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].

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]

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]

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]

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]

Revenue and Income - Revenue for the three months ended December 31, 2024, was $35,384,737, representing a 28.5% increase from $27,520,121 in the same period of 2023[10]. - Net income for the three months ended December 31, 2024, was $6,314, compared to a net income of $232,170 in the same period of 2023, showing a significant decline[10]. - The company reported a net loss attributable to common stockholders of $5,806 for the three months ended December 31, 2024, compared to a net income of $220,713 in the same period of 2023[10]. - For the nine months ended December 31, 2024, the company reported a net loss of $695,834 compared to a net income of $1,096,229 for the same period in 2023[17]. - The net income for the three months ended December 31, 2023, was $232,170, a significant increase from the previous year's net income of $220,713[15]. Expenses and Costs - Selling, general and administrative expenses for the nine months ended December 31, 2024, were $14,650,105, up from $12,318,535 in 2023, reflecting an 18.9% increase[10]. - The cost of goods sold for the three months ended December 31, 2024, was $30.0 million, representing 85% of total revenue, compared to $23.1 million, or 84% of total revenue, for the same period in 2023[136]. - Operating expenses increased by 14%, or approximately $0.6 million, to approximately $4.7 million, primarily due to higher export logistic costs[149]. - The company incurred total operating lease expenses of $561,102 for the three months ended December 31, 2024, compared to $599,622 for the same period in 2023, showing a decrease in lease costs[87]. Assets and Liabilities - Total current assets as of March 31, 2024, were $51,114,063, slightly up from $50,919,660 as of December 31, 2023[9]. - Total liabilities increased to $16,653,474 as of March 31, 2024, from $15,814,903 as of December 31, 2023[9]. - Total assets as of March 31, 2024, were $79,836,715, a slight decrease from $80,245,566 as of December 31, 2023[9]. - As of March 31, 2024, total equity stands at $64,430,663, a decrease from $68,234,234 on March 31, 2023, reflecting a decline of approximately 5.3%[13]. Cash Flow - The company experienced a significant decrease in net cash provided by operating activities, dropping to $(581,275) from $7,866,954 in the previous year[17]. - Cash and cash equivalents increased to $13,219,109 as of March 31, 2024, compared to $12,428,369 as of December 31, 2023[9]. - Net cash used in investing activities was $(1,671,833), a decrease from $(4,263,959) in the prior year, showing reduced capital expenditures[17]. - Net cash used in operating activities was approximately $581,000 for the nine months ended December 31, 2024, compared to cash provided by operating activities of approximately $7.9 million for the same period in fiscal 2024[184]. Dividends - The company maintained a dividend per share of $0.05 for both the three and nine months ended December 31, 2024, consistent with the previous year[10]. - Dividend payments for the three months ended December 31, 2024, totaled $(1,844,226), consistent with the previous year[13]. - The company declared cash dividends of $0.05 per share of common stock, totaling $614,742 for each of the three dividends paid during the nine months ended December 31, 2024[96]. Inventory and Receivables - The company's total inventories decreased from $27,241,573 as of March 31, 2024, to $19,118,133 as of December 31, 2024, primarily due to a reduction in raw materials[83]. - Accounts receivable increased from $5,451,334 as of March 31, 2024, to $7,237,959 as of December 31, 2024, reflecting a growth in revenue[82]. - The company’s accounts receivable decreased by $1,803,392 compared to a decrease of $6,044,375 in the previous year, indicating improved collection efforts[17]. Accounting and Compliance - The Company adopted ASU 2016-13 on April 1, 2023, which changes the credit loss impairment methodology to an expected loss model, but it did not have a material impact on consolidated financial statements[44]. - The company failed to maintain effective controls over period-end financial reporting, particularly regarding income taxes and account level balances reconciliation, leading to errors[207]. - Enhanced communication with U.S. GAAP advisors is being implemented to strengthen compliance with new promulgations[207]. Future Plans and Investments - The company plans to invest approximately $29.9 million to establish a new fabric facility in Jordan through its joint venture Jerash Newtech[29]. - The company projects capital expenditures of approximately $2.2 million and $8.8 million for the fiscal years ending March 31, 2025, and 2026, respectively, to enhance production capacity[196]. Customer Concentration - For the three months ended December 31, 2024, three end-customers accounted for 58%, 13%, and 10% of the company's total revenue, indicating a significant customer concentration risk[74].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 28.6% to $35.4 million from $27.5 million in the same quarter last year, despite being impacted by approximately $6 million due to shipping delays [18][24] - Gross profit rose by 20.6% to $5.4 million, with a gross margin of 15.2%, down from 16.2% in the same quarter last year, primarily due to higher logistics costs [19][20] - Operating income increased by 88.3% to $708,000 from $376,000 in the same quarter last year [22] - Net income was $6,000, or zero per share, compared to $232,000, or $0.02 per diluted share, in the same quarter last year [24] Business Line Data and Key Metrics Changes - The company reported a significant increase in inquiries from new and existing customers looking to add manufacturing partners in tariff-free countries like Jordan [6][8] - The expansion of two existing manufacturing facilities is expected to increase processing capacity by 15% by June 2025 [10][11] Market Data and Key Metrics Changes - Export trade rules have improved since late January 2025, leading to more timely shipments [7][12] - The company is experiencing growing interest from international apparel companies, particularly from Europe and the Persian Gulf region [8][14] Company Strategy and Development Direction - Jerash Holdings aims to diversify its customer base and expand its product mix, leveraging its competitive advantage in Jordan [9][10] - The company is actively working with the Jordanian government to expand its facilities, which could add an additional 5% to 10% of production capacity by the end of 2025 [11][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business growth, with factories fully booked through August 2025 and expected revenue growth of 50% to 53% in Q4 2025 [25] - The geopolitical situation in the region has improved, which is expected to positively impact logistics and shipping costs [12][63] Other Important Information - The Board of Directors approved a regular quarterly dividend of $0.05 per share, payable on February 25, 2025 [26] - The company is considering various financing options, including debt and equity markets, to support its long-term expansion plans [78][79] Q&A Session Summary Question: Impact of tariffs on customer conversations - Management noted an increase in conversations with customers due to tariff concerns, with new orders anticipated to be limited by capacity growth [28][29] Question: Conversion rate from test orders to full production - The conversion rate from test orders to full production is high, with most customers placing bulk orders after trial orders, typically within six months [35][44] Question: Demand related to U.S. consumer and apparel inventories - Approximately 60% of customers have absorbed high inventory levels and are ready to place new orders, indicating a positive demand outlook [46][48] Question: Timing of delayed shipments and their impact on growth - Delayed shipments are expected to contribute to the anticipated growth of 50% to 53% in Q4 2025, with most unshipped products already shipped in January [51][52] Question: SG&A costs outlook - SG&A costs are expected to stabilize around the low $4 million range, influenced by sales volume [57][58] Question: Logistics improvements and gross margin impact - Improved logistics are expected to enhance gross margins, which are targeted to remain around 15% to 16% going forward [63][68] Question: Joint venture with Busana - The joint venture is progressing slowly due to regional turmoil, but there is potential for high-volume orders from high-end customers [71][75] Question: Financing for long-term expansion - The company is open to various financing opportunities, including potential debt and equity markets, to support its expansion plans [78][79]

Revenue and Income - Revenue for fiscal 2025 third quarter increased by 28.6% to $35.4 million, compared to $27.5 million in the same quarter last year[8] - Operating income increased by 88.3% to $708,000 in the fiscal 2025 third quarter, compared to $376,000 in the same quarter last year[11] - Net income for the fiscal 2025 third quarter was $6,000, or $0.00 per diluted share, compared to $232,000, or $0.02 per diluted share, in the same quarter last year[13] - Revenue for the fiscal 2025 fourth quarter is expected to increase by 50-53% from $21.6 million in the same quarter last year[7] Expenses and Losses - Gross profit for the fiscal 2025 third quarter rose by 20.6% to $5.4 million, with a gross margin of 15.2%, down from 16.2% in the same quarter last year[9] - Operating expenses for the fiscal 2025 third quarter totaled $4.7 million, up from $4.1 million in the same quarter last year[10] - Comprehensive loss attributable to common stockholders for the first nine months of fiscal 2025 was $820,000, compared to comprehensive income of $1.0 million for the same period last year[17] - Net loss for the nine months ended December 31, 2024, was $695,834, compared to a net income of $1,096,229 for the same period in 2023[30] Cash and Assets - Cash and restricted cash totaled $14.8 million, with net working capital of $34.8 million as of December 31, 2024[19] - Cash and restricted cash at the end of the period was $14,782,918, down from $21,226,414, representing a decrease of about 30.5%[30] - Total assets decreased slightly from $80,245,566 to $79,836,715, a decline of approximately 0.5%[28] Liabilities and Receivables - Total current liabilities increased from $14,779,151 to $16,309,062, an increase of about 10.3%[28] - Accounts receivable increased from $5,417,513 to $7,237,959, reflecting a rise of approximately 33.6%[28] Inventory and Cash Flow - Inventories decreased significantly by 29.8% from $27,241,573 to $19,118,133[28] - Operating cash flow turned negative with net cash used in operating activities of $581,275, compared to cash provided of $7,866,954 in the previous year[30] Tax and Interest - The effective tax rate for the fiscal 2025 third quarter was 98.6%, compared to 14.2% for the same period in fiscal 2024[12] - Cash paid for interest increased to $1,348,291 from $983,156, marking a rise of approximately 37.2%[30] Stock and Dividends - Dividend payments remained consistent at $1,844,226 for both periods[30] - The company reported a significant increase in stock-based compensation expenses, rising to $1,417,111 from $727,698, an increase of about 94.8%[30] Future Plans - The company plans to expand two existing manufacturing facilities, increasing capacity by 15%, expected to be completed by June 2025[5]

Revenue and Income - Revenue for the three months ended September 30, 2024, was $40,240,127, representing a 20.4% increase from $33,357,108 in the same period of 2023[6] - Net income attributable to Jerash Holdings (US), Inc.'s common stockholders for the three months ended September 30, 2024, was $655,288, compared to $365,617 for the same period in 2023, reflecting an increase of 79.2%[6] - Net income for the three months ended September 30, 2024, was $664,000, an increase of 80% from $369,000 for the same period in 2023[134] - For the six months ended September 30, 2024, total revenue was $81.2 million, up from $68.1 million in the same period in 2023, reflecting a growth of approximately 19%[122] - The net loss for the six months ended September 30, 2024, is $702,148, compared to a net income of $864,059 for the same period in 2023, indicating a significant shift in performance[7] Profitability Metrics - Gross profit for the six months ended September 30, 2024, was $11,697,754, compared to $10,939,571 for the same period in 2023, indicating a 6.9% increase[6] - The company reported a gross profit margin of 17.5% for the three months ended September 30, 2024, compared to 16.1% for the same period in 2023[6] - Gross profit for the three months ended September 30, 2024, was $7,057,883, compared to $5,372,031 for the same period in 2023, indicating a gross margin improvement[6] - Gross profit margin improved to 18% for the three months ended September 30, 2024, up from 16% in the same period of 2023[142] Expenses - Selling, general, and administrative expenses for the six months ended September 30, 2024, totaled $10,449,130, up from $8,475,506 in the same period of 2023, indicating a 23.2% increase[6] - Operating expenses increased by 32% to approximately $5,900,000, primarily due to higher export logistics costs[143] - Selling, general, and administrative expenses increased by 29% to $5.5 million for the three months ended September 30, 2024, compared to $4.2 million for the same period in 2023[134] Assets and Liabilities - Total current assets as of September 30, 2024, were $51,583,883, up from $50,919,660 as of March 31, 2024[5] - Total liabilities increased to $16,889,385 as of September 30, 2024, from $15,814,903 as of March 31, 2024[5] - Total assets as of September 30, 2024, were $80,347,935, slightly up from $80,245,566 as of March 31, 2024[5] - Cash balance as of September 30, 2024, was $16,338,578, an increase from $12,428,369 as of March 31, 2024[5] Equity and Retained Earnings - As of September 30, 2024, total equity for Jerash Holdings is $63,458,550, a decrease from $68,229,924 as of September 30, 2023, reflecting a decline of approximately 1.1%[7] - Retained earnings decreased to $39,784,826 as of September 30, 2024, down from $45,804,741 as of September 30, 2023, representing a decline of approximately 13.2%[7] - Total comprehensive income for the three months ended September 30, 2024, was $672,132, compared to $309,103 for the same period in 2023[6] Cash Flow - For the six months ended September 30, 2024, the net cash provided by operating activities was $2,426,620, a decrease from $8,178,880 in the same period of the previous year[15] - The cash and restricted cash at the end of the period was $17,884,035, down from $22,809,716 at the end of the previous period[15] - Net cash provided by operating activities was approximately $2.4 million for the six months ended September 30, 2024, down from approximately $8.2 million for the same period in fiscal 2024[173] Dividends - The company declared a dividend of $0.05 per share for the three months ended September 30, 2024, consistent with the same period in 2023[6] - Dividend payments remained consistent at $1,229,484 for both the six months ended September 30, 2024, and 2023[7] - The company declared cash dividends of $0.05 per share, totaling $614,742 for each of the two dividends paid during the six months ended September 30, 2024[100] Inventory and Supply Chain - Total inventories decreased to $20,206,799 as of September 30, 2024, down from $27,241,573 as of March 31, 2024, with 99.9% tied to actual sales orders[85] - The total inventories decreased to $7,034,774 from $13,942,970 year-over-year, indicating a significant reduction in stock levels[15] Foreign Currency and Tax - The company reported a foreign currency translation loss of $154,500 for the six months ended September 30, 2023, while a gain of $16,496 was recorded for the same period in 2024[7] - The Company’s income tax rate in Jordan increased to 20% effective January 1, 2024, plus a 1% social contribution[53] Other Financial Metrics - The effective tax rate for the three months ended September 30, 2024, was 13.7%, while for the six months it was (44.9%), primarily due to GILTI adjustments and foreign tax rate differentials[127] - The accumulated other comprehensive loss increased to $(475,823) as of September 30, 2024, compared to $(277,729) as of September 30, 2023[7] Strategic Initiatives - The company plans to invest approximately $29.9 million to establish a new fabric facility in Jordan through its joint venture Jerash Newtech[26] - The company has established multiple subsidiaries in Jordan and Hong Kong to expand its manufacturing and trading capabilities in the garment industry[16][17][18][19][20][21][22][23][24][25][28]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 20.6% to $40.2 million from $33.4 million in the same quarter last year [11] - Gross profit rose by 31.4% to $7.1 million from $5.4 million in the prior year [11] - Gross margin improved to 17.5% from 16.1% year-over-year and from 11.3% in the previous quarter [6][11] - Net income increased by 80.1% to $665,000 from $369,000 in the same quarter last year [13] - Operating income rose to $1.1 million from $888,000 in the same period last year [12] Business Line Data and Key Metrics Changes - The company is producing garments for over 20 brands and expanding its product mix [8] - Current annual production capacity is approximately 20 million pieces, with facilities fully booked through the first half of 2025 [9] - The company is exploring production capacity expansion to meet increasing demand [6][9] Market Data and Key Metrics Changes - Purchase orders for export shipments to customers in the U.S. and Europe have been steadily increasing [5] - The geopolitical environment has stabilized, benefiting profitability and export trade routes [5] Company Strategy and Development Direction - The company aims to attract new global brands and diversify its customer base, focusing on producing a wider selection of garments [6][9] - Plans for potential expansion of manufacturing capacity are underway to support future growth [6][9] - The company is considering building a new factory and warehouse to enhance production capabilities [20][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the order book and the potential for growth, particularly in light of geopolitical shifts and tariff changes [27][28] - The company anticipates revenue growth of 30% to 35% for the full fiscal year 2025 [14][19] - Management is closely monitoring interest expenses and exploring ways to reduce costs while increasing sales [31] Other Important Information - A regular quarterly dividend of $0.05 per share was approved, payable on November 29, 2024 [14] - The company has cash and restricted cash of $17.9 million and net working capital of $35.2 million as of September 30, 2024 [13] Q&A Session Summary Question: Revenue opportunity based on current production capacity - Management indicated that full capacity could translate to approximately $155 million to $160 million in revenue, depending on product mix [16][19] Question: Expansion plans and associated costs - The company is analyzing expansion needs and may utilize existing land for a new factory, with initial plans for a warehouse to save on rental costs [20][22] Question: Impact of U.S. tariffs on sourcing from China - Management noted that increased tariffs on China could accelerate the trend of customers seeking to diversify sourcing to Jordan [27][28] Question: Utilization of cash and interest expenses - Management is focused on reducing interest expenses while managing working capital needs through supply chain financing programs [31][32] Question: Opportunities arising from instability in Bangladesh - The company has been approached by manufacturers in Bangladesh seeking cooperation, indicating potential opportunities for business growth [34][35]