ZK International Wins $3.88 Million Bid for China Gas Stainless Steel Pipe Project, Ushering in New Era of Healthy Drinking Water

Rhea-AI Summary

ZK International (Nasdaq: ZKIN) announced that its subsidiary, Zhenkang Industrial, has won a significant contract worth $3.88 million (RMB 27.54 million) from China Gas's subsidiary Yipinhui Smart Living Technology. The contract involves supplying over 1.43 million meters of 304-grade thin-walled stainless steel pipes and fittings.

The materials will be used in public health drinking water projects, specifically for direct drinking water systems. Notably, Zhenkang Industrial plays a key role in establishing national standards for direct drinking water pipelines and smart water management infrastructure in China.

Positive

• Secured significant contract worth $3.88 million for stainless steel pipes
• Large-scale project involving 1.43 million meters of pipe deployment
• Strategic position in setting national standards for drinking water pipelines
• Partnership with major player China Gas through its subsidiary

Negative

• None.

Insights

Financial Analyst

ZKIN secures $3.88M contract with China Gas subsidiary, boosting revenue and market position in stainless steel pipe industry.

This $3.88 million contract win represents a significant business development for ZK International. The company has secured a major deal with a subsidiary of China Gas, a prominent player in China's energy sector. The contract for 1.43 million meters of 304-grade stainless steel pipes demonstrates ZKIN's strong competitive position in the high-performance steel products market.

From a financial perspective, this RMB 27.54 million contract should provide meaningful revenue contribution to ZK International's top line. While the press release doesn't specify the timeline for fulfillment, contracts of this nature typically span several quarters, providing steady revenue flow. The selection of ZKIN for this project suggests the company maintains strong product differentiation and technical capabilities in an otherwise commoditized industry.

Beyond the immediate financial impact, this contract carries strategic significance. ZKIN's involvement in drafting national standards for direct drinking water pipelines positions the company favorably for future contracts in China's expanding public health infrastructure. The growing focus on safe drinking water systems in China represents a substantial long-term market opportunity that ZKIN appears well-positioned to capitalize on.

The contract with a China Gas subsidiary also validates ZKIN's product quality and may serve as a reference point for winning additional business from other major Chinese utility and infrastructure companies. This reinforces the company's market leadership in the premium stainless steel piping sector and potentially expands its addressable market.

WENZHOU, China, Aug. 19, 2025 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) ("ZK International" or the "Company"), a leading engineering Company focused on high-performance steel products, is pleased to announce that Zhejiang Zhenkang Industrial Co., Ltd. ("Zhenkang Industrial"), a subsidiary of the Company, secured the bid for the centralized procurement project of thin-walled stainless steel pipes from Yipinhui Smart Living Technology Co., Ltd., a subsidiary of China Gas, with a contract value of RMB 27.54 million (approximately USD $3.88 Million). This achievement stems from the company's industry-leading technical capabilities and exceptional product quality. The procured 304-grade thin-walled stainless steel pipes and fittings, totaling over 1.43 million meters, will be extensively deployed in public health drinking water projects such as direct drinking water systems, providing robust safeguards for residents' healthy and safe water consumption. 

As a benchmark enterprise in China's new-era piping industry, Zhenkang Industrial not only plays a pivotal role in drafting national standards for direct drinking water pipelines and smart water management infrastructure but also consistently implements its development philosophy of "Health, Safety, and Environmental Protection." This collaboration signifies high recognition of the company's comprehensive strengths while further consolidating its leadership in the premium stainless steel piping sector. Moving forward, Zhenkang Industrial will continue leveraging innovation as its engine to accelerate advancements in the healthy direct-drinking water pipeline industry, driving progress toward eco-friendly and intelligent solutions, thereby making greater contributions to enhancing public welfare and building a beautiful world. 

About ZK International Group Co., Ltd.:

ZK International Group Co., Ltd. is a China-based engineering company building and investing in innovative technologies for the modern world. With a focus on designing and implementing next-generation solutions through industrial, environmental and software engineering, ZKIN owns 28 patents, 21 trademarks, 2 Technical Achievement Awards, and 10 National and Industry Standard Awards.

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.

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 guarantees 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/zk-international-wins-3-88-million-bid-for-china-gas-stainless-steel-pipe-project-ushering-in-new-era-of-healthy-drinking-water-302533433.html

SOURCE ZK International Group Co., Ltd.

FAQ

What is the value of ZKIN's new contract with China Gas subsidiary?

ZK International won a contract worth $3.88 million (RMB 27.54 million) for supplying stainless steel pipes to China Gas's subsidiary.

How many meters of steel pipes will ZKIN supply in this project?

The company will supply over 1.43 million meters of 304-grade thin-walled stainless steel pipes and fittings.

What type of steel pipes is ZKIN providing for the China Gas project?

ZKIN is providing 304-grade thin-walled stainless steel pipes and fittings for direct drinking water systems.

What role does ZKIN play in China's drinking water infrastructure standards?

Zhenkang Industrial, ZKIN's subsidiary, plays a pivotal role in drafting national standards for direct drinking water pipelines and smart water management infrastructure in China.

What will the ZKIN steel pipes be used for in this project?

The steel pipes will be used in public health drinking water projects, specifically for direct drinking water systems, to ensure safe water consumption for residents.