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Jerash Holdings Announces Results of 2025 Annual Meeting of Stockholders
Accessnewswire· 2025-09-11 20:05
FAIRFIELD, NEW JERSEY / ACCESS Newswire / September 11, 2025 / Jerash Holdings (US), Inc. (Nasdaq:JRSH), which manufactures and exports custom, ready-made, sportswear and outerwear in Jordan for leading global brands, today announced the results of its annual meeting of stockholders, conducted on September 10, 2025: All five nominated directors submitted for stockholder approval were re-elected, including: Choi Lin Hung; Wei ("Kitty") Yang; Ibrahim H. Saif; Bill Korn; and Mak Chi Yan. ...
Jerash (US) (JRSH) 2025 Conference Transcript
2025-08-25 19:02
Summary of Jerash Holdings Conference Call Company Overview - Jerash Holdings is a contract manufacturer located in Jordan, specializing in high-quality apparel for premium global brands. The company operates six factories and produces over 20 million garments annually [4][5]. - The company has a history of strategic growth, including an IPO in 2018 and expansion into PPE manufacturing during the COVID-19 pandemic [6][7]. Customer Base and Sales Dynamics - In 2019, VF Corporation accounted for over 80% of Jerash's sales, primarily through brands like The North Face. As of the last fiscal year, this has decreased to 65%, with projections for the current year indicating a further decline to 54% [10][11]. - New Balance has grown to represent about 12% of sales, with expectations to increase to 14% [11]. Tariff and Competitive Advantages - Jordan's current tariff rate for apparel exports to the US is 15%, significantly lower than competitors like China (70%), Vietnam (38%), and India (64%) [14][15][16]. - Jordan has a duty-free agreement with the EU, allowing for zero tariffs on exports to European countries [18]. Operational Capabilities - Jerash is recognized for its ability to manufacture complex garments, such as jackets and outerwear, which require skilled labor and high-quality control [25][26]. - The company has recently partnered with a major Korean manufacturer, Hansel, to fulfill increased demand, which has fully booked their production capacity [28][30]. Capacity Expansion and Future Growth - All factories are fully booked until summer 2026, indicating strong demand for Jerash's products [34][35]. - The company is considering expanding its capacity through new facilities, with potential costs ranging from $20 million to $30 million for a new building, while a satellite factory in Al Hasa is expected to cost around $2 million [45][47]. Profitability and Capital Expenditure - The growth in production capacity is expected to lower unit costs, enhancing overall profitability [43]. - Minimal capital expenditure is planned for the current fiscal year, focusing on automation and internal expansions [44][45]. Strategic Focus - Jerash is currently prioritizing organic growth over mergers and acquisitions, although it remains open to opportunities if they arise [48]. - The company aims to diversify its geographical sales, with significant growth in the European market and plans to expand into the Middle East [50][51]. Conclusion - Jerash Holdings is well-positioned in the apparel manufacturing industry, leveraging competitive tariff advantages, a strong customer base, and operational capabilities to drive future growth. The focus on capacity expansion and strategic partnerships will be critical in meeting increasing demand and enhancing profitability.
Jerash Holdings(JRSH) - 2026 Q1 - Quarterly Report
2025-08-14 00:40
PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Jerash Holdings (US), Inc. and its subsidiaries, including balance sheets, statements of operations, changes in equity, and cash flows, along with detailed notes explaining the company's organization, accounting policies, and specific financial line items [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20(Unaudited)%20and%20March%2031%2C%202025) The balance sheet shows a slight decrease in total assets and total liabilities from March 31, 2025, to June 30, 2025. Cash significantly decreased, while accounts receivable increased, reflecting changes in operational cash management and collection timing | Metric | June 30, 2025 ($) | March 31, 2025 ($) | | :-------------------------- | :-------------- | :--------------- | | Total Assets | $81,739,077 | $82,975,526 | | Cash | $5,796,830 | $13,346,791 | | Accounts receivable, net | $9,979,463 | $3,076,074 | | Total Current Liabilities | $18,751,869 | $19,818,770 | | Total Equity | $62,789,975 | $62,869,109 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) The company reported a net profit of **$0.32 million** for the three months ended June 30, 2025, a significant improvement from a net loss of **$1.37 million** in the prior year. This turnaround was driven by a substantial increase in gross profit and a shift from operating loss to operating income, despite a slight decrease in overall revenue | Metric | 3 Months Ended June 30, 2025 ($) | 3 Months Ended June 30, 2024 ($) | Change (YoY) | | :------------------------------------------------- | :----------------------------- | :----------------------------- | :------------ | | Revenue, net | $39,629,308 | $40,935,716 | (3.2%) | | Cost of goods sold | $33,540,428 | $36,295,845 | (7.5%) | | Gross Profit | $6,088,880 | $4,639,871 | 31.2% | | Income (Loss) from Operations | $958,996 | $(828,808) | 215.6% | | Net profit (loss) | $323,630 | $(1,366,697) | 123.6% | | Basic and diluted EPS | $0.03 | $(0.11) | 127.3% | [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) Total equity experienced a minor decrease from March 31, 2025, to June 30, 2025, primarily influenced by dividend payments, which were partially offset by the net profit generated during the period and stock-based compensation expenses | Metric | June 30, 2025 ($) | March 31, 2025 ($) | | :------------------------------------------------- | :-------------- | :--------------- | | Total Equity | $62,789,975 | $62,869,109 | | Dividend payments (3 months ended June 30, 2025) | $(634,997) | N/A | | Net profit (loss) attributable to Common Stockholders (3 months ended June 30, 2025) | $318,676 | N/A | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) The company experienced a net decrease in cash and restricted cash of **$7.56 million** for the three months ended June 30, 2025, a significant increase from the **$1.06 million** decrease in the prior year. This was primarily driven by increased cash used in operating activities and investing activities, while financing activities shifted from providing cash to using cash | Metric | 3 Months Ended June 30, 2025 ($) | 3 Months Ended June 30, 2024 ($) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(6,478,515) | $(2,200,948) | | Net cash used in investing activities | $(714,919) | $(386,965) | | Net cash (used in) provided by financing activities | $(378,710) | $1,516,001 | | Net decrease in cash and restricted cash | $(7,562,415) | $(1,062,995) | | Cash and restricted cash, end of period | $7,501,624 | $12,973,872 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of the company's organizational structure, significant accounting policies, recent accounting pronouncements, and specific financial statement line items, offering crucial context for the condensed consolidated financial statements [NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS](index=9&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%20AND%20DESCRIPTION%20OF%20BUSINESS) Jerash Holdings (US), Inc. is a holding company with manufacturing and trading subsidiaries primarily in Jordan and Hong Kong, focused on producing customized ready-made sportswear and outerwear. The company is terminating operations for one joint venture (J&B) while planning a significant **$29.9 million** investment in a new fabric facility in Jordan through another joint venture (Jerash Newtech) - Jerash Holdings is a holding company; its subsidiaries are primarily in Jordan (manufacturing) and Hong Kong (support, trading, joint ventures), engaged in manufacturing and exporting customized ready-made sportswear and outerwear[19](index=19&type=chunk)[25](index=25&type=chunk)[30](index=30&type=chunk) - J&B International Limited (51% owned joint venture) approved termination of business operations and dissolution, expected to complete by April 2027[27](index=27&type=chunk) - Jerash Newtech (51% owned joint venture) plans to invest approximately **$29.9 million** to establish a fabric facility in Jordan[28](index=28&type=chunk) [NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=10&type=section&id=NOTE%202%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the company's accounting policies, including U.S. GAAP compliance, consolidation principles, and specific treatments for assets, liabilities, revenue, and expenses. It highlights the company's primary business as manufacturing outerwear and details exposure to credit, customer, and geopolitical risks, including a contingency plan for production relocation - The company's unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information[31](index=31&type=chunk) - Revenue is primarily derived from product sales of customized ready-made outerwear, with performance obligations typically satisfied upon shipment[49](index=49&type=chunk) - The company is exposed to credit risk from cash deposits in Jordan, China, and Hong Kong, and from accounts receivable[67](index=67&type=chunk) - Customer concentration: For the three months ended June 30, 2025, two customers accounted for **63%** and **12%** of total revenue, respectively[69](index=69&type=chunk) - Operational risks include political, economic, and legal environments in Jordan, foreign currency fluctuations, and recent conflicts in the Middle East. A contingency plan for production relocation is in place, approved by major customers, in case of port disruptions[71](index=71&type=chunk)[72](index=72&type=chunk) [NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS](index=19&type=section&id=NOTE%203%20%E2%80%93%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) The company is currently evaluating the potential impact of two new FASB ASUs: ASU 2023-09, which modifies income tax disclosures, and ASU 2024-03/2025-01, which requires disaggregation of income statement expenses - ASU 2023-09 (Income Taxes): Requires disaggregated effective tax rate reconciliation and income taxes paid information, effective for annual periods beginning after December 15, 2024[73](index=73&type=chunk) - ASU 2024-03/2025-01 (Expense Disaggregation): Requires disclosure of inventory purchases, employee compensation, depreciation, amortization, and depletion in expense captions, effective for annual periods beginning after December 15, 2026[74](index=74&type=chunk) [NOTE 4 – ACCOUNTS RECEIVABLE, NET](index=20&type=section&id=NOTE%204%20%E2%80%93%20ACCOUNTS%20RECEIVABLE%2C%20NET) Accounts receivable, net, significantly increased to **$9.98 million** as of June 30, 2025, from **$3.08 million** as of March 31, 2025, with no allowances for credit loss recorded in either period | Metric | As of June 30, 2025 ($) | As of March 31, 2025 ($) | | :------------------------ | :-------------------- | :-------------------- | | Trade accounts receivable | $9,979,463 | $3,076,074 | | Less: allowances for credit loss | - | - | | Accounts receivable, net | $9,979,463 | $3,076,074 | [NOTE 5 – INVENTORIES](index=20&type=section&id=NOTE%205%20%E2%80%93%20INVENTORIES) Total inventory slightly decreased to **$27.32 million** as of June 30, 2025, from **$27.70 million** as of March 31, 2025. This change was driven by a decrease in raw materials and work-in-progress, partially offset by an increase in finished goods, with **99.9%** of inventory backed by actual orders | Metric | As of June 30, 2025 ($) | As of March 31, 2025 ($) | | :---------------- | :-------------------- | :-------------------- | | Raw materials | $7,834,974 | $13,101,508 | | Work-in-progress | $2,116,717 | $2,888,090 | | Finished goods | $17,365,335 | $11,715,231 | | Total inventory | $27,317,026 | $27,704,829 | - As of June 30, 2025, **99.9%** of the company's inventory was arranged based on actual orders received[76](index=76&type=chunk) [NOTE 6 – ADVANCE TO SUPPLIERS, NET](index=20&type=section&id=NOTE%206%20%E2%80%93%20ADVANCE%20TO%20SUPPLIERS%2C%20NET) Advances to suppliers, net, increased to **$6.98 million** as of June 30, 2025, from **$6.64 million** as of March 31, 2025, with no allowances for impairment recorded in either period | Metric | As of June 30, 2025 ($) | As of March 31, 2025 ($) | | :--------------------- | :-------------------- | :-------------------- | | Advance to suppliers | $6,983,612 | $6,644,194 | | Less: allowances for impairment | - | - | | Advance to suppliers, net | $6,983,612 | $6,644,194 | [NOTE 7 – LEASES](index=21&type=section&id=NOTE%207%20%E2%80%93%20LEASES) The company maintains 37 operating leases for manufacturing facilities, offices, and staff dormitories. Both operating lease right-of-use assets and liabilities decreased from March 31, 2025, to June 30, 2025, with a weighted average remaining lease term of **1.4 years** and a discount rate of **6.25%** | Metric | As of June 30, 2025 ($) | As of March 31, 2025 ($) | | :-------------------------------- | :-------------------- | :-------------------- | | Operating lease right of use assets | $712,723 | $850,172 | | Total operating lease liabilities | $533,999 | $627,226 | | Weighted average remaining lease term | 1.4 years | 1.6 years | | Weighted average discount rate | 6.25% | 6.25% | - Total operating lease expenses were **$0.58 million** for the three months ended June 30, 2025, a decrease from **$0.65 million** for the same period in 2024[80](index=80&type=chunk) [NOTE 8 – PROPERTY, PLANT, AND EQUIPMENT, NET](index=22&type=section&id=NOTE%208%20%E2%80%93%20PROPERTY%2C%20PLANT%2C%20AND%20EQUIPMENT%2C%20NET) Property, plant, and equipment, net, slightly decreased to **$24.91 million** as of June 30, 2025, from **$25.02 million** as of March 31, 2025. Depreciation and amortization expenses increased year-over-year, reflecting ongoing asset utilization | Metric | As of June 30, 2025 ($) | As of March 31, 2025 ($) | | :-------------------------------- | :-------------------- | :-------------------- | | Property, plant, and equipment, net | $24,912,364 | $25,023,681 | - Depreciation and amortization expenses were **$0.74 million** for the three months ended June 30, 2025, compared to **$0.61 million** for the same period in 2024[82](index=82&type=chunk) [NOTE 9 – EQUITY](index=23&type=section&id=NOTE%209%20%E2%80%93%20EQUITY) The company had **12,699,940 shares** of common stock outstanding as of June 30, 2025. A cash dividend of **$0.05 per share** was declared and paid during the quarter. Jordanian and PRC subsidiaries are required to make appropriations to statutory reserves, which are not available for dividend distribution - Common stock outstanding: **12,699,940 shares** as of June 30, 2025, and March 31, 2025[85](index=85&type=chunk) - A cash dividend of **$0.05 per share** of common stock was declared on May 20, 2025, and paid in full on June 6, 2025, totaling **$0.63 million**[87](index=87&type=chunk) - Jordanian and PRC subsidiaries are required to make appropriations to statutory reserves, which are not available for dividend distribution[86](index=86&type=chunk) [NOTE 10 – STOCK-BASED COMPENSATION](index=24&type=section&id=NOTE%2010%20%E2%80%93%20STOCK-BASED%20COMPENSATION) As of June 30, 2025, the company had **150,000 fully vested stock options** and **907,840 Restricted Stock Units (RSUs)** outstanding. Total stock-based compensation expenses decreased significantly year-over-year, with **$1.57 million** in unrecognized RSU expenses remaining - Stock options outstanding: **150,000 shares** (fully vested) with a weighted average exercise price of **$6.25** and a weighted average remaining life of **3.5 years**[90](index=90&type=chunk) - RSUs outstanding: **907,840 shares** with a weighted average grant date fair value of **$3.00**[93](index=93&type=chunk) - Unrecognized stock-based compensation expenses for RSUs: **$1.57 million** to be recognized through March 2027[92](index=92&type=chunk) - Total stock-based compensation expenses: **$0.22 million** for the three months ended June 30, 2025, a **52% decrease** from **$0.47 million** in the same period in 2024[93](index=93&type=chunk) [NOTE 11 – RELATED PARTY TRANSACTIONS](index=25&type=section&id=NOTE%2011%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS) The company maintains consulting agreements with two related parties: Yukwise Limited (wholly owned by the CEO) and Multi-Glory Corporation Limited (wholly owned by a significant stockholder), each incurring **$75,000** in consulting fees for the quarter - Consulting fees to Yukwise Limited (wholly owned by the CEO): **$75,000** for the three months ended June 30, 2025 and 2024[95](index=95&type=chunk) - Consulting fees to Multi-Glory Corporation Limited (wholly owned by a significant stockholder): **$75,000** for the three months ended June 30, 2025 and 2024[96](index=96&type=chunk) [NOTE 12 – CREDIT FACILITIES](index=25&type=section&id=NOTE%2012%20%E2%80%93%20CREDIT%20FACILITIES) The company utilizes supply chain financing programs with customers for early payments, incurring early payment charges. It also has a **$5.0 million** banking facility with DBSHK, with **$4.77 million** outstanding as of June 30, 2025, at a weighted average interest rate of **5.7%** - Early payment charge from supply chain financing: **$0.29 million** for the three months ended June 30, 2025, a decrease from **$0.41 million** in the same period in 2024[97](index=97&type=chunk) - DBSHK facility outstanding: **$4.77 million** as of June 30, 2025, compared to **$4.51 million** as of March 31, 2025[99](index=99&type=chunk) - Weighted average interest rate on DBSHK facility: **5.7%** as of June 30, 2025, down from **6.3%** as of March 31, 2025[99](index=99&type=chunk) [NOTE 13 – NONCONTROLLING INTEREST](index=26&type=section&id=NOTE%2013%20%E2%80%93%20NONCONTROLLING%20INTEREST) The company holds a **51% equity interest** in J&B and Jerash Newtech. J&B's business operations are being terminated, while Jerash Newtech is a new joint venture for a fabric facility. Noncontrolling interest increased to **$57,735** as of June 30, 2025 - Noncontrolling interest: **$57,735** as of June 30, 2025, compared to **$22,860** as of June 30, 2024[33](index=33&type=chunk)[103](index=103&type=chunk) - J&B International Limited (51% owned) approved termination of business operations and dissolution, expected to complete by April 2027[104](index=104&type=chunk) - Net profit (loss) generated by J&B: **$11,160** for the three months ended June 30, 2025, a significant improvement from a net loss of **$(43,485)** in the same period in 2024[103](index=103&type=chunk) - Net profit (loss) generated by Jerash Newtech: **$(1,048)** for the three months ended June 30, 2025, compared to a net loss of **$(354)** in the same period in 2024[103](index=103&type=chunk) [NOTE 14 – EARNINGS (LOSS) PER SHARE](index=26&type=section&id=NOTE%2014%20%E2%80%93%20EARNINGS%20(LOSS)%20PER%20SHARE) Basic and diluted earnings per share for the three months ended June 30, 2025, was **$0.03**, a significant improvement from a loss of **$0.11** in the prior year, reflecting the company's return to profitability | Metric | 3 Months Ended June 30, 2025 ($) | 3 Months Ended June 30, 2024 ($) | | :------------------------------------------------- | :----------------------------- | :----------------------------- | | Net profit (loss) attributable to Common Stockholders | $318,676 | $(1,345,216) | | Basic and diluted earnings (loss) per share | $0.03 | $(0.11) | | Weighted Average Number of Shares (Basic & Diluted) | 12,699,940 | 12,294,840 | - **1,057,840 RSUs** and stock options were excluded from the EPS calculation for the three months ended June 30, 2025, as their inclusion would have been anti-dilutive[105](index=105&type=chunk) [NOTE 15 – SEGMENT REPORTING](index=27&type=section&id=NOTE%2015%20%E2%80%93%20SEGMENT%20REPORTING) The company operates as a single reportable segment, primarily manufacturing outerwear. Revenue decreased by **3%** year-over-year, with a notable shift in geographic sales: US sales decreased by **13%**, while sales to China and Hong Kong surged by **306%** - The company has one operating segment, primarily manufacturing outerwear, which accounted for approximately **81.7%** of total revenue for the three months ended June 30, 2025[109](index=109&type=chunk) | Region | 3 Months Ended June 30, 2025 (Amount) ($) | 3 Months Ended June 30, 2025 (%) | 3 Months Ended June 30, 2024 (Amount) ($) | 3 Months Ended June 30, 2024 (%) | Change (YoY) | | :------------------ | :------------------------------------ | :-------------------------------- | :------------------------------------ | :-------------------------------- | :------------ | | United States | $32,052,018 | 81% | $37,034,398 | 90% | (13)% | | China and Hong Kong | $6,126,728 | 15% | $1,509,561 | 4% | 306% | | Germany | $537,047 | 2% | $1,120,063 | 3% | (52)% | | Jordan | $455,745 | 1% | $740,257 | 2% | (38)% | | Others | $457,770 | 1% | $531,437 | 1% | (14)% | | Total | $39,629,308 | 100% | $40,935,716 | 100% | (3)% | - As of June 30, 2025, **75.6%** of long-lived assets were located in Jordan and **23.5%** in Hong Kong[110](index=110&type=chunk) [NOTE 16 – COMMITMENTS AND CONTINGENCIES](index=28&type=section&id=NOTE%2016%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) The company has a remaining capital contribution commitment of approximately **$0.6 million** to Jiangmen Treasure Success by December 31, 2029. Additionally, it is involved in a legal dispute concerning PPE products, where management, based on legal advice, believes the chance of loss is remote and thus no accrual has been made - Remaining capital contribution commitment to Jiangmen Treasure Success: HKD 5 million (approximately **$0.6 million**) by December 31, 2029[111](index=111&type=chunk) - Jerash Garments is appealing an adverse court ruling in a case claiming PPE product inconsistencies, despite having won a prior related case for collection of proceeds. Management, based on external legal advice, concluded the chance of loss is remote[113](index=113&type=chunk)[115](index=115&type=chunk) [NOTE 17 – INCOME TAX](index=30&type=section&id=NOTE%2017%20%E2%80%93%20INCOME%20TAX) Jordanian subsidiaries are subject to a **20% income tax rate** plus a **1% social contribution**. The company is also subject to the U.S. GILTI regime and has a **$0.42 million** Toll Charge payable within one year. The consolidated effective tax rate significantly increased to **50.4%** for the three months ended June 30, 2025 - Jordanian subsidiaries' income tax rate: **20%** plus a **1%** social contribution, effective January 1, 2024[117](index=117&type=chunk) - The company is subject to the U.S. Global Intangible Low-Taxed Income (GILTI) regime and has a **$0.42 million** Toll Charge payable within one year[118](index=118&type=chunk) - Consolidated effective tax rate: **50.4%** for the three months ended June 30, 2025, compared to **(8.9%)** for the same period in 2024[119](index=119&type=chunk) - Uncertain tax positions: **$0.18 million** as of June 30, 2025, with an estimated **$0.24 million** of unrecognized tax provision (including penalties and interest) potentially recognized in the next 12 months[119](index=119&type=chunk) [NOTE 18 – SUBSEQUENT EVENTS](index=30&type=section&id=NOTE%2018%20%E2%80%93%20SUBSEQUENT%20EVENTS) On August 8, 2025, the Board of Directors approved a dividend payment of **$0.05 per share** - Dividend payment approved: **$0.05 per share** on August 8, 2025[120](index=120&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition for the three months ended June 30, 2025. It details the results of operations, liquidity, capital resources, and critical accounting estimates, highlighting key drivers of financial changes and future outlook [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Revenue decreased by **3%** year-over-year to **$39.6 million**, mainly due to shipment delays caused by switching ports. However, gross profit increased by **31%** and gross profit margin improved to **15%** due to lower import logistic costs and better production planning. Net income significantly improved to **$0.3 million** from a net loss of **$1.4 million** in the prior year - Revenue decreased by approximately **$1.3 million**, or **3%**, to **$39.6 million** for the three months ended June 30, 2025, mainly due to delayed shipments from switching ports[128](index=128&type=chunk) | Metric | 3 Months Ended June 30, 2025 ($) | 3 Months Ended June 30, 2024 ($) | Change (YoY) | | :-------------------------------- | :----------------------------- | :----------------------------- | :------------ | | Gross profit | $6,089,000 | $4,640,000 | 31% | | Gross profit margin | 15% | 11% | +4 ppts | | Net income (loss) | $323,000 | $(1,367,000) | 124% | - The increase in gross profit margin was primarily driven by better execution of logistic and production plans with import sea routes resuming to Aqaba Port in Jordan, shortening lead times and lowering costs[137](index=137&type=chunk) | Customer | 3 Months Ended June 30, 2025 (Sales) ($) | 3 Months Ended June 30, 2025 (%) | | :--------------- | :----------------------------------- | :------------------------------- | | VF Corporation | $25,156,000 | 63% | | New Balance | $4,796,000 | 12% | | Suzhou Unitex | $3,781,000 | 10% | - The U.S. imposed a **10% baseline tariff** on imports from Jordan effective April 5, 2025, later modified to **15%** on July 31, 2025, which could impact customer demand[132](index=132&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and restricted cash decreased by **$7.56 million** to **$7.50 million** as of June 30, 2025, primarily due to increased accounts receivable from delayed shipments and higher cash used in operating activities. Despite this, the company maintains a strong current ratio of **2.8 to 1** and relies on dividends from subsidiaries and supply chain financing for liquidity | Metric | June 30, 2025 ($) | March 31, 2025 ($) | | :-------------------------- | :-------------- | :--------------- | | Cash and restricted cash | $7,501,624 | $15,064,039 | | Net cash used in operating activities (3 months) | $(6,478,515) | $(2,200,948) | | Current Assets | $53,362,531 | $54,420,209 | | Current Liabilities | $18,751,869 | $19,818,770 | | Current Ratio | 2.8 to 1 | 2.7 to 1 | - The decrease in cash was mainly due to more shipments completed at the end of June 2025, with receivables collected in early July 2025 through supply chain financing programs[143](index=143&type=chunk) - The company participates in supply chain financing programs with major customers to receive early payments for approved sales invoices, subject to early payment charges, enhancing liquidity without traditional bank financing[147](index=147&type=chunk) - As of June 30, 2025, **$4.8 million** was outstanding under the DBSHK banking facility[149](index=149&type=chunk) - Statutory reserves of **$0.4 million** as of June 30, 2025, represent **0.66%** of consolidated net assets and are not available for dividend distribution[160](index=160&type=chunk) [Capital Expenditures](index=36&type=section&id=Capital%20Expenditures) Capital expenditures increased to **$0.7 million** for the three months ended June 30, 2025, primarily for plant and machinery. The company projects significant future capital expenditures of **$1.3 million** for fiscal 2026 and **$7.8 million** for fiscal 2027 to enhance production capacity and construct new facilities, funded by operations - Capital expenditures were approximately **$0.7 million** for the three months ended June 30, 2025, compared to **$0.4 million** for the same period in 2024, mainly for purchases of plant and machinery[161](index=161&type=chunk) - Projected capital expenditures: approximately **$1.3 million** for fiscal year ending March 31, 2026, and **$7.8 million** for fiscal year ending March 31, 2027, for further enhancement of production capacity and construction of dormitory and production facilities[163](index=163&type=chunk) - The company completed a dormitory and dormitory kitchen in fiscal year 2025 with approximately **$10.6 million** in capital expenditures[162](index=162&type=chunk) [Off-balance Sheet Commitments and Arrangements](index=36&type=section&id=Off-balance%20Sheet%20Commitments%20and%20Arrangements) The company has not entered into any material off-balance sheet commitments or arrangements, including financial guarantees or derivative contracts indexed to its own shares - The company has not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties[164](index=164&type=chunk) - The company has not entered into any derivative contracts that are indexed to its own shares or not reflected in its consolidated financial statements[164](index=164&type=chunk) [Critical Accounting Estimates](index=37&type=section&id=Critical%20Accounting%20Estimates) The company prepares its financial statements in conformity with U.S. GAAP, which requires judgments and estimates. No material changes have been made to accounting estimates in the past two years, and no critical accounting estimates have been identified - No material changes were made to the accounting estimates and assumptions in the past two years[165](index=165&type=chunk) - The company has not identified any critical accounting estimates[165](index=165&type=chunk) [Recent Accounting Pronouncements](index=37&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 3 for a discussion of recent accounting pronouncements and their potential impact on the company's financial statements - Refer to Note 3—Recent Accounting Pronouncements in the notes to the unaudited condensed consolidated financial statements for a discussion of recent accounting pronouncements[166](index=166&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, Jerash Holdings (US), Inc. is not required to provide quantitative and qualitative disclosures about market risk - The company is not required to provide quantitative and qualitative disclosures about market risk as it is a smaller reporting company[167](index=167&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204%20Controls%20and%20Procedures) This section addresses the effectiveness of the company's disclosure controls and procedures and internal control over financial reporting. Management concluded that disclosure controls were ineffective as of June 30, 2025, due to IT general control deficiencies, with remediation efforts ongoing [Disclosure Controls and Procedures](index=37&type=section&id=Disclosure%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were ineffective as of June 30, 2025, primarily due to ineffective information technology general controls related to privileged user access and review. Remedial actions are in their preliminary stages and require further managerial review and fine-tuning - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were ineffective as of June 30, 2025[168](index=168&type=chunk) - The ineffectiveness was due to ineffective information technology general controls in the areas of privileged user access and the review of user access over certain information technology systems supporting financial reporting processes[169](index=169&type=chunk)[171](index=171&type=chunk) - Remedial actions have been implemented, including a comprehensive review and strengthening of user authorization, access log control, password control, and documentation for IT systems, but are still in preliminary stages[172](index=172&type=chunk) - Despite material weaknesses, management concluded that the unaudited condensed consolidated financial statements fairly present the company's financial position, results of operations, and cash flows[173](index=173&type=chunk) [Changes in Internal Control Over Financial Reporting](index=38&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) Other than ongoing remediation efforts related to disclosure controls and procedures, there were no material changes in the company's internal control over financial reporting during the quarter ended June 30, 2025 - No material changes in internal control over financial reporting during the quarter ended June 30, 2025, other than ongoing remediation efforts[174](index=174&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=39&type=section&id=Item%201%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings, although it anticipates being involved in legal actions in the ordinary course of business, which could potentially incur material expenses or adverse outcomes - The company is not currently involved in any material legal proceedings[176](index=176&type=chunk) - The company anticipates involvement in legal proceedings, claims, and litigation arising in the ordinary course of business[176](index=176&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A%20Risk%20Factors) As a smaller reporting company, Jerash Holdings (US), Inc. is not required to provide the information regarding risk factors - The company is not required to provide risk factor information as a smaller reporting company[177](index=177&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=39&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) There were no unregistered sales of equity securities, use of proceeds, or issuer purchases of equity securities to report during the period - None to report[178](index=178&type=chunk) [Defaults Upon Senior Securities](index=39&type=section&id=Item%203%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period - Not applicable[179](index=179&type=chunk) [Mine Safety Disclosures](index=39&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period - Not applicable[180](index=180&type=chunk) [Other Information](index=39&type=section&id=Item%205%20Other%20Information) There is no other information to report under this item for the reporting period - None to report[181](index=181&type=chunk) [Exhibits](index=39&type=section&id=Item%206%20Exhibits) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including corporate governance documents, employment contracts, various certifications (Sarbanes-Oxley Act), and Inline XBRL documents - Exhibits include Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Specimen Certificate for Common Stock, an Employment Contract, and certifications from principal executive and financial officers (pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002)[184](index=184&type=chunk) - Inline XBRL Instance Document and related taxonomy extension documents are also filed as exhibits[184](index=184&type=chunk) SIGNATURES [Signatures](index=41&type=section&id=Signatures) The Quarterly Report on Form 10-Q was duly signed on behalf of Jerash Holdings (US), Inc. by Gilbert K. Lee, Chief Financial Officer, on August 13, 2025 - The report was signed by Gilbert K. Lee, Chief Financial Officer (Principal Financial Officer), on behalf of Jerash Holdings (US), Inc[189](index=189&type=chunk) - Date of signing: August 13, 2025[188](index=188&type=chunk)
Jerash Holdings(JRSH) - 2026 Q1 - Earnings Call Transcript
2025-08-12 14:00
Financial Data and Key Metrics Changes - Revenue for the fiscal 2026 first quarter was $39.6 million, a slight decline from $40.9 million in the same quarter last year, primarily due to shipment delays [12] - Gross profit increased by 31.2% to $6.1 million from $4.6 million in the same quarter last year, with gross margin rising to 15.4% from 11.3% [12][13] - Operating income improved to $959,000 from an operating loss of $829,000 in the prior year quarter [13] - Net income for the fiscal 2026 first quarter was $324,000, recovering from a net loss of $1.4 million in the same quarter last year [14] - Cash and restricted cash totaled $7.5 million, with net working capital at $34.6 million [15] Business Line Data and Key Metrics Changes - The company successfully completed production of the first phase of a major order from a U.S.-based multinational retailer, indicating strong operational performance [5] - The expansion of manufacturing facilities in Amman was completed in June, with an estimated 15% increase in production capacity expected to contribute to performance starting in the second fiscal quarter [10][11] Market Data and Key Metrics Changes - The company is experiencing increased inquiries from global brands seeking to diversify their manufacturing away from Asia, particularly in light of the 15% U.S. tariff on products from Jordan [3][9] - Shipping logistics have improved significantly since mid-July 2025, allowing for more reliable shipping routes to support global customers [9] Company Strategy and Development Direction - The company is focused on diversifying its customer base and product mix to optimize production capacity and improve margins [10] - Future expansion plans are being evaluated, with a cautious approach due to geopolitical instability and tariff uncertainties [23][24] - The company aims to enhance operational efficiency while exploring larger-scale expansion plans for the coming year [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growing customer demand and the potential impacts of tariff changes and geopolitical instability [6] - The company is consulting with international tax experts to optimize its tax structure, which is currently affected by local taxes in Jordan and Hong Kong [14][36] Other Important Information - The company declared a quarterly regular dividend of $0.05 per share, payable on August 29, 2025 [17] - The company is booked through February 2026, with additional capacity expected to be gradually integrated [37] Q&A Session Summary Question: Are there now tariffs being paid for products from Jordan? - Yes, currently there is a 15% tariff [19] Question: Was there a sales shift from the first quarter into the second quarter? - Yes, a few orders were shifted to July, but it was not significant [21] Question: Can you provide details on longer-term expansion plans? - The company is planning a longer-term expansion but is cautious due to geopolitical uncertainties and tariffs, focusing on training new workers and expanding existing facilities for now [23][24] Question: Can you elaborate on the relationship with Hansel and order activity? - The company has secured two significant orders from Hansel, with ongoing discussions for further collaboration [28][29] Question: What is the effective tariff rate compared to other countries? - The current tariff for Jordan is 15%, which is competitive compared to other countries like Bangladesh and Vietnam [46][50] Question: How is the joint venture with Busana performing? - The joint venture has been terminated as the company can directly deal with customers [56]
Jerash Holdings(JRSH) - 2026 Q1 - Quarterly Results
2025-08-12 12:11
[Fiscal 2026 First Quarter Overview](index=1&type=section&id=Fiscal%202026%20First%20Quarter%20Overview) Jerash Holdings reported a significant turnaround in its fiscal 2026 first quarter, moving from operating and net losses to profits, driven by substantial increases in gross profit and margin [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Jerash Holdings reported a significant turnaround in its fiscal 2026 first quarter, moving from operating and net losses to profits, driven by substantial increases in gross profit and margin - Operating income increased to **$959,000**, from an operating loss of **$829,000** in the prior year quarter[7](index=7&type=chunk) - Net income increased to **$324,000** from a net loss of **$1.4 million** in the prior year quarter[7](index=7&type=chunk) Gross Profit and Gross Margin | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Gross Profit ($) | $6.1 million | $4.6 million | | Gross Margin (%) | 15.4% | 11.3% | - Gross profit increased **31.2 percent** to **$6.1 million**, from **$4.6 million** in the prior year quarter[7](index=7&type=chunk) - Gross margin improved **410 basis points** to **15.4 percent**, from **11.3 percent** in the prior year quarter[7](index=7&type=chunk) [Management Commentary and Strategic Updates](index=1&type=section&id=Management%20Commentary%20and%20Strategic%20Updates) The CEO highlighted growing customer demand, enhanced operating efficiency through reduced logistics costs and better production planning, and the successful completion of the first phase of a major order. The company also completed a 15% production capacity expansion - Growing customer demand as companies diversify manufacturing away from China and Southeast Asia[4](index=4&type=chunk) - Enhanced operating efficiency achieved through reduced logistics costs and minimal overtime, supported by improved production planning[4](index=4&type=chunk) - Successful completion of the first phase of a major initial order from a large U.S.-based multinational and omnichannel retailer, with shipments scheduled from September through February 2026[5](index=5&type=chunk) - Expansion of existing manufacturing facilities completed in June 2025, supporting an approximate **15 percent** increase in production capacity[6](index=6&type=chunk) - Facilities are fully booked through February 2026[8](index=8&type=chunk) [Business Outlook](index=1&type=section&id=Business%20Outlook) Jerash Holdings projects strong revenue and gross margin for the fiscal 2026 second quarter, driven by increased capacity and demand, while remaining cautious about potential impacts from tariffs and geopolitical instability - Revenue for the fiscal 2026 second quarter is expected to be approximately **$40 million-$42 million**[7](index=7&type=chunk) - Gross margin goal for fiscal 2026 second quarter is expected to be approximately **15-16 percent**[7](index=7&type=chunk) - Vigilance maintained regarding potential impacts of recent tariff changes and ongoing geopolitical instability in the region[8](index=8&type=chunk) [Detailed Financial Performance (Q1 Fiscal 2026)](index=2&type=section&id=Detailed%20Financial%20Performance%20%28Q1%20Fiscal%202026%29) This section details Jerash Holdings' Q1 FY2026 financial results, highlighting revenue, gross profit, operating expenses, net income, and balance sheet changes [Revenue and Gross Profit](index=2&type=section&id=Revenue%20and%20Gross%20Profit) Revenue experienced a slight decline due to shipment delays, but gross profit and gross margin significantly improved, primarily driven by enhanced logistics and production planning Revenue and Gross Profit Metrics | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Revenue ($) | $39.6 million | $40.9 million | | Gross Profit ($) | $6.1 million | $4.6 million | | Gross Margin (%) | 15.4% | 11.3% | - Slight decline in revenue primarily caused by customer shipments being redirected to Aqaba Port to avoid disruptions at Haifa Port, delaying several orders[9](index=9&type=chunk) - Increase in gross profit and margin was primarily driven by improved logistics and production planning, with the resumption of import sea routes through Aqaba Port, providing shorter lead times and lower transportation costs[10](index=10&type=chunk) [Operating Expenses and Income](index=2&type=section&id=Operating%20Expenses%20and%20Income) Operating expenses decreased due to lower stock-based compensation and reduced repair/maintenance costs, leading to a significant improvement from an operating loss to a profit Operating Expenses and Income Metrics | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Operating Expenses ($) | $5.1 million | $5.5 million | | Operating Income (Loss) ($) | $959,000 | $(829,000) | - Decrease in operating expenses primarily due to lower stock-based compensation expenses and reduced expenses on repair and maintenance[11](index=11&type=chunk) - Improvement in operating income mainly attributable to reduced import logistics costs, decreased overtime due to improved logistics and production planning, lower stock-based compensation expenses, and reduced spending on repairs and maintenance[12](index=12&type=chunk) [Net Income and EPS](index=2&type=section&id=Net%20Income%20and%20EPS) Total other expenses decreased due to lower interest rates and reduced supply chain financing usage. Despite higher income tax expenses, the company achieved a net profit of $324,000, or $0.03 per diluted share, a significant improvement from a net loss in the prior year Net Income and EPS Metrics | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Total Other Expenses ($) | $307,000 | $426,000 | | Income Tax Expenses ($) | $329,000 | $112,000 | | Net Income (Loss) ($) | $324,000 | $(1.4 million) | | Diluted EPS ($) | $0.03 | $(0.11) | - Total other expenses decreased primarily due to lower interest rates and a decline in supply chain financing program usage[13](index=13&type=chunk) [Balance Sheet, Cash Flow, and Dividends](index=2&type=section&id=Balance%20Sheet%2C%20Cash%20Flow%2C%20and%20Dividends) As of June 30, 2025, cash and restricted cash totaled $7.5 million, with net working capital at $34.6 million. Cash was reduced due to delayed order shipments. The board approved a regular quarterly dividend of $0.05 per share Balance Sheet Metrics | Metric | As of June 30, 2025 | | :--- | :--- | | Cash and restricted cash ($) | $7.5 million | | Net working capital ($) | $34.6 million | - Cash was reduced at quarter-end due to orders shipping later than expected and payments not received until the start of the following quarter[15](index=15&type=chunk) - Jerash's board of directors approved a regular quarterly dividend of **$0.05 per share** on its common stock, payable on August 29, 2025[15](index=15&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section provides the unaudited condensed consolidated statements of operations, balance sheets, and cash flows for the reported periods [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) This section presents the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the three months ended June 30, 2025, and June 30, 2024, detailing revenue, cost of goods sold, gross profit, operating expenses, income/loss from operations, other income/expenses, net profit/loss, and earnings per share Statements of Operations and Comprehensive Income (Loss) | | For the Three Months Ended June 30, 2025 ($) | For the Three Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | | Revenue, net | $ 39,629,308 | $ 40,935,716 | | Cost of goods sold | 33,540,428 | 36,295,845 | | Gross Profit | 6,088,880 | 4,639,871 | | Selling, general, and administrative expenses | 4,907,215 | 4,999,744 | | Stock-based compensation expenses | 222,669 | 468,935 | | Total Operating Expenses | 5,129,884 | 5,468,679 | | Income (Loss) from Operations | 958,996 | (828,808) | | Interest expenses | (355,848) | (480,203) | | Other income, net | 49,314 | 54,035 | | Total other expenses, net | (306,534) | (426,168) | | Net profit (loss) before provision for income taxes | 652,462 | (1,254,976) | | Income tax expenses | 328,832 | 111,721 | | Net profit (loss) | 323,630 | (1,366,697) | | Net (profit) loss attributable to noncontrolling interest | (4,954) | 21,481 | | Net profit (loss) attributable to Jerash Holdings (US), Inc.'s Common Stockholders | $ 318,676 | $ (1,345,216) | | Basic and diluted EPS | $ 0.03 | $ (0.11) | | Dividend per share | $ 0.05 | $ 0.05 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides the unaudited condensed consolidated balance sheets as of June 30, 2025, and March 31, 2025, detailing the company's assets, liabilities, and equity Consolidated Balance Sheets | | June 30, 2025 ($) | March 31, 2025 ($) | | :--- | :--- | :--- | | **ASSETS** | | | | Cash | $ 5,796,830 | $ 13,346,791 | | Accounts receivable, net | 9,979,463 | 3,076,074 | | Inventories | 27,317,026 | 27,704,829 | | Prepaid expenses and other current assets | 3,285,600 | 3,648,321 | | Advance to suppliers, net | 6,983,612 | 6,644,194 | | Total Current Assets | 53,362,531 | 54,420,209 | | Restricted cash - non-current | 1,704,794 | 1,717,248 | | Long-term deposits | 547,383 | 464,934 | | Property, plant, and equipment, net | 24,912,364 | 25,023,681 | | Goodwill | 499,282 | 499,282 | | Operating lease right of use assets | 712,723 | 850,172 | | Total Assets | $ 81,739,077 | $ 82,975,526 | | **LIABILITIES AND EQUITY** | | | | Credit facilities | $ 4,768,749 | $ 4,512,462 | | Accounts payable | 6,178,130 | 6,507,308 | | Accrued expenses | 3,655,643 | 4,342,436 | | Income tax payable - current | 1,414,329 | 1,305,386 | | Uncertain tax provision | 175,290 | 175,290 | | Other payables | 1,600,743 | 2,149,185 | | Deferred revenue | 622,099 | 487,004 | | Operating lease liabilities - current | 336,886 | 339,699 | | Total Current Liabilities | 18,751,869 | 19,818,770 | | Deferred tax liabilities, net | 120 | 120 | | Operating lease liabilities - non-current | 197,113 | 287,527 | | Total Liabilities | 18,949,102 | 20,106,417 | | Total Jerash Holdings (US), Inc. Stockholders' Equity | 62,732,240 | 62,816,328 | | Noncontrolling interest | 57,735 | 52,781 | | Total Equity | 62,789,975 | 62,869,109 | | Total Liabilities and Equity | $ 81,739,077 | $ 82,975,526 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows for the three months ended June 30, 2025, and June 30, 2024, detailing cash flows from operating, investing, and financing activities Consolidated Statements of Cash Flows | | For the Three Months Ended June 30, 2025 ($) | For the Three Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | | Net profit (loss) | $ 323,630 | $ (1,366,697) | | Net cash used in operating activities | (6,478,515) | (2,200,948) | | Net cash used in investing activities | (714,919) | (386,965) | | Net cash (used in) provided by financing activities | (378,710) | 1,516,001 | | Effect of exchange rate changes on cash and restricted cash | 9,729 | 8,917 | | Net decrease in cash and restricted cash | (7,562,415) | (1,062,995) | | Cash, and restricted cash, beginning of the period | 15,064,039 | 14,036,867 | | Cash, and restricted cash, end of the period | $ 7,501,624 | $ 12,973,872 | | Cash paid for interest | $ 355,848 | $ 480,203 | | Income tax paid | $ 219,889 | $ 726,177 | [Additional Information](index=3&type=section&id=Additional%20Information) This section provides supplementary details including company overview, conference call information, forward-looking statements disclaimer, and contact information [About Jerash Holdings (US), Inc.](index=3&type=section&id=About%20Jerash%20Holdings%20%28US%29%2C%20Inc.) Jerash Holdings (US), Inc. is a manufacturer and exporter of sportswear and outerwear for leading global brands, operating six factory units and four warehouses with approximately 6,000 employees - Jerash Holdings manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers[17](index=17&type=chunk) - Key brands served include The North Face, Timberland, Vans, New Balance, DKNY, Nautica, FootJoy, American Eagle, and Skechers[17](index=17&type=chunk) - The company's production facilities comprise six factory units and four warehouses, employing approximately **6,000 people**[17](index=17&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Jerash Holdings hosted an investor conference call on August 12, 2025, to discuss its fiscal 2026 first-quarter results, with details provided for phone access and webcast availability - Jerash Holdings hosted an investor conference call on August 12, 2025, at 9:00 a.m. Eastern Time[16](index=16&type=chunk) - A live and archived webcast is available online in the investor relations section of Jerash's website[16](index=16&type=chunk) [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section contains a standard disclaimer regarding forward-looking statements, noting that actual results may differ materially due to various risks and uncertainties, and the company does not undertake to update these statements - This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially[18](index=18&type=chunk) - Many factors could cause actual results to differ materially, including those risks described in filings made by Jerash with the U.S. Securities and Exchange Commission[18](index=18&type=chunk) - Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law[18](index=18&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) Contact details for investor relations are provided through PondelWilkinson Inc - Contact for investor relations: PondelWilkinson Inc., Judy Lin or Roger Pondel[19](index=19&type=chunk) - Phone: 310-279-5980; Email: jlin@pondel.com[19](index=19&type=chunk)
Jerash Holdings(JRSH) - 2025 Q4 - Annual Report
2025-06-25 22:10
Revenue and Sales Performance - Revenue for fiscal 2025 was $145.8 million, an increase of $28.6 million or 24% compared to $117.2 million in fiscal 2024[150]. - Sales to the U.S. increased by approximately 25% during fiscal 2025, driven by higher shipments to major customers[156]. - Aggregate sales to Jordan, China, Hong Kong, Germany, and other locations increased by 18% from approximately $14.7 million in fiscal 2024 to $17.2 million in fiscal 2025[157]. Cost and Profitability - Cost of goods sold increased by approximately $23.2 million to $123.5 million in fiscal 2025, with a decrease in the percentage of revenue to 85% from 86%[158]. - Gross profit margin improved to approximately 15% in fiscal 2025, up from 14% in fiscal 2024, due to better logistics and production planning[159]. - Selling, general, and administrative expenses rose by approximately 19% to $20.9 million in fiscal 2025, primarily due to higher shipment costs and increased share-based compensation[160]. - A net loss of $0.8 million was reported in fiscal 2025, an improvement from a net loss of $2.0 million in fiscal 2024[178]. Cash Flow and Liquidity - As of March 31, 2025, cash balance was approximately $13.3 million, up from $12.4 million as of March 31, 2024[167]. - Current ratio as of March 31, 2025, was approximately 2.7 to 1, down from 3.4 to 1 as of March 31, 2024[168]. - The company participated in supply chain financing programs, allowing for early payments on approved sales invoices, enhancing liquidity[170]. - Net cash provided by operating activities decreased to approximately $1.4 million in fiscal 2025 from $2.5 million in fiscal 2024, primarily due to lower operational efficiency[176]. - Cash and restricted cash at the end of fiscal 2025 totaled $15.1 million, an increase from $14.0 million at the end of fiscal 2024[175]. Investment and Capital Expenditures - Net cash used in investing activities was approximately $2.4 million in fiscal 2025, a decrease from $5.1 million in fiscal 2024, attributed to reduced capital expenditures for dormitory construction[176]. - Capital expenditures were approximately $2.4 million in fiscal 2025, down from $5.1 million in fiscal 2024, with significant investments in plant and machinery[183]. - Projected capital expenditures for fiscal years ending March 31, 2026 and 2027 are approximately $1.3 million and $7.8 million, respectively, aimed at enhancing production capacity[185]. Accounts Receivable and Financial Guarantees - Accounts receivable decreased by $2.4 million in fiscal 2025, contrasting with an increase of $3.0 million in fiscal 2024[178]. - The company has not entered into any financial guarantees or derivative contracts that are not reflected in its consolidated financial statements[186]. Statutory Reserve - The statutory reserve remained unchanged at $414,000 as of March 31, 2025, representing 0.66% of consolidated net assets of $62.9 million[182].
Jerash (US) (JRSH) Earnings Call Presentation
2025-06-25 16:02
Financial Performance & Outlook - FY2022 revenue reached $143.4 million with a gross margin of 19.1% and net income of $7.9 million, or $0.67 per share[16] - Q3 FY2023 revenue was $43.0 million with a gross margin of 13.5% and net income of $0.9 million, or $0.07 per share[16] - The company anticipates Q4 revenue to be between $26 million and $28 million, with a gross margin goal for FY2023 of 16-18%[16] - Jerash is operating at approximately 14 million pieces annual capacity as of March 31, 2022[19] Strategic Positioning & Growth - Jerash is the largest contract manufacturer of premium apparel brands in Jordan, operating six facilities near Amman[7] - The company has a workforce of over 5,500 employees, with 25% being local Jordanian and 75% being contracted workers from other countries[17] - Jerash is strategically positioned to capture greater opportunities in the region as apparel production moves to Jordan[11] - The company is expanding its global customer base, including its first European-based high-end apparel brand[10, 19] - Jerash is diversifying its product offerings, with pants & shorts accounting for 41%, jackets for 35%, crew neck & other for 17%, and polo shirts for 7% of total pieces sold in FY2022 (excluding PPE)[31] ESG & Operational Strengths - Jerash is recognized for its ESG responsibility, including supporting women in the supply chain and providing stable employment to Syrian refugees[26, 29] - The company is committed to environmental sustainability, including using solar energy, LED lighting, and environmentally friendly inks[29] - Jerash benefits from Jordan's low-cost, high-quality manufacturing economy and duty-free US and EU export agreements[22, 48] - The company is reducing revenue seasonality by balancing production capacity utilization, with 53% of revenue generated in the first half and 47% in the second half of FY2022[33]
Jerash Holdings(JRSH) - 2025 Q4 - Earnings Call Transcript
2025-06-23 14:02
Financial Data and Key Metrics Changes - Revenue for the fiscal 2025 fourth quarter increased by 35.6% to $29.3 million from $21.6 million in the same quarter last year [13] - Gross profit for the fiscal 2025 fourth quarter advanced nearly 250% to $5.2 million from $1.5 million in the same quarter of last year, with gross margin increasing to 17.9% from 7% [14] - Net loss was reduced to $144,000 or $0.01 per share for the fiscal 2025 fourth quarter from a net loss of $3.1 million or $0.25 per share in the same period last year [17] - Total revenue for fiscal 2025 reached a record high of $146 million [18] Business Line Data and Key Metrics Changes - The company is experiencing strong demand from existing customers and an increase in inquiries from new brands and large apparel manufacturers [4] - The joint venture with Brusena is being terminated due to limited progress, with a focus on diversifying the customer base and expanding the product mix [7] Market Data and Key Metrics Changes - Global brands are seeking manufacturing alternatives out of China and Southeast Asia due to tariff uncertainties, positioning the company favorably with its established operations in Jordan [6] - The company is actively collaborating with the Jordan Ministry of Labor to expand production capacity, targeting an increase of 5% to 10% [11] Company Strategy and Development Direction - The company aims to diversify its direct customer base and expand its product mix to increase year-round capacity utilization and reduce revenue seasonality [7] - A strategic collaboration with Hanseltexa, a major South Korean apparel group, has been secured, marking one of the largest initial orders in the company's history [5] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue remains affected by logistic disruptions due to geopolitical instability, with an estimated $3 million to $4 million in finished goods not shipped until early fiscal 2026 [4] - The company expects revenue for the fiscal 2026 first quarter to be approximately $38 million to $40 million, pending outbound shipping port conditions [18] Other Important Information - The Board of Directors approved a regular quarterly dividend of $0.05 per share payable on June 6, 2025 [19] - The company is exploring additional logistic channels to ensure reliable and timely deliveries amid ongoing geopolitical tensions [12] Q&A Session Summary Question: What are the incremental costs of moving ports from Haifa to the Jordanian port? - The cost to Aqaba is lower than transporting to Haifa, with truckload costs being approximately $1,200 to Aqaba compared to $3,200 to Haifa [21] Question: Are there any order cancellations or just timing issues? - No orders have been canceled; the situation is purely a timing issue due to congestion at Haifa [25] Question: What led to the decision to dissolve the Busana joint venture? - Limited progress in the joint venture and the ability to handle customers independently led to the decision to terminate it [27][28] Question: Can you elaborate on the new opportunity with Hansel? - Hansel is a major importer in South Korea and the number one supplier for Walmart, with plans to increase business through the company [32][36] Question: How are tariffs affecting sourcing decisions? - The tariff situation has prompted brands to seek alternative suppliers, increasing demand for the company's services [41][46] Question: What is the outlook for gross margins given the increased demand? - Gross margins are expected to improve as the company shifts to more FOB business, which typically yields higher margins [58][60] Question: How does the geopolitical situation affect long-term customer relationships? - Jordan is viewed as a safe and stable country, which reassures customers about the continuity of doing business [68] Question: How is the company managing supply chain risks? - The company has established multiple alternative routes for supplies and strengthened sourcing within the region to mitigate risks [73]
Jerash Holdings(JRSH) - 2025 Q4 - Earnings Call Transcript
2025-06-23 14:00
Financial Data and Key Metrics Changes - Revenue for the fiscal twenty twenty five fourth quarter increased by 35.6% to $29.3 million from $21.6 million in the same quarter last year [13] - Gross profit for the fiscal twenty twenty five fourth quarter advanced nearly 250% to $5.2 million from $1.5 million in the same quarter of last year, with gross margin increasing to 17.9% from 7% [14] - Net loss was reduced to $144,000 or $0.01 per share for the fiscal twenty twenty five fourth quarter from a net loss of $3.1 million or $0.25 per share in the same period last year [16] - Revenue for the fiscal year ended March 31, 2025, reached a record high of $146 million [17] Business Line Data and Key Metrics Changes - The company is experiencing strong demand from existing customers and an increase in inquiries from new brands and large apparel manufacturers [4] - The strategic collaboration with Hanseltexa is expected to enhance margins compared to traditional contract manufacturing [9] - The company plans to terminate the joint venture with Brusena due to limited progress and focus on diversifying its customer base [6] Market Data and Key Metrics Changes - Global brands are actively seeking manufacturing alternatives out of China and Southeast Asia due to tariff uncertainties, positioning the company favorably [6] - The company is well-positioned to meet growing demand supported by Jordan's free trade agreements with the EU, UK, and Canada [6] Company Strategy and Development Direction - The company aims to diversify its direct customer base and expand its product mix to increase year-round capacity utilization and reduce revenue seasonality [6] - Expansion at the existing manufacturing facility in Arman is expected to increase production capacity by approximately 15% starting in the second fiscal quarter [11] - The company is assessing long-term expansion plans for manufacturing and warehousing facilities on previously purchased land [11] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue remains affected by logistic disruptions due to geopolitical instability, particularly at Israel's Haifa Port [4] - The company expects revenue for the fiscal twenty twenty six first quarter to be approximately $38 million to $40 million, pending shipping conditions [17] - Management expressed confidence in maintaining healthy gross margins despite competitive pressures [56] Other Important Information - The Board of Directors approved a regular quarterly dividend of $0.05 per share payable on June 6, 2025 [18] Q&A Session Summary Question: Incremental costs of moving ports - The cost to transport goods to Aqaba is lower than to Haifa, with trucking costs being approximately 34-40% less [20][22] Question: Timing of orders and cancellations - There have been no order cancellations; the shifts in timing are due to congestion at Haifa [24][25] Question: Decision to dissolve the joint venture with Brusena - The joint venture was terminated due to limited progress, and the company can handle customers independently [26][27] Question: Impact of tariffs on sourcing - The urgency to find alternative suppliers has increased due to tariffs, with Jordan being a competitive option [41][42] Question: Long-term expansion plans - The company is holding off on new facilities due to geopolitical instability but will continue to explore options [48][49] Question: Concerns about geopolitical issues - Jordan is considered a safe and stable country, and customers have shown interest in visiting and working with the company [65][66] Question: Supply chain alternatives - The company has developed multiple routes for sourcing supplies and strengthened regional sourcing to mitigate past supply chain issues [70]
Jerash Holdings(JRSH) - 2025 Q4 - Annual Results
2025-06-23 12:05
Revenue Performance - Record annual revenue of $145.8 million, up 24.4% from the prior year[12] - Fiscal 2025 fourth quarter revenue rose by 35.6% to $29.3 million from $21.6 million in the same quarter last year[7] - Revenue for the fiscal 2026 first quarter is expected to be approximately $38-$40 million, pending outbound shipping port conditions[6] Profitability - Gross profit for fiscal 2025 fourth quarter advanced by nearly 250% to $5.2 million, with a gross margin increase to 17.9% from 7.0%[8] - Operating income improved to $434,000 for the fiscal 2025 fourth quarter, compared to an operating loss of $3.0 million a year ago[10] - Net loss reduced to $144,000, or $0.01 per share, for the fiscal 2025 fourth quarter, down from a net loss of $3.1 million, or $0.25 per share, in the same period last year[11] - Net loss for the fiscal year ended March 2025 was $839,929, an improvement from a net loss of $2.04 million in March 2024[23] Cash and Working Capital - Cash and restricted cash totaled $15.1 million, and net working capital was $34.6 million as of March 31, 2025[15] - Net cash provided by operating activities was $1.36 million, down from $2.48 million in the previous year[23] - Cash and restricted cash at the end of the year totaled $15.06 million, compared to $14.04 million in the prior year, reflecting an increase of 7.3%[23] Assets and Liabilities - Total assets increased to $82.98 million in March 2025, up from $80.25 million in March 2024, representing a growth of 3.4%[22] - Current assets rose to $54.42 million, compared to $50.92 million in the previous year, marking an increase of 6.8%[22] - Total liabilities increased to $20.11 million in March 2025, up from $15.81 million in March 2024, a rise of 27.5%[22] Dividends and Retained Earnings - A regular quarterly dividend of $0.05 per share was approved and paid on June 6, 2025[15] - Retained earnings decreased to $38.40 million from $41.70 million, a decline of 7.6%[22] - The company made dividend payments of $2.46 million, consistent with the previous year[23] Production and Capacity - Expansion of existing manufacturing facilities completed, with a 15% increase in production capacity expected to contribute in the second fiscal quarter of 2026[4] Interest and Accounts Receivable - Cash paid for interest increased to $1.72 million from $1.20 million, representing a rise of 43%[23] - The company reported a significant increase in accounts receivable, which improved by $2.36 million compared to a decrease of $2.99 million in the previous year[23]