Jerash Holdings(US:JRSH)2026-02-10 22:00Financial Performance - Revenue for the three months ended December 31, 2025, was $41,769,186, a 17.5% increase from $35,384,737 in the same period of 2024[12] - Gross profit for the nine months ended December 31, 2025, reached $19,427,721, up 13.7% from $17,080,544 in 2024[12] - Net income attributable to Jerash Holdings (US), Inc.'s common stockholders for the three months ended December 31, 2025, was $1,170,575, compared to a net loss of $5,806 in the same period of 2024[12] - For the nine months ended December 31, 2025, net income was $1,959,393 compared to a net loss of $695,834 for the same period in 2024[18] - The company reported a basic earnings per share of $0.09 for the three months ended December 31, 2025, compared to $(0.00) in the same period of 2024[12] - Net income for the three months ended December 31, 2025, was approximately $1.2 million, a significant increase from approximately $6,000 in the same period last year[148] - Net income for the nine months ended December 31, 2025, was approximately $2.0 million, compared to a net loss of approximately $0.7 million for the same period last year[166] Assets and Liabilities - Total current assets increased to $56,769,635 as of March 31, 2025, from $54,420,209 as of December 31, 2024[10] - Total assets rose to $84,214,930 as of March 31, 2025, compared to $82,975,526 as of December 31, 2024[10] - Total liabilities increased to $20,563,722 as of March 31, 2025, from $20,106,417 as of December 31, 2024[10] - Cash and cash equivalents decreased to $11,454,016 as of December 31, 2025, from $13,346,791 as of March 31, 2025[10] - Total cash and restricted cash at the end of the period was $13,155,768, down from $14,782,918 at the end of December 2024[18] - Current assets as of December 31, 2025, were approximately $56.8 million, with current liabilities of approximately $20.4 million, resulting in a current ratio of approximately 2.8 to 1[169] Cash Flow - Operating cash flows showed a net cash used of $3,491,495 for the nine months ended December 31, 2025, compared to $581,275 for the same period in 2024[18] - The company had a net cash provided by financing activities of $2,922,305 for the nine months ended December 31, 2025, compared to $3,123,718 in 2024[18] - Net cash used in operating activities was approximately $3.5 million for the nine months ended December 31, 2025, compared to $581,000 for the same period in fiscal 2024[178] - Net cash provided by financing activities was approximately $2.9 million for the nine months ended December 31, 2025, compared to $3.1 million for the same period in fiscal 2024[180] Dividends - The company declared a dividend of $0.05 per share for the three months ended December 31, 2025, consistent with the same period in 2024[12] - Dividend payments totaled $1,904,991 for the nine months ended December 31, 2025, compared to $1,844,226 in 2024[18] - The Company declared cash dividends of $0.05 per share on three occasions during the nine months ended December 31, 2025, totaling $634,997 each time[89] Inventory and Receivables - Accounts receivable increased by $4,755,479 in the nine months ended December 31, 2025, compared to an increase of $1,803,392 in 2024[18] - As of December 31, 2025, accounts receivable amounted to $7,831,553, with no allowances for credit loss[78] - Total inventory as of December 31, 2025, was $26,030,818, with raw materials valued at $9,550,953[79] - Advances to suppliers as of December 31, 2025, were $8,092,421, with no allowances for impairment[80] Expenses - The Company recorded total selling, general, and administrative expenses of $14,756,182 for the nine months ended December 31, 2025, compared to $14,650,105 in 2024[112] - The Company incurred total operating lease expenses of $573,910 for the three months ended December 31, 2025, compared to $561,102 for the same period in 2024[83] - The company reported stock-based compensation expenses of $680,320 for the nine months ended December 31, 2025, a decrease from $1,417,111 in 2024[18] Taxation - The Company is subject to a corporate income tax rate of 20% plus a 1% social contribution in Jordan, effective January 1, 2024, with a tax concession reducing the rate to 10% plus a 1% social contribution starting October 1, 2025[55] - Income tax expenses for the nine months ended December 31, 2025, were approximately $851,000, an increase from approximately $667,000 for the same period last year[165] Business Operations - Revenue is primarily derived from product sales of customized ready-made outerwear, with contracts typically being short-term, and payment terms ranging from 14 to 150 days[49] - The company recognizes revenue upon shipment of goods, with minimal returns historically impacting revenue recognition[50] - The United States represented 85% of total revenue, with sales of $35.4 million, an increase of 14% from the previous year[139] - Outerwear accounted for approximately 90.8% of total revenue for the three months ended December 31, 2025, compared to 91.4% in the same period of 2024[113] Risk Factors - The Company’s operations are subject to risks associated with the political and economic environment in Jordan, which may impact financial performance[73] - The company is not currently involved in any material legal proceedings, but anticipates potential future litigation that could adversely affect financial statements[201] - As a smaller reporting company, the company is not required to disclose specific risk factors[202] Future Outlook - The company expects capital expenditures to increase to approximately $7.8 million in fiscal year ending March 31, 2026, and further in subsequent years[188] - The company is evaluating the potential impact of new accounting standards on its consolidated financial statements[75][76][77]