Greetings. Welcome to the Durash Holdings Fiscal 2026 Fourth Quarter in Full Year Financial Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Roger Pondell, Investor Relations for Jurash Holdings. You may begin.

Thank you, Operator. Good morning, everyone, and welcome to Jurash Holdings' fiscal 2026 fourth quarter and full year conference call. I'm Roger Pondell with Pondell Wilkinson, Jurash Holdings' investor relations firm. On the call today from the company, our chairman and chief executive officer, Sam Choi. Chief Financial Officer Gilbert Lee, and Eric Tang, who leads the company's operations in Jordan. Before I turn the call over to Sam, I want to remind our listeners that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to numerous conditions, many of which are beyond the company's control, including those set forth in the risk factor section of the company's most recent Form 10-K as filed with the Securities and Exchange Commission and copies of which are available on the SEC's website at www.sec.gov along with other company filings made with the SEC from time to time. Actual results could differ materially from these forward-looking statements and Gerrash Holdings undertakes no obligation to update any forward-looking statements except as required by law. And with that, it is my pleasure to turn the call over to Sam Choi. Sam?

Thank you, Rogers. I'm pleased to report that Gerrash closed fiscal 2026 with outstanding fourth quarter performance and record revenue for the full year. This strong performance was driven by increasing demand from the company's long-outstanding key customers, as well as growing contributions from newer customers, including Hensho Group in South Korea and other customers that have been acquired in recent years. Building on this momentum, the results reflected robust top-line growth and a meaningful improvement in profitability these gates were supported by enhanced production capabilities and operational efficiencies with increased automation and economies of scale enabling a more balanced sales profile and improved margins throughout the year we're confident in our ability to sustain his progress and continue delivering solid performance i'm pleased to report that the last shipments under hansel's initial large order for three million pairs of girls shots were completed early in the fiscal fourth quarter the products and in turn were well received by hansel's largest customer a u.s-based multinational omnichannel retailer reflecting to rush strong production quality and online delivery performance we have since received two additional orders from hansel for the same end customer we continue to cultivate relationship with additional global brands and strategic partners as part of our broader strategy to diversify both our customer base and product mix, as well as to support more stable year-round production and reduce the impact of sustainability on our business. Together with our planned capacity expansion, this initiative positioned us to deliver a steady pipeline of profitable growth. As we scale, our team remains focused on further improving gross margins while maintaining pistoblint operational execution and cost control. To support growing demand through our phase and capital division expansion strategy, we have begun renovating and expanding several manufacturing facilities and optimizing warehouse capacity, including a newly acquired building, rather than concentrating our investment in a single-flexion production complex. The first phase of renovation is expected to increase production capacity by approximately 15% and add 700 workers by the end of Canada year 2026. The remaining expansion is scheduled for completion by end 2027, and is expected to contribute an additional 20% to 25% in production capacity. With that, I will now turn the call over to Eric Tang, who is in charge of our operation in Jordan. Eric?

Thank you, Sam. Jordan. continues to be recognized as one of the world's preferred manufacturing hops, supported by its extensive network of free trade agreements, a highly skilled and cost-competitive workforce, and a strategic geographic location that provides stable access to major markets, despite broader regional uncertainty. With both the Aqaba and Hyperport fully open and operating normally, along with cooperation from customs and logistic partners, we were able to complete additional export shipments during the past quarter, despite the seasonal impact typically associated with the most long Ramadan and the Eid holiday period. As just now Sam mentioned, we are encouraged by the positive feedback from Hensel and customers regarding Gerard's production quality and delivery timelines, and have since received additional orders from Hensel for different styles. In addition, buyers from our key customers have placed large orders for our fiscal 2027 year. As a result, I am happy to report that our facilities are now fully booked through December of 2026. Turning to our expansion plans, we are increasing capacity in a controlled manner. in phases while maintaining high production output. And we have begun adding production lines at two of our existing manufacturing facilities. At the same time, we are converting our newest acquired facility into a centralized warehouse to further optimize operational efficiency. By the end of calendar year 2026, we expect to have increased capacity by approximately 15%, supported, as Sam mentioned, by the addition of 700 new workers. The second phase of our expansion will provide converting to one facility that is currently functioning as a centralized capping department to a production factory by adding 500 new state-of-art sewing machines and automation, supported by approximately 1,100 additional workers. We expect the second phase of expansion to contribute an additional 20-25% increase in capacity, with completion plan by mid-calendar year 2027. As we mentioned during the last conference call, our collaboration with the Jordan Minister of Labor to develop additional facilities in rural towns is proceeding well. Our first satellite factory, established in partnership with the Ministry of Labor, was in 2019. Our second satellite factory just became operational in March 2026 and currently employing 130 local workers. We are planning to expand this site by additional broads, which will increase our production capacity by approximately 5% and employ up to 250 local employees. This project is targeted for completion by the end of fiscal year 2027. In addition, we continue to work closely with the Ministry of Labor on plans for the first satellite factory, which is expected to create approximately 500 additional jobs in the surrounding community outside of Asheri, which is about one hour away from Jordan's first satellite factory in Ahasa. Together, this initiative supports Gerard's growth objectives, while also contributing to local employment and economic development. Our long-term strategy is focused on sustaining growth momentum, with an objective of doubling our production capacity over the next few years, as we broaden our customer base and enhance our product mix. By strategically optimizing capacity, we aim to deliver stronger, more predictable top-line growth alongside improved margin performance and enhanced operating leverage throughout the year. With that, I will turn the call over to Gilbert to discuss our financial results. Gilbert, please.

Thank you, Eric. Revenue for the fiscal 2026 fourth quarter grew 46.6% to $42.9 million from $29.3 million in the same quarter last year. The increase was primarily driven by increased export shipments to the company's longstanding key customers, as well as orders from newer customers, including Hansel Group in South Korea and others that we developed in recent years. Growth profit increased 40.4% to $7.4 million for the fiscal 2026 fourth quarter, from $5.2 million in the same quarter last year. Growth margin for the quarter was 17.1%, compared with 17.9% in the same period last year. Operating expenses were $5 million in the fiscal 2026 fourth quarter, compared with $4.8 million in the same quarter last year. As a percentage of revenue, operating expenses fell by nearly five percentage points to 11.7% from 16.4% in the fourth quarter of fiscal 2025. This reduction reflects improved control over export logistics costs and lower stock-based compensation. Operating income rose more than five times to $2.3 million in the fiscal 2026 fourth quarter from $434,000 in the same quarter last year. Total audit expenses in the fourth quarter were $399,000, including $383,000 in interest expenses, compared with $254,000 in the same quarter a year earlier, which included $371,000 of interest expenses. Income tax expenses were $270,000 in the fiscal 2026 fourth quarter. compared with $324,000 in the prior year quarter. Net income increased to $1.7 million, or $0.12 per diluted share, for the fiscal 2026 fourth quarter, from a net loss of $144,000, or $0.01 per share, for the same quarter last year. Comprehensive income attributable to the company's common stockholders advanced to $1.6 million in the fiscal 2026 fourth quarter from a comprehensive loss of $49,000 in the same quarter last year. While there were numerous changes to tariffs during fiscal 2026, and additional changes are anticipated in future years, but since tariffs are mostly paid by the company's customers, the overall impact on Jirash's bottom line has not been material. As of March 31, 2026, cash and restricted cash totaled $12.5 million and net working capital was $36.7 million. Inventory was $30 million and accounts receivable amounted to $5.7 million. Net cash provided by operating activities was approximately $2.5 million for the fiscal ended March 31, 2026, compared with $1.4 million in fiscal 2025 year. The increase was primarily attributable to net income of $33.6 million during fiscal 2026 compared with a net loss of $0.8 million during fiscal 2025, partially offset by higher accounts receivable, inventory, and accrued expenses. On May 4, 2026, Gerard's Board of Directors approved a regular quarterly dividend of $0.05 cents per share on its common stock paid on May 21st, 2026, to stockholders of record as of May 14, 2026. As both Sam and Eric said earlier, we are optimistic about the future of Gerage and remain committed to disciplined cost management and operating efficiency as we continue to execute our expansion plans and growth strategy. Looking ahead for the near term, we expect revenue for the fiscal 27 first quarter to increase by 20 to 22 percent over the same quarter of last year with a growth margin target for the fiscal 27 first quarter of 15 to 17 percent. We will now open a call for questions, and I will turn the call back to the operator.

Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys one moment please while we pull for questions your first question for today is from ryan myers with lake street capital markets hey guys thanks for taking my questions you know congrats on the solid progress in the strong quarter just first question for me if we think about what you guys gave for the first quarter guidance and you know all the order flow that you're seeing through the rest of the year, how should we think about the potential growth rate on a full-year basis and as we proceed into the previous three quarters? If you think that 20% to 22% growth is sustainable, I know you'll face some tougher comps in the second half of the year. Just how we should think about things directionally for the full year.

Well, actually, we haven't really projected that far out because, as you know, we are pretty much limited. The growth of our production and sales are pretty much limited by our capacity. As Eric mentioned, we are fully booked through December of 2026. and we could make some changes or there's still room for changes in our customer mix and product mix. So the overall number for fiscal 27, it is still uncertain, but there will definitely be growth and we will continue to do everything we could to maximize our capacity utilization and provide as much top-line growth as possible and also at an optimized margin and profitability. As we are expanding our capacity, we want to do it in a way that doesn't interrupt our normal operation. And so first quarter, we're pretty solid. We know what orders we have and what we're going to produce. But even second quarter, there are still some rooms for changes. So we really cannot project what the growth percentage for the full year is. But for the first quarter, we know we're going to be able to grow from 20% to 22% over the first quarter of fiscal 26.

Okay, got it. And then just thinking about the facilities that you guys have booked through December of 2026, you know, how much of that is firm purchase orders from your customers or just customers forecasting or, you know, expecting production? How much of that is, you know, like 100% purchase order?

No, it's not 100% purchase order. Usually, our customers will project six months to nine months' worth of what they need from our production facilities. And then we will do our pricing, we will do our sample development, and I think it will be probably 30 to 60 days out, then we will receive the purchase order.

Okay.

Got it.

Appreciate it.

Thanks for your question. Sorry, Gilbert. Allow me to say a few words. Okay. The reason why we say we are booked through the end of December production means we are planned according to what the customer's requirement because we received projection. And 80% already confirmed order. And the balance, the customer will confirm in the coming one or two months. According to our experience, okay, so for so many years running the production, 99%, okay, the customer will confirm the exact order. Okay, 99%.

Okay, got it. No, that's helpful to understand.

Thank you.

Your next question is from Mike Baker with DA Davidson.

Hey, thanks. So, HandSell, first order went well. I think you said 3 million units, and now there's been two follow-up orders. Can you just order magnitude, size, those follow-up orders? Was the 3 million, it wasn't a test per se, but, you know, as you prove your ability to deliver high quality on time, do the size of the additional orders increase?

Eric, what are the two follow-up orders from Hansel?

What is the quantity? Hello, Eric.

The two confirmed order from Hansel. Okay, firstly, one of the order is more or less the same like the girl shot we have been doing last year. So this is more or less like a repeat order. But our quantity is around 3 million pieces, but it is only for season one. Hansel told me that we will have season two, season three, and season four. Season 1 means starting the production from end of August until next January. And then Season 2, okay, we are receiving projection also for Season 2, okay, but it will start in February. And then Season 3 and Season 4 will continue. The second order, which is another style, okay, which is the last quantity, is around 1.3 million pieces, okay, also from pencil. And apart from these two orders, we continue discussing with a lot of, I think, more of $5,000 or $6,000 of orders, of which we already go through all the pricing exercise. We are still waiting for the confirmation from the buyer. Okay, I am sure that's because the end buyer may need more consideration because previously, there's a situation in the Middle East that's not very comfortable. for them. But they told us that if the ceasefire or any peace agreement initial or, I mean, temporary or long-lasting one will be signed, they will immediately pay more order to Jordan. As they consider, Jordan is the still most competitive manufacturing country base.

Understood. Great. Thank you. And so, just one additional follow-up. Are these more fashion, sort of higher-margin goods, or are they more basic goods, which I know come in at a lower margin?

Actually, okay, for the hands-on order, maybe, Gilbert, you can answer.

No, you can answer. But basically, the hands-on orders, they are more basic, simple styles. However, we were able to produce them at a much more efficient way, as well as reaping the benefits of economies of scale. So the margin of these hands-on orders are actually very, very good.

So then can you, one last one to remind us, you know, gross margins, the quarter you just reported were certainly higher than consensus, but we're down, I think, about 90 basic points year over year. What was the drag?

You mean comparing to the fourth quarter of 2025, right? I remember the sales for fiscal, for fourth quarter 2025 was kind of low. There were some delays in shipping out in the fourth quarter for 2025. There were some conjections at the ports. So we weren't able to ship out everything we produced. Now, I think there were some mixed issues. we basically ship out most of the orders that were with customers such as VF with higher margin and we weren't able to produce a lot of the DM or what we call cut and make orders with lower margin. So we pretty much concentrate on producing higher margin and to produce and ship out higher margin products in Q4 of 2025, and the impact from the Ramadan holiday and also the eat holiday in Q4 of 2025 was more significant, but this year, 2026 Q4, we were able to continue to produce, and because I think we pretty much learned from our past experience how to handle the disruption of the Ramadan. So this year, I mean, we projected a lower sales for Q4 this year just to anticipate that there will be disruptions or there will be a lower output because of Ramadan. And also, if you remember, when we did the projection for Q4 of 26, the war just started between Iran and the U.S. So we were kind of concerned and were rather conservative in our ability to ship out because there could be port closing and all kinds of uncertainties. So, yeah, fortunately, we were able to have a very high, well, actually, this is a record high fourth quarter for us. in Q4, and we were able to have a rather normal gross margin.

Got it. Thank you.

You're welcome.

Once again, if you would like to ask a question, please press star 1. We have reached the end of the question and answer session, and I will now turn the call over to Sam Choi for closing remarks.

Thank you, operator, and thanks to all of you for joining us today.

We appreciate your ongoing support and interest in the rush and we look forward to updating you on the progress in the year in the near future thank you very much thank you this concludes today's conference and you may disconnect your lines at this time thank you for your participation