Premium Global Garment Manufacturing JERASH HOLDINGS (US), INC. June 2020 遺Jerash Holdings FORWARD-LOOKING STATEMENTS This document contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements relating to earnings expectations. The terms and phrases "commitment", "guidance", "expects", "would", "will", "continuing", "drive", "''believes", "indicate", "look forward', "grow'", "outlook", "forecasts", and similar terms and phrases are ...

Jerash Holdings (US), Inc. (NASDAQ:JRSH) Q4 2020 Earnings Conference Call June 29, 2020 9:00 AM ET Company Participants Matt Kreps - Darrow Associates Investor Relations Sam Choi - Chairman & CEO Gilbert Lee - CFO Eric Tang - Jordon Operations Conference Call Participants Mark Argento - Lake Street Todd Felte - RHK Capital John Morris - D.A. Davidson Operator Ladies and gentlemen, thank you for joining us for this Jerash Fiscal Year 2020 Results Conference Call. As a reminder, all participants are in a lis ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38474 Jerash Holdings (US), Inc. (Exact name of registrant as specified in its charter) | Delaware | 81-4701719 | | --- | --- | | (State ...

Jerash Holdings (US), Inc. (NASDAQ:JRSH) Q3 2020 Earnings Conference Call February 13, 2020 9:00 AM ET Company Participants Matt Kreps - Darrow Associates, Investor Relations Gilbert Lee - Chief Financial Officer Conference Call Participants Mark Argento - Lake Street Todd Felte - RHK Capital John Morris - D.A. Davidson Ivan Su - Morningstar Operator Good day ladies and gentlemen and welcome to the Jerash Fiscal Third Quarter 2020 Results Call. After the presentation, there will be a question-and-answer ses ...

[Part I: Financial Information](index=3&type=section&id=Part%20I%20Financial%20Information) This part presents the company's unaudited financial statements, management's analysis, and procedural disclosures [Item 1: Financial Statements](index=4&type=section&id=Item%201%20Financial%20Statements) Presents the unaudited condensed consolidated financial statements for the periods ended December 31, 2019 Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | Dec 31, 2019 | March 31, 2019 | | :--- | :--- | :--- | | **Total Current Assets** | $59,344,456 | $55,350,892 | | **Total Assets** | $67,142,131 | $59,251,097 | | **Total Current Liabilities** | $9,233,747 | $7,585,881 | | **Total Liabilities** | $11,168,852 | $8,988,968 | | **Total Equity** | $55,973,279 | $50,262,129 | Condensed Consolidated Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended Dec 31, 2019 | Three Months Ended Dec 31, 2018 | Nine Months Ended Dec 31, 2019 | Nine Months Ended Dec 31, 2018 | | :--- | :--- | :--- | :--- | :--- | | **Revenue, net** | $25,446,708 | $18,677,164 | $78,585,152 | $70,504,646 | | **Gross Profit** | $4,913,820 | $3,199,630 | $16,728,880 | $16,208,402 | | **Net Income** | $2,073,269 | $1,625,493 | $7,211,493 | $5,326,997 | | **Diluted EPS** | $0.18 | $0.14 | $0.63 | $0.47 | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Nine Months Ended Dec 31, 2019 | Nine Months Ended Dec 31, 2018 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $5,979,764 | $11,926,651 | | **Net cash used in investing activities** | ($3,752,669) | ($1,104,325) | | **Net cash (used in) provided by financing activities** | ($2,306,698) | $7,404,450 | | **Net (decrease)/ increase in cash** | ($65,787) | $18,195,631 | [Note 1: Organization and Description of Business](index=11&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%20AND%20DESCRIPTION%20OF%20BUSINESS) The company manufactures and exports customized ready-made outerwear for large brand-name retailers - The company, through its subsidiaries, manufactures and exports customized ready-made outerwear from knitted fabric for **large brand-name retailers**[29](index=29&type=chunk) - The company consolidates Victory Apparel as a Variable Interest Entity (VIE) due to **effective control** by the company's president and significant stockholder, Mr Choi Lin Hung[27](index=27&type=chunk) [Note 2: Summary of Significant Accounting Policies](index=12&type=section&id=NOTE%202%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Details significant accounting policies including revenue recognition, consolidation, and risk concentrations - Revenue is recognized upon shipment of goods, with contracts typically being **short-term** (less than one year)[43](index=43&type=chunk) - For the nine months ended December 31, 2019, **one end-customer accounted for 83% of total revenue**, while for the three months ended, two customers accounted for 66% and 24%[63](index=63&type=chunk) - For the three months ended December 31, 2019, the company purchased approximately **48% of its raw materials from one major supplier**[64](index=64&type=chunk) [Note 3: Recent Accounting Pronouncements](index=18&type=section&id=NOTE%203%20%E2%80%93%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) The company adopted the new lease standard (Topic 842) on April 1, 2019, with no material impact on earnings - The company adopted ASU No 2016-02 (Leases) on April 1, 2019, resulting in the recording of additional **lease assets of approximately $1.3 million** and **lease liabilities of $0.9 million**[68](index=68&type=chunk) [Note 7: Leases](index=19&type=section&id=NOTE%207%20%E2%80%93%20LEASES) The company holds 33 operating leases for facilities and offices with a remaining term of 3.7 years Operating Lease Balances (Dec 31, 2019) | Account | Amount | | :--- | :--- | | Right-of-use assets | $1,262,633 | | Total operating lease liabilities | $923,434 | - The weighted average remaining lease term is **3.7 years**, and the weighted average discount rate is **4.06%**[77](index=77&type=chunk) [Note 8: Property, Plant and Equipment, Net](index=22&type=section&id=NOTE%208%20%E2%80%93%20PROPERTY,%20PLANT%20AND%20EQUIPMENT,%20NET) Net property, plant, and equipment increased to $5.66 million, driven by land and machinery acquisitions - On August 7, 2019, the company purchased approximately three acres of land in Jordan for **$1,218,347** to construct a dormitory[80](index=80&type=chunk) - On June 18, 2019, the company acquired machinery and equipment from Paramount in an asset acquisition for **$980,000**[81](index=81&type=chunk) [Note 9: Equity](index=22&type=section&id=NOTE%209%20%E2%80%93%20EQUITY) The company has 11,325,000 shares outstanding and paid three cash dividends totaling approximately $1.7 million - The Board of Directors declared three separate cash dividends of **$0.05 per share**, totaling **$1,698,750** for the nine-month period[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [Note 10: Stock-Based Compensation](index=24&type=section&id=NOTE%2010%20%E2%80%93%20STOCK-BASED%20COMPENSATION) The company granted 50,000 stock options to its CFO and has over 1.4 million options and warrants outstanding - On November 27, 2019, the CFO was granted **50,000 nonqualified stock options** at an exercise price of $6.50 per share[98](index=98&type=chunk) Outstanding Equity Awards (as of Dec 31, 2019) | Award Type | Shares | Weighted Avg. Exercise Price | | :--- | :--- | :--- | | Stock Options | 1,189,500 | $6.87 | | Warrants | 264,410 | $6.35 | [Note 12: Credit Facilities](index=28&type=section&id=NOTE%2012%20%E2%80%93%20CREDIT%20FACILITIES) The HSBC credit facility was increased to $11 million, with minimal outstanding balance as of year-end - The HSBC credit facility was **increased to $11,000,000** in August 2019, and personal guarantees from executives were released[109](index=109&type=chunk)[111](index=111&type=chunk) - As of December 31, 2019, the company had **$40,719 outstanding** under its HSBC credit facilities and no outstanding amount under its SCBHK facility[114](index=114&type=chunk)[115](index=115&type=chunk) [Note 16: Income Tax](index=31&type=section&id=NOTE%2016%20%E2%80%93%20INCOME%20TAX) A prior tax exemption expired, subjecting Jordanian subsidiaries to a 10% income tax rate from 2019 - A 10-year income tax exemption for the company's Jordanian operations **expired on December 31, 2018**[125](index=125&type=chunk) - Effective January 1, 2019, Jordanian subsidiaries began paying corporate income tax at a **rate of 10%**, which will increase to 14% from January 1, 2020[125](index=125&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial performance, highlighting revenue growth, margin changes, and capital expenditures [Results of Operations - Three Months Ended December 31, 2019](index=33&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20December%2031%2C%202019) Q3 revenue grew 36% year-over-year to $25.4 million, driven by strong U.S. sales and improved gross margin Q3 FY2020 vs Q3 FY2019 Performance | Metric | Q3 2019 | Q3 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $25.4M | $18.7M | +36% | | Gross Profit | $4.9M | $3.2M | +54% | | Gross Margin | 19% | 17% | +2 p.p. | | Net Income | $2.1M | $1.6M | +28% | - The increase in revenue was mainly due to increased sales to existing and new customers in the U.S, which **grew 63% to $24.8 million**[133](index=133&type=chunk)[138](index=138&type=chunk) - **VF Corporation accounted for 66% of sales** in the quarter[135](index=135&type=chunk) [Results of Operations - Nine Months Ended December 31, 2019](index=35&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20December%2031%2C%202019) Nine-month revenue grew 11% to $78.6 million, with net income boosted by lower stock compensation expense Nine Months FY2020 vs FY2019 Performance | Metric | 9M 2019 | 9M 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $78.6M | $70.5M | +11% | | Gross Profit | $16.7M | $16.2M | +3% | | Gross Margin | 21% | 23% | -2 p.p. | | Net Income | $7.2M | $5.3M | +35% | - The lower gross profit margin was attributable to **relatively lower profit margins** on some new customer orders and local orders[159](index=159&type=chunk)[160](index=160&type=chunk) - Stock-based compensation expenses **decreased by $3.2 million (94%)**, contributing significantly to the rise in net income[148](index=148&type=chunk)[162](index=162&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $27.0 million in cash and believes it has sufficient liquidity for the next 12 months - As of December 31, 2019, the company had **cash of approximately $27.0 million** and **net working capital of $50.2 million**[169](index=169&type=chunk)[173](index=173&type=chunk) - Net cash provided by operating activities was approximately **$6.0 million** for the nine months ended December 31, 2019, a decrease from $11.9 million in the prior-year period[183](index=183&type=chunk) - Management believes cash on hand and cash from operations will be **sufficient to support working capital needs** for the next 12 months[174](index=174&type=chunk) [Capital Expenditures](index=42&type=section&id=Capital%20Expenditures) Capital expenditures were $3.8 million for the nine-month period, with significant future investments planned - Capital expenditures totaled approximately **$3.8 million** for the nine months ended December 31, 2019[188](index=188&type=chunk) - In August 2019, the company acquired land in Jordan for approximately **$1.2 million** to construct a dormitory and production facilities[192](index=192&type=chunk) - The company projects approximately **$7 million in capital expenditures** for each of the fiscal years ending March 31, 2020 and 2021[193](index=193&type=chunk) [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, this information is not required - As a smaller reporting company, Jerash Holdings is **not required to provide information** for this item[198](index=198&type=chunk) [Item 4: Controls and Procedures](index=43&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2019 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2019[200](index=200&type=chunk) - **No material changes** were made to the internal control over financial reporting during the quarter ended December 31, 2019[201](index=201&type=chunk) [Part II: Other Information](index=45&type=section&id=Part%20II%20Other%20Information) This part covers legal proceedings, equity sales, risk factors, and exhibits [Item 1: Legal Proceedings](index=45&type=section&id=Item%201%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - The company is **not currently involved** in any material legal proceedings[204](index=204&type=chunk) [Item 1A: Risk Factors](index=45&type=section&id=Item%201A%20Risk%20Factors) As a smaller reporting company, this information is not required - As a smaller reporting company, the company is **not required to provide risk factor disclosures** in its 10-Q[205](index=205&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company granted 50,000 stock options to its CFO under its 2018 Stock Incentive Plan - On November 27, 2019, the company granted its CFO an option to purchase **50,000 shares of common stock** at an exercise price of $6.50 per share[206](index=206&type=chunk) [Item 6: Exhibits](index=46&type=section&id=Item%206%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL data - The exhibits filed with the report include **Sarbanes-Oxley Act certifications** (31.1, 31.2, 32.1, 32.2) and XBRL interactive data files[211](index=211&type=chunk)

Premium Global Garment Manufacturing JERASH HOLDINGS (US), INC. December 2019 ۩۞۩ Holdings FORWARD-LOOKING STATEMENTS This document contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements relating to earnings expectations. The terms and phrases "commitment", "guidance", "expects", "would", "will", "continuing", "drive", "''believes", "indicate", "look forward', "grow'", "outlook", "forecasts", and similar terms and phrases are ...

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q For the quarterly period ended September 30, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38474 Jerash Holdings (US), Inc. (Exact name of registrant as specified in its charter) Delaware 81-4701719 (State or other jurisdicti ...

FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 For the transition period from to Commission File Number: 001-38474 Jerash Holdings (US), Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38474 Delaware 81-4701719 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 260 East M ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2018 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38474 Jerash Holdings (US), Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation o ...