (used in) operating activities |
(2,072,220) |
(3,479,064) |
460,205 |
||||||
|
Cash Flows from Investing Activities: |
|||||||||
|
Purchases of property, plant and equipment |
(507,663) |
(114,319) |
(1,168,322) |
||||||
|
Proceed from disposal of property, plant and equipment |
— |
6,281 |
|||||||
|
Purchase of CIP |
(12,666) |
(47,942) |
— |
||||||
|
Disposal of intangible asset |
— |
— |
|||||||
|
Purchases of intangible assets |
(1,588,107) |
(1,983,812) |
— |
||||||
|
Investment into CG Malta |
— |
(25,000,000) |
— |
||||||
|
Net cash used in investing activities |
(2,108,436) |
(27,146,073) |
(1,162,041) |
||||||
|
Cash Flows from Financing activities: |
|||||||||
|
Net proceeds released from (placed into) short-term investment |
1,523,953 |
(2,228,301) |
— |
||||||
|
Proceeds from short-term bank borrowings |
31,113,044 |
31,203,129 |
18,061,979 |
||||||
|
Repayments of short-term bank borrowings |
(34,501,465) |
(28,144,978) |
(17,836,445) |
||||||
|
Net proceeds received from (repaid to) related parties |
1,173,516 |
(280,313) |
(133,007) |
||||||
|
Proceed from other borrowing |
— |
— |
775,951 |
||||||
|
Repayment of other borrowing |
(279,004) |
(483,458) |
(107,195) |
||||||
|
Proceeds from stock issuances |
— |
24,758,458 |
— |
||||||
|
Proceeds from convertible notes issuances |
— |
14,071,908 |
— |
||||||
|
Proceeds from stock warrants exercise |
— |
1,345,056 |
— |
||||||
|
Net cash provided by (used in) financing activities |
(969,956) |
40,241,501 |
761,283 |
||||||
|
Effect of exchange rate changes on cash |
(835,453) |
227,305 |
248,950 |
||||||
|
Net change in cash, cash equivalents and restricted cash |
(5,986,065) |
9,843,669 |
308,397 |
||||||
|
Cash and cash equivalents and restricted cash at the beginning of period |
13,603,204 |
3,759,535 |
3,451,138 |
||||||
|
Cash, cash equivalents and restricted cash at the end of period |
$ |
7,617,139 |
$ |
13,603,204 |
$ |
3,759,535 |
|||
|
Supplemental disclosures of cash flows information: |
|||||||||
|
Non-cash financing activities |
$ |
— |
$ |
— |
$ |
— |
|||
|
Cash paid for income taxes |
$ |
87,473 |
$ |
37,041 |
$ |
149,291 |
|||
|
Cash paid for interest expenses |
$ |
976,091 |
$ |
338,575 |
$ |
991,319 |
|||
|
The accompanying notes are an integral part of these consolidated financial statements. |
|||||||||
For Media Enquiries:
Di Chen
Email: [email protected]
View original content to download multimedia:https://www.prnewswire.com/news-releases/zk-international-group-co-ltd-announces-record-revenues-of-102-39-million-and-saw-gross-profit-increase-by-17-38-to-7-60-million-for-the-fiscal-year-2022–301737348.html
SOURCE ZK International Group Co., Ltd.
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