ZK International Group Co., Ltd. (ZKIN): Business Model Canvas [Dec-2025 Updated]

You're trying to make sense of ZK International Group Co., Ltd. (ZKIN)'s current play, and frankly, it's a wild ride: they are simultaneously building real infrastructure-booking $40.00 million in contract revenue for H1 2025-while aggressively pursuing a digital future, aiming to raise up to $1 Billion through a unique XRP warrant financing strategy. As an analyst who's seen a few pivots in my time, I've broken down their entire nine-block Business Model Canvas to show you precisely how their patented steel pipe business supports this massive crypto infrastructure bid, giving you the clear picture you need to assess the near-term risk and reward. Read on for the full, precise map.

ZK International Group Co., Ltd. (ZKIN) - Canvas Business Model: Key Partnerships

Local businesses and stakeholders for Southeast Asia and Middle East expansion.

• ZK International Group Co., Ltd. announced a strategic expansion initiative into Southeast Asia and the Middle East in January 2024.
• The company is actively pursuing strategic partnerships with local businesses and key stakeholders in these regions to facilitate seamless integration.

Major Chinese municipal gas and water utility groups (e.g., China Gas).

Partner Entity	Project/Agreement Type	Contract Value/Estimate (USD)	Product Supplied	Date Reference
Yipinhui Smart Living Technology Co., Ltd. (a subsidiary of China Gas)	Centralized Procurement Project for Public Health Drinking Water	$3.88 Million (RMB 27.54 million)	304-grade thin-walled stainless steel pipes and fittings	August 19, 2025
ENN Energy Holdings Limited	Procurement Plan for Gassing Infrastructure Projects	Estimated total sales of $12.5 Million	Pressed-type carbon steel pipeline	September 7, 2021

ZK International Group Co., Ltd. is positioning itself to capitalize on the $850 Billion commitment made by the Chinese Government to improve water quality, which is stated to be 70% unfit for direct drinking.

Crypto Integration Facilitator for the XRP warrant financing strategy.

• ZK International announced plans to raise capital up to $1 Billion by issuing ZKIN warrants to the global XRP community.
• The initiative targets Ripple's XRP, which had a market cap of approximately $130 Billion and over 5 million active wallets as of May 2025.
• The company intends to sign a strategic consulting agreement and appoint an experienced Crypto Integration Facilitator for research, feasibility analysis, and compliance related to blockchain and digital asset initiatives.

Suppliers of raw materials like stainless steel and nickel.

The financial performance in the first half of fiscal year 2025 reflects pressures from raw material costs.

Metric	H1 2025 Value	H1 2024 Value	Change
Revenue	$40.00 million	$52.89 million	-24.37%
Gross Margin	5.47%	6.33%	-0.86 percentage points

This margin compression was explicitly attributed to increased raw material costs, particularly for stainless steel, a key component. For context on the material market:

• The stainless-steel market size in 2025 is estimated at 13.37 million tons.
• Global primary nickel usage is forecast to reach 3.537Mt in 2025, with projected output at 3.735Mt, indicating a surplus of 198kt.

Finance: draft 13-week cash view by Friday.

ZK International Group Co., Ltd. (ZKIN) - Canvas Business Model: Key Activities

You're looking at the core things ZK International Group Co., Ltd. (ZKIN) has to do to make this whole model work, and frankly, it's a mix of heavy industry and cutting-edge finance right now. The key activities span from making physical pipes to structuring digital asset deals.

Manufacturing and Engineering of Patented Steel Pipe Products

The foundation is still the design, engineering, manufacturing, and supply of patented high-performance stainless steel and carbon steel pipe products, mainly for water and gas supplies. This activity is supported by significant intellectual property, which is a key differentiator for ZK International Group Co., Ltd. (ZKIN).

Here are the numbers reflecting the core pipe business performance as of the latest reported period:

Metric	Six Months Ended March 31, 2025	Fiscal Year Ended September 30, 2024
Revenue	$40.00 million	$108.20 million
Gross Profit	$2.19 million	$6.55 million
Gross Margin	5.47%	6.05% (Reported) / 10-12% (FY2025 Projection)
Inventory Value (as of period end)	$15.49 million (March 31, 2025)	N/A

The company also specializes in HVAC products, building energy conservation, and clean energy utilization systems, including terminal climate control products like radiators and heat exchangers. ZK International Group Co., Ltd. (ZKIN) holds 33 patents, 21 trademarks, 2 Technical Achievement Awards, and 10 National and Industry Standard Awards, all central to this activity. So, the activity isn't just making pipes; it's making certified, patented pipes.

Securing Large-Scale Infrastructure Project Bids

Winning significant contracts is a critical activity that drives the revenue for the pipe segment. You need a dedicated team to pursue and secure these large, often government-related, procurement projects. ZK International Group Co., Ltd. (ZKIN)'s subsidiary, Zhenkang Industrial, recently landed a major win.

The company announced securing a bid for a centralized procurement project from a subsidiary of China Gas, valued at RMB 27.54 million (approximately USD $3.88 Million) as of August 2025. This involved supplying over 1.43 million meters of 304-grade thin-walled stainless steel pipes and fittings for public health drinking water projects. To put that in perspective, ZK International Group Co., Ltd. (ZKIN) has supplied stainless steel pipelines for over 2,000 projects historically, including the Beijing National Airport and the Olympic venues. They are also positioning themselves to capitalize on the Chinese Government's stated $850 Billion commitment to water quality improvements.

Research and Development of Smart Pipeline Solutions and New Technologies

This activity focuses on future-proofing the core business. Zhenkang Industrial is actively involved in drafting national standards for direct drinking water pipelines and smart water management infrastructure. This R&D effort is geared toward driving progress in eco-friendly and intelligent solutions, ensuring ZK International Group Co., Ltd. (ZKIN)'s products remain relevant in China's evolving infrastructure landscape.

Developing and Operating the xSigma Crypto Platform and Wallet

While the pipe business is the current revenue driver, a distinct key activity involves the development and operation of digital asset initiatives through its wholly owned subsidiary, xSigma Corporation. It's important to note that in the fiscal year ended September 30, 2023, the Company wrote off the carrying value of software platforms, including xSigma Trading, MaximNFT, and the Defi Exchange. The current activity centers on leveraging this subsidiary for strategic financing rather than immediate platform revenue generation, based on recent announcements.

Executing the Unique Financing Strategy via ZKIN Warrants for XRP Holders

This is a highly unique, non-traditional key activity that bridges the public equity market with decentralized finance. ZK International Group Co., Ltd. (ZKIN) announced plans to raise capital up to $1 Billion by offering ZKIN warrants that can be exercised using Ripple's XRP. This strategy targets the global XRP community, which has a market cap of approximately $130 Billion and over 5 million active wallets. This move was announced in May 2025, when the company's market valuation was cited around $18 million. The successful execution of this strategy also involved resolving the Nasdaq bid price deficiency, as the company confirmed its closing bid price had remained above $1.00 for ten consecutive business days.

The core actions here involve:

• Designing the warrant structure exercisable with XRP.
• Appointing a Crypto Integration Facilitator for research and compliance.
• Securing necessary legal review and board approval for the plan.

This activity requires specialized legal and crypto-market expertise, which is a significant operational requirement for ZK International Group Co., Ltd. (ZKIN) in late 2025.

ZK International Group Co., Ltd. (ZKIN) - Canvas Business Model: Key Resources

You're looking at the core assets that power ZK International Group Co., Ltd. (ZKIN)'s operations, the things they absolutely must have to make their business model work. Honestly, for a company focused on infrastructure like high-performance piping, these tangible and intangible assets are everything.

The foundation here is definitely the proprietary engineering knowledge. ZK International Group Co., Ltd. doesn't just make standard pipes; they engineer and manufacture patented high-performance stainless steel and carbon steel pipe products designed for critical water and gas supplies. This technology has been proven in major national infrastructure, which speaks volumes about its quality and reliability.

To give you a sense of the scale and quality associated with this core resource, look at where this technology has been deployed:

Project Type/Name	Significance	Deployment Count (Cumulative)
Beijing National Airport	Major national infrastructure	Over 2,000 projects supplied
'Water Cube'	2008 Beijing Olympics venue	N/A
'Bird's Nest'	2008 Beijing Olympics venue	N/A

This installed base is a massive resource, proving the technology works under high-stakes conditions. Plus, the company is positioning itself to capitalize on the Chinese Government's commitment to improving water quality, a market opportunity estimated around $850 Billion, where their specialized pipes are essential.

Beyond the patented technology itself, the intellectual property portfolio backs up their engineering claims. This is the documented proof of innovation, and it's substantial:

• 28 patents related to steel products and engineering.
• 21 trademarks protecting their brand and specific product identifiers.
• 10 National and Industry Standard Awards.
• 2 Technical Achievement Awards.

Also critical are the manufacturing capabilities. ZK International Group Co., Ltd. maintains Quality Management System Certified (ISO9001) facilities. This certification is non-negotiable for securing large government or municipal contracts, as it assures stakeholders of consistent quality control in production. While we don't have the current production capacity figures for late 2025, the fact that they are ISO9001 certified is a key resource for market access.

The strategic pivot into software and blockchain, driven by the wholly-owned subsidiary, xSigma Corporation, represents a different kind of key resource-human capital and technological expertise. xSigma Corporation acts as the R&D arm, focusing on smart contracts, decentralized finance (DeFi), and software for crypto exchanges, aiming to add shareholder value through technology integration.

The quality of the team driving this digital resource is notable, pulling talent from top-tier tech and finance firms:

• Engineers previously served at Ripple Labs, where a former Senior Engineer helped scale a product processing $500 million in XRP payments per month.
• Team members have experience from Facebook, Amazon, and 1inch.
• Other key personnel have backgrounds at Google and top financial companies like JPMorgan Chase and SoFi.

This software expertise is being monetized, as evidenced by the integration of cryptocurrency payments into operations to enhance transaction efficiency. Financially, as of the six months ended March 31, 2025, the company reported revenue of $40.00 million, and they were anticipating a gross profit margin in the range of 10% to 12% for the full fiscal year 2025, showing the ongoing effort to translate these resources into profitable output, despite a challenging market environment where revenue was down 24.37% year-over-year for that half-year period.

Finance: draft Q3 2025 cash flow projection incorporating expected contract milestones by Monday.

ZK International Group Co., Ltd. (ZKIN) - Canvas Business Model: Value Propositions

You're looking at the core value ZK International Group Co., Ltd. (ZKIN) brings to its customers and the market. It's a mix of heavy industry expertise and a very modern financial play. Honestly, the value proposition is split between tangible infrastructure materials and a novel approach to capital raising.

High-quality, highly-sustainable, and environmentally sound pipe products

ZK International Group Co., Ltd. engineers and manufactures patented high-performance stainless steel and carbon steel pipe products. These are designed to effectively deliver high quality, highly-sustainable, and environmentally sound drinkable water to the Chinese, Asia, and European markets. The company backs this up with formal recognition, holding both Quality Management System Certification (ISO9001) and Environmental Management System Certification (ISO1401), plus a National Industrial Stainless Steel Production Licensee status.

To give you a concrete example of this value in action, Zhenkang Industrial, a subsidiary, recently secured a bid for a China Gas project. This contract, valued at approximately USD $3.88 Million (RMB 27.54 million), involves over 1.43 million meters of 304-grade thin-walled stainless steel pipes and fittings for public health drinking water systems. Still, you should note the H1 2025 financial context: the company reported revenue of $40.00 million and a gross margin of 5.47% for that period.

Patented technology for sophisticated water and gas pipeline systems

The technology is a key differentiator here. ZK International Group Co., Ltd. has built a portfolio of intellectual property that supports these sophisticated systems. Here's a quick look at the documented IP assets, which underpin their product quality:

• Patents owned: 45
• Trademarks owned: 44
• National and Industry Standard Awards: 10

This technological foundation allows ZK International Group Co., Ltd. to play a pivotal role in drafting national standards for direct drinking water pipelines and smart water management infrastructure. Their products, including double-press thin-walled stainless steel tubes and fittings, are specified for critical applications like direct-drinking water systems, cold/hot water supply, city water supply, and gas lines in large and middle-scale construction projects.

Proven track record with over 2,000 major infrastructure projects

Experience matters when you are dealing with municipal infrastructure. ZK International Group Co., Ltd. has a proven history of delivery, having supplied stainless steel pipelines for more than 2,000 projects. These aren't small jobs; they include major landmarks you might recognize. This track record is a clear demonstration of reliability for urban planners, real estate developers, and local governments.

You can see the scale of their past work in this table:

Project Category	Notable Examples	Project Count
Major Infrastructure	Beijing National Airport	Over 2,000
Olympic Venues	Water Cube, Bird's Nest	Included in total
Utility Supply Systems	Direct-drinking water, Gas	Ongoing focus

Public market gateway for the global XRP cryptocurrency community

This is the forward-looking, non-traditional value proposition. As of May 21, 2025, ZK International Group Co., Ltd. announced a unique financing strategy intended to bridge the cryptocurrency market and the stock capital market. The plan is to raise capital up to $1 Billion from holders of Ripple's XRP by offering ZKIN warrants that can be exercised directly using XRP.

The logic here is tapping into a massive, liquid digital asset base. To put that target in perspective, the global XRP community is associated with a market cap of approximately $130 Billion and over 5 million active wallets. While pursuing this novel financing, the company reported a net loss of $0.80 million in the first half of fiscal year 2025, which definitely highlights the need for new capital streams.

Finance: draft 13-week cash view by Friday.

ZK International Group Co., Ltd. (ZKIN) - Canvas Business Model: Customer Relationships

You're looking at how ZK International Group Co., Ltd. (ZKIN) manages its connections with its key customer groups as of late 2025. It's a mix of traditional, large-scale infrastructure work and newer digital finance outreach.

Contract-based, long-term relationships with large government and municipal entities

The relationships here are built on securing large, often public-sector, infrastructure bids. ZK International Group Co., Ltd. has a history of supplying pipelines for major public works, such as the Beijing National Airport, the Water Cube, and the Bird's Nest Olympic venues. The company is positioning itself to benefit from significant government spending initiatives.

The potential scale of these relationships is underscored by the Chinese Government's commitment to water quality improvement, stated to be exceeding $850 Billion. The premise is that a significant portion of this, stated to be 70%, relates to water quality issues ZK International Group Co., Ltd. addresses.

Metric	Value	Context/Date
Total Projects Supplied Pipelines For	Over 2,000	Historical reference for established relationships
Chinese Government Water Commitment	$850 Billion	Potential future opportunity size
Portion of Commitment Relevant to ZKIN	70%	Stated percentage unfit for human contact

Direct sales and technical support for large-scale engineering projects

Direct sales relationships drive the core revenue, which for the six months ended March 31, 2025, totaled $40.00 million. This figure represents a 24.37% decrease compared to the $52.89 million revenue reported for the same period in fiscal year 2024. The trailing twelve months revenue ending March 31, 2025, stood at $95.31 million.

Technical support and direct sales are tied to specific contract wins. For instance, a recent win involved the Shenzhen Municipal Infrastructural Gas Pipeline Procurement Project, valued at approximately $4.47 million, announced in late 2024. Another project win announced in August 2025 was for the China Gas Stainless Steel Pipe Project, valued at approximately $3.88 million.

Investor relations and communication for Nasdaq-listed equity

As a Nasdaq-listed entity (ZKIN), ZK International Group Co., Ltd. maintains formal communication channels with its equity holders. The company announced its unaudited financial results for the six months ended March 31, 2025, on September 29, 2025. The company had previously postponed a shareholder conference call scheduled for February 7, 2025, to incorporate additional significant developments into the discussion.

The company's focus on maintaining its listing status is a key part of this relationship management. For example, in early 2025, the company resolved a previous Nasdaq deficiency regarding periodic filing requirements.

Digital community engagement for the crypto financing initiative

ZK International Group Co., Ltd. is actively engaging a specific digital community for a novel financing strategy via its subsidiary, xSigma Corporation. The goal is to bridge the cryptocurrency market and the stock capital market.

The target community is the global XRP holders, which, as of the May 2025 announcement, had over 5 million active wallets and a market capitalization of approximately $130 Billion. The financing strategy aims to raise capital up to $1 Billion by offering ZKIN warrants exercisable using XRP.

• Target Capital Raise Amount: $1 Billion
• Target Digital Asset Community Size: Over 5 million active wallets
• Target Community Asset Market Cap: Approximately $130 Billion
• Instrument Offered: ZKIN warrants exercisable using XRP
• Subsidiary Leading Initiative: xSigma Corporation

Finance: draft 13-week cash view by Friday.

ZK International Group Co., Ltd. (ZKIN) - Canvas Business Model: Channels

Direct sales force and bidding process for government and municipal contracts.

ZK International Group Co., Ltd. utilizes a direct sales approach, particularly for securing large infrastructure deals. For the six months ended March 31, 2025, the Company reported revenue of $40.00 million. This channel secured specific project wins, such as a $3.88 Million bid for a China Gas Stainless Steel Pipe Project, announced in January 2025. Furthermore, a $4.47 million contract for the Shenzhen Municipal Infrastructural Gas Pipeline Procurement Project was also secured. The company's product portfolio supports both new construction projects and retrofit applications through these direct and engineering contractor channels.

Distribution networks in China, Asia, and Europe.

The primary market remains domestic, serving the Chinese market where ZK International Group Co., Ltd. is headquartered in Wenzhou, China. The product portfolio is sold through a network of regional distributors and engineering contractors across this domestic base. For the trailing twelve months ending March 31, 2025, ZK International Group Co., Ltd.'s revenue totaled $95.31 million. The company has begun exporting select solutions to customers in Europe.

New regional offices and partnerships for Southeast Asia and Middle East markets.

Expansion efforts include exporting select solutions to customers in Southeast Asia and the Middle East, in addition to Europe. This expansion is part of the strategy to advance sustainable climate control technologies and expand market presence beyond the domestic focus. The effectiveness of optimizing distribution channels is a key consideration; a 2025 report noted that businesses optimizing these saw a 40% rise in revenue.

xSigma digital platforms for crypto-related products and services.

The subsidiary, xSigma Corp., is developing digital platforms to bridge the cryptocurrency and stock capital markets. The xSigma Wallet is planned to be regulated in the U.S. and serve customers in over 170 countries. A unique financing strategy was announced to engage the global XRP community by offering ZKIN warrants up to $1 Billion. The company anticipates a gross profit margin in the range of 10% to 12% for the fiscal year 2025, reflecting digital segment expectations alongside core business.

Here's a quick look at the scale of these channel activities as of the first half of fiscal year 2025:

Channel Metric/Activity	Value/Scope	Reporting Period/Date
Revenue (Six Months)	$40.00 million	Ended March 31, 2025
TTM Revenue	$95.31 million	Ended March 31, 2025
Government Contract Win (Shenzhen)	$4.47 million	Reported
Government Contract Win (China Gas)	$3.88 million	Announced January 28, 2025
xSigma Wallet Customer Reach	Over 170 countries	Planned
Potential Financing via Warrants	Up to $1 Billion	Planned Strategy
Anticipated Gross Margin	10% to 12%	Fiscal Year 2025 Projection

The company's sales channels include direct sales, regional distributors, and engineering contractors. The digital channel aims for global reach across over 170 jurisdictions.

• Direct sales force focus on municipal and infrastructure bids.
• Distribution through regional distributors in China.
• Export sales channels active in Europe.
• Partnerships targeted for Southeast Asia and Middle East.
• xSigma digital platform for global crypto-asset transactions.

Finance: review Q3 2025 channel performance against the 10% to 12% gross margin projection by next week.

ZK International Group Co., Ltd. (ZKIN) - Canvas Business Model: Customer Segments

You're looking at the core groups ZK International Group Co., Ltd. (ZKIN) targets to generate its revenue from high-performance steel pipe sales and its newer capital-raising initiatives. Honestly, the business has historically been laser-focused on China's infrastructure needs, but the latest strategy shows a pivot toward non-traditional financing.

Chinese municipal and provincial government infrastructure projects

This segment represents the bread and butter for ZK International Group Co., Ltd., given its core business is supplying patented high-performance stainless steel and carbon steel pipe products for water and gas supplies. The company is positioning itself to capitalize on massive government spending mandates. For instance, ZK International Group Co., Ltd. is preparing to tap into the $850 Billion commitment made by the Chinese Government aimed at improving water quality, which has been reported as 70% unfit for human contact. This government focus directly translates into demand for ZK International Group Co., Ltd.'s specialized piping. You can see the direct impact on the top line, even with recent headwinds; for the six months ended March 31, 2025, revenue was $40.00 million, down from $52.89 million the prior year period, reflecting the slow recovery in the real estate market which often ties into these municipal projects.

Large-scale commercial real estate and construction developers

Developers are a key end-user for the pipe products, especially for large-scale commercial builds requiring sophisticated water and gas pipeline systems. The recent revenue dip in the first half of fiscal year 2025 to $40.00 million was explicitly attributed, in part, to a decrease in demand from this sector due to reduced construction projects and weakened investment momentum. Still, the company's full fiscal year 2024 revenue stood at $108.20 million, showing the scale of business when the market is more robust. The company's gross margin improved to 6.05% in FY2024, suggesting that even with market softness, ZK International Group Co., Ltd. managed to secure better pricing on its sales to this segment.

Gas and water utility companies (e.g., China Gas, Zhuhai Water)

Utility companies are direct purchasers and specifiers of ZK International Group Co., Ltd.'s products for their distribution networks. This segment is crucial for securing large, long-term contracts. A concrete example of success here is the recent win of a $3.88 Million bid for a China Gas stainless steel pipe project, which the company framed as ushering in a new era of healthy drinking water. This type of contract directly feeds into the company's core purpose of supplying high-quality pipes for water and gas distribution. The company's overall revenue for the trailing twelve months ending March 31, 2025, was $95.31 million.

Here's a quick look at the financial performance that underpins the ability to serve these industrial customers:

Financial Metric (Period Ending Sep 30, 2024)	Amount (USD)	FY 2024 Gross Margin
Total Revenue	$108.20 million	6.05%
Gross Profit	$6.55 million	Projected FY2025 Gross Margin
Net Loss	$2.78 million	10-12%

Global holders of XRP cryptocurrency targeted for capital raising

This is a newer, distinct customer segment, or perhaps more accurately, a target investor base for capital infusion, bridging crypto and equity markets. ZK International Group Co., Ltd. announced a unique financing strategy to engage the global XRP community. The plan is to raise capital up to $1 Billion by offering ZKIN warrants exercisable using XRP. This targets holders of Ripple's XRP, which is noted to have a market cap of approximately $130 Billion and over 5 million active wallets globally. The goal is to serve as a gateway for both retail and institutional investors to gain exposure to a Nasdaq-listed equity. This strategy is a significant departure from the traditional infrastructure sales focus.

• Target capital raise: up to $1 Billion.
• Asset targeted for warrant exercise: Ripple's XRP.
• XRP community size referenced: over 5 million active wallets.
• The company's core business remains focused on China-based pipe supply.

If onboarding takes 14+ days for these new warrant holders, compliance risk rises, defintely something to watch.

Finance: draft 13-week cash view by Friday.

ZK International Group Co., Ltd. (ZKIN) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving ZK International Group Co., Ltd. (ZKIN)'s operations, which are heavily influenced by commodity markets and market demand for their pipe products. Honestly, the cost side of the equation has been a real challenge, especially with steel and nickel prices being so jumpy.

High cost of goods sold, driven by volatile raw material costs (nickel, steel).

The Cost of Revenue, which is what you pay for the materials and direct labor to make your product, was substantial. For the fiscal year ended September 30, 2024, the Cost of Goods Sold hit $101.65M. You saw the impact of this pressure during the first half of fiscal year 2025; for the six months ended March 31, 2025, the Gross Profit was only $2.19 million. The company noted that persistent raw materials costs, particularly for stainless steel-where nickel is a key component-outpaced their cost optimization efforts, leading to a lower Gross Margin of 5.47% for that six-month period.

The cost structure is laid out in the table below, giving you a snapshot of the most concrete figures we have for the recent periods:

Cost Component	Period Ending	Amount (USD)	Notes
Cost of Revenue (COGS)	2024-09-30	$101.65M	Reflects production and sales costs
Gross Profit	2025-03-31 (6 Months)	$2.19 million	Decreased 34.63% from prior year period
Research and Development	2024-09-30	$1,197 thousand	Latest reported annual figure
Sales, General and Admin	2024-09-30	$6,469 thousand	Latest reported annual figure
Short-term bank borrowings	2025-03-31	$11.19 million	Outstanding balance

Manufacturing and operational expenses for pipe production.

Direct manufacturing costs are bundled into COGS, but the overhead associated with running the factories and facilities falls under operating expenses. For the six months ended March 31, 2025, ZK International Group Co., Ltd. reported an Income Loss from Operations of ($0.49 million). This loss shows that, even after accounting for the gross profit, the day-to-day running costs were higher than the revenue generated during that period. That's a tough spot to be in.

Research and development (R&D) for new pipe and software technologies.

Investing in future products, like new pipe designs or software for their business, is a necessary cost. Looking at the last full fiscal year data, Research and Development expenses were $1,197 thousand for the year ended September 30, 2024. You want to see this number stay steady or grow if they are serious about their patented technology claims, even when margins are tight.

Sales, General, and Administrative (SG&A) expenses.

These are the costs of selling the product and running the corporate office-salaries, marketing, rent, and so on. For the fiscal year ending September 30, 2024, SG&A expenses were $6,469 thousand. This was down from $7,262 thousand the year prior, showing some cost control in that area.

Short-term bank borrowings of $11.19 million as of March 31, 2025.

To manage working capital or bridge operational gaps, ZK International Group Co., Ltd. utilized debt. As of March 31, 2025, the balance sheet showed $11.19 million in short-term bank borrowings. This figure was up from $10.26 million as of September 30, 2024. That increase in short-term obligations means they needed more immediate cash to cover things, definitely something to watch on the next quarterly filing.

Finance: draft 13-week cash view by Friday.

ZK International Group Co., Ltd. (ZKIN) - Canvas Business Model: Revenue Streams

You're looking at the core ways ZK International Group Co., Ltd. (ZKIN) brings in money right now, which is a mix of its traditional industrial base and newer digital finance ventures. Honestly, the numbers for the first half of 2025 show the traditional side is under pressure.

Sales of Stainless Steel and Carbon Steel Pipe Products and Fittings

The fundamental revenue driver for ZK International Group Co., Ltd. remains the design, production, and sales of its patented high-performance stainless steel and carbon steel pipe products. These are mainly for water and gas supplies. For instance, ZK International Group Co., Ltd. announced winning a bid for a China Gas Stainless Steel Pipe Project valued at $3.88 Million in August 2025. This segment is what the company has built its reputation on, focusing on quality-certified operations and specialized steel products.

Revenue from Infrastructure Project Contracts

The prompt specifies a figure for infrastructure project contracts, which for the six months ended March 31, 2025, totaled $40.00 million. To be fair, ZK International Group Co., Ltd.'s total reported revenue for the entire first half of fiscal year 2025 was $40.00 million, down 24.37% from $52.89 million in H1 2024. This revenue decline was primarily linked to weakened real estate market demand and construction slowdown in China. Still, securing contracts remains a key component of the business model.

Here's a quick look at the H1 2025 performance for the core business:

Metric	H1 2025 Amount (Millions USD)	H1 2024 Amount (Millions USD)
Total Revenue	$40.00	$52.89
Gross Profit	$2.19	$3.35
Gross Margin	5.47%	6.33%

Potential Capital Raised from the Issuance and Exercise of ZKIN Warrants Using XRP

ZK International Group Co., Ltd. is actively pursuing a novel financing strategy to bridge decentralized finance with traditional equity markets. The goal is to raise capital up to $1 Billion by offering ZKIN warrants that can be exercised using Ripple's XRP cryptocurrency instead of fiat currency. This initiative targets the global XRP community, which has over 5 million active wallets and a market capitalization of approximately $130 Billion as of May 2025. This capital, if successfully raised, would flow into the company's overall operations.

Revenue from xSigma's Crypto Platform and Digital Asset Services

Diversification into digital assets is managed through its subsidiary, xSigma Corporation. As of January 2025, xSigma Corp. planned to launch the xSigma Wallet, which is positioned as a crypto platform for buying memecoins and digital assets using credit cards. While this represents a future or emerging revenue stream, specific revenue figures attributable to xSigma's crypto platform for H1 2025 were not detailed in the primary earnings announcements, suggesting it is either nascent or not yet a material contributor to the reported $40.00 million total revenue.

The revenue streams can be summarized by their nature:

• Tangible asset sales: Steel pipes and fittings.
• Contract-based income: Infrastructure projects.
• Financing/Capital Inflow: Potential $1 Billion from XRP warrants.
• Digital services: Crypto platform transactions via xSigma.

Finance: draft 13-week cash view by Friday.