Document And Entity Information
Document And Entity Information | 12 Months Ended |
Sep. 30, 2017USD ($)shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | true |
Document Period End Date | Sep. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | ZK International Group Co., Ltd. |
Entity Central Index Key | 1,687,451 |
Current Fiscal Year End Date | --09-30 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Public Float | $ | $ 0 |
Trading Symbol | ZKIN |
Entity Common Stock, Shares Outstanding | shares | 13,068,346 |
Amendment Description | This Amendment No. 1 to Form 20-F (the “Form 20-F/A”) amends the annual report on Form 20-F of ZK International Group Co., Ltd., (“ZK International”) for the fiscal year ended September 30, 2017, originally filed with the U.S. Securities and Exchange Commission (“SEC”) on January 31, 2018 (the “Form 20-F”). This Form 20-F/A is being filed to include selected financial data for fiscal year ended September 30, 2015 and consolidated financial statements in the Form 20-F are amended by this Form 20-F/A to include consolidated financial statements for income and comprehensive income, changes in shareholders’ equity, and cash flows for the fiscal year ended September 30, 2015 in accordance with Item 17(a) of Form 20-F, and by reference to Item 8(a) of Form 10-K, and Articles 3-02(a) and 3-04 of Regulation S-X. No changes are made to the selected financial data and consolidated financial statements for income and comprehensive income, changes in shareholders’ equity, and cash flows for the fiscal years ended September 30, 2016 and 2017. The Form 20-F, as amended by this Form 20-F/A, speaks as of the original filing date of the Form 20-F, is not intended to reflect events that may have occurred subsequent to the original filing date of the Form 20-F. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Current assets | ||
Cash and cash equivalents | $ 11,278,475 | $ 123,649 |
Restricted cash | 529,837 | 3,236,482 |
Accounts receivable, net of allowance for doubtful accounts of $1,817,050 and $1,648,178, respectively | 21,261,609 | 23,843,980 |
Notes receivable | 214,999 | 89,941 |
Other receivables | 1,514,545 | 1,625,872 |
Inventories | 10,048,568 | 6,444,088 |
Advance to suppliers | 9,630,518 | 3,251,295 |
Deferred tax assets, current portion | 272,557 | 247,227 |
Total current assets | 54,751,108 | 38,862,534 |
Property, plant and equipment, net | 5,645,724 | 5,907,985 |
Intangible assets, net | 463,171 | 468,148 |
Other long-term assets | 313,066 | 312,289 |
TOTAL ASSETS | 61,173,069 | 45,550,956 |
Current liabilities: | ||
Accounts payable | 717,272 | 1,141,803 |
Accrued expenses and other current liabilities | 4,457,170 | 3,416,613 |
Accrued payroll and welfare | 325,675 | 375,428 |
Advance from customers | 1,983,713 | 1,618,216 |
Related party payables | 7,911,720 | 1,662,160 |
Short-term bank borrowings | 21,335,938 | 21,793,454 |
Notes payable | 0 | 3,897,426 |
Income tax payable | 3,074,635 | 2,066,934 |
TOTAL LIABILITIES | 39,806,123 | 35,972,034 |
Equity | ||
Common stock, no par value, 50,000,000 shares authorized, 13,068,346 and 9,000,000 shares issued and outstanding, respectively | 0 | 0 |
Additional paid-in capital | 8,382,876 | 2,800,777 |
Statutory surplus reserve | 1,173,363 | 579,994 |
Retained earnings | 10,978,891 | 5,697,984 |
Accumulated other comprehensive income | 681,788 | 411,239 |
Total equity attributable to ZK International Group Co., Ltd. | 21,216,918 | 9,489,994 |
Equity attributable to non-controlling interests | 150,028 | 88,928 |
Total equity | 21,366,946 | 9,578,922 |
TOTAL LIABILITIES AND EQUITY | $ 61,173,069 | $ 45,550,956 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Allowance for Doubtful Accounts Receivable, Current | $ 1,817,050 | $ 1,648,178 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares, Issued | 13,068,346 | 9,000,000 |
Common Stock, Shares, Outstanding | 13,068,346 | 9,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | $ 44,951,740 | $ 36,809,094 | $ 34,985,571 |
Cost of sales | (31,843,337) | (25,333,318) | (24,813,206) |
Gross profit | 13,108,403 | 11,475,776 | 10,172,365 |
Operating expenses: | |||
Selling and marketing expenses | 1,915,127 | 957,990 | 591,344 |
General and administrative expenses | 1,782,318 | 1,599,743 | 1,046,652 |
Research and development costs | 1,331,111 | 1,302,022 | 928,826 |
Total operating expenses | 5,028,556 | 3,859,755 | 2,566,822 |
Operating Income | 8,079,847 | 7,616,021 | 7,605,543 |
Other income (expenses): | |||
Interest expenses | (1,245,385) | (1,417,745) | (1,912,866) |
Interest income | 24,459 | 51,058 | 132,747 |
Other income, net | 69,772 | 158,797 | 135,374 |
Total other expenses, net | (1,151,154) | (1,207,890) | (1,644,745) |
Income before income taxes | 6,928,693 | 6,408,131 | 5,960,798 |
Income tax provision | (995,005) | (1,105,440) | (952,117) |
Net income | 5,933,688 | 5,302,691 | 5,008,681 |
Net income attributable to non-controlling interests | (59,412) | (53,154) | 0 |
Net income attributable to ZK International Group Co., Ltd. | 5,874,276 | 5,249,537 | 5,008,681 |
Net income | 5,933,688 | 5,302,691 | 5,008,681 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 272,237 | (403,865) | (142,842) |
Total comprehensive income | 6,205,925 | 4,898,826 | 4,865,839 |
Comprehensive loss (income) attributable to non-controlling interests | (61,100) | 3,406 | 0 |
Comprehensive income attributable to ZK International Group Co., Ltd. | $ 6,144,825 | $ 4,902,232 | $ 4,865,839 |
Basic and diluted earnings per share | |||
Basic | $ 0.56 | $ 0.59 | $ 0.56 |
Diluted | $ 0.56 | $ 0.59 | $ 0.56 |
Weighted average number of shares outstanding | |||
Basic | 10,970,000 | 9,000,000 | 9,000,000 |
Diluted | 10,973,674 | 9,000,000 | 9,000,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Common Stock | Additional paid-in capital | Statutory surplus reserve | Retained earnings | Accumulated other comprehensive income (loss) | Non- controlling interests |
Balance at Sep. 30, 2014 | $ (250,783) | $ 2,750,777 | $ 0 | $ (3,980,240) | $ 954,540 | $ 24,140 | |
Balance (Shares) at Sep. 30, 2014 | 0 | ||||||
Shares issued to founders | 50,000 | 50,000 | 0 | 0 | 0 | 0 | |
Shares issued to founders (Shares) | 9,000,000 | ||||||
Foreign currency translation gain (loss) | (142,842) | 0 | 0 | 0 | (142,842) | 0 | |
Net income | 5,008,681 | 0 | 0 | 5,008,681 | 0 | 0 | |
Balance at Sep. 30, 2015 | 4,665,056 | 2,800,777 | 0 | 1,028,441 | 811,698 | 24,140 | |
Balance (shares) at Sep. 30, 2015 | 9,000,000 | ||||||
Capital contributions by non-controlling interest | 15,040 | 0 | 0 | 0 | 0 | 15,040 | |
Foreign currency translation gain (loss) | (403,865) | 0 | 0 | 0 | (400,459) | (3,406) | |
Net income | 5,302,691 | 0 | 579,994 | 4,669,543 | 0 | 53,154 | |
Balance at Sep. 30, 2016 | 9,578,922 | 2,800,777 | 579,994 | 5,697,984 | 411,239 | 88,928 | |
Balance (shares) at Sep. 30, 2016 | 9,000,000 | ||||||
Shares issued for cast, net of offering costs | 5,582,099 | 5,582,099 | 0 | 0 | 0 | 0 | |
Shares issued for cast, net of offering costs (Shares) | 4,068,346 | ||||||
Foreign currency translation gain (loss) | 272,237 | 0 | 0 | 0 | 270,549 | 1,688 | |
Net income | 5,933,688 | 0 | 593,369 | 5,280,907 | 0 | 59,412 | |
Balance at Sep. 30, 2017 | $ 21,366,946 | $ 8,382,876 | $ 1,173,363 | $ 10,978,891 | $ 681,788 | $ 150,028 | |
Balance (shares) at Sep. 30, 2017 | 13,068,346 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities: | |||
Net income | $ 5,933,688 | $ 5,302,691 | $ 5,008,681 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation expense | 425,696 | 442,793 | 493,690 |
Amortization expense | 12,705 | 13,248 | 14,017 |
Bad debt expense | 160,944 | 691,156 | 691,777 |
Deferred tax benefits | (24,142) | (103,673) | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 2,419,491 | (10,200,868) | (10,604,662) |
Other receivables | 411,554 | (381,751) | 18,822 |
Notes receivable | (121,937) | (76,531) | 279,014 |
Inventories | (3,505,158) | (775,275) | 2,546,046 |
Advance to suppliers | (6,153,011) | (805,016) | (2,352,385) |
Accounts payable | (417,453) | 796,189 | (277,621) |
Accrued expenses and other current liabilities | 791,312 | 412,894 | (325,564) |
Accrued payroll and welfare | (49,512) | 50,897 | 63,728 |
Advance from customers | 282,817 | 1,400,622 | (1,197,632) |
Income tax payable | 979,288 | 2,031,515 | 2,861,830 |
Net cash provided (used in) operating activities | 1,146,282 | (1,201,109) | (2,780,259) |
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | (155,152) | (123,945) | (289,956) |
Purchases of intangible assets | (6,704) | 0 | 0 |
Net cash used in investing activities | (161,856) | (123,945) | (289,956) |
Cash Flows from Financing activities: | |||
Net proceeds from issuance of shares | 5,582,099 | 0 | 0 |
Capital contributions from non-controlling interest | 0 | 15,306 | 0 |
Net proceeds released from (placed into) restricted cash | 2,651,704 | (206,633) | 446,732 |
Net proceeds (repayments) from short-term bank borrowings | (499,904) | 2,148,310 | 98,793 |
Proceeds from notes payable borrowings | 0 | 0 | 161,955 |
Repayments on notes payable | (3,816,458) | (2,602,037) | 0 |
Proceeds from related parties | 6,051,523 | 1,485,555 | 2,034,454 |
Net cash provided by financing activities | 9,968,964 | 840,501 | 2,741,934 |
Effect of exchange rate changes on cash | 201,436 | (18,589) | (22,383) |
Net increase in cash and cash equivalents | 11,154,826 | (503,142) | (350,664) |
Cash and cash equivalents at the beginning of year | 123,649 | 626,791 | 977,455 |
Cash and cash equivalents at the end of year | 11,278,475 | 123,649 | 626,791 |
Supplemental disclosures of cash flows information: | |||
Cash paid for income taxes | 54,215 | 108,825 | 49,543 |
Cash paid for interest expenses | $ 1,233,066 | $ 939,914 | $ 1,272,903 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 ORGANIZATION AND NATURE OF OPERATIONS ZK International Group Co., Ltd. (“ZK International” or “the Company”) ZK International was incorporated on May 13, 2015 in the British Virgin Islands (“BVI”). ZK International is a holding company with no operations. The Company, through its subsidiaries, is a leading company that specializes in manufacturing and sales of stainless steel band, copper strip, welded stainless steel pipes and fittings, pipe fittings, valve, light industry machinery and equipment and other stainless steel products of its trademark “Zhengkang”in People’s Republic of China (“PRC”) The Company is authorized to issue 50,000,000 13,068,346 100 100 45 20 20 10 5 As of September 30, 2017, 68.9 31.0 13.8 13.8 6.9 3.4 ZK Pipe Industry Co., Ltd. (“ZK Pipe”) ZK Pipe was incorporated on May 28, 2015 in Hong Kong. The registered capital is HKD 1,000,000 40 60 100 The registered principal activities of ZK Pipe are technical research of metal pipe and fittings, metal take-up valve plumbing and water purifying plant, and imports and exports of goods. ZK Pipe had not commenced operations as of September 30, 2017. Wenzhou Weijia Pipeline Development Co., Ltd. (“Wenzhou Weijia”) Wenzhou Weijia was incorporated on June 17, 2015 in Wenzhou and is a wholly owned subsidiary of ZK Pipe. Wenzhou Weijia is a wholly-foreign owned enterprise organized the laws of the People’s Republic of China. The registered capital is USD 20,000,000 The registered principal activities of Wenzhou Weijia are technical research, technical service and sales of metal pipe and fittings and light industry machinery and equipment, and imports and exports of goods and technology. Wenzhou Weijia had not commenced operations as of September 30, 2017. Zhejiang Zhengkang Industrial Co., Ltd. (“Zhejiang Zhengkang”) Zhejiang Zhengkang was incorporated on December 4, 2001 under the laws of the People’s Republic of China. The registered and paid in capital is RMB 20,000,000 45 20 20 10 5 99 1 In July 2016, Zhejiang Zhengkang increased its registered and paid in capital to RMB 30,000,000 9,900,000 100,000 100,000,000 The principal activities of Zhejiang Zhengkang are manufacturing and sales of stainless steel band, copper strip, welded stainless steel pipes and fittings, pipe fittings, valve, light industry machinery and equipment and other stainless steel products, and imports and exports of goods and technology. Wenzhou Zhengfeng Industry and Trade Co., Ltd. (“Wenzhou Zhengfeng”) Wenzhou Zhengfang was incorporated on December 24, 1999 under the laws of the People’s Republic of China. The registered and paid in capital is RMB 2,880,000 100 38.89 27.78 22.57 5.55 5.21 100 The principal activities of Wenzhou Zhengfeng are trading of steel strip, which are mainly purchased from Zhejiang Zhengkang. Reorganization In or about September 2015, the Company engaged in a corporate reorganization to roll several controlled entities (now referred to as the subsidiaries) into one legal corporation (the Company). The specific transactions related to this reorganization are outlined below. During the years presented in these financial statements, the control of the entities has never changed (always under the control of the five mainland Chinese beneficial owners). Accordingly, the combination has been treated as a corporate restructuring (reorganization) of entities under common control and thus the current capital structure has been retrospectively presented in prior periods as if such structure existed at that time and in accordance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all periods to which such entities were under common control. Since all of the subsidiaries were under common control for the entirety of the years ended September 30, 2017 and 2016, the results of these subsidiaries are included in the financial statements for both periods. Non-controlling interests in the subsidiaries are related parties and thus were not adjusted to fair value as a result of the reorganization. The transactions leading up to and including the reorganization are as follows: On September 29, 2015, Wenzhou Weijia acquired 99% equity of Zhejiang Zhengkang from the five mainland Chinese beneficial owners. After that, Zhejiang Zhengkang’s equity interest is 99% held by Wenzhou Weijia and 1% held by HUANG Jian Cong as of the year end. On September 22, 2015, Zhejiang Zhengkang acquired 100% equity of Wenzhou Zhengfeng, after that, Wenzhou Zhengfeng is a wholly owned subsidiary of Zhejiang Zhengkang. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 SIGNIFICANT ACCOUNTING POLICIES Presentation and Principles of Consolidation The accompanying consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United Stated of America. All inter-company transactions and balances have been eliminated upon consolidation. Entity Name Registered Location Background Ownership as of the September 30, 2017 ZK International BVI • Incorporated on May 13, 2015 • Registered capital of USD 50,000, not paid • A holding company with no operation activities itself for the years then ended 31.0% by HUANG Jian Cong 13.8% by WANG Ming Jie 13.8% by WANG Guo Lin 6.9% by WANG Jian Di 3.4% by WANG Yang Ming ZK Pipe Hong Kong • Incorporated on May 28, 2015 • Registered capital of HKD 1,000,000, not paid • Have not commenced operations 100% by ZK International Wenzhou Weijia Wenzhou • Incorporated on June 17, 2015 • Registered capital of USD 20,000,000, not paid • Have not commenced operations 100% by ZK Pipe Zhejiang Zhengkang Wenzhou • Incorporated on December 4, 2001 • Registered capital of RMB100,000,000, RMB30,000,000 paid • Principally operated in manufacturing and sales of steel strip, steel pipe and fittings 99% by Wenzhou Weijia 1% by HUANG Jian Cong Wenzhou Zhengfeng Wenzhou • Incorporated on December 24, 1999 • Registered capital of RMB 2,880,000, fully paid • Principally operated in trading of steel strip, mainly purchased from Zhejiang Zhengkang 100% by Zhejiang Zhengkang Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (US GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include, but are not limited to, allowances of trade receivable, inventory valuation, useful life of property, plant and equipment and income taxes related to realization of deferred tax assets and uncertain tax position. Actual results could differ from those estimates. Foreign Currency Translation The financial records of the Company’s PRC subsidiaries are maintained in their local currencies which are RMB and ZK Pipe in Hong Kong also use RMB as functional currency. Monetary assets and liabilities denominated in currencies other than their local currencies are translated into local currencies at the rates of exchange in effect at the balance sheet dates. Transactions denominated in currencies other than their local currencies during the year are converted into local currencies at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in other income/ (expense), net in the statements of operations and comprehensive income. ZK International maintained its financial record using the United States dollar (“US dollar”) as the functional currency, while the subsidiaries of the Company in Hong Kong and mainland China maintained their financial records using RMB as the functional currencies. The reporting currency of the Company is US dollar. When translating local financial reports of the Company’s subsidiaries into US dollar, assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenue, expenses, gains and losses are translated at the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the statements of operations and comprehensive income. The relevant exchange rates are listed below: For the Fiscal Years Ended September 30 2017 2016 2015 Period Ended RMB: USD exchange rate 6.6545 6.6711 6.3668 Period Average RMB: USD exchange rate 6.8126 6.5333 6.1746 Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash and deposits with financial institutions which are unrestricted as to withdrawal and use. Cash equivalents consist of highly liquid investments that are readily convertible to cash generally with maturities of three months or less when purchased. Restricted Cash Cash that is restricted as to withdrawal or usage is reported as restricted cash in the consolidated balance sheets and is not included in the beginning or ending balance of cash and cash equivalents in the consolidated statements of cash flows. Restricted cash of $529,837 and $3,236,482 as of September 30, 2017 and 2016, respectively, consisted of cash and cash equivalents used as collateral to secure note payable and used as guarantee deposit to secure bank acceptance. A note payable is a draft issued by a bank for payments in future, which defers the payment until the due date for redeeming the note. According to the notes payable agreement with the bank, certain percentage of the amount is required to be deposited at the bank as security for the notes payable. Guarantee deposit is the deposit in bank to secure the bank acceptance issued by the bank. As of September 30, 2017 and 2016, no cash is restricted to assure future credit availability. Accounts Receivable, net Trade accounts receivable arise from the product sales in the normal course of business. Based on management’s assessment of the customer’s credit history and current relationships with them, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and aging analysis basis. The Company reserves 4% of accounts receivable balances that have been outstanding less than 1 year, reserves 10% of accounts receivable balances that have been outstanding between 1 year and 2 years, reserves 27% of accounts receivable balances that have been outstanding between 2 years and 3 years, and reserves 67% to 100% of receivable balances that have been outstanding more than 3 years. The allowance for doubtful accounts recognized as of September 30, 2017 and 2016 was $1,817,050 and $1,648,178, respectively. Inventories Inventories are stated at the lower of cost or market value. Cost of inventories is calculated using the weighted-average method. In addition to cost of raw materials, work in progress and finished goods include direct labor costs and overhead. The Company periodically assesses the recoverability of all inventories to determine whether adjustments are required to record inventories at the lower of cost or market value. Inventories that the Company determines to be obsolete or in excess of forecasted usage are reduced to its estimated realizable value based on assumptions about future demand and market conditions. If actual demand is lower than the forecasted demand, additional inventory write-downs may be required. There were no write-downs recognized of inventories as of September 30, 2017 and 2016. Advance to Suppliers and Advance from Customers Advance to suppliers refer to advances for purchase of materials or other service agreements, which are applied against trade accounts payable when the materials or services are received. Advance from customers refer to advances received from customers regarding product sales, which are applied against trade accounts receivable when products are sold. The Company reviews a supplier's credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would recognize expense in the period they are considered unlikely to be collected. There was no such expense recognized during the years ended September 30, 2017 and 2016. Changes of advances to suppliers for the years ended September 30, 2017 and 2016 are as follow: Beginning balance $ 3,251,295 $ 2,549,418 Less: products or services received (31,770,719 ) (20,841,688 ) Add: payment to suppliers 38,149,942 21,543,565 Ending balance $ 9,630,518 $ 3,251,295 Changes of advances from customers for the years ended September 30, 2017 and 2016 are as follow: Beginning balance $ 1,618,216 $ 333,476 Less: products or services delivered (9,261,841 ) (4,253,173 ) Add: payment from customers 9,627,338 5,537,913 Ending balance $ 1,983,713 $ 1,618,216 Fair Value of Financial Instruments For the Company’s financial instruments, including cash and equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses, the carrying amounts approximate their fair values due to their short maturities. ASC Topic 820, Fair Value Measurements and Disclosures, requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, Financial Instruments, defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: • Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC Topic 480, Distinguishing Liabilities from Equity, and ASC Topic 815, Derivatives and Hedging. As of September 30, 2017 and 2016, the Company did not identify any assets and liabilities required to be presented on the balance sheet at fair value other than cash and cash equivalents. Property and Equipment, net Property, plant, and equipment are recorded at cost less accumulated depreciation. Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of the assets, as follows: Useful lives Buildings 40 years Machinery 8-20 years Furniture, fixtures, and equipment 3-10 years Motor vehicles 5-10 years Upon retirement or disposition, the asset cost and related accumulated depreciation are removed with any gain or loss recognized in the consolidated statements of operations and comprehensive income. Repair and maintenance costs that do not extend the economic life of the underlying assets are expensed as incurred. Costs incurred in constructing new facilities, including progress payments and other costs related to construction, are capitalized, and transferred to property, plant and equipment on completion, at which time depreciation commences. Intangible Assets Intangible assets consist primarily of land use rights and software. Under the PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Land use rights are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method with the following estimated useful lives: Useful lives Land use rights 46 years Software 5 years Impairment of Long-lived Assets The Company management review the carrying values of long-lived assets whenever events and circumstances, such as a significant decline in the asset’s market value, obsolescence or physical damage affecting the asset, significant adverse changes in the assets use, deterioration in the expected level of the assets performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value of an asset may not be recovered through expected future cash flows from its use and eventual disposition. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There was no impairment charge recognized for long-lived assets as of September 30, 2017, 2016 and 2015. Value-added Tax Value-added taxes (“VAT”) collected from customers relating to product sales and remitted to governmental authorities are presented on a net basis. VAT collected from customers is excluded from revenue. The Company is subject to a VAT rate of 17%. Revenue Recognition The Company recognizes revenue in accordance with ASC 605, Revenue Recognition, regarding revenue recognition which specifies that revenue is realized or realizable and earned. Sales revenue is recognized when: 1) Persuasive evidence of an arrangement exists; 2) Delivery has occurred or services have been rendered (the risks, rewards and ownership of the products are transferred to customers); and 3) The seller’s price to the buyer is fixed or determinable; and 4) Collectability is reasonably assured. Government Grant Government grants are recognized when received and all the conditions for their receipt have been met. Government grants as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. During the period ended as of September 30, 2017, 2016 and 2015, $87,250, $138,219 and $159,197, respectively, government grants were recognized as other income for financial support to the Company. Research and Development Costs Research and development costs are expensed as incurred. Research and development reimbursements and grants received from government are recorded by the Company as a reduction of research and development costs. Income Taxes The Company accounts for income taxes using the asset and liability method whereby it calculates deferred tax assets or liabilities for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they do not relate to a specific asset or liability. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. There were no tax benefits recorded as of September 30, 2017 and 2016. Advertising costs Advertising costs are expensed as incurred in accordance with ASC 720-35 Other Expense-Advertising costs. Advertising costs were $69,535 and $21,715 for years ended September 30, 2017 and 2016, respectively. Earnings Per Share Earnings (loss) per share is calculated in accordance with ASC 260 Earnings per Share. Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted earnings per share is computed in accordance with the treasury stock method and based on the weighted average number of common shares and dilutive common share equivalents. Dilutive common share equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. Concentration of Risks Exchange Rate Risks The Company operates in China, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between the US$ and the RMB. As at September 30, 2017, cash and cash equivalents of $7,107,387 (RMB 47,296,107) is denominated in RMB and $4,171,033 denominated in US$ are held in PRC (September 30, 2016 - $123,649 (RMB 824,870) denominated in RMB). Currency Convertibility Risks Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents, restricted cash and accounts receivable, the balances of which are stated on the consolidated balance sheets which represent the Company’s maximum exposure. The Company places its cash and cash equivalents and restricted cash in good credit quality financial institutions in Hong Kong and China. Concentration of credit risks with respect to accounts receivables is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations of customers’ financial condition. Interest Rate Risks The Company is subject to interest rate risk. The Company has bank interest bearing loans charged at variable interest rates. And although some bank interest bearing loans are charged at fixed interest rates within the reporting period, the Company is still subject to the risk of adverse changes in the interest rates charged by the banks when these loans are refinanced. Subsequent Events The Company’s management reviewed all material events through the date of the consolidated financial statements were issued for subsequent event disclosure consideration. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers", which contains new accounting literature relating to how and when a company recognizes revenue. Under ASU 2014-09, a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. In July 2015, the FASB decided to delay the effective date of the new standard by one year; as a result, the new standard will be effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption will be permitted, but no earlier than 2017 for calendar year-end entities. The standard allows for two transition methods - retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial adoption. The Company evaluates the impact of this new standard and believes there is no impact on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”, which requires entities to measure most inventories at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The update is effective for fiscal years beginning after December 15, 2016, and interim periods therein. Early application is permitted. Management is currently evaluating the impact that this guidance will have on the Company's consolidated financial statements, if any. In November 2015, the FASB issued Accounting Standards Update 2015-17, "Balance Sheet Classification of Deferred Taxes," which is intended to simplify the balance sheet presentation of deferred income taxes. Current accounting principles require an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in its balance sheet. The amendments require that deferred tax liabilities and assets be classified as noncurrent in its balance sheet. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Companies may apply the new provisions either retrospectively or on a prospective basis, and early adoption is permitted. We have not yet determined our method of transition. In January 2016, the FASB issued Accounting Standards Update 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset. Additionally, the amendments eliminate the requirement to disclose the methods and significant assumptions used to estimate the fair value of financial instruments. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Other than an amendment relating to presenting in comprehensive income the portion of the total change in the fair value of a liability resulting from a change in instrument-specific credit risk (if the entity has elected to measure the liability at fair value), early adoption is not permitted. The Company does not anticipate the amendment will have any impact on our financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. The new guidance is intended to improve the recognition and measurement of financial instruments. The new guidance makes targeted improvements to existing U.S. GAAP by: (1) Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (2) Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; (3) Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and. (4) Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company evaluates the impact of this new standard and believes there is no material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02,"Leases" to provide a new comprehensive model for lease accounting. Under this guidance, lessees and lessors should apply a "right-of-use" model in accounting for all leases (including subleases) and eliminate the concept of operating leases and off-balance sheet leases. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. Early adoption is permitted. There is no impact on the Company but there could be if the Company enters into leases in the future. In April 2016, FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company evaluates the impact of this new standard and believes there is no impact on its consolidated financial statements. In May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient. The standard (1) allows an entity to recognize revenue in the amount of consideration received when the entity has transferred control of the goods or services, the entity has stopped transferring goods or services (if applicable) and has no obligation under the contract to transfer additional goods or services, and the consideration received from the customer is nonrefundable; (2) Permits an entity, as an accounting policy election, to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price. (3) Specifies that the measurement date for noncash consideration is contract inception and clarifies that the variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration (4) clarifies that a completed contract for the purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy U.S. generally accepted accounting principles before the date of initial application. (5)Permits an entity to apply the modified retrospective transition method either to all contracts or only to contracts that are not completed contracts; (6)Clarifies that an entity that retrospectively applies the guidance in the standard to each prior reporting period is not required to disclose the effect of the accounting change for the periods of adoption. But an entity still is required to disclose the effect of the changes on any prior periods retrospectively adjusted. Public business entities, certain not-for-profit entities and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company evaluates the impact of this new standard and believes there is no impact on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016 15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to provide guidance on the presentation and classification of certain cash receipts and cash payments on the statement of cash flows. The guidance specifically addresses cash flow issues with the objective of reducing the diversity in practice. The guidance will be effective for the Company in fiscal year 2018, but early adoption is permitted. The Company evaluates the impact of this new standard and believes there is no impact on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-17, Consolidation (Topic 810): Interest Held through Related Parties That Are under Common Control, to provide guidance on the evaluation of whether a reporting entity is the primary beneficiary of a VIE by amending how a reporting entity, that is a single decision maker of a VIE, treats indirect interests in that entity held through related parties that are under common control. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company evaluates the impact of this new standard and believes there is no impact on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows: Restricted Cash". The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company evaluates the impact of this new standard and believes there is no material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business". The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those periods, and all other entities should apply these amendments for fiscal years beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Company does not expect this update will have a material impact on the Company's consolidated financial position, results of operations and cash flows. In February 2017, the FASB issued ASU No. 2017-05 (“ASU 2017-05”) to provide guidance for recognizing gains and losses from the transfer of nonfinancial assets and in-substance nonfinancial assets in contracts with non-customers, unless other specific guidance applies. The standard requires a company to derecognize nonfinancial assets once it transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset. Additionally, when a company transfers its controlling interest in a nonfinancial asset, but retains a noncontrolling ownership interest, the company is required to measure any noncontrolling interest it receives or retains at fair value. The guidance requires companies to recognize a full gain or loss on the transaction. ASU 2017-05 is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The effective date of this guidance coincides with revenue recognition guidance. The Company does not expect this updat |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Accounts Receivable [Text Block] | NOTE 3 ACCOUNTS RECEIVABLE As of September 30, 2017 2016 Accounts receivable, gross $ 23,078,659 $ 25,492,158 Less: allowance for doubtful accounts (1,817,050) (1,648,178) Accounts receivable, net $ 21,261,609 $ 23,843,980 Bad debt expense recorded by the Company during the years ended September 30, 2017 and 2016 were $ 160,944 691,156 As of September 30, 2017 2016 Beginning balance $ 1,648,178 $ 1,017,717 Add: additional reserve through bad debt expense 168,872 630,461 Ending balance $ 1,817,050 $ 1,648,178 Accounts receivable amounts expected to be collected after one year as of September 30, 2017 and 2016 are as follow: As of September 30, 2017 2016 Accounts receivable, gross $ 282,264 $ 98,511 Total $ 282,264 $ 98,511 |
NOTES RECEIVABLE AND OTHER RECE
NOTES RECEIVABLE AND OTHER RECEIVABLES | 12 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4 NOTES RECEIVABLE AND OTHER RECEIVABLES Notes receivable consisted of bank notes of $ 214,999 89,941 Other receivables consisted of mainly the legal claims of $ 1.1 1.1 During 2010, the Company entered into two loan agreements with Raozhou Dianli Ltd and Xianjin Cao, and advanced RMB 9 1.5 10.5 143.1 10.5 7.4 7.4 In the opinion of the management, after consultation with the Company’s legal counsel, the management believes it is assured the balance will be collected as the debtor has real properties seized by the Court worth much more than the debt owed to the Company. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 5 INVENTORIES As of September 30, 2017 2016 Raw materials $ 1,873,948 $ 1,689,949 Work-in-process 4,759,561 2,350,568 Finished goods 3,415,059 2,403,571 Total $ 10,048,568 $ 6,444,088 There were no inventory write-downs recognized for the years ended September 30, 2017 and 2016. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6 PROPERTY, PLANT AND EQUIPMENT As of September 30, 2017 2016 Buildings $ 5,306,286 $ 5,293,106 Machinery 3,987,090 3,852,205 Furniture, fixtures and equipment 486,588 468,880 Motor vehicles 156,360 130,622 Total property plant and equipment, at cost 9,936,324 9,744,813 Less: accumulated depreciation (4,290,600) (3,845,215) 5,645,724 5,899,598 Construction in progress (“CIP”) - 8,387 Property, plant and equipment, net $ 5,645,724 $ 5,907,985 Depreciation expense was $ 425,696 442,793 As of September 30, 2017 and 2016, the Company pledged buildings and machinery to secure banking facilities granted to the Company. The carrying values of the pledged buildings to secure bank borrowings by the Company are shown in Note 11. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | NOTE 7 INTANGIBLE ASSETS As of September 30, 2017 2016 Land use rights, cost $ 598,293 $ 596,807 Software, cost 5,780 - Less: accumulated amortization (140,902) (128,659) Intangible assets, net $ 463,171 $ 468,148 The land use right represents the Company's land use rights in Wenzhou's plant, which had been pledged to secure the Company’s banking facilities granted to the Company as of September 30, 2017 and 2016. The carrying values of the pledged land use rights to secure bank borrowings by the Company are shown in Note 11. Amortization expense was $ 12,705 13,248 Years ending September 30, 2018 2019 2020 2021 2022 Thereafter Estimated amortization expenses $ 14,162 $ 14,162 $ 14,162 $ 14,162 $ 14,162 $ 392,361 |
LONG-TERM INVESTMENT
LONG-TERM INVESTMENT | 12 Months Ended |
Sep. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Investments and Other Noncurrent Assets [Text Block] | NOTE 8 LONG-TERM INVESTMENT The Company made an investment in Wenzhou Longlian Development Co., Ltd. ("Longlian") in 2011 by RMB 2,083,300 2.0833 313,066 312,289 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 9 RELATED PARTY TRANSACTIONS As of September 30, Accounts Name of related parties 2017 2016 Related party payables Shareholder, HUANG Jian Cong $ 7,911,720 $ 1,662,160 Total due to related parties $ 7,911,720 $ 1,662,160 This represented unsecured, due on demand and interest free borrowings between the Company and the shareholders, which have no due date. For the years end September 30, 2017 and 2016, the Company borrowed $ 6,051,523 1,485,555 , for working capital needs |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE 10 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of September 30, 2017 2016 VAT payable $ 3,742,952 $ 3,096,782 Other tax payables 74,665 54,330 Other 639,553 265,501 Total $ 4,457,170 $ 3,416,613 |
SHORT-TERM BANK BORROWINGS
SHORT-TERM BANK BORROWINGS | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank - Longwan Branch 5,580,000 838,530 1/13/2017 1/12/2018 5.44 % Agricultural Bank - Longwan Branch 8,700,000 1,307,385 1/18/2017 1/17/2018 5.66 % Agricultural Bank - Longwan Branch 5,750,000 864,076 8/17/2017 8/16/2018 5.44 % Agricultural Bank - Longwan Branch 4,300,000 646,179 8/14/2017 8/13/2018 5.44 % Agricultural Bank - Longwan Branch 6,000,000 901,646 9/22/2017 9/21/2018 5.65 % Agricultural Bank - Longwan Branch 6,190,000 930,198 12/16/2016 12/11/2017 4.79 % Agricultural Bank - Longwan Branch 10,000,000 1,502,743 1/10/2017 1/9/2018 4.79 % Minsheng Bank 4,350,000 653,693 6/30/2017 6/30/2018 5.44 % Minsheng Bank 3,250,000 488,391 6/30/2017 6/30/2018 5.44 % Xingye Bank 6,500,000 976,783 9/4/2017 12/4/2017 6.50 %* Zhejiang Commerce Bank 6,000,000 901,646 7/27/2017 4/20/2018 7.50 % Zhejiang Commerce Bank 1,500,000 225,411 7/28/2017 4/20/2018 7.50 % Bank of China - Longwan Branch 8,550,000 1,284,845 4/10/2017 3/29/2018 4.79 % Xingye Bank 6,500,000 976,783 9/5/2017 12/20/2017 6.50 %* Zhejiang Commerce Bank 10,500,000 1,577,880 7/28/2017 4/20/2018 7.50 % Pingan Bank 7,960,000 1,196,183 9/27/2017 9/25/2018 6.09 %* China Merchants Bank 5,400,000 811,481 12/20/2016 12/11/2017 5.44 % China Merchants Bank 5,990,000 900,143 12/20/2016 12/11/2017 5.44 % China Merchants Bank 5,000,000 751,371 12/20/2016 12/11/2017 5.44 % China Merchants Bank 410,000 61,612 12/22/2016 12/11/2017 5.52 % Bank of China - Longwan Branch 1,490,000 223,909 4/10/2017 3/29/2018 4.79 % Bank of China - Longwan Branch 2,760,000 414,757 4/10/2017 3/29/2018 4.79 % Xingye Bank 5,000,000 751,371 9/6/2017 12/14/2017 6.50 %* Bank of Communications 3,000,000 450,823 5/10/2017 11/13/2017 7.60 % Bank of Communications 3,000,000 450,823 4/18/2017 11/13/2017 7.12 % Bank of Communications 3,000,000 450,823 4/14/2017 11/13/2017 6.30 % Bank of Communications 3,000,000 450,823 4/19/2017 11/13/2017 7.60 % Bank of Communications 2,300,000 345,630 5/11/2017 11/13/2017 7.60 % Total 141,980,000 21,335,938 * These short-term borrowings were subject to variable interest rates , which are determined by the issuing banks with prime rate plus 1.79 2.2 Short-term bank borrowings consisted of the following at September 30, 2016: Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank - Longwan Branch 6,240,000 935,382 12/16/2015 12/11/2016 5.66 % Agricultural Bank - Longwan Branch 2,500,000 374,752 3/17/2016 3/16/2017 4.57 % Agricultural Bank - Longwan Branch 7,000,000 1,049,307 4/7/2016 3/26/2017 4.12 % Agricultural Bank - Longwan Branch 2,210,000 331,281 4/12/2016 4/11/2017 4.51 % Agricultural Bank - Longwan Branch 4,000,000 599,604 6/2/2016 5/26/2017 4.65 % Agricultural Bank - Longwan Branch 2,040,000 305,798 6/13/2016 6/11/2017 4.65 % Agricultural Bank - Longwan Branch 2,700,000 404,733 6/16/2016 6/11/2017 4.65 % Agricultural Bank - Longwan Branch 5,750,000 861,931 8/26/2016 8/16/2017 5.22 % Agricultural Bank - Longwan Branch 4,300,000 644,574 9/9/2016 7/26/2017 5.06 % Agricultural Bank - Longwan Branch 6,000,000 899,406 9/22/2016 9/21/2017 5.00 % Bank of China - Longwan Branch 13,000,000 1,948,713 8/26/2016 4/8/2017 4.79 % CMBC-10802 7,600,000 1,139,248 5/25/2016 11/22/2016 5.44 % CMBC-10802 5,400,000 809,465 6/15/2016 11/22/2016 5.66 % CMBC-10802 5,000,000 749,505 6/17/2016 11/22/2016 5.66 % Zhejiang Commerce Bank 2,000,000 299,802 2/5/2016 2/4/2017 6.00 % Zhejiang Commerce Bank 1,500,000 224,851 2/5/2016 2/4/2017 6.00 % Zhejiang Commerce Bank 1,500,000 224,851 2/6/2016 2/5/2017 6.00 % Zhejiang Commerce Bank 5,000,000 749,505 3/2/2016 3/1/2017 6.00 % Zhejiang Commerce Bank 5,000,000 749,505 3/7/2016 3/6/2017 6.00 % Zhejiang Commerce Bank 5,000,000 749,505 3/9/2016 3/8/2017 6.00 % Industrial Bank 6,481,268 971,549 9/25/2015 9/23/2016* 7.00 % Industrial Bank 6,500,000 974,356 9/25/2015 9/25/2016* 7.00 % Minsheng Bank 5,000,000 749,505 3/8/2016 10/19/2016 6.70 % Minsheng Bank 3,500,000 524,653 4/16/2016 4/11/2017 5.00 % Minsheng Bank 5,400,000 809,465 4/8/2016 4/8/2017 5.00 % Pingan Bank 8,000,000 1,199,210 3/3/2016 3/3/2017 5.22 % Agricultural Bank 1,964,381 294,463 12/31/2015 9/11/2016* 5.79 % Bank of Communications 5,000,000 749,505 5/20/2016 5/20/2017 6.53 % Bank of Communications 5,000,000 749,505 5/23/2016 5/23/2017 7.60 % Bank of Communications 4,800,000 719,525 5/24/2016 5/24/2017 7.60 % Total 145,385,649 21,793,454 * The Company paid off these short-term bank borrowings in October 2016. The Company’s short-term bank borrowings are pledged by its assets as listed below, and guaranteed by two third-party companies, Wenzhou Ruifeng Industrial Co., Ltd. and Wenzhou Wuxing Copper Co. Ltd. ("Wuxing"), HUANG Jian Cong, WANG Jian Di, WANG Guo Lin, WANG Min Jie, WANG Yang Ming, ZHANG Sai Pin (HUANG Jian Cong's wife), ZHEN Bao Le (Wuxing's director) and LIN Yu Lian (ZHEN Bao Le's wife). As of September 30, 2017 2016 Buildings, net $ 3,611,529 $ 3,704,284 Land use rights, net 457,391 468,148 Machinery, net 281,355 303,856 Total $ 4,350,275 $ 4,476,288 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Notes payable Disclosure [Text Block] | NOTE 12 NOTES PAYABLE There was no notes payable as of September 30, 2017. As of September 30, 2016 Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Nature Agricultural Bank - Longwan Branch 4,000,000 599,604 6/21/2016 12/21/2016 Bank Acceptance Bill Agricultural Bank - Longwan Branch 7,000,000 1,049,307 8/4/2016 2/4/2017 Bank Acceptance Bill Foshan Ruigangda Trading Co., Ltd 5,000,000 749,505 7/12/2016 1/10/2017 Bank Acceptance Bill Foshan Ruigangda Trading Co., Ltd 5,000,000 749,505 8/9/2016 2/29/2017 Bank Acceptance Bill Zhejiang Zhengkang Industrial Co., Ltd. 5,000,000 749,505 9/28/2016 3/27/2017 Letter of Credit Total 26,000,000 3,897,426 |
COMMITMENT AND CONTINGENCIES
COMMITMENT AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 13 COMMITMENT AND CONTINGENCIES The Company, from time to time, may be a party to claims and legal proceedings generally incidental to its business. As of September 30, 2017, Company has no material purchase commitments, significant leases and unused letter of credit. The Company has one pending legal claim against a third party as of September 30, 2017. See Note 4 for disclosure related to the claim with Raozhou Dianli Ltd. There were no other legal matters that are likely to have a material adverse effect on the Company’s financial position as of September 30, 2017 and 2016 and the results of operations or cash flows for the years ended September 30, 2017, 2016 and 2015. |
UNCERTAIN TAX POSITION
UNCERTAIN TAX POSITION | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Uncertainties Disclosure [Text Block] | NOTE 14 UNCERTAIN TAX POSITION In the normal course of its business, our Company, including in particular Zhejiang Zhengkang and Wenzhou Zhengfeng, may be subject to challenges from various PRC taxing authorities regarding the amounts of taxes due. Although the Company’s management believes the Company has paid all accrued for all taxes owed by the Company, from time to time, in order for our Company to stay competitive in the market, we may need to accept unfavorable contract terms from our clients, including the accrue of account receivables for the delivery of our products until the completion of a certain construction project and without recognizing the revenue in the interim. PRC taxing authorities may also take the position that the Company owes more taxes than it has paid based on transactions conducted by ZK Pipe, which may be deemed a resident enterprise, thereby resulting in taxable liability for Zhejiang Zhengkang. In addition, the Company recorded a potential tax liability of $ 6,817,587 5,163,716 years ended September 30, 2017 and 2016, respectively, and for the possible underpayment of income and other taxes, not include potential interests or penalties. It is possible that the tax liability of the Company for past taxes may be higher than those amounts. The Company’s management believes it has sufficient cash on hand to adequately meet any tax liability for the underpayment of income and business taxes. Additionally, the Company’s management believes it may be able to negotiate with local PRC taxing authorities a reduction to any amounts that such authorities may believe are due and a reduction to any interest or penalties thereon. We have no guarantee that we will be able to negotiate such a reduction. To the extent our Company is able to negotiate such amounts, national-level taxing authorities may take the position that localities are without power to reduce such liabilities, and such PRC taxing authorities may attempt to collect unpaid taxes, interest and penalties in amounts greatly exceeding management’s estimates. The Company has accrued tax liabilities of $ 6,817,587 |
CUSTOMER AND SUPPLIER CONCENTRA
CUSTOMER AND SUPPLIER CONCENTRATION | 12 Months Ended |
Sep. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 15 CUSTOMER AND SUPPLIER CONCENTRATION Significant customers and suppliers are those that account for greater than 10 The Company sold a substantial portion of products to one customer ( 14.9 3,459,882 In 2017, the Company purchased a substantial portion of materials from three third-party vendors ( 63.5 9,139,161 67.2 654,014 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 16 STOCKHOLDERS’ EQUITY On October 12, 2015, 100 45 20 20 10 5 On May 25, 2016, Zhejiang Zhengkang's Board of Directors resolved to increase Zhejiang Zhengkang's registered capital by RMB 10,000,000 20,000,000 30,000,000 9,900,000 100,000 1 Recapitalization On December 19, 2016, the Board of Directors of the Company approved i) decrease of par value of the ordinary shares from $ 1 9,000,000 50,000,000 Shares Issuances In December 2016, the Company completed a Regulation S private placement offering pursuant to which the Company received $ 300,000 1,500,000 0.20 21,000 7 In March 2017, the Company completed a Regulation S private placement offering pursuant to which the Company received $ 1,000,000 1,000,000 1.00 70,000 7 In May 2017, the Company completed a Regulation S private placement offering and a Regulation D private placement offering pursuant to which the Company received an aggregate of $ 1,000,000 500,000 2.00 70,000 7 On September 1, 2017, the Company completed its initial public offering (“IPO”) of 1,068,346 5.00 5.3 3.4 Public Offering Warrants In connection with the IPO on September 1, 2017, the Company issued warrants equal to seven percent ( 7 74,784 5 74,784 5 No warrants were exercisable as of September 30, 2017 The fair value of this Warrants was $ 438,234 2 5 5 67.4 10 Statutory surplus reserves Pursuant to Chinese Company law applicable to foreign investment companies, the Company’s PRC subsidiaries are required to maintain statutory surplus reserves. The statutory surplus reserves are to be appropriated from net income after taxes, and should be at least 10 50 1,173,363 ZK International has not commenced operation since inception. No appropriation to the statutory surplus reserves. ZK Pipe has not commenced operation since inception. No appropriation to the statutory surplus reserves. Wenzhou Weijia has not commenced operation since inception. No appropriation to the statutory surplus. Zhejiang Zhengkang appropriated $ 593,369 579,994 0 Wenzhou Zhengfeng recorded no revenue for the year ended September 30, 2017 and a net loss for the year ended September 30, 2016 and 2015 according to PRC GAAP, so no appropriation to the statutory surplus reserves and staff welfare and bonus fund was made. Dividends declared by the Company’s PRC subsidiaries are based on the distributable profits as reported in their statutory financial statements reported in accordance with PRC GAAP, which differ from the results of operations reflected in the consolidated financial statements prepared in accordance with US GAAP. The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its PRC subsidiaries. As of September 30, 2017, the Company has no dividend payable. Under PRC laws and regulations, statutory surplus reserves are restricted to set-off against losses, expansion of production and operation and increasing registered capital of the respective company, and are not distributable other than upon liquidation. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor are they allowed for distribution except under liquidation. Amounts restricted include the PRC subsidiaries’ paid-in capital and statutory surplus reserves of the Company’s PRC subsidiaries totaling $ 3,974,140 3,380,771 2,750,777 Non-controlling interests Non-controlling interests represent the interest of non-controlling shareholders in Zhejiang Zhengkang based on their proportionate interests in the equity of that company adjusted for its proportionate share of income or losses from operations. On September 29, 2015, Wenzhou Weijia acquired 99 1 1 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 17 SEGMENT REPORTING ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different products. Based on management’s assessment, the Company has determined that it has one operating segment as defined by ASC 280. For the years ended September 30, 2017, 2016 and 2015, revenue and assets within PRC contributed over 90 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 18 INCOME TAXES For the year ended September 30, 2017 2016 2015 Provision for income tax for the period $ 1,030,858 $ 1,200,010 $ 1,053,132 Income tax benefit (35,853) (94,570) (101,015) Total $ 995,005 $ 1,105,440 $ 952,117 As of September 30, 2017 2016 2015 Deferred tax assets: Bad debt allowance recorded for accounts receivable $ 272,557 $ 247,227 $ 152,657 Total $ 272,557 $ 247,227 $ 152,657 For the year ended September 30, 2017 2016 2015 Current $ 1,019,147 $ 1,209,114 $ 1,055,883 Deferred (24,142) (103,674) (103,766) Total $ 995,005 $ 1,105,440 $ 952,117 For the year ended September 30, 2017 2016 2015 Income before taxes excluded the amounts of loss incurring entities $ 7,178,353 $ 6,656,140 $ 6,197,299 PRC EIT tax rates 15 % 15 % 15 % Tax at the PRC EIT tax rates 1,076,753 998,421 929,595 Tax effect of 50% R&D expenses deduction (99,833) 97,652 69,621 Tax effect of deferred tax recognized (24,142) (103,673) (103,766) Tax effect of non-deductible expenses 42,227 113,040 56,667 Income tax expenses $ 995,005 $ 1,105,440 $ 952,117 Under the Law of the People's Republic of China on Enterprise Income Tax ("New EIT Law"), which was effective from January 1, 2008, both domestically- owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25 Zhejiang Zhengkang was entitled High and New Technology Enterprise ("HNTE") and enjoyed preferential tax rate of 15 ZK International is not subject to income taxes under the current laws of BVI. ZK Pipe was registered in Hong Kong and is subject to corporate income tax at 16.5 both registered in the PRC and have applicable EIT 25 |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 19 CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY ZK International Group Co., Ltd. As of September 30, 2017 2016 ASSETS Cash and cash equivalent $ 55 $ - Due from related parties - 50,000 Investment in ZK Pipe 5,581,999 - Total assets $ 5,582,054 $ 50,000 LIABILITIES AND STOCKHOLDERS’ EQUITY $ - $ - Total liabilities - - STOCKHOLDERS’ EQUITY Common stock, $0.001 par value, 50,000,000 shares authorized, 13,068,346 and 9,000,000 shares issued and outstanding, respectively $ - $ - Additional paid-in capital 5,582,099 50,000 Accumulated deficits (45) - Total stockholders' equity 5,582,054 50,000 Total liabilities and stockholders’ equity $ 5,582,054 $ 50,000 ZK International Group Co., Ltd. Statements of Operations and Comprehensive income For the year ended September 30, 2017 2016 2015 Operating expenses: General and administrative expenses $ 45 $ - $ - Total operating expenses 45 - - Net loss and comprehensive loss $ (45) $ - $ - Net loss per common share basic and diluted $ - $ - $ - Weighted average number of common shares outstanding basic 10,970,000 9,000,000 9,000,000 Weighted average number of common shares outstanding diluted 10,973,674 9,000,000 9,000,000 ZK International Group Co., Ltd. For the year ended September 30, 2017 2016 2015 Cash flows used in operating activities Net loss $ (45) $ - $ - Net cash used in operating activities (45) - - Cash flows provided by financing activities Cash received from Share Issuances 5,582,099 - - Net cash provided by financing activities 5,582,099 - - Cash flows used in financing activities Cash invested to ZK Pipe (5,581,999) Net cash used in financing activities (5,581,999) - - Increase in cash and cash equivalents 55 - - Cash and cash equivalents, beginning of year - - - Cash and cash equivalents, end of year $ 55 $ - - Supplemental Cash Flows Information: Income tax paid $ - $ - - Interest paid $ - $ - - Non-cash investing and financing activities: Shares issued to founders $ - $ - 50,000 (a) Basis of presentation The condensed financial information of ZK International Group Co., Ltd, has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted by reference to the consolidated financial statements. Each of the Company’s PRC subsidiaries has restrictions on its ability to pay dividends to the Company under PRC laws and regulations. The subsidiaries did not pay any dividends to the Company for the years presented. (b) Investment in ZK Pipe In 2017, ZK Pipe was advanced $ 5,581,999 (c) Stockholders’ Equity On October 12, 2015, 100 9,000,000 45 20 20 10 5 50,000 As of September 30, 2017, 68.9 31.0 13.8 13.8 6.9 3.4 Recapitalization On December 19, 2016, the Board of Directors of the Company approved i) decrease of par value of the ordinary shares from $ 1 9,000,000 50,000,000 Shares Issuances In December 2016, the Company completed a Regulation S private placement offering pursuant to which the Company received $ 300,000 1,500,000 0.20 21,000 7 In March 2017, the Company completed a Regulation S private placement offering pursuant to which the Company received $ 1,000,000 1,000,000 1.00 70,000 7 In May 2017, the Company completed a Regulation S private placement offering and a Regulation D private placement offering pursuant to which the Company received an aggregate of $ 1,000,000 500,000 2.00 70,000 7 On September 1, 2017, the Company completed its IPO of 1,068,346 5.00 5.3 3.4 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 20 SUBSEQUENT EVENTS On December 28, 2017, the Company completed a Regulation S private placement offering pursuant to which the Company received an aggregate 520,000 from two investors to fund the Company’s operations. The Company 86,666 shares at a purchase price of $ 6.00 On January 9, 2018, the Company completed a Regulation S private placement offering pursuant to which the Company received an aggregate of $ 500,000 34.123 62,500 8.00 On January 18, 2018, the Company incorporated a new wholly-owned subsidiary, XSigma Corporation, under the laws of BVI. The registered capital of XSigma Corporation was $ 50,000 These audited consolidated financial statements were approved by management and available for issuance on January 30, 2018, and have evaluated subsequent events through this date. |
SIGNIFICANT ACCOUNTING POLICI27
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Presentation and Principles of Consolidation The accompanying consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United Stated of America. All inter-company transactions and balances have been eliminated upon consolidation. Entity Name Registered Location Background Ownership as of the September 30, 2017 ZK International BVI • Incorporated on May 13, 2015 • Registered capital of USD 50,000, not paid • A holding company with no operation activities itself for the years then ended 31.0% by HUANG Jian Cong 13.8% by WANG Ming Jie 13.8% by WANG Guo Lin 6.9% by WANG Jian Di 3.4% by WANG Yang Ming ZK Pipe Hong Kong • Incorporated on May 28, 2015 • Registered capital of HKD 1,000,000, not paid • Have not commenced operations 100% by ZK International Wenzhou Weijia Wenzhou • Incorporated on June 17, 2015 • Registered capital of USD 20,000,000, not paid • Have not commenced operations 100% by ZK Pipe Zhejiang Zhengkang Wenzhou • Incorporated on December 4, 2001 • Registered capital of RMB100,000,000, RMB30,000,000 paid • Principally operated in manufacturing and sales of steel strip, steel pipe and fittings 99% by Wenzhou Weijia 1% by HUANG Jian Cong Wenzhou Zhengfeng Wenzhou • Incorporated on December 24, 1999 • Registered capital of RMB 2,880,000, fully paid • Principally operated in trading of steel strip, mainly purchased from Zhejiang Zhengkang 100% by Zhejiang Zhengkang |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (US GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include, but are not limited to, allowances of trade receivable, inventory valuation, useful life of property, plant and equipment and income taxes related to realization of deferred tax assets and uncertain tax position. Actual results could differ from those estimates. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | The financial records of the Company’s PRC subsidiaries are maintained in their local currencies which are RMB and ZK Pipe in Hong Kong also use RMB as functional currency. Monetary assets and liabilities denominated in currencies other than their local currencies are translated into local currencies at the rates of exchange in effect at the balance sheet dates. Transactions denominated in currencies other than their local currencies during the year are converted into local currencies at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in other income/ (expense), net in the statements of operations and comprehensive income. ZK International maintained its financial record using the United States dollar (“US dollar”) as the functional currency, while the subsidiaries of the Company in Hong Kong and mainland China maintained their financial records using RMB as the functional currencies. The reporting currency of the Company is US dollar. When translating local financial reports of the Company’s subsidiaries into US dollar, assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenue, expenses, gains and losses are translated at the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the statements of operations and comprehensive income. For the Fiscal Years 2017 2016 2015 Period Ended RMB: USD exchange rate 6.6545 6.6711 6.3668 Period Average RMB: USD exchange rate 6.8126 6.5333 6.1746 |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash and deposits with financial institutions which are unrestricted as to withdrawal and use. Cash equivalents consist of highly liquid investments that are readily convertible to cash generally with maturities of three months or less when purchased. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash that is restricted as to withdrawal or usage is reported as restricted cash in the consolidated balance sheets and is not included in the beginning or ending balance of cash and cash equivalents in the consolidated statements of cash flows. Restricted cash of $ 529,837 3,236,482 . |
Receivables, Policy [Policy Text Block] | Accounts Receivable, net Trade accounts receivable arise from the product sales in the normal course of business. Based on management’s assessment of the customer’s credit history and current relationships with them, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and aging analysis basis. The Company reserves 4 10 27 67 100 The allowance for doubtful accounts recognized as of September 30, 2017 and 2016 was $ 1,817,050 1,648,178 |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or market value. Cost of inventories is calculated using the weighted-average method. In addition to cost of raw materials, work in progress and finished goods include direct labor costs and overhead. The Company periodically assesses the recoverability of all inventories to determine whether adjustments are required to record inventories at the lower of cost or market value. Inventories that the Company determines to be obsolete or in excess of forecasted usage are reduced to its estimated realizable value based on assumptions about future demand and market conditions. If actual demand is lower than the forecasted demand, additional inventory write-downs may be required. There were no write-downs recognized of inventories as of September 30, 2017 and 2016. |
Advance to Suppliers and Advance from Customers Policy [Policy Text Block] | Advance to Suppliers and Advance from Customers Advance to suppliers refer to advances for purchase of materials or other service agreements, which are applied against trade accounts payable when the materials or services are received. Advance from customers refer to advances received from customers regarding product sales, which are applied against trade accounts receivable when products are sold. The Company reviews a supplier's credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would recognize expense in the period they are considered unlikely to be collected. There was no such expense recognized during the years ended September 30, 2017 and 2016. Beginning balance $ 3,251,295 $ 2,549,418 Less: products or services received (31,770,719) (20,841,688) Add: payment to suppliers 38,149,942 21,543,565 Ending balance $ 9,630,518 $ 3,251,295 Changes of advances from customers for the years ended September 30, 2017 and 2016 are as follow: Beginning balance $ 1,618,216 $ 333,476 Less: products or services delivered (9,261,841) (4,253,173) Add: payment from customers 9,627,338 5,537,913 Ending balance $ 1,983,713 $ 1,618,216 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments For the Company’s financial instruments, including cash and equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses, the carrying amounts approximate their fair values due to their short maturities. ASC Topic 820, Fair Value Measurements and Disclosures, requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, Financial Instruments, defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: • Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. • Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC Topic 480, Distinguishing Liabilities from Equity, and ASC Topic 815, Derivatives and Hedging. As of September 30, 2017 and 2016, the Company did not identify any assets and liabilities required to be presented on the balance sheet at fair value other than cash and cash equivalents. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment, net Property, plant, and equipment are recorded at cost less accumulated depreciation. Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of the assets, as follows: Useful lives Buildings 40 years Machinery 8-20 years Furniture, fixtures, and equipment 3-10 years Motor vehicles 5-10 years Upon retirement or disposition, the asset cost and related accumulated depreciation are removed with any gain or loss recognized in the consolidated statements of operations and comprehensive income. Repair and maintenance costs that do not extend the economic life of the underlying assets are expensed as incurred. Costs incurred in constructing new facilities, including progress payments and other costs related to construction, are capitalized, and transferred to property, plant and equipment on completion, at which time depreciation commences. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible Assets Intangible assets consist primarily of land use rights and software. Under the PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Land use rights are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method with the following estimated useful lives: Useful lives Land use rights 46 years Software 5 years |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-lived Assets The Company management review the carrying values of long-lived assets whenever events and circumstances, such as a significant decline in the asset’s market value, obsolescence or physical damage affecting the asset, significant adverse changes in the assets use, deterioration in the expected level of the assets performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value of an asset may not be recovered through expected future cash flows from its use and eventual disposition. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There was no impairment charge recognized for long-lived assets as of September 30, 2017, 2016 and 2015. |
Value-added Tax Policy [Policy Text Block] | Value-added Tax Value-added taxes (“VAT”) collected from customers relating to product sales and remitted to governmental authorities are presented on a net basis. VAT collected from customers is excluded from revenue. The Company is subject to a VAT rate of 17 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue in accordance with ASC 605, Revenue Recognition, regarding revenue recognition which specifies that revenue is realized or realizable and earned. Sales revenue is recognized when: 1) Persuasive evidence of an arrangement exists; 2) Delivery has occurred or services have been rendered (the risks, rewards and ownership of the products are transferred to customers); and 3) The seller’s price to the buyer is fixed or determinable; and 4) Collectability is reasonably assured. |
Government Contractors, Policy [Policy Text Block] | Government Grant Government grants are recognized when received and all the conditions for their receipt have been met. Government grants as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. During the period ended as of September 30, 2017, 2016 and 2015, $ 87,250 138,219 159,197 |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Research and development costs are expensed as incurred. Research and development reimbursements and grants received from government are recorded by the Company as a reduction of research and development costs. |
Income Tax, Policy [Policy Text Block] | The Company accounts for income taxes using the asset and liability method whereby it calculates deferred tax assets or liabilities for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they do not relate to a specific asset or liability. |
Advertising Costs, Policy [Policy Text Block] | Advertising costs Advertising costs are expensed as incurred in accordance with ASC 720-35 Other Expense-Advertising costs. Advertising costs were $ 69,535 21,715 |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share Earnings (loss) per share is calculated in accordance with ASC 260 Earnings per Share. Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted earnings per share is computed in accordance with the treasury stock method and based on the weighted average number of common shares and dilutive common share equivalents. Dilutive common share equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Exchange Rate Risks The Company operates in China, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between the US$ and the RMB. As at September 30, 2017, cash and cash equivalents of $ 7,107,387 47,296,107 $ 4,171,033 123,649 824,870 ) denominated in RMB). Currency Convertibility Risks Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents, restricted cash and accounts receivable, the balances of which are stated on the consolidated balance sheets which represent the Company’s maximum exposure. The Company places its cash and cash equivalents and restricted cash in good credit quality financial institutions in Hong Kong and China. Concentration of credit risks with respect to accounts receivables is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations of customers’ financial condition. Interest Rate Risks The Company is subject to interest rate risk. The Company has bank interest bearing loans charged at variable interest rates. And although some bank interest bearing loans are charged at fixed interest rates within the reporting period, the Company is still subject to the risk of adverse changes in the interest rates charged by the banks when these loans are refinanced. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events The Company’s management reviewed all material events through the date of the consolidated financial statements were issued for subsequent event disclosure consideration. |
New Accounting Pronouncements, Policy [Policy Text Block] | In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers", which contains new accounting literature relating to how and when a company recognizes revenue. Under ASU 2014-09, a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. In July 2015, the FASB decided to delay the effective date of the new standard by one year; as a result, the new standard will be effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption will be permitted, but no earlier than 2017 for calendar year-end entities. The standard allows for two transition methods - retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial adoption. The Company evaluates the impact of this new standard and believes there is no impact on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”, which requires entities to measure most inventories at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The update is effective for fiscal years beginning after December 15, 2016, and interim periods therein. Early application is permitted. Management is currently evaluating the impact that this guidance will have on the Company's consolidated financial statements, if any. In November 2015, the FASB issued Accounting Standards Update 2015-17, "Balance Sheet Classification of Deferred Taxes," which is intended to simplify the balance sheet presentation of deferred income taxes. Current accounting principles require an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in its balance sheet. The amendments require that deferred tax liabilities and assets be classified as noncurrent in its balance sheet. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Companies may apply the new provisions either retrospectively or on a prospective basis, and early adoption is permitted. We have not yet determined our method of transition. In January 2016, the FASB issued Accounting Standards Update 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset. Additionally, the amendments eliminate the requirement to disclose the methods and significant assumptions used to estimate the fair value of financial instruments. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Other than an amendment relating to presenting in comprehensive income the portion of the total change in the fair value of a liability resulting from a change in instrument-specific credit risk (if the entity has elected to measure the liability at fair value), early adoption is not permitted. The Company does not anticipate the amendment will have any impact on our financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. The new guidance is intended to improve the recognition and measurement of financial instruments. The new guidance makes targeted improvements to existing U.S. GAAP by: (1) Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (2) Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; (3) Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and. (4) Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company evaluates the impact of this new standard and believes there is no material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 , In April 2016, FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company evaluates the impact of this new standard and believes there is no impact on its consolidated financial statements. In May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient. The standard (1) allows an entity to recognize revenue in the amount of consideration received when the entity has transferred control of the goods or services, the entity has stopped transferring goods or services (if applicable) and has no obligation under the contract to transfer additional goods or services, and the consideration received from the customer is nonrefundable; (2) Permits an entity, as an accounting policy election, to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price. (3) Specifies that the measurement date for noncash consideration is contract inception and clarifies that the variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration (4) clarifies that a completed contract for the purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy U.S. generally accepted accounting principles before the date of initial application. (5)Permits an entity to apply the modified retrospective transition method either to all contracts or only to contracts that are not completed contracts; (6)Clarifies that an entity that retrospectively applies the guidance in the standard to each prior reporting period is not required to disclose the effect of the accounting change for the periods of adoption. But an entity still is required to disclose the effect of the changes on any prior periods retrospectively adjusted. Public business entities, certain not-for-profit entities and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company evaluates the impact of this new standard and believes there is no impact on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016 15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to provide guidance on the presentation and classification of certain cash receipts and cash payments on the statement of cash flows. The guidance specifically addresses cash flow issues with the objective of reducing the diversity in practice. The guidance will be effective for the Company in fiscal year 2018, but early adoption is permitted. The Company evaluates the impact of this new standard and believes there is no impact on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-17, Consolidation (Topic 810): Interest Held through Related Parties That Are under Common Control, to provide guidance on the evaluation of whether a reporting entity is the primary beneficiary of a VIE by amending how a reporting entity, that is a single decision maker of a VIE, treats indirect interests in that entity held through related parties that are under common control. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company evaluates the impact of this new standard and believes there is no impact on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows: Restricted Cash". The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company evaluates the impact of this new standard and believes there is no material In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business". The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those periods, and all other entities should apply these amendments for fiscal years beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Company does not expect this update will have a material impact on the Company's consolidated financial position, results of operations and cash flows. In February 2017, the FASB issued ASU No. 2017-05 (“ASU 2017-05”) to provide guidance for recognizing gains and losses from the transfer of nonfinancial assets and in-substance nonfinancial assets in contracts with non-customers, unless other specific guidance applies. The standard requires a company to derecognize nonfinancial assets once it transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset. Additionally, when a company transfers its controlling interest in a nonfinancial asset, but retains a noncontrolling ownership interest, the company is required to measure any noncontrolling interest it receives or retains at fair value. The guidance requires companies to recognize a full gain or loss on the transaction. ASU 2017-05 is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The effective date of this guidance coincides with revenue recognition guidance. The Company does not expect this update will have a material impact on the Company's consolidated financial position, results of operations and cash flows. In May 2017, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2017-09 (“ASU 2017-09”) to provide guidance to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the changes in terms or conditions. ASU 2017-09 is effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted and application is prospective. The Company does not expect this update will have a material impact on the Company's consolidated financial position, results of operations and cash flows. In September 2017, the FASB has issued ASU No. 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. Entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02. The Company evaluates the impact of this new standard and believes there is no impact on its consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material effect on the Company's financial position, result of operations or cash flows. |
SIGNIFICANT ACCOUNTING POLICI28
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | All inter-company transactions and balances have been eliminated upon consolidation. Entity Name Registered Location Background Ownership as of the September 30, 2017 ZK International BVI • Incorporated on May 13, 2015 • Registered capital of USD 50,000, not paid • A holding company with no operation activities itself for the years then ended 31.0% by HUANG Jian Cong 13.8% by WANG Ming Jie 13.8% by WANG Guo Lin 6.9% by WANG Jian Di 3.4% by WANG Yang Ming ZK Pipe Hong Kong • Incorporated on May 28, 2015 • Registered capital of HKD 1,000,000, not paid • Have not commenced operations 100% by ZK International Wenzhou Weijia Wenzhou • Incorporated on June 17, 2015 • Registered capital of USD 20,000,000, not paid • Have not commenced operations 100% by ZK Pipe Zhejiang Zhengkang Wenzhou • Incorporated on December 4, 2001 • Registered capital of RMB100,000,000, RMB30,000,000 paid • Principally operated in manufacturing and sales of steel strip, steel pipe and fittings 99% by Wenzhou Weijia 1% by HUANG Jian Cong Wenzhou Zhengfeng Wenzhou • Incorporated on December 24, 1999 • Registered capital of RMB 2,880,000, fully paid • Principally operated in trading of steel strip, mainly purchased from Zhejiang Zhengkang 100% by Zhejiang Zhengkang |
Schedule of Differences between Reported Amount and Reporting Currency Denominated Amount [Table Text Block] | The relevant exchange rates are listed below: For the Fiscal Years 2017 2016 2015 Period Ended RMB: USD exchange rate 6.6545 6.6711 6.3668 Period Average RMB: USD exchange rate 6.8126 6.5333 6.1746 |
Advance to Suppliers and Advance from Customers [Table Text Block] | Changes of advances to suppliers for the years ended September 30, 2017 and 2016 are as follow: Beginning balance $ 3,251,295 $ 2,549,418 Less: products or services received (31,770,719) (20,841,688) Add: payment to suppliers 38,149,942 21,543,565 Ending balance $ 9,630,518 $ 3,251,295 Changes of advances from customers for the years ended September 30, 2017 and 2016 are as follow: Beginning balance $ 1,618,216 $ 333,476 Less: products or services delivered (9,261,841) (4,253,173) Add: payment from customers 9,627,338 5,537,913 Ending balance $ 1,983,713 $ 1,618,216 |
Property, Plant And Equipment Useful Life [Table Text Block] | Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of the assets, as follows: Useful lives Buildings 40 years Machinery 8-20 years Furniture, fixtures, and equipment 3-10 years Motor vehicles 5-10 years |
Schedule Of Finite Lived Intangible Assets Useful Life [Table Text Block] | These land use rights are sometimes referred to informally as “ownership.” Land use rights are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method with the following estimated useful lives: Useful lives Land use rights 46 years Software 5 years |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable consisted of the following as of September 30, 2017 and 2016: As of September 30, 2017 2016 Accounts receivable, gross $ 23,078,659 $ 25,492,158 Less: allowance for doubtful accounts (1,817,050) (1,648,178) Accounts receivable, net $ 21,261,609 $ 23,843,980 |
Allowance for Doubtful Accounts Receivable [Table Text Block] | Changes of allowance for doubtful accounts for the years ended September 30, 2017 and 2016 are as follow: As of September 30, 2017 2016 Beginning balance $ 1,648,178 $ 1,017,717 Add: additional reserve through bad debt expense 168,872 630,461 Ending balance $ 1,817,050 $ 1,648,178 |
Schedule of Noncurrent Accounts Receivable [Table Text Block] | Accounts receivable amounts expected to be collected after one year as of September 30, 2017 and 2016 are as follow: As of September 30, 2017 2016 Accounts receivable, gross $ 282,264 $ 98,511 Total $ 282,264 $ 98,511 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories as of September 30, 2017 and 2016 consisted of the following: As of September 30, 2017 2016 Raw materials $ 1,873,948 $ 1,689,949 Work-in-process 4,759,561 2,350,568 Finished goods 3,415,059 2,403,571 Total $ 10,048,568 $ 6,444,088 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment consisted of the following as of September 30, 2017 and 2016: As of September 30, 2017 2016 Buildings $ 5,306,286 $ 5,293,106 Machinery 3,987,090 3,852,205 Furniture, fixtures and equipment 486,588 468,880 Motor vehicles 156,360 130,622 Total property plant and equipment, at cost 9,936,324 9,744,813 Less: accumulated depreciation (4,290,600) (3,845,215) 5,645,724 5,899,598 Construction in progress (“CIP”) - 8,387 Property, plant and equipment, net $ 5,645,724 $ 5,907,985 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of September 30, 2017 2016 Land use rights, cost $ 598,293 $ 596,807 Software, cost 5,780 - Less: accumulated amortization (140,902) (128,659) Intangible assets, net $ 463,171 $ 468,148 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated amortization expenses for each of the five succeeding fiscal years since the year ended September 30, 2017 are as follows: Years ending September 30, 2018 2019 2020 2021 2022 Thereafter Estimated amortization expenses $ 14,162 $ 14,162 $ 14,162 $ 14,162 $ 14,162 $ 392,361 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Net amounts due to related parties consisted of the following as of September 30, 2017 and 2016: As of September 30, Accounts Name of related parties 2017 2016 Related party payables Shareholder, HUANG Jian Cong $ 7,911,720 $ 1,662,160 Total due to related parties $ 7,911,720 $ 1,662,160 |
ACCRUED EXPENSES AND OTHER CU34
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | As of September 30, 2017 2016 VAT payable $ 3,742,952 $ 3,096,782 Other tax payables 74,665 54,330 Other 639,553 265,501 Total $ 4,457,170 $ 3,416,613 |
SHORT-TERM BANK BORROWINGS (Tab
SHORT-TERM BANK BORROWINGS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank - Longwan Branch 5,580,000 838,530 1/13/2017 1/12/2018 5.44 % Agricultural Bank - Longwan Branch 8,700,000 1,307,385 1/18/2017 1/17/2018 5.66 % Agricultural Bank - Longwan Branch 5,750,000 864,076 8/17/2017 8/16/2018 5.44 % Agricultural Bank - Longwan Branch 4,300,000 646,179 8/14/2017 8/13/2018 5.44 % Agricultural Bank - Longwan Branch 6,000,000 901,646 9/22/2017 9/21/2018 5.65 % Agricultural Bank - Longwan Branch 6,190,000 930,198 12/16/2016 12/11/2017 4.79 % Agricultural Bank - Longwan Branch 10,000,000 1,502,743 1/10/2017 1/9/2018 4.79 % Minsheng Bank 4,350,000 653,693 6/30/2017 6/30/2018 5.44 % Minsheng Bank 3,250,000 488,391 6/30/2017 6/30/2018 5.44 % Xingye Bank 6,500,000 976,783 9/4/2017 12/4/2017 6.50 %* Zhejiang Commerce Bank 6,000,000 901,646 7/27/2017 4/20/2018 7.50 % Zhejiang Commerce Bank 1,500,000 225,411 7/28/2017 4/20/2018 7.50 % Bank of China - Longwan Branch 8,550,000 1,284,845 4/10/2017 3/29/2018 4.79 % Xingye Bank 6,500,000 976,783 9/5/2017 12/20/2017 6.50 %* Zhejiang Commerce Bank 10,500,000 1,577,880 7/28/2017 4/20/2018 7.50 % Pingan Bank 7,960,000 1,196,183 9/27/2017 9/25/2018 6.09 %* China Merchants Bank 5,400,000 811,481 12/20/2016 12/11/2017 5.44 % China Merchants Bank 5,990,000 900,143 12/20/2016 12/11/2017 5.44 % China Merchants Bank 5,000,000 751,371 12/20/2016 12/11/2017 5.44 % China Merchants Bank 410,000 61,612 12/22/2016 12/11/2017 5.52 % Bank of China - Longwan Branch 1,490,000 223,909 4/10/2017 3/29/2018 4.79 % Bank of China - Longwan Branch 2,760,000 414,757 4/10/2017 3/29/2018 4.79 % Xingye Bank 5,000,000 751,371 9/6/2017 12/14/2017 6.50 %* Bank of Communications 3,000,000 450,823 5/10/2017 11/13/2017 7.60 % Bank of Communications 3,000,000 450,823 4/18/2017 11/13/2017 7.12 % Bank of Communications 3,000,000 450,823 4/14/2017 11/13/2017 6.30 % Bank of Communications 3,000,000 450,823 4/19/2017 11/13/2017 7.60 % Bank of Communications 2,300,000 345,630 5/11/2017 11/13/2017 7.60 % Total 141,980,000 21,335,938 * These short-term borrowings were subject to variable interest rates , which are determined by the issuing banks with prime rate plus 1.79 2.2 Short-term bank borrowings consisted of the following at September 30, 2016: Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Agricultural Bank - Longwan Branch 6,240,000 935,382 12/16/2015 12/11/2016 5.66 % Agricultural Bank - Longwan Branch 2,500,000 374,752 3/17/2016 3/16/2017 4.57 % Agricultural Bank - Longwan Branch 7,000,000 1,049,307 4/7/2016 3/26/2017 4.12 % Agricultural Bank - Longwan Branch 2,210,000 331,281 4/12/2016 4/11/2017 4.51 % Agricultural Bank - Longwan Branch 4,000,000 599,604 6/2/2016 5/26/2017 4.65 % Agricultural Bank - Longwan Branch 2,040,000 305,798 6/13/2016 6/11/2017 4.65 % Agricultural Bank - Longwan Branch 2,700,000 404,733 6/16/2016 6/11/2017 4.65 % Agricultural Bank - Longwan Branch 5,750,000 861,931 8/26/2016 8/16/2017 5.22 % Agricultural Bank - Longwan Branch 4,300,000 644,574 9/9/2016 7/26/2017 5.06 % Agricultural Bank - Longwan Branch 6,000,000 899,406 9/22/2016 9/21/2017 5.00 % Bank of China - Longwan Branch 13,000,000 1,948,713 8/26/2016 4/8/2017 4.79 % CMBC-10802 7,600,000 1,139,248 5/25/2016 11/22/2016 5.44 % CMBC-10802 5,400,000 809,465 6/15/2016 11/22/2016 5.66 % CMBC-10802 5,000,000 749,505 6/17/2016 11/22/2016 5.66 % Zhejiang Commerce Bank 2,000,000 299,802 2/5/2016 2/4/2017 6.00 % Zhejiang Commerce Bank 1,500,000 224,851 2/5/2016 2/4/2017 6.00 % Zhejiang Commerce Bank 1,500,000 224,851 2/6/2016 2/5/2017 6.00 % Zhejiang Commerce Bank 5,000,000 749,505 3/2/2016 3/1/2017 6.00 % Zhejiang Commerce Bank 5,000,000 749,505 3/7/2016 3/6/2017 6.00 % Zhejiang Commerce Bank 5,000,000 749,505 3/9/2016 3/8/2017 6.00 % Industrial Bank 6,481,268 971,549 9/25/2015 9/23/2016* 7.00 % Industrial Bank 6,500,000 974,356 9/25/2015 9/25/2016* 7.00 % Minsheng Bank 5,000,000 749,505 3/8/2016 10/19/2016 6.70 % Minsheng Bank 3,500,000 524,653 4/16/2016 4/11/2017 5.00 % Minsheng Bank 5,400,000 809,465 4/8/2016 4/8/2017 5.00 % Pingan Bank 8,000,000 1,199,210 3/3/2016 3/3/2017 5.22 % Agricultural Bank 1,964,381 294,463 12/31/2015 9/11/2016* 5.79 % Bank of Communications 5,000,000 749,505 5/20/2016 5/20/2017 6.53 % Bank of Communications 5,000,000 749,505 5/23/2016 5/23/2017 7.60 % Bank of Communications 4,800,000 719,525 5/24/2016 5/24/2017 7.60 % Total 145,385,649 21,793,454 * The Company paid off these short-term bank borrowings in October 2016. |
Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block] | As of September 30, 2017 2016 Buildings, net $ 3,611,529 $ 3,704,284 Land use rights, net 457,391 468,148 Machinery, net 281,355 303,856 Total $ 4,350,275 $ 4,476,288 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable [Table Text Block] | As of September 30, 2016 Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Nature Agricultural Bank - Longwan Branch 4,000,000 599,604 6/21/2016 12/21/2016 Bank Acceptance Bill Agricultural Bank - Longwan Branch 7,000,000 1,049,307 8/4/2016 2/4/2017 Bank Acceptance Bill Foshan Ruigangda Trading Co., Ltd 5,000,000 749,505 7/12/2016 1/10/2017 Bank Acceptance Bill Foshan Ruigangda Trading Co., Ltd 5,000,000 749,505 8/9/2016 2/29/2017 Bank Acceptance Bill Zhejiang Zhengkang Industrial Co., Ltd. 5,000,000 749,505 9/28/2016 3/27/2017 Letter of Credit Total 26,000,000 3,897,426 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes [Table Text Block] | For the year ended September 30, 2017 2016 2015 Provision for income tax for the period $ 1,030,858 $ 1,200,010 $ 1,053,132 Income tax benefit (35,853) (94,570) (101,015) Total $ 995,005 $ 1,105,440 $ 952,117 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of September 30, 2017 2016 2015 Deferred tax assets: Bad debt allowance recorded for accounts receivable $ 272,557 $ 247,227 $ 152,657 Total $ 272,557 $ 247,227 $ 152,657 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income taxes for the years ended September 30, 2017, 2016, and 2015 are attributed to the Company’s continuing operations in China and consisted of: For the year ended September 30, 2017 2016 2015 Current $ 1,019,147 $ 1,209,114 $ 1,055,883 Deferred (24,142) (103,674) (103,766) Total $ 995,005 $ 1,105,440 $ 952,117 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Per the consolidated statements of operations and comprehensive income, the income tax expenses for the Company can be reconciled to the income before income taxes for the years ended September 30, 2017, 2016 and 2015 as follows: For the year ended September 30, 2017 2016 2015 Income before taxes excluded the amounts of loss incurring entities $ 7,178,353 $ 6,656,140 $ 6,197,299 PRC EIT tax rates 15 % 15 % 15 % Tax at the PRC EIT tax rates 1,076,753 998,421 929,595 Tax effect of 50% R&D expenses deduction (99,833) 97,652 69,621 Tax effect of deferred tax recognized (24,142) (103,673) (103,766) Tax effect of non-deductible expenses 42,227 113,040 56,667 Income tax expenses $ 995,005 $ 1,105,440 $ 952,117 |
CONDENSED FINANCIAL INFORMATI38
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet [Table Text Block] | Balance Sheets As of September 30, 2017 2016 ASSETS Cash and cash equivalent $ 55 $ - Due from related parties - 50,000 Investment in ZK Pipe 5,581,999 - Total assets $ 5,582,054 $ 50,000 LIABILITIES AND STOCKHOLDERS’ EQUITY $ - $ - Total liabilities - - STOCKHOLDERS’ EQUITY Common stock, $0.001 par value, 50,000,000 shares authorized, 13,068,346 and 9,000,000 shares issued and outstanding, respectively $ - $ - Additional paid-in capital 5,582,099 50,000 Accumulated deficits (45) - Total stockholders' equity 5,582,054 50,000 Total liabilities and stockholders’ equity $ 5,582,054 $ 50,000 |
Condensed Income Statement [Table Text Block] | Statements of Operations and Comprehensive income For the year ended September 30, 2017 2016 2015 Operating expenses: General and administrative expenses $ 45 $ - $ - Total operating expenses 45 - - Net loss and comprehensive loss $ (45) $ - $ - Net loss per common share basic and diluted $ - $ - $ - Weighted average number of common shares outstanding basic 10,970,000 9,000,000 9,000,000 Weighted average number of common shares outstanding diluted 10,973,674 9,000,000 9,000,000 |
Condensed Cash Flow Statement [Table Text Block] | Statements of Cash Flows For the year ended September 30, 2017 2016 2015 Cash flows used in operating activities Net loss $ (45) $ - $ - Net cash used in operating activities (45) - - Cash flows provided by financing activities Cash received from Share Issuances 5,582,099 - - Net cash provided by financing activities 5,582,099 - - Cash flows used in financing activities Cash invested to ZK Pipe (5,581,999) Net cash used in financing activities (5,581,999) - - Increase in cash and cash equivalents 55 - - Cash and cash equivalents, beginning of year - - - Cash and cash equivalents, end of year $ 55 $ - - Supplemental Cash Flows Information: Income tax paid $ - $ - - Interest paid $ - $ - - Non-cash investing and financing activities: Shares issued to founders $ - $ - 50,000 |
ORGANIZATION AND NATURE OF OP39
ORGANIZATION AND NATURE OF OPERATIONS (Details Textual) | Oct. 12, 2015 | Aug. 05, 2015 | Jun. 08, 2015 | May 13, 2015 | Jul. 31, 2016CNY (¥) | Jun. 28, 2016CNY (¥) | Sep. 29, 2015 | Sep. 22, 2015 | May 28, 2015HKD ($) | May 24, 2006 | Sep. 30, 2017USD ($)shares | Sep. 28, 2017CNY (¥) | Dec. 19, 2016shares | Sep. 30, 2016shares | Dec. 04, 2001CNY (¥) | Dec. 24, 1999CNY (¥) |
Common Stock, Shares Authorized | shares | 50,000,000 | 9,000,000 | 50,000,000 | |||||||||||||
Common Stock, Shares, Issued | shares | 13,068,346 | 9,000,000 | ||||||||||||||
Common Stock, Shares, Outstanding | shares | 13,068,346 | 9,000,000 | ||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 68.90% | |||||||||||||||
Holding Two [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Registered Capital | $ | $ 1,000,000 | |||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Paid in Capital | $ | $ 0 | |||||||||||||||
Holding Three [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Registered Capital | ¥ 30,000,000 | 20,000,000 | ¥ 100,000,000 | |||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Paid in Capital | $ | $ 0 | |||||||||||||||
Proceeds from Contributed Capital | 9,900,000 | |||||||||||||||
Holding Four [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 99.00% | |||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Registered and Paid in Capital | ¥ 20,000,000 | |||||||||||||||
Holding Five [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | 100.00% | ||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Registered and Paid in Capital | ¥ 2,880,000 | |||||||||||||||
ZK International [Member] | Holding Two [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | 40.00% | ||||||||||||||
No Voting Right [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | |||||||||||||||
With Voting Right [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | |||||||||||||||
HUANG Jian Cong [Member] | ||||||||||||||||
Proceeds from Contributed Capital | ¥ 100,000 | |||||||||||||||
HUANG Jian Cong [Member] | Holding One [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 45.00% | 31.00% | ||||||||||||||
HUANG Jian Cong [Member] | Holding Three [Member] | ||||||||||||||||
Proceeds from Contributed Capital | ¥ 100,000 | |||||||||||||||
HUANG Jian Cong [Member] | Holding Four [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 1.00% | 45.00% | ||||||||||||||
HUANG Jian Cong [Member] | Holding Five [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 38.89% | |||||||||||||||
WANG Ming Jie [Member] | Holding One [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | 13.80% | ||||||||||||||
WANG Ming Jie [Member] | Holding Four [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | |||||||||||||||
WANG Ming Jie [Member] | Holding Five [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 27.78% | |||||||||||||||
WANG Guo Lin [Member] | Holding One [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | 13.80% | ||||||||||||||
WANG Guo Lin [Member] | Holding Four [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | |||||||||||||||
WANG Guo Lin [Member] | Holding Five [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 22.57% | |||||||||||||||
WANG Jian Di [Member] | Holding One [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 10.00% | 6.90% | ||||||||||||||
WANG Jian Di [Member] | Holding Four [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 10.00% | |||||||||||||||
WANG Jian Di [Member] | Holding Five [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 5.55% | |||||||||||||||
WANG Yang Ming [Member] | Holding One [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 5.00% | 3.40% | ||||||||||||||
WANG Yang Ming [Member] | Holding Four [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 5.00% | |||||||||||||||
WANG Yang Ming [Member] | Holding Five [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 5.21% | |||||||||||||||
CHENG Kai Chun [Member] | Holding Two [Member] | ||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 60.00% |
SIGNIFICANT ACCOUNTING POLICI40
SIGNIFICANT ACCOUNTING POLICIES (Details) | Oct. 12, 2015 | Sep. 30, 2017USD ($) | Sep. 30, 2017HKD ($) | Sep. 30, 2017CNY (¥) |
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 68.90% | |||
Subsidiary One [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Name of the Entity | ZK International | |||
Subsidiary of Limited Liability Company or Limited Partnership, State | BVI | |||
Subsidiary of Limited Liability Company or Limited Partnership, Date | May 13, 2015 | |||
Subsidiary of Limited Liability Company or Limited Partnership, Registered Capital | $ 50,000 | |||
Subsidiary of Limited Liability Company or Limited Partnership, Business Purpose | A holding company with no operation activities itself for the years then ended | |||
Subsidiary One [Member] | HUANG Jian Cong [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 45.00% | 31.00% | ||
Subsidiary One [Member] | WANG Ming Jie [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | 13.80% | ||
Subsidiary One [Member] | WANG Guo Lin [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | 13.80% | ||
Subsidiary One [Member] | WANG Jian Di [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 10.00% | 6.90% | ||
Subsidiary One [Member] | WANG Yang Ming [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 5.00% | 3.40% | ||
Subsidiary Two [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Name of the Entity | ZK Pipe | |||
Subsidiary of Limited Liability Company or Limited Partnership, State | Hong Kong | |||
Subsidiary of Limited Liability Company or Limited Partnership, Date | May 28, 2015 | |||
Subsidiary of Limited Liability Company or Limited Partnership, Registered Capital | $ 1,000,000 | |||
Subsidiary of Limited Liability Company or Limited Partnership, Business Purpose | Have not commenced operations | |||
Subsidiary Two [Member] | ZK International [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | 100.00% | ||
Subsidiary Three [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Name of the Entity | Wenzhou Weijia | |||
Subsidiary of Limited Liability Company or Limited Partnership, State | Wenzhou | |||
Subsidiary of Limited Liability Company or Limited Partnership, Date | Jun. 17, 2015 | |||
Subsidiary of Limited Liability Company or Limited Partnership, Registered Capital | $ 20,000,000 | |||
Subsidiary of Limited Liability Company or Limited Partnership, Business Purpose | Have not commenced operations | |||
Subsidiary Three [Member] | ZK Pipe [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | |||
Subsidiary Four [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Name of the Entity | Zhejiang Zhengkang | |||
Subsidiary of Limited Liability Company or Limited Partnership, State | Wenzhou | |||
Subsidiary of Limited Liability Company or Limited Partnership, Date | Dec. 4, 2001 | |||
Subsidiary of Limited Liability Company or Limited Partnership, Registered Capital | ¥ | ¥ 30,000,000 | |||
Subsidiary of Limited Liability Company or Limited Partnership, Business Purpose | Principally operated in manufacturing and sales of steel strip, steel pipe and fittings | |||
Subsidiary Four [Member] | Wenzhou Weijia [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 99.00% | |||
Subsidiary Four [Member] | HUANG Jian Cong [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 1.00% | |||
Subsidiary Five [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Name of the Entity | Wenzhou Zhengfeng | |||
Subsidiary of Limited Liability Company or Limited Partnership, State | Wenzhou | |||
Subsidiary of Limited Liability Company or Limited Partnership, Date | Dec. 24, 1999 | |||
Subsidiary of Limited Liability Company or Limited Partnership, Registered Capital | ¥ | ¥ 2,880,000 | |||
Subsidiary of Limited Liability Company or Limited Partnership, Business Purpose | Principally operated in trading of steel strip, mainly purchased from Wenzhou Zhengkang | |||
Subsidiary Five [Member] | Zhejiang Zhengkang [Member] | ||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% |
SIGNIFICANT ACCOUNTING POLICI41
SIGNIFICANT ACCOUNTING POLICIES (Details 1) | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Foreign Currency Exchange Rate,Yearly [Member] | |||
Foreign Currency Exchange Rate, Translation | 6.6545 | 6.6711 | 6.3668 |
Foreign Currency Exchange Rate,Averagely [Member] | |||
Foreign Currency Exchange Rate, Translation | 6.8126 | 6.5333 | 6.1746 |
SIGNIFICANT ACCOUNTING POLICI42
SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Beginning balance | $ 3,251,295 | $ 2,549,418 |
Less: products or services received | (31,770,719) | (20,841,688) |
Add: payment to suppliers | 38,149,942 | 21,543,565 |
Ending balance | 9,630,518 | 3,251,295 |
Beginning balance | 1,618,216 | 333,476 |
Less: products or services delivered | (9,261,841) | (4,253,173) |
Add: payment from customers | 9,627,338 | 5,537,913 |
Ending balance | $ 1,983,713 | $ 1,618,216 |
SIGNIFICANT ACCOUNTING POLICI43
SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended |
Sep. 30, 2017 | |
Building [Member] | |
Property, Plant and Equipment, Useful Life | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 8 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 20 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
SIGNIFICANT ACCOUNTING POLICI44
SIGNIFICANT ACCOUNTING POLICIES (Details 4) | 12 Months Ended |
Sep. 30, 2017 | |
Land use rights [Member] | |
Finite-Lived Intangible Asset, Useful Life | 46 years |
Software [Member] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
SIGNIFICANT ACCOUNTING POLICI45
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 12 Months Ended | |||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2017CNY (¥) | Sep. 30, 2016CNY (¥) | Sep. 30, 2014USD ($) | |
Restricted Cash and Cash Equivalents, Current | $ 529,837 | $ 3,236,482 | ||||
Allowance for Doubtful Accounts Receivable, Current | $ 1,817,050 | 1,648,178 | $ 1,017,717 | |||
Value Added Taxes Rate | 17.00% | 17.00% | ||||
Revenue from Grants | $ 87,250 | 138,219 | 159,197 | |||
Cash and Cash Equivalents, at Carrying Value | 11,278,475 | 123,649 | $ 626,791 | $ 977,455 | ||
Advertising Expense | $ 69,535 | 21,715 | ||||
Accounts Receivable Outstanding,Less Than One Year [Member] | Accounts Receivable [Member] | ||||||
Concentration Risk, Percentage | 4.00% | |||||
Accounts Receivable Outstanding,Later Than One Year But Less Than Two Year [Member] | Accounts Receivable [Member] | ||||||
Concentration Risk, Percentage | 10.00% | |||||
Accounts Receivable Outstanding,Later Than Two Year But Less Than Three Year [Member] | Accounts Receivable [Member] | ||||||
Concentration Risk, Percentage | 27.00% | |||||
Accounts Receivable Outstanding,Later Than Three Years [Member] | Accounts Receivable [Member] | Maximum [Member] | ||||||
Concentration Risk, Percentage | 100.00% | |||||
Accounts Receivable Outstanding,Later Than Three Years [Member] | Accounts Receivable [Member] | Minimum [Member] | ||||||
Concentration Risk, Percentage | 67.00% | |||||
China, Yuan Renminbi [Member] | ||||||
Cash and Cash Equivalents, at Carrying Value | $ 7,107,387 | $ 123,649 | ¥ 47,296,107 | ¥ 824,870 | ||
United States of America, Dollars [Member] | ||||||
Cash and Cash Equivalents, at Carrying Value | $ 4,171,033 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Accounts receivable, gross | $ 23,078,659 | $ 25,492,158 | |
Less: allowance for doubtful accounts | (1,817,050) | (1,648,178) | $ (1,017,717) |
Accounts receivable, net | $ 21,261,609 | $ 23,843,980 |
ACCOUNTS RECEIVABLE (Details 1)
ACCOUNTS RECEIVABLE (Details 1) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Beginning balance | $ 1,648,178 | $ 1,017,717 |
Add: additional reserve through bad debt expense | 168,872 | 630,461 |
Ending balance | $ 1,817,050 | $ 1,648,178 |
ACCOUNTS RECEIVABLE (Details 2)
ACCOUNTS RECEIVABLE (Details 2) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Accounts receivable, gross | $ 282,264 | $ 98,511 |
Total | $ 282,264 | $ 98,511 |
ACCOUNTS RECEIVABLE (Details Te
ACCOUNTS RECEIVABLE (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Provision for Doubtful Accounts | $ 160,944 | $ 691,156 | $ 691,777 |
NOTES RECEIVABLE AND OTHER RE50
NOTES RECEIVABLE AND OTHER RECEIVABLES (Details Textual) ¥ in Millions | 12 Months Ended | ||||
Sep. 30, 2010CNY (¥) | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2016CNY (¥) | |
Notes, Loans and Financing Receivable, Net, Current | $ | $ 214,999 | $ 89,941 | |||
Other Receivables, Net, Current | $ | 1,514,545 | 1,625,872 | |||
Payments to Fund Long-term Loans to Related Parties | ¥ 10.5 | ||||
Other Receivables | 10.5 | ¥ 7.4 | ¥ 7.4 | ||
Raozhou Dianli Ltd [Member] | |||||
Payments to Fund Long-term Loans to Related Parties | 9 | ||||
Pledged Assets Separately Reported, Real Estate Pledged as Collateral, at Fair Value | 143.1 | ||||
Xianjin Cao [Member] | |||||
Payments to Fund Long-term Loans to Related Parties | ¥ 1.5 | ||||
Trade Accounts Receivable [Member] | |||||
Other Receivables, Net, Current | $ | $ 1,100,000 | $ 1,100,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Raw materials | $ 1,873,948 | $ 1,689,949 |
Work-in-process | 4,759,561 | 2,350,568 |
Finished goods | 3,415,059 | 2,403,571 |
Total | $ 10,048,568 | $ 6,444,088 |
PROPERTY, PLANT AND EQUIPMENT52
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 9,936,324 | $ 9,744,813 |
Less: accumulated depreciation | (4,290,600) | (3,845,215) |
Property, plant and equipment before construction in progress | 5,645,724 | 5,899,598 |
Construction in progress (“CIP”) | 0 | 8,387 |
Property, plant and equipment, net | 5,645,724 | 5,907,985 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 5,306,286 | 5,293,106 |
Machinery | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,987,090 | 3,852,205 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 486,588 | 468,880 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 156,360 | $ 130,622 |
PROPERTY, PLANT AND EQUIPMENT53
PROPERTY, PLANT AND EQUIPMENT (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 425,696 | $ 442,793 | $ 493,690 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Less: accumulated amortization | $ (140,902) | $ (128,659) |
Intangible assets, net | 463,171 | 468,148 |
Land use rights, cost | ||
Finite-Lived Intangible Assets, Gross | 598,293 | 596,807 |
Software, cost | ||
Finite-Lived Intangible Assets, Gross | $ 5,780 | $ 0 |
INTANGIBLE ASSETS (Details 1)
INTANGIBLE ASSETS (Details 1) | Sep. 30, 2017USD ($) |
2,018 | $ 14,162 |
2,019 | 14,162 |
2,020 | 14,162 |
2,021 | 14,162 |
2,022 | 14,162 |
Thereafter | $ 392,361 |
INTANGIBLE ASSETS (Details Text
INTANGIBLE ASSETS (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Amortization | $ 12,705 | $ 13,248 | $ 14,017 |
LONG-TERM INVESTMENT (Details T
LONG-TERM INVESTMENT (Details Textual) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2011CNY (¥) |
Schedule of Cost-method Investments [Line Items] | |||
Other Assets, Noncurrent | $ | $ 313,066 | $ 312,289 | |
Wenzhou Longlian Development Co., Ltd. [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 2.0833% | ||
Equity Method Investments | ¥ | ¥ 2,083,300 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | $ 7,911,720 | $ 1,662,160 |
HUANG Jian Cong [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | $ 7,911,720 | $ 1,662,160 |
RELATED PARTY TRANSACTIONS (D59
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |||
Proceeds from Related Party Debt | $ 6,051,523 | $ 1,485,555 | $ 2,034,454 |
ACCRUED EXPENSES AND OTHER CU60
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
VAT payable | $ 3,742,952 | $ 3,096,782 |
Other tax payables | 74,665 | 54,330 |
Other | 639,553 | 265,501 |
Total | $ 4,457,170 | $ 3,416,613 |
SHORT-TERM BANK BORROWINGS (Det
SHORT-TERM BANK BORROWINGS (Details) | 12 Months Ended | ||||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017CNY (¥) | Sep. 30, 2016CNY (¥) | ||||
Amount | $ 21,335,938 | $ 21,793,454 | ¥ 141,980,000 | ¥ 145,385,649 | |||
Agricultural Bank Loan One [Member] | |||||||
Amount | $ 838,530 | $ 935,382 | ¥ 5,580,000 | ¥ 6,240,000 | |||
Issuance Date | Jan. 13, 2017 | Dec. 16, 2015 | |||||
Expiration Date | Jan. 12, 2018 | Dec. 11, 2016 | |||||
Interest | 5.44% | 5.66% | 5.44% | 5.66% | |||
Agricultural Bank Loan Two [Member] | |||||||
Amount | $ 1,307,385 | $ 374,752 | ¥ 8,700,000 | ¥ 2,500,000 | |||
Issuance Date | Jan. 18, 2017 | Mar. 17, 2016 | |||||
Expiration Date | Jan. 17, 2018 | Mar. 16, 2017 | |||||
Interest | 5.66% | 4.57% | 5.66% | 4.57% | |||
Agricultural Bank Loan Three [Member] | |||||||
Amount | $ 864,076 | $ 1,049,307 | ¥ 5,750,000 | ¥ 7,000,000 | |||
Issuance Date | Aug. 17, 2017 | Apr. 7, 2016 | |||||
Expiration Date | Aug. 16, 2018 | Mar. 26, 2017 | |||||
Interest | 5.44% | 4.12% | 5.44% | 4.12% | |||
Agricultural Bank Loan Four [Member] | |||||||
Amount | $ 646,179 | $ 331,281 | ¥ 4,300,000 | ¥ 2,210,000 | |||
Issuance Date | Aug. 14, 2017 | Apr. 12, 2016 | |||||
Expiration Date | Aug. 13, 2018 | Apr. 11, 2017 | |||||
Interest | 5.44% | 4.51% | 5.44% | 4.51% | |||
Agricultural Bank Loan Five [Member] | |||||||
Amount | $ 901,646 | $ 599,604 | ¥ 6,000,000 | ¥ 4,000,000 | |||
Issuance Date | Sep. 22, 2017 | Jun. 2, 2016 | |||||
Expiration Date | Sep. 21, 2018 | May 26, 2017 | |||||
Interest | 5.65% | 4.65% | 5.65% | 4.65% | |||
Agricultural Bank Loan Six [Member] | |||||||
Amount | $ 930,198 | $ 305,798 | ¥ 6,190,000 | ¥ 2,040,000 | |||
Issuance Date | Dec. 16, 2016 | Jun. 13, 2016 | |||||
Expiration Date | Dec. 11, 2017 | Jun. 11, 2017 | |||||
Interest | 4.79% | 4.65% | 4.79% | 4.65% | |||
Agricultural Bank Loan Seven [Member] | |||||||
Amount | $ 1,502,743 | $ 404,733 | ¥ 10,000,000 | ¥ 2,700,000 | |||
Issuance Date | Jan. 10, 2017 | Jun. 16, 2016 | |||||
Expiration Date | Jan. 9, 2018 | Jun. 11, 2017 | |||||
Interest | 4.79% | 4.65% | 4.79% | 4.65% | |||
Minsheng Bank Loan One [Member] | |||||||
Amount | $ 653,693 | $ 749,505 | ¥ 4,350,000 | ¥ 5,000,000 | |||
Issuance Date | Jun. 30, 2017 | Mar. 8, 2016 | |||||
Expiration Date | Jun. 30, 2018 | Oct. 19, 2016 | |||||
Interest | 5.44% | 6.70% | 5.44% | 6.70% | |||
Minsheng Bank Loan Two [Member] | |||||||
Amount | $ 488,391 | $ 524,653 | ¥ 3,250,000 | ¥ 3,500,000 | |||
Issuance Date | Jun. 30, 2017 | Apr. 16, 2016 | |||||
Expiration Date | Jun. 30, 2018 | Apr. 11, 2017 | |||||
Interest | 5.44% | 5.00% | 5.44% | 5.00% | |||
Xingye Bank Loan One [Member] | |||||||
Amount | $ 976,783 | ¥ 6,500,000 | |||||
Issuance Date | Sep. 4, 2017 | ||||||
Expiration Date | Dec. 4, 2017 | ||||||
Interest | [1] | 6.50% | 6.50% | ||||
Zhejiang Commerce Bank Loan One [Member] | |||||||
Amount | $ 901,646 | $ 299,802 | ¥ 6,000,000 | ¥ 2,000,000 | |||
Issuance Date | Jul. 27, 2017 | Feb. 5, 2016 | |||||
Expiration Date | Apr. 20, 2018 | Feb. 4, 2017 | |||||
Interest | 7.50% | 6.00% | 7.50% | 6.00% | |||
Zhejiang Commerce Bank Loan Two [Member] | |||||||
Amount | $ 225,411 | $ 224,851 | ¥ 1,500,000 | ¥ 1,500,000 | |||
Issuance Date | Jul. 28, 2017 | Feb. 5, 2016 | |||||
Expiration Date | Apr. 20, 2018 | Feb. 4, 2017 | |||||
Interest | 7.50% | 6.00% | 7.50% | 6.00% | |||
Bank OF China Loan One [Member] | |||||||
Amount | $ 1,284,845 | $ 1,948,713 | ¥ 8,550,000 | ¥ 13,000,000 | |||
Issuance Date | Apr. 10, 2017 | Aug. 26, 2016 | |||||
Expiration Date | Mar. 29, 2018 | Apr. 8, 2017 | |||||
Interest | 4.79% | 4.79% | 4.79% | 4.79% | |||
Xingye Bank Loan Two [Member] | |||||||
Amount | $ 976,783 | ¥ 6,500,000 | |||||
Issuance Date | Sep. 5, 2017 | ||||||
Expiration Date | Dec. 20, 2017 | ||||||
Interest | [1] | 6.50% | 6.50% | ||||
Zhejiang Commerce Bank Loan Three [Member] | |||||||
Amount | $ 1,577,880 | $ 224,851 | ¥ 10,500,000 | ¥ 1,500,000 | |||
Issuance Date | Jul. 28, 2017 | Feb. 6, 2016 | |||||
Expiration Date | Apr. 20, 2018 | Feb. 5, 2017 | |||||
Interest | 7.50% | 6.00% | 7.50% | 6.00% | |||
Pingan Bank Loan [Member] | |||||||
Amount | $ 1,196,183 | $ 1,199,210 | ¥ 7,960,000 | ¥ 8,000,000 | |||
Issuance Date | Sep. 27, 2017 | Mar. 3, 2016 | |||||
Expiration Date | Sep. 25, 2018 | Mar. 3, 2017 | |||||
Interest | 6.09% | [1] | 5.22% | 6.09% | [1] | 5.22% | |
China Merchants Bank Loan One [Member] | |||||||
Amount | $ 811,481 | ¥ 5,400,000 | |||||
Issuance Date | Dec. 20, 2016 | ||||||
Expiration Date | Dec. 11, 2017 | ||||||
Interest | 5.44% | 5.44% | |||||
China Merchants Bank Loan Two [Member] | |||||||
Amount | $ 900,143 | ¥ 5,990,000 | |||||
Issuance Date | Dec. 20, 2016 | ||||||
Expiration Date | Dec. 11, 2017 | ||||||
Interest | 5.44% | 5.44% | |||||
China Merchants Bank Loan Three [Member] | |||||||
Amount | $ 751,371 | ¥ 5,000,000 | |||||
Issuance Date | Dec. 20, 2016 | ||||||
Expiration Date | Dec. 11, 2017 | ||||||
Interest | 5.44% | 5.44% | |||||
China Merchants Bank Loan Four [Member] | |||||||
Amount | $ 61,612 | ¥ 410,000 | |||||
Issuance Date | Dec. 22, 2016 | ||||||
Expiration Date | Dec. 11, 2017 | ||||||
Interest | 5.52% | 5.52% | |||||
Bank OF China Loan Two [Member] | |||||||
Amount | $ 223,909 | ¥ 1,490,000 | |||||
Issuance Date | Apr. 10, 2017 | ||||||
Expiration Date | Mar. 29, 2018 | ||||||
Interest | 4.79% | 4.79% | |||||
Bank OF China Loan Three [Member] | |||||||
Amount | $ 414,757 | ¥ 2,760,000 | |||||
Issuance Date | Apr. 10, 2017 | ||||||
Expiration Date | Mar. 29, 2018 | ||||||
Interest | 4.79% | 4.79% | |||||
Xingye Bank Loan Three [Member] | |||||||
Amount | $ 751,371 | ¥ 5,000,000 | |||||
Issuance Date | Sep. 6, 2017 | ||||||
Expiration Date | Dec. 14, 2017 | ||||||
Interest | [1] | 6.50% | 6.50% | ||||
Agricultural Bank Loan Eight [Member] | |||||||
Amount | $ 861,931 | ¥ 5,750,000 | |||||
Issuance Date | Aug. 26, 2016 | ||||||
Expiration Date | Aug. 16, 2017 | ||||||
Interest | 5.22% | 5.22% | |||||
Agricultural Bank Loan Nine [Member] | |||||||
Amount | $ 644,574 | ¥ 4,300,000 | |||||
Issuance Date | Sep. 9, 2016 | ||||||
Expiration Date | Jul. 26, 2017 | ||||||
Interest | 5.06% | 5.06% | |||||
Agricultural Bank Loan Ten [Member] | |||||||
Amount | $ 899,406 | ¥ 6,000,000 | |||||
Issuance Date | Sep. 22, 2016 | ||||||
Expiration Date | Sep. 21, 2017 | ||||||
Interest | 5.00% | 5.00% | |||||
CMBC Loan One [Member] | |||||||
Amount | $ 1,139,248 | ¥ 7,600,000 | |||||
Issuance Date | May 25, 2016 | ||||||
Expiration Date | Nov. 22, 2016 | ||||||
Interest | 5.44% | 5.44% | |||||
CMBC Loan Two [Member] | |||||||
Amount | $ 809,465 | ¥ 5,400,000 | |||||
Issuance Date | Jun. 15, 2016 | ||||||
Expiration Date | Nov. 22, 2016 | ||||||
Interest | 5.66% | 5.66% | |||||
CMBC Loan Three [Member] | |||||||
Amount | $ 749,505 | ¥ 5,000,000 | |||||
Issuance Date | Jun. 17, 2016 | ||||||
Expiration Date | Nov. 22, 2016 | ||||||
Interest | 5.66% | 5.66% | |||||
Zhejiang Commerce Bank Loan Four [Member] | |||||||
Amount | $ 749,505 | ¥ 5,000,000 | |||||
Issuance Date | Mar. 2, 2016 | ||||||
Expiration Date | Mar. 1, 2017 | ||||||
Interest | 6.00% | 6.00% | |||||
Zhejiang Commerce Bank Loan Five [Member] | |||||||
Amount | $ 749,505 | ¥ 5,000,000 | |||||
Issuance Date | Mar. 7, 2016 | ||||||
Expiration Date | Mar. 6, 2017 | ||||||
Interest | 6.00% | 6.00% | |||||
Zhejiang Commerce Bank Loan Six [Member] | |||||||
Amount | $ 749,505 | ¥ 5,000,000 | |||||
Issuance Date | Mar. 9, 2016 | ||||||
Expiration Date | Mar. 8, 2017 | ||||||
Interest | 6.00% | 6.00% | |||||
Industrial Bank Loan One [Member] | |||||||
Amount | $ 971,549 | ¥ 6,481,268 | |||||
Issuance Date | Sep. 25, 2015 | ||||||
Expiration Date | [2] | Sep. 23, 2016 | |||||
Interest | 7.00% | 7.00% | |||||
Industrial Bank Loan Two [Member] | |||||||
Amount | $ 974,356 | ¥ 6,500,000 | |||||
Issuance Date | Sep. 25, 2015 | ||||||
Expiration Date | [2] | Sep. 25, 2016 | |||||
Interest | 7.00% | 7.00% | |||||
Minsheng Bank Loan Three [Member] | |||||||
Amount | $ 809,465 | ¥ 5,400,000 | |||||
Issuance Date | Apr. 8, 2016 | ||||||
Expiration Date | Apr. 8, 2017 | ||||||
Interest | 5.00% | 5.00% | |||||
Agricultural Bank Loan Eleven [Member] | |||||||
Amount | $ 294,463 | ¥ 1,964,381 | |||||
Issuance Date | Dec. 31, 2015 | ||||||
Expiration Date | [2] | Sep. 11, 2016 | |||||
Interest | 5.79% | 5.79% | |||||
Bank of Communications Loan One [Member] | |||||||
Amount | $ 450,823 | $ 749,505 | ¥ 3,000,000 | ¥ 5,000,000 | |||
Issuance Date | May 10, 2017 | May 20, 2016 | |||||
Expiration Date | Nov. 13, 2017 | May 20, 2017 | |||||
Interest | 7.60% | 6.53% | 7.60% | 6.53% | |||
Bank of Communications Loan Two [Member] | |||||||
Amount | $ 450,823 | $ 749,505 | ¥ 3,000,000 | ¥ 5,000,000 | |||
Issuance Date | Apr. 18, 2017 | May 23, 2016 | |||||
Expiration Date | Nov. 13, 2017 | May 23, 2017 | |||||
Interest | 7.12% | 7.60% | 7.12% | 7.60% | |||
Bank of Communications Loan Three [Member] | |||||||
Amount | $ 450,823 | $ 719,525 | ¥ 3,000,000 | ¥ 4,800,000 | |||
Issuance Date | Apr. 14, 2017 | May 24, 2016 | |||||
Expiration Date | Nov. 13, 2017 | May 24, 2017 | |||||
Interest | 6.30% | 7.60% | 6.30% | 7.60% | |||
Bank of Communications Loan Four [Member] | |||||||
Amount | $ 450,823 | ¥ 3,000,000 | |||||
Issuance Date | Apr. 19, 2017 | ||||||
Expiration Date | Nov. 13, 2017 | ||||||
Interest | 7.60% | 7.60% | |||||
Bank of Communications Loan Five [Member] | |||||||
Amount | $ 345,630 | ¥ 2,300,000 | |||||
Issuance Date | May 11, 2017 | ||||||
Expiration Date | Nov. 13, 2017 | ||||||
Interest | 7.60% | 7.60% | |||||
[1] | These short-term borrowings were subject to variable interest rates, which are determined by the issuing banks with prime rate plus 1.79 - 2.2% on monthly or quarterly basis. The variable interest rates quoted in the table above were effective for the period ended September 30, 2017. | ||||||
[2] | The Company paid off these short-term bank borrowings in October 2016. |
SHORT-TERM BANK BORROWINGS (D62
SHORT-TERM BANK BORROWINGS (Details 1) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument, Collateral Amount | $ 4,350,275 | $ 4,476,288 |
Buildings, net | ||
Debt Instrument, Collateral Amount | 3,611,529 | 3,704,284 |
Land use rights, net | ||
Debt Instrument, Collateral Amount | 457,391 | 468,148 |
Machinery, net | ||
Debt Instrument, Collateral Amount | $ 281,355 | $ 303,856 |
SHORT-TERM BANK BORROWINGS (D63
SHORT-TERM BANK BORROWINGS (Details Textual) | Sep. 30, 2017 |
Minimum [Member] | |
Short-term Debt, Percentage Bearing Variable Interest Rate | 1.79% |
Maximum [Member] | |
Short-term Debt, Percentage Bearing Variable Interest Rate | 2.20% |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016CNY (¥) | |
Notes Payable, Current | $ 3,897,426 | $ 0 | ¥ 26,000,000 |
Agricultural Bank Loan One [Member] | |||
Notes Payable, Current | $ 599,604 | 4,000,000 | |
Notes Payable Issuance Date | Jun. 21, 2016 | ||
Notes Payable Expiration Date | Dec. 21, 2016 | ||
Debt Instrument, Description | Bank Acceptance Bill | ||
Agricultural Bank Loan Two [Member] | |||
Notes Payable, Current | $ 1,049,307 | 7,000,000 | |
Notes Payable Issuance Date | Aug. 4, 2016 | ||
Notes Payable Expiration Date | Feb. 4, 2017 | ||
Debt Instrument, Description | Bank Acceptance Bill | ||
Foshan Ruigangda Trading Co., Ltd Loan One [Member] | |||
Notes Payable, Current | $ 749,505 | 5,000,000 | |
Notes Payable Issuance Date | Jul. 12, 2016 | ||
Notes Payable Expiration Date | Jan. 10, 2017 | ||
Debt Instrument, Description | Bank Acceptance Bill | ||
Foshan Ruigangda Trading Co., Ltd Loan Two [Member] | |||
Notes Payable, Current | $ 749,505 | 5,000,000 | |
Notes Payable Issuance Date | Aug. 9, 2016 | ||
Notes Payable Expiration Date | Feb. 28, 2017 | ||
Debt Instrument, Description | Bank Acceptance Bill | ||
Zhejiang Zhengkang Industrial Co., Ltd. Loan [Member] | |||
Notes Payable, Current | $ 749,505 | ¥ 5,000,000 | |
Notes Payable Issuance Date | Sep. 28, 2016 | ||
Notes Payable Expiration Date | Mar. 27, 2017 | ||
Debt Instrument, Description | Letter of Credit |
UNCERTAIN TAX POSITION (Details
UNCERTAIN TAX POSITION (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income Tax Expense (Benefit), Continuing Operations | $ 6,817,587 | $ 5,163,716 |
Taxes Payable, Current | 3,074,635 | $ 2,066,934 |
Domestic Tax Authority [Member] | ||
Taxes Payable, Current | $ 6,817,587 |
CUSTOMER AND SUPPLIER CONCENT66
CUSTOMER AND SUPPLIER CONCENTRATION (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Concentration Risk [Line Items] | |||
Accounts Payable, Trade, Current | $ 9,139,161 | $ 654,014 | $ 2,038,575 |
Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Accounts Payable, Trade, Current | $ 3,459,882 | $ 3,914,528 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14.90% | 15.30% | |
Customer Concentration Risk [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Supplier Concentration Risk [Member] | Trade Payable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 63.50% | 67.20% | 63.90% |
STOCKHOLDERS_ EQUITY (Details T
STOCKHOLDERS’ EQUITY (Details Textual) | Sep. 01, 2017USD ($)$ / sharesshares | May 25, 2016CNY (¥) | Oct. 12, 2015 | Sep. 30, 2017USD ($)$ / sharesshares | May 31, 2017USD ($)$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 19, 2016$ / sharesshares | Jun. 28, 2016CNY (¥) | Jun. 21, 2016CNY (¥) | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($) | May 24, 2016CNY (¥) |
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 68.90% | |||||||||||||
Stockholders' Equity, Period Increase (Decrease) | ¥ | ¥ 10,000,000 | |||||||||||||
Total stockholders' equity | ¥ 30,000,000 | $ 21,216,918 | $ 21,216,918 | $ 9,489,994 | ¥ 20,000,000 | |||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 1 | |||||||||||||
Stockholders' Equity Note, Stock Split | a 180 for 1 forward stock split whereby every authorized, issued and outstanding ordinary shares was exchanged for 180 new ordinary shares | |||||||||||||
Common Stock, Shares Authorized | shares | 50,000,000 | 9,000,000 | 50,000,000 | 50,000,000 | ||||||||||
Stock Issued During Period, Value, New Issues | $ 5,582,099 | |||||||||||||
Number Of Warrants Issued | shares | 74,784 | |||||||||||||
Warrants Issued Percentage | 7.00% | |||||||||||||
Class of Warrants Or Right, Expiration Term | 5 years | 5 years | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 5 | |||||||||||||
Class of Warrant or Right, Outstanding | shares | 74,784 | 74,784 | ||||||||||||
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 438,234 | $ 438,234 | ||||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 2.00% | |||||||||||||
Fair Value Assumptions, Expected Term | 5 years | |||||||||||||
Fair Value Assumptions, Exercise Price | $ / shares | $ 5 | $ 5 | ||||||||||||
Fair Value Assumptions, Expected Volatility Rate | 67.40% | |||||||||||||
Fair Value Assumption, Number Of Tree Step | 10 | |||||||||||||
Fair Value Assumptions, Expected Dividend Payments | $ / shares | $ 0 | |||||||||||||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 1,173,363 | $ 1,173,363 | $ 579,994 | |||||||||||
Net loss | 5,933,688 | 5,302,691 | $ 5,008,681 | |||||||||||
Retained Earnings, Appropriated | $ 3,974,140 | 3,974,140 | 3,380,771 | 2,750,777 | ||||||||||
Retained Earnings, Appropriated [Member] | ||||||||||||||
Stock Issued During Period, Value, New Issues | 0 | |||||||||||||
Net loss | $ 593,369 | $ 579,994 | $ 0 | |||||||||||
Maximum [Member] | ||||||||||||||
Statutory Surplus Reserves Percentage | 50.00% | 50.00% | ||||||||||||
Minimum [Member] | ||||||||||||||
Statutory Surplus Reserves Percentage | 10.00% | 10.00% | ||||||||||||
Private Placement [Member] | ||||||||||||||
Proceeds from Issuance of Private Placement | $ 1,000,000 | $ 1,000,000 | $ 300,000 | |||||||||||
Stock Issued During Period, Shares, New Issues | shares | 500,000 | 1,000,000 | 1,500,000 | |||||||||||
Shares Issued, Price Per Share | $ / shares | $ 2 | $ 1 | $ 0.20 | |||||||||||
Payments of Stock Issuance Costs | $ 70,000 | $ 70,000 | $ 21,000 | |||||||||||
Placement Agent Fee Percentage | 7.00% | 7.00% | 7.00% | |||||||||||
IPO [Member] | ||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 1,068,346 | |||||||||||||
Shares Issued, Price Per Share | $ / shares | $ 5 | |||||||||||||
Stock Issued During Period, Value, New Issues | $ 5,300,000 | |||||||||||||
Proceeds from Issuance Initial Public Offering | $ 3,400,000 | |||||||||||||
HUANG Jian Cong [Member] | ||||||||||||||
Proceeds from Contributed Capital | ¥ | ¥ 100,000 | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||||||||
HUANG Jian Cong [Member] | Subsidiary One [Member] | ||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 45.00% | 31.00% | ||||||||||||
WANG Ming Jie [Member] | Subsidiary One [Member] | ||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | 13.80% | ||||||||||||
WANG Guo Lin [Member] | Subsidiary One [Member] | ||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | 13.80% | ||||||||||||
WANG Jian Di [Member] | Subsidiary One [Member] | ||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 10.00% | 6.90% | ||||||||||||
WANG Yang Ming [Member] | Subsidiary One [Member] | ||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 5.00% | 3.40% | ||||||||||||
Wenzhou Weijia [Member] | ||||||||||||||
Proceeds from Contributed Capital | ¥ | ¥ 9,900,000 | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 99.00% | 99.00% | ||||||||||||
ZK International [Member] | Subsidiary Two [Member] | ||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | 100.00% |
SEGMENT REPORTING (Details Text
SEGMENT REPORTING (Details Textual) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
CHINA | |||
Concentration Risk, Percentage | 90.00% | 90.00% | 90.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Provision for income tax for the period | $ 1,030,858 | $ 1,200,010 | $ 1,053,132 |
Income tax benefit | (35,853) | (94,570) | (101,015) |
Total | $ 995,005 | $ 1,105,440 | $ 952,117 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Bad debt allowance recorded for accounts receivable | $ 272,557 | $ 247,227 | $ 152,657 |
Total | $ 272,557 | $ 247,227 | $ 152,657 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Current | $ 1,019,147 | $ 1,209,114 | $ 1,055,883 |
Deferred | (24,142) | (103,673) | 0 |
Total | $ 995,005 | $ 1,105,440 | $ 952,117 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income before taxes excluded the amounts of loss incurring entities | $ 7,178,353 | $ 6,656,140 | $ 6,197,299 |
PRC EIT tax rates | 15.00% | 15.00% | 15.00% |
Tax at the PRC EIT tax rates | $ 1,076,753 | $ 998,421 | $ 929,595 |
Tax effect of 50% R&D expenses deduction | (99,833) | 97,652 | 69,621 |
Tax effect of deferred tax recognized | (24,142) | (103,673) | (103,766) |
Tax effect of non-deductible expenses | 42,227 | 113,040 | 56,667 |
Income tax expenses | $ 995,005 | $ 1,105,440 | $ 952,117 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15.00% | 15.00% | 15.00% |
State Administration of Taxation, China [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | ||
State Administration of Taxation, China [Member] | Zhengkang [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15.00% | ||
State Administration of Taxation, China [Member] | Zhengfeng and Weijia [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | ||
Inland Revenue, Hong Kong [Member] | ZK Pipe Industry Co [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% |
CONDENSED FINANCIAL INFORMATI74
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | May 25, 2016CNY (¥) | May 24, 2016CNY (¥) | Oct. 12, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
ASSETS | |||||||
Cash and cash equivalents | $ 11,278,475 | $ 123,649 | $ 626,791 | $ 977,455 | |||
Total assets | 61,173,069 | 45,550,956 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Total liabilities | 39,806,123 | 35,972,034 | |||||
Equity | |||||||
Common stock, $0.001 par value, 50,000,000 shares authorized, 13,068,346 and 9,000,000 shares issued and outstanding, respectively | 0 | 0 | |||||
Additional paid-in capital | 8,382,876 | 2,800,777 | |||||
Retained earnings | 10,978,891 | 5,697,984 | |||||
Total stockholders' equity | 21,216,918 | 9,489,994 | ¥ 30,000,000 | ¥ 20,000,000 | |||
Total liabilities and stockholders’ equity | 61,173,069 | 45,550,956 | |||||
Parent Company [Member] | |||||||
ASSETS | |||||||
Cash and cash equivalents | 55 | 0 | $ 0 | $ 0 | |||
Due from related parties | 0 | 50,000 | $ 50,000 | ||||
Investment in ZK Pipe | 5,581,999 | 0 | |||||
Total assets | 5,582,054 | 50,000 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Total liabilities | 0 | 0 | |||||
Equity | |||||||
Common stock, $0.001 par value, 50,000,000 shares authorized, 13,068,346 and 9,000,000 shares issued and outstanding, respectively | 0 | 0 | |||||
Additional paid-in capital | 5,582,099 | 50,000 | |||||
Retained earnings | (45) | 0 | |||||
Total stockholders' equity | 5,582,054 | 50,000 | |||||
Total liabilities and stockholders’ equity | $ 5,582,054 | $ 50,000 |
CONDENSED FINANCIAL INFORMATI75
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 19, 2016 | Sep. 30, 2016 |
Common Stock, Par or Stated Value Per Share | $ 1 | ||
Common Stock, Shares Authorized | 50,000,000 | 9,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 13,068,346 | 9,000,000 | |
Common Stock, Shares, Outstanding | 13,068,346 | 9,000,000 | |
Parent Company [Member] | |||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 1 | $ 0.001 |
Common Stock, Shares Authorized | 50,000,000 | 9,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 13,068,346 | 9,000,000 | |
Common Stock, Shares, Outstanding | 13,068,346 | 9,000,000 |
CONDENSED FINANCIAL INFORMATI76
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 1) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating expenses: | |||
General and administrative expenses | $ 1,782,318 | $ 1,599,743 | $ 1,046,652 |
Total operating expenses | 5,028,556 | 3,859,755 | 2,566,822 |
Net loss and comprehensive loss | $ 5,874,276 | $ 5,249,537 | $ 5,008,681 |
Weighted average number of common shares outstanding - basic | 10,970,000 | 9,000,000 | 9,000,000 |
Weighted average number of common shares outstanding - diluted | 10,973,674 | 9,000,000 | 9,000,000 |
Parent Company [Member] | |||
Operating expenses: | |||
General and administrative expenses | $ 45 | $ 0 | $ 0 |
Total operating expenses | 45 | 0 | 0 |
Net loss and comprehensive loss | $ (45) | $ 0 | $ 0 |
Net loss per common share - basic and diluted | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic | 10,970,000 | 9,000,000 | 9,000,000 |
Weighted average number of common shares outstanding - diluted | 10,973,674 | 9,000,000 | 9,000,000 |
CONDENSED FINANCIAL INFORMATI77
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 2) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities: | |||
Net loss | $ 5,933,688 | $ 5,302,691 | $ 5,008,681 |
Net cash used in operating activities | 1,146,282 | (1,201,109) | (2,780,259) |
Cash flows provided by financing activities | |||
Cash received from Share Issuances | 5,582,099 | 0 | 0 |
Cash flows used in financing activities | |||
Increase in cash and cash equivalents | 11,154,826 | (503,142) | (350,664) |
Cash and cash equivalents at the beginning of year | 123,649 | 626,791 | 977,455 |
Cash and cash equivalents at the end of year | 11,278,475 | 123,649 | 626,791 |
Supplemental Cash Flows Information: | |||
Income tax paid | 54,215 | 108,825 | 49,543 |
Interest paid | 1,233,066 | 939,914 | 1,272,903 |
Parent Company [Member] | |||
Cash Flows from Operating Activities: | |||
Net loss | (45) | 0 | 0 |
Net cash used in operating activities | (45) | 0 | 0 |
Cash flows provided by financing activities | |||
Cash received from Share Issuances | 5,582,099 | 0 | 0 |
Net cash provided by financing activities | 5,582,099 | 0 | 0 |
Cash flows used in financing activities | |||
Cash invested to ZK Pipe | (5,581,999) | ||
Net cash used in financing activities | (5,581,999) | 0 | 0 |
Increase in cash and cash equivalents | 55 | 0 | 0 |
Cash and cash equivalents at the beginning of year | 0 | 0 | 0 |
Cash and cash equivalents at the end of year | 55 | 0 | 0 |
Supplemental Cash Flows Information: | |||
Income tax paid | 0 | 0 | 0 |
Interest paid | 0 | 0 | |
Non-cash investing and financing activities: | |||
Shares issued to founders | $ 0 | $ 0 | $ 50,000 |
CONDENSED FINANCIAL INFORMATI78
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details Textual) - USD ($) | Sep. 01, 2017 | Oct. 12, 2015 | Oct. 12, 2015 | May 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 19, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 68.90% | ||||||||
Common Stock, Par or Stated Value Per Share | $ 1 | ||||||||
Stockholders' Equity Note, Stock Split | a 180 for 1 forward stock split whereby every authorized, issued and outstanding ordinary shares was exchanged for 180 new ordinary shares | ||||||||
Common Stock, Shares Authorized | 9,000,000 | 50,000,000 | 50,000,000 | ||||||
Stock Issued During Period, Value, New Issues | $ 5,582,099 | ||||||||
Private Placement [Member] | |||||||||
Proceeds from Issuance of Private Placement | $ 1,000,000 | $ 1,000,000 | $ 300,000 | ||||||
Stock Issued During Period, Shares, New Issues | 500,000 | 1,000,000 | 1,500,000 | ||||||
Shares Issued, Price Per Share | $ 2 | $ 1 | $ 0.20 | ||||||
Payments of Stock Issuance Costs | $ 70,000 | $ 70,000 | $ 21,000 | ||||||
Placement Agent Fee Percentage | 7.00% | 7.00% | 7.00% | ||||||
IPO [Member] | |||||||||
Stock Issued During Period, Shares, New Issues | 1,068,346 | ||||||||
Shares Issued, Price Per Share | $ 5 | ||||||||
Stock Issued During Period, Value, New Issues | $ 5,300,000 | ||||||||
Proceeds from Issuance Initial Public Offering | $ 3,400,000 | ||||||||
Parent Company [Member] | |||||||||
Number Of Shares Transferred | 9,000,000 | ||||||||
Due from Related Parties | $ 50,000 | $ 50,000 | $ 0 | $ 50,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 0.001 | $ 0.001 | ||||||
Stockholders' Equity Note, Stock Split | a 180 for 1 forward stock split whereby every authorized, issued and outstanding ordinary shares was exchanged for 180 new ordinary shares | ||||||||
Common Stock, Shares Authorized | 9,000,000 | 50,000,000 | 50,000,000 | ||||||
Parent Company [Member] | Private Placement [Member] | |||||||||
Proceeds from Issuance of Private Placement | $ 1,000,000 | $ 1,000,000 | $ 300,000 | ||||||
Stock Issued During Period, Shares, New Issues | 500,000 | 1,000,000 | 1,500,000 | ||||||
Shares Issued, Price Per Share | $ 2 | $ 1 | $ 0.20 | ||||||
Payments of Stock Issuance Costs | $ 70,000 | $ 70,000 | $ 21,000 | ||||||
Placement Agent Fee Percentage | 7.00% | 7.00% | 7.00% | ||||||
Parent Company [Member] | HUANG Jian Cong [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 45.00% | ||||||||
Parent Company [Member] | WANG Ming Jie [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | ||||||||
Parent Company [Member] | WANG Guo Lin [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | ||||||||
Parent Company [Member] | WANG Jian Di [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 10.00% | ||||||||
Parent Company [Member] | WANG Yang Ming [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 5.00% | ||||||||
Parent Company [Member] | ZK International [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | ||||||||
Parent Company [Member] | ZK Pipe [Member] | |||||||||
Due from Related Parties | $ 5,581,999 | ||||||||
Holding One [Member] | HUANG Jian Cong [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 45.00% | 31.00% | |||||||
Holding One [Member] | WANG Ming Jie [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | 13.80% | |||||||
Holding One [Member] | WANG Guo Lin [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 20.00% | 13.80% | |||||||
Holding One [Member] | WANG Jian Di [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 10.00% | 6.90% | |||||||
Holding One [Member] | WANG Yang Ming [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 5.00% | 3.40% |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) | Jan. 09, 2018 | Dec. 28, 2017 | May 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jan. 18, 2018 |
XSigma Corporation [Member] | ||||||
Capital | $ 50,000 | |||||
Private Placement [Member] | ||||||
Shares Issued, Price Per Share | $ 2 | $ 1 | $ 0.20 | |||
Proceeds from Issuance of Private Placement | $ 1,000,000 | $ 1,000,000 | $ 300,000 | |||
Stock Issued During Period, Shares, New Issues | 500,000 | 1,000,000 | 1,500,000 | |||
Subsequent Event [Member] | Private Placement [Member] | ||||||
Shares Issued, Price Per Share | $ 8 | $ 6 | ||||
Proceeds from Issuance of Private Placement | $ 500,000 | $ 520,000 | ||||
Stock Issued During Period, Shares, New Issues | 62,500 | 86,666 | ||||
Bit Coin Proceeds From Sale Of Shares Under Private Placement | $ 34.123 |