Jerash Holdings(US:JRSH)2025-11-12 21:06Financial Performance - Total revenue for the three months ended September 30, 2025, was $41,968,534, an increase from $40,240,127 in the same period of 2024, representing a growth of 4.3%[12] - Gross profit for the six months ended September 30, 2025, was $12,378,560, compared to $11,697,754 for the same period in 2024, reflecting an increase of 5.8%[12] - Net income attributable to Jerash Holdings (US), Inc.'s common stockholders for the three months ended September 30, 2025, was $461,605, down from $655,288 in the same period of 2024, a decrease of 29.5%[12] - The company reported a basic earnings per share of $0.04 for the three months ended September 30, 2025, compared to $0.05 for the same period in 2024[12] - For the six months ended September 30, 2025, the net income was $802,933 compared to a net loss of $702,148 for the same period in 2024, indicating a significant turnaround in profitability[19] - The net income for the three months ended September 30, 2025, was $479,303, a decrease from $664,549 in 2024, indicating a decline of approximately 28%[14] Assets and Liabilities - Total current assets as of September 30, 2025, were $55,553,264, compared to $54,420,209 as of March 31, 2025, indicating a growth of 2.1%[10] - Total liabilities increased to $20,489,520 as of September 30, 2025, from $20,106,417 as of March 31, 2025, an increase of 1.9%[10] - Cash and cash equivalents decreased to $12,002,314 as of September 30, 2025, from $13,346,791 as of March 31, 2025, a decline of 10.0%[10] - Total equity as of September 30, 2025, was $62,845,892, slightly down from $62,869,109 as of March 31, 2025[11] - The company’s total assets as of September 30, 2025, were reported at $62,845,892, reflecting a decrease from $63,458,550 as of September 30, 2024[14] Cash Flow and Investments - Cash flows from operating activities provided $318,278, a decrease of 86.9% compared to $2,426,620 in the prior year[19] - Total cash and restricted cash at the end of the period was $13,702,853, down from $17,884,035 at the end of the same period in 2024, reflecting a decrease of 23.5%[19] - The company reported a net cash used in investing activities of $1,053,944, an increase from $936,223 in the previous year, indicating higher capital expenditures[19] - Capital expenditures for the six months ended September 30, 2025, were approximately $1.1 million, compared to $0.9 million for the same period in 2024[183] Expenses - Selling, general, and administrative expenses for the three months ended September 30, 2025, were $4,971,466, down from $5,449,386 in the same period of 2024, a decrease of 8.8%[12] - Operating expenses decreased by 12%, or approximately $0.7 million, from $5.9 million for the three months ended September 30, 2024, to $5.2 million for the same period in 2025[143] - The company incurred total operating lease expenses of $556,386 for the three months ended September 30, 2025, down from $607,784 for the same period in 2024[83] Revenue Sources - Outerwear accounted for approximately 90.9% of total revenue for the three months ended September 30, 2025, up from 88.2% in the same period of 2024[113] - A large portion of products are sold under The North Face, Timberland, and Vans brands owned by VF Corporation, which accounted for 60% of sales in the three months ended September 30, 2025[135] - Sales to the U.S. increased by approximately 8% during the three months ended September 30, 2025, primarily due to a diversified customer base[138] - Aggregate sales to China, Germany, Jordan, and other locations decreased by 18% from $5.7 million to $4.7 million during the same period, attributed to prioritizing U.S. orders[139] Shareholder Information - The company declared a dividend of $0.05 per share for both the three and six months ended September 30, 2025, consistent with the same periods in 2024[12] - The company declared cash dividends of $0.05 per share, totaling $634,997 each, paid on June 6, 2025, and August 29, 2025[89] Accounting and Compliance - The company is currently evaluating the potential impact of new accounting standards on its consolidated financial statements[76] - Management has concluded that the unaudited condensed consolidated financial statements present fairly the financial position and results of operations in conformity with U.S. GAAP[196] - The company has not entered into any financial guarantees or derivative contracts that are not reflected in its consolidated financial statements[186] Future Outlook - The company is engaged in the establishment of a new joint venture for a fabric facility in Jordan, indicating ongoing market expansion efforts[31] - The company expects capital expenditures to increase in the future as business continues to develop and expand[185] - Projected capital expenditures for the fiscal years from 2026 to 2030 are approximately $7.8 million, $14.5 million, $16.5 million, $3.5 million, and $2 million, respectively, to enhance production capacity[185]