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.

	Register		Ownership as of
Entity name	Location	Background	March 31, 2026
ZK International Group Co., Ltd. (“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	5.51% by Golden Hill Investment Management Co., Ltd. 5.92% by WANG Guo Lin

xSigma Collectibles Limited	BVI	- Incorporated on July 6, 2021 - Registered capital of USD 100, not paid - Principally operated in NFT (Non-Fungible Token) marketplace	100% by ZK International

XSigma Entertainment Limited	BVI	- Incorporated on March 17, 2021 - Registered capital of USD 50,000, not paid - A holding company that holds ownership in CG Malta, a sports betting and casino operator	100% by ZK International

Waterside Inc. Colorado, United States of America (“Waterside Colorado”)	USA	- Incorporated on September 22, 2022 - Principally operated	100% by ZK International

Zhengkang International Hong Kong Limited (“ZK Hong Kong”)	Hong Kong	- Incorporated on October 31, 2025	100% by Waterside Colorado

Shijiazhuang Zhongkang Technology Co.,Ltd (“Zhongkang Technology”)	People’s Republic of China	- Incorporated on November 19, 2025 - Registered capital of RMB 10,000,000, not paid -Principally operated in technology services, new energy business, etc.	100% by ZK Hong Kong

Shenzhen Likang Xinye Equipment Sales Co., Ltd (“Shenzhen Likang Xinye”)	People’s Republic of China	- Incorporated on February 26, 2026 - Registered capital of RMB 5,000,000, not paid -Principally operated in sales of electronic components, photovoltaic equipment and components, etc.	100% by Zhongkang Technology

Schedule of Property, Plant and Equipment, Useful Lives

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:

Category		Estimated useful lives
Computer		3 years

Schedule of Concentration of Sales Revenues

Disclosure of details regarding the Company’s four customers in respect of the concentration of sales revenues generated from third-party customers:

	For the six months ended
	March 31, 2026
Customer A		328,096	32.8	%
Customer B		343,824	34.3	%
Customer C		124,480	12.4	%
Customer D		205,026	20.5	%
Total		1,001,426	100.0	%

	For the six months ended
	March 31, 2026
Supplier A		262,783	26.5	%
Supplier B		340,227	34.3	%
Supplier C		135,924	13.7	%
Supplier D		124,603	12.6	%
Total		863,537	87.1	%

Schedules of Result of Discontinued Operations

Result of discontinued operations:

	For the Six months Ended
	March 31,			March 31,
	2026			2025
	$			$
Revenues		21,931,634			39,996,372
Cost of sales		19,455,086			37,810,270
Gross profit		2,476,548			2,186,102

Operating expenses:
Selling and marketing expenses		739,603			881,686
General and administrative expenses		1,423,256			1,122,590
Research and development costs		431,708			396,934
Total operating expenses		2,594,567			2,401,210

Loss from discontinued operations		(118,019	)		(215,108	)

Other income/(expenses):
Interest expenses		(192,901	)		(349,499	)
Interest income		4,859			4,052
Other income		234,509			46,574
Total other income (expenses), net		46,467			(298,873	)

Loss from discontinued operations before income taxes		(71,552	)		(513,982	)

Income tax expense		-			14,171

Net loss discontinued operations		(71,552	)		(528,153	)

	As of
	March 31,		September 30,
	2026		2025
	$		$
ASSETS
Current Assets
Cash and cash equivalents		2,692,810		2,305,332
Restrict cash		2,254,039		1,512,639
Account receivables, net:		25,116,333		23,088,679
Notes receivable		515,406		161,567
Prepayment, deposit and other receivable - current		3,171,612		2,658,258
Due from related parties		1,635,204		248,158
Inventories		13,015,037		13,079,177
Advance to suppliers		3,607,575		1,596,383
Total Current Assets		52,008,016		44,650,193
Non-Current Assets
Property, plant and equipment, net		7,741,474		7,806,396
Operating lease right-of-use assets		109,646		138,266
Long-term prepaid expenses		113,664		161,541
Intangible assets, net		1,128,939		1,172,324
Long-term accounts receivable		5,644,400		5,371,315
Total Non-Current Assets		14,738,123		14,649,842
Total Assets		66,746,139		59,300,035

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable		3,448,484		2,485,280
Accrued expenses and other current liabilities		4,600,333		4,298,084
Operating lease liability - current		27,690		52,483
Accrued payroll and welfare		2,886,616		2,730,888
Advance from customers		2,051,158		1,125,528
Due to related parties		13,482		13,064
Bank borrowings - current		13,482,169		12,072,623
Long-term Bank borrowings - current		2,645,694		3,945,077
Notes payables		4,698,062		81,037
Total Current Liabilities		33,853,688		26,804,064
Non-Current Liabilities
Lease liabilities		29,034		56,281
Other long-term borrowing loans		5,985,793		6,319,708
Total Non-Current Liabilities		6,014,827		6,375,989
Total Liabilities		39,868,515		33,180,053

	For the Six Months Ended
	March 31,			March 31,
	2026			2025
	$			$
Net cash provided by/(used in) discontinued operations		997,456			(1,476,599	)
Net cash provided by/(used in) from operating activities		3,370,083			(661,746	)
Net cash (used in)/provided by investing activities		(89,815	)		119,431
Net cash used in financing activities		(2,282,812	)		(934,284	)