(Nasdaq: ZKIN) Profile
OUR NEW PROFILE IS: (NASDAQ: ZKIN)
ZKIN WINS $8 MILLION BID WITH CHONGQING GAS GROUP TO SUPPLY THE MUNICIPAL GAS INFRASTRUCTURE PROJECT, THUS STRENGTHENING ITS COMPETITIVE EDGE IN THE WESTERN CHINA GAS MARKET
ZKIN HAS SUCCESSFULLY SUPPLIED NEARLY 2,000 PROJECTS IN VARIOUS INDUSTRIES, INCLUDING HOTEL, HOSPITAL, SCHOOL, AIRPORT, PHARMACEUTICAL, FOOD & BEVERAGE, GOVERNMENTAL BUILDING, REAL ESTATE, AND STADIUMS
NOTABLE PROJECTS INCLUDE THE CHINA PAVILION OF SHANGHAI EXPO, BEIJING NATIONAL AQUATICS CENTER “THE WATER CUBE,” BEIJING NATIONAL STADIUM “THE BIRD’S NEST,” AND BEIJING INTERNATIONAL AIRPORT
ZK INTERNATIONAL GROUP CO., LTD. ANNOUNCES RECORD REVENUE OF $49.66 MILLION, AN INCREASE OF 15.77% FOR THE FIRST HALF OF FISCAL YEAR 2023
LAST YEAR ZKIN SAW RECORD REVENUES OF $102.39 MILLION, AND SAW GROSS PROFIT INCREASE BY 17.38% TO $7.60 MILLION FOR THE FISCAL YEAR 2022
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Hello Everyone,
ZK International is a leading manufacturer and engineer of high-performance stainless steel products for projects that require sophisticated water or gas pipeline systems. Leveraging its expertise, ZK International caters its products to infrastructure projects by urban planners, real estate developers, local governments and municipalities to bring communities reliable and durable gas and water transmission systems. The Company’s products including double-press thin-walled stainless steel tubes and fittings, carbon steel tubes and fittings and single-press tubes and fittings, are sold predominately in China, but are also exported and distributed in Europe and Southeast Asia.
ZKIN’s core business is to engineer and manufacture patented high-performance stainless steel and carbon steel pipe products that effectively deliver high quality, highly sustainable and environmentally sound drinkable water to the Chinese, Asia and European markets. ZK International is Quality Management System Certified (ISO9001), Environmental Management System Certified (ISO1401), and a National Industrial Stainless Steel Production Licensee. It has supplied stainless steel pipelines for over 2,000 projects, which include the Beijing National Airport, the “Water Cube” and “Bird’s Nest”, which were venues for the 2008 Beijing Olympics. ZK International is preparing to capitalize on the $850 Billion commitment made by the Chinese Government to improve the quality of water, which has been stated to be 70% unfit for human contact.
ZK International (NASDAQ: ZKIN) continues to score massive revenue-generating wins. On Tuesday Dec. 19th, ZKIN announced that they secured an $8 Mln bid in collaboration with Chongqing Gas Group, bolstering its new position as a key player in the Western China gas market.
Chongqing City, the fourth largest Chinese city with an estimated urban population of 16.34 Mln, is set to benefit from ZK International’s expertise. The $8 Mln bid pertains to the gas piping infrastructure procurement program initiated by the Chongqing Gas Group for its municipal gas piping infrastructure project.
With vast industry and project expertise, ZKIN checked the right boxes at the right time, which will benefit the city’s municipal gas piping infrastructure project and add to the case that the growth pace at ZKIN is shifting to Hyper-Growth Phase. And keep in mind that plenty more deals may be in the near-term pipeline.
In ZKIN‘s update, China’s Ministry of Ecology and Environment’s 2020 initiative intends to replace coal with clean energy in the heating systems of 7.09 Mln households in the northern provinces, spurring enormous demand for natural gas and gas piping infrastructure. Having a foot in Chongqing Gas Group’s door could be a value driver of its own, noting it’s a flagship division of China Resources Gas Group Limited. By the way, Chongqing Gas Group Co., Ltd. is no small player; listed on the Shanghai Stock Exchange under the stock code 600917, it has a market capitalization of $1.5 Bln, generating annual sales averaging roughly $1.22 Bln.
Moreover, by pioneering the urban pipeline gas business in 1995 and becoming a key player in the energy sector, growth at that company is expected to continue by adding integrated energy services to its offerings, which enhances its core businesses focus on natural gas sales, integrated energy services, energy trade, and energy transmission and distribution. Good news for them can be exceptional for ZKIN.
ZK INTERNATIONAL GROUP CO., LTD. ACCELERATES GROWTH WITH CORPORATE UPDATE: WEBSITE LAUNCH, REBRANDING, SUCCESSFUL $8 MILLION BID, $5 MILLION FINANCING, AND NASDAQ COMPLIANCE
WENZHOU, China, Dec. 28, 2023 /PRNewswire/ — ZK International Group Co., Ltd. (Nasdaq: ZKIN) (“ZKIN“, “ZK International” or the “Company”), a pioneer in stainless-steel innovation and technology, is pleased to share a corporate update highlighting recent developments and the launch of its new website.
Website Launch and Rebranding: A Digital Transformation
In a move to provide a more engaging and informative experience, ZK International proudly unveils its redesigned website. This visually stunning and user-friendly platform showcases our core businesses, diverse product portfolio, highlights key projects, and serves as a dynamic hub for the latest industry insights on the Company. Explore the revamped website at www.zkinternationalgroup.com.
“Our enhanced website is a reflection of our dedication to transparency and accessibility,” said Mr. Jiancong Huang, Chairman at ZK International. “It’s not just a digital facelift; it’s a strategic tool for fostering connections with our stakeholders.”
Securing Contracts: Fortifying Our Market Presence
ZK International recently achieved a significant milestone by securing a $8 million bid in collaboration with Chongqing Gas Group. This success is a testament to our commitment to excellence, quality, and customer satisfaction, reinforcing our competitive edge in the Western China Gas Market.
“We are excited about the momentum we are building in the market and are grateful for the trust our partners place in us,” added Chairman Huang. “This successful bid is a significant step in our strategic growth plan and highlights our dedication to delivering outstanding solutions to our clients.”
$5 Million Financing: Fueling Future Expansion
In a move to capitalize on our market momentum, ZK International has successfully closed a $5 millionfinancing above the market. This strategic funding positions the Company for accelerated growth and international expansion, further solidifying our position as an industry leader.
“This financing round is a testament to the confidence investors have in ZK International’s vision and growth trajectory,” noted Mr. Jiancong Huang. “We are strategically leveraging this capital injection to fuel our expansion plans both domestically and internationally and enhance our capabilities on a global scale.”
ZK International remains steadfast in its commitment to sustainability, innovation, and meeting the evolving needs of the industries we serve. We look forward to a future filled with exciting opportunities, continued growth, groundbreaking achievements, and increasing shareholder value.
Nasdaq Compliance
In addition, ZK International Group Co., Ltd. is pleased to announce that it is Nasdaq compliant, having successfully resolved the bid price deficiency concern. The Nasdaq Listing Qualifications staff has confirmed the company’s compliance with all applicable listing standards. The company expresses gratitude to Donohoe Advisory Associates LLC for their professionalism and expertise in guiding us through this matter.
Mr. Jiancong Huang, Chairman of ZK International Group, stated, “We are thrilled to announce these positive developments as we continue to strengthen our position in the stainless steel industry. The launch of our new website reflects our commitment to providing a seamless and informative experience for our stakeholders. Our planned expansion into international markets is a testament to our dedication to meeting the growing global demand for high-quality stainless steel products and sustainable infrastructure solutions.”
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Investors Embrace ZKIN Strategic Maneuvers
It results from investors responding well to ZKIN shifting its sales strategy to minimize the impact of higher costs for raw materials by increasing its weighted average selling price during the first half of its fiscal year. However, a more significant contribution that is undoubtedly worthy of investor attention is that ZKIN said a considerable part of its revenue growth comes from a strengthening recovery of domestic demand. That’s led to an overall increase in sales volume — a trend that should continue.
ZKIN is recognized as an industry leader in the manufacturing and engineering of high-performance stainless steel products used in sophisticated water or gas pipeline systems. The company’s unique ability to serve specialized demand is increasing its market share among urban infrastructure project planners, real estate developers, local governments, and municipalities that need to bring reliable and durable gas and water transmission systems to their communities. ZKIN produces a range of products that offer distinct advantages over the competition, including double-press thin-walled stainless steel tubes and fittings, carbon steel tubes and fittings, and single-press tubes and fittings. Its unique offerings should continue to drive market share, not just in its primary Chinese market but also as the company expands its presence in Europe and Southeast Asia.
ZKIN Leverages Expertise, IP, and Market Position Transforming Milestones Into Bullish Catalysts
Penetrating those new markets could happen sooner than later, noting that ZKIN is supplying the next generation of clean water solutions with innovative, high-quality piping infrastructure solutions supported by robust intellectual properties. While more may be coming, ZKIN owns 46 patents, 46 trademarks, 5 Software Copyrights, 2 National Innovation Fund Awards, and 41 National and Industry Standard Awards. They are also Quality Management System Certified, Environmental Management System Certified, and a National Industrial Stainless Steel Production Licensee. Those recognitions allow ZKIN to easily tap into the multi-bln-dlr Gas and Water sectors that need specialized and environmentally compliant steel piping — and the company is capitalizing on those potentials.
So far, ZKIN has supplied stainless steel pipelines for over 2,000 projects, including the Beijing National Airport, the “Water Cube,” and “Bird’s Nest”, venues for the 2008 Beijing Olympics. Passing the rigorous standards at those locations was not a one-off win. Its over 2,000 other clients, large and small, receive the same superior properties and durability of its steel piping, providing an accessible solution for delivering high quality, highly sustainable, and environmentally sound drinking water to its clients in China, Europe, East Asia, and Southeast Asia. At many of these client locations, time is of the essence.
The urbanization of China is an excellent example of why. Despite being home to roughly 20% of the global population, the country only has 7% of the world’s freshwater resources. Potentially worse, within the next 10-20 years, China is projected to move roughly 250 Mln people (more than the total U.S. urban population) into cities — some of which have yet to be built, and those that have begun still lack basic starting infrastructure. Adding that count to the current urban population, China must procure the water services infrastructure to serve approximately 900 Mln people or roughly 13% of the world’s population. However, that only accounts for the urban crowd. The country will also need to provide water for 400 Mln rural residents and meet the demands of the agriculture, energy, and manufacturing sectors.
That makes ZKIN timely to a massive opportunity. It’s noted that the seismic population shift is significantly impacting China’s urban infrastructure, contributing to an estimate that about 61% of groundwater and 28% of key rivers are classified as unfit for human contact. Worse, research indicates that over 20% of the water supply is so polluted that it cannot be used for industrial or agricultural use, causing an estimated 6% reduction in annual GDP, according to the World Bank. As expected, China isn’t turning a blind eye to the current problem or its potentially worsening future.
Reports show that the Chinese government has earmarked $610 Bln to spend on water infrastructure improvement starting in 2011, which is expected to be completed in early 2030. Groundwork completed from its $68 Bln South-to-North Water Diversion Project has provided an excellent start to avoiding humanitarian catastrophe. The completed project will link China’s four main rivers with more than 1,800 miles of pipeline, diverting water from the south of China to population centers in the north. Scoring contracts from that massive program will add to others.
Current ZKIN projects include working with the China Railway First Bureau Group, Zhuhai Water Environment Holding Group, and Changsha Water Group to strengthen and enhance their services infrastructures. They also announced renewing a contract with Towngas China Company Limited, one of Asia’s largest gas and utility suppliers, entering an agreement with Shenzhen Water Group to replace the aging water supply infrastructure within its city, and securing a $1.2 Mln contract with The XingRong Group, one of the largest water treatment and supply companies in Western China.
While ZKIN can earn massive near and long-term revenues from those projects, they are monetizing plenty of others from state-owned water supply companies engaged in major construction and water supply projects. Remember, ZKIN operates from a position of strength in terms of industry development, noting the company has been vital in developing stainless steel pipes for direct drinking water in the country. As important, ZKIN was authorized to draft many national standards of stainless steel pipe and clamp pipe fitting. That does more than position the company for expedited growth in the Chinese markets; the accumulated production technology advantages can also ensure that the products reach the strict standards of Europe and the United States.
The excellent news is that they already do. That makes ZKIN one of the very few manufacturers today who can produce products that meet those geographic market compliance measures.
Few companies can do what ZKIN does, and an even more select few have access to the multi-bln-dlr contracts awarded by China, other developing countries, and the companies within them. And know this. Every nation — developed or not — is upgrading infrastructure to serve shifting populations, meet technological changes, and remain proactive in safely and effectively meeting current and future demands. That puts ZKIN in a sweet spot of oppo·rtunity. And by continuing to innovate, maintaining superior product quality, and forming strategic partnerships, they are indeed capable of exploiting that position.
ZK INTERNATIONAL GROUP CO., LTD. ANNOUNCES RECORD REVENUE OF $49.66 MILLION, AN INCREASE OF 15.77% FOR THE FIRST HALF OF FISCAL YEAR 2023
WENZHOU, China, Sept. 29, 2023 /PRNewswire/ — ZK International Group Co., Ltd. (ZKIN) (“ZK International” or the “Company”), a designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products primarily used for water and gas supplies, today announced its unaudited financial results for the six months ended March 31, 2023.
Financial Highlights for the First Half of Fiscal Year 2023
For the Six Months Ended March 31,($ millions, except per share data)20232022% ChangeRevenue$49.66$42.8915.77%Gross profit$3.17$3.97-20.13%Gross margin6.38%9.25%-2.87% pp*Income from operations$0.14$0.24-41.91·%Operating margin0.29%0.57%-0.28% pp*Net income (loss)$(0.06)$0.0010.00%Diluted earnings per share$0.00$0.000.00%Net book value per share$2.85$2.89-1.45%
* pp: percentage point(s)
- Revenue increased 15.77% to a record $49.66 million for the six months ended March 31, 2023 from approximately $42.89 million for the six months ended March 31, 2022. During the first fiscal half of 2023, 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 period. The increase of sales is also attributable to the recovery of domestic demand and we achieved an overall increase in sales volume during the six months ended March 31, 2022.
- Gross profit decreased by 20.13% to $3.17 million. Gross margin was 6.38%, compared to 9.25% for the same period of the prior fiscal period. The decrease of gross profit was primarily due to increased raw material cost, especially the cost of stainless steel coil which is the main material for our products. Though we have increased ASP of our products, we supplied to certain customers on fixed price basis that cannot be adjusted until the existing contract expires.
- Income from operations was $0.14 million, compared to income from operations of $0.24 millionfor the same period of the prior fiscal year. Operating margin was 0.29%, compared to 0.57% for the same period of the prior fiscal year. The decrease of operating margin was primarily due to decreased gross margin of our sales.
- Net loss was $0.06 million. This compared to net income of $0.001 million for the same period of the prior fiscal year.
- Net book value per share was $2.85 as of March 31, 2023, compared to $2.89 as of September 30, 2022.
Financial Results for the First Half of Fiscal Year 2023
Revenue
Revenue increased by $6,764,742 or 15.77%, to $49,655,399 for the six months ended March 31, 2023from $42,890,657 for the six months ended March 31, 2022. During the first fiscal half of 2023, 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 period. The increase of sales is also attributable to the recovery of domestic demand and we achieved an overall increase in sales volume during the six months ended March 31, 2022.
Gross Profit
Our gross profit decreased by $798,467, or 20.13%, to $3,168,642 for the six months ended March 31, 2023 from $3,967,109 for the six months ended March 31, 2022. Gross profit margin was 6.38% for the six months ended March 31, 2023, as compared to 9.25% for the six months ended March 31, 2022. The decrease of gross profit was primarily due to increased raw material cost, especially the cost of stainless steel coil which is the main material for our products. Though we have increased ASP of our products, we supplied to certain customers on fixed price basis that cannot be adjusted until the existing contract expires.
Selling and Marketing Expenses
We incurred $963,655 in selling and marketing expenses for the six months ended March 31, 2023, compared to $930,052 for the six months ended March 31, 2022. Selling and marketing expenses increased by $33,602, or 3.61%, during the six months ended March 31, 2023 compared to the six months ended March 31, 2022. This slight increase is primarily due to increased marketing expenses to promote our product portfolio.
General and Administrative expenses
We incurred $1,443,743 in general and administrative expenses for the six months ended March 31, 2023, compared to $2,232,863 for the six months ended March 31, 2022. General and administrative expenses decreased by $789,120, or 35.34%, for the six months ended March 31, 2023 compared to the same period in 2022. The decrease is primarily due to decrease in consulting expenses.
Research and Development Expenses
We incurred $619,511 in research and development expenses for the six months ended March 31, 2023, compared to $560,216 for the six months ended March 31, 2022. R&D expenses increased by $59,295, or 10.58%, for the six months ended March 31, 2023 compared to the same period in 2022.
Income (loss) from Operations
As a result of the factors described above, we incurred operating income of $141,734 for the six months ended March 31, 2023, compared to operating loss of $243,977 for the six months ended March 31, 2022, a decrease of operating income of $102,243.
Other Income (Expenses)
Our interest income and expenses were $25,123 and $386,527, respectively, for the six months ended March 31, 2023, compared to interest income and expenses of $4,493 and $465,466, respectively, for the six months ended March 31, 2022. The decrease of interest expense is primarily due to the decrease of bank loan interest rate during fiscal half year of 2023. Other income mainly consists of government grant for financial support to the Company under local government’s innovation incentive programs.
Net Income (loss)
As a result of the factors described above, we incurred net loss of $57,080 for the six months ended March 31, 2023, compared to net income of $1,281 for the six months ended March 31, 2022, a decrease in profit of $58,361.
Financial Condition
As of March 31, 2023, cash and cash equivalents, restricted cash and short-term investments totaled $2.63 million, compared to $8.53 million as of September 30, 2022. Short-term bank borrowings were $18.21 million as of March 31, 2023, compared to $16.26 million as of September 30, 2022.
Accounts receivable was $20.17 million as of March 31, 2023, compared to $28.36 million as of September 30, 2022. Inventories were $21.98 million as of March 31, 2023, compared to $21.14 millionas of September 30, 2022. Accounts payable was $2.41 million as of March 31, 2023, compared to $10.07 million as of September 30, 2022.
Total current assets and current liabilities were $58.26 million and $34.63 million, respectively, leading to a current ratio of 1.68 as of March 31, 2023. This compared to total current assets and current liabilities were $72.09 million and $38.04 million, respectively, and current ratio of 1.90 as of September 30, 2022.
NEWS
PUBLISHED
DEC 28, 2023
ZK INTERNATIONAL GROUP CO., LTD. ACCELERATES GROWTH WITH CORPORATE UPDATE: WEBSITE LAUNCH, REBRANDING, SUCCESSFUL $8 MILLION BID, $5 MILLION FINANCING, AND NASDAQ COMPLIANCE
PUBLISHED
DEC 26, 2023
ZK INTERNATIONAL GROUP CO., LTD. RESOLVES NASDAQ BID PRICE DEFICIENCY AND REMAINS IN COMPLIANCE WITH NASDAQ LISTING STANDARDS
PUBLISHED
DEC 26, 2023
ZK INTERNATIONAL GROUP LTD. STRENGTHENS COMPETITIVE POSITION IN WESTERN CHINA GAS MARKET ($ZKIN)
PUBLISHED
DEC 19, 2023
ZK INTERNATIONAL GROUP CO., LTD., WINS $8 MILLION BID WITH CHONGQING GAS GROUP TO SUPPLY THE MUNICIPAL GAS INFRASTRUCTURE PROJECT, THUS STRENGTHENING ITS COMPETITIVE EDGE IN THE WESTERN CHINA GAS MARKET
PUBLISHED
DEC 14, 2023
ZK INTERNATIONAL GROUP CO., LTD. CELEBRATES PRESTIGIOUS RECOGNITION AS A NATIONAL “LITTLE GIANT ENTERPRISE”
PUBLISHED
NOV 29, 2023
ZK INTERNATIONAL GROUP CO., LTD. AND THE CF OPPORTUNITY FUND COMMITS $5 MILLION INVESTMENT WITH THE FIRST SUBSCRIPTION PRICED AT $1.70 PER SHARE
PUBLISHED
NOV 15, 2023
ZK INTERNATIONAL GROUP CO., LTD. GRANTED TEMPORARY EXCEPTION BY NASDAQ HEARINGS PANEL
PUBLISHED
OCT 13, 2023
ZK INTERNATIONAL GROUP ANNOUNCES RECEIPT OF NASDAQ DELISTING NOTIFICATION AND WILL REQUEST HEARING
PUBLISHED
OCT 2, 2023
ZK INTERNATIONAL GROUP STRENGTHENS ITS POSITION WITH EXPERT GUIDANCE FROM DONOHOE ADVISORY
PUBLISHED
SEP 29, 2023
ZK INTERNATIONAL GROUP CO., LTD. ANNOUNCES RECORD REVENUE OF $49.66 MILLION, AN INCREASE OF 15.77% FOR THE FIRST HALF OF FISCAL YEAR 2023
PUBLISHED
FEB 2, 2023
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
PUBLISHED
OCT 19, 2022
ZK INTERNATIONAL RECEIVES NASDAQ NOTICE REGARDING MINIMUM BID REQUIREMENTS
MANAGEMENT TEAM
JIANCONG HUANG
CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF THE BOARD
Mr. Huang is Co-Founder of the Company and has served as the Chief Executive Officer and Chairman of the Board since inception. Mr. Huang has extensive experience in the manufacturing industry and was President of two companies before Zhengkang was founded. He earned his EMBA from Renmin University of China and Engineering Professional Title, and was awarded as Top10 Wenzhou Entrepreneurship and appointed to be the Vice Director of China Construction and Building Standard and Safety Committee. He is also a member of National Pipe Standard Committee and National Building Water Supply and Waste Standard Committee. Mr. Huang is an experienced corporate strategist and visionary with decades of experience in corporate management and innovation. He has a systematic ideology on the future of stainless steel pipe in the water and gas supply industry.
SHAOCHAI YANG
CHIEF FINANCIAL OFFICER
Ms. Yang has more than 10 years experience in accounting and financial management. Prior to joining the company, she worked as the CFO at Kaidishi Industrial from 2009 to 2016, a company focuses on developing and manufacturing electrical lock and biometric fingerprint scanner, where she oversaw the day-to-day operations of accounting department. She worked as CFO at Weiduli Valve from 2002 to 2009, a company manufacturing valve and piping products. Throughout her career in accounting and management, she has acquired extensive experience in manufacturing industry having held executive positions in several media to large enterprises. Ms. Yang received her Bachelor degree in business administration from China Computer Science College with the major in Accounting.
DI CHEN
SECRETARY
Prior to joining the company at 2017, Mr. Chen served as the Senior Associate at Pacific Seaboard Investment, a corporate advisory firm based in Canada that focuses on guiding clients through IPO, M&A and private placement investments, for two years. His position focuses on leading the team to conduct industry research, due diligence, financial consulting, and preparing regulatory reporting. From 2012 to 2014 he worked as the accounting manager in Azizmalco, a property management company in Canada, where he oversaw the accounting department of Azizmalco’s subsidiaries. He received his Bachelor degree in Commerce from Lakehead University with the major in Accounting.
GUOLIN WANG
DIRECTOR
Mr. Wang is Co-Founder of the Company. Prior to co-founding our subsidiary Wenzhou Zhengfeng in 1999, he was the head of research department in Wenzhou Shuangling Stainless Steel Co., Ltd. Mr. Wang has extensive experience in the stainless steel industry and business administration, and is currently in charge of Company’s technical research, production, and exporting. Mr. Wang obtained an EMBA degree from Renmin University of China and is a member of National Building Water Supply and Drainage Committee, as well as that of Wenzhou Building Material Industry Association. Mr. Wang was appointed as a Director for his industry expertise.
MIN NI
DIRECTOR
Mr. Ni is currently serving as the partner of CAN Partners LLP, a public accounting firm with offices in both Canada and China since 2013, and as the director of Bluehill CPA, an accounting advisory firm based in China since 2011. His focus of the two positions are to provide auditing and financial services to both private and public companies, and assist companies going public to improve internal control and compliances to meet regulatory requirements. Prior to his current positions, he worked as senior auditing manager at MNP LLP from 2008 to 2011 and Duffy & Associates in Toronto from 2006 to 2008, where he focused on financial auditing, internal control assessment, financial consulting and SEC filings review. Mr. Ni has extensive experience in both US GAAP and IFRS reporting frameworks, Sarbanes-Oxley compliance, and regulatory compliances. Mr. Ni was designated with CA, CPA in Canada and CPA in Illinois, US and he received his MBA from Toronto University – Rotman Business School. Based on his education and employment background, we have selected Mr. Ni as a director and chairman of the Audit Committee.
LIE CAO
DIRECTOR
Mr. Cao is currently the Deputy Secretary General of National Water Supply & Sewerage Standard Committee, a regulatory body setting standard to water supply & sewerage industry, and Director of China Construction Metal Structure Association – Water Supply & Sewerage Division, a national trade association representing the technology and products of Chinese water supply & sewerage industry. Mr. Cao works closely with the government to oversee the water supply and sewerage industry, review and draft industrial technical standard, promote new materials and technology, organize anti-dumping and anti-trust investigation, and organize international communication conferences for the industry. His current and previous positions have provided him with a perspective and understanding on Chinese piping industry, and his management experience offered him a broad leadership and executive experience.
LINGE ZHOU
DIRECTOR
Ms. Zhou is currently the General Manager of Zhejiang Bestware, a marketing and consulting company based in Hong Kong since 2016, where she focuses on guiding clients to expand their business to international markets, including America and the European Union. Prior to her current position, she was the General Manager of 121 E-Commerce, a children’s fashion company, from 2013 to 2016 where she oversees the operations, branding, and supply chain of the company. Ms. Zhou possesses outstanding experience in marketing, business development and operations. We expect her joining to our board will improve our company’s branding and marketing performance and introduce our products to more foreign markets. We believe Ms. Zhou qualifies to be our director because of her experience with business operation.
SINCERELY,
DISCLAIMER