8-K
Jerash Holdings (US), Inc. (JRSH)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 12, 2024
Jerash Holdings (US), Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-38474 | 81-4701719 |
|---|---|---|
| (State<br> or other jurisdiction<br><br> of incorporation) | (Commission<br> File Number) | (IRS<br> Employer<br><br> Identification No.) |
| 277 Fairfield Road, Suite 338, Fairfield, NJ | 07004 | |
| --- | --- | |
| (Address<br> of principal executive offices) | (Zip<br> Code) |
Registrant’s
telephone number, including area code: (201) 285-7973
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, par value $0.001 per share | JRSH | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b–2 of the Securities Exchange Act of 1934 (§ 240.12b–2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item2.02 Results of Operations and Financial Condition.
On November 12, 2024, Jerash Holdings (US), Inc. issued a press release to announce financial results for its fiscal year 2025 second quarter, ended September 30, 2024. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Exhibit |
|---|---|
| 99.1 | Press Release dated November 12, 2024 |
| 104 | Cover<br> Page Interactive Data File (embedded within the Inline XBRL document) |
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| JERASH HOLDINGS (US), INC. | ||
|---|---|---|
| November<br> 12, 2024 | By: | /s/ Choi Lin Hung |
| Choi<br> Lin Hung | ||
| Chairman<br> of the Board of Directors,<br><br> <br>Chief<br> Executive Officer, President, and Treasurer |
2
Exhibit 99.1
JerashHoldings Reports Financial Results
forFiscal 2025 Second Quarter
–Revenue Increases 21 Percent; Gross Profit Rises 31 Percent –
–Company Returns to Profitability as Global Customers Regain Confidence –
FAIRFIELD,N.J., November 12, 2024 – Jerash Holdings (US), Inc. (NASDAQ: JRSH) (the “Company” or “Jerash”), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2025 second quarter, ended September 30, 2024.
“Results for our second fiscal quarter demonstrated confidence by our global customers working with Jerash and the competitive advantages of doing business in Jordan,” said Sam Choi, Jerash’s chairman and chief executive officer. “Purchase orders for export shipments to our customers in the U.S. and Europe have been steadily increasing, and we are pleased to report that our factories are now fully booked through the first half of calendar year 2025.
“Also, on a positive note from a geopolitical perspective, our export trade routes in the region returned to a more normalized environment in August, which, in turn, is positively affecting profitability. Gross margin for the fiscal second quarter increased to 17.5 percent from 16.1 percent a year ago, and from 11.3 percent in the preceding fiscal first quarter.
“We are continuing to attract new global brands, further diversify our customer base, and expand product mix. We have good visibility well into fiscal 2026, and with momentum continuing, we are beginning to plan for a potential expansion of manufacturing capacity to support future growth,” Choi added.
Outlook
| ■ | Revenue<br> for the fiscal 2025 third quarter is expected to increase by 35-38 percent from the same<br> quarter last year; full-year revenue is expected to increase by 30-35 percent. |
|---|---|
| ■ | Gross<br> margin goal for fiscal year 2025 is expected to be approximately 14-15 percent, subject to<br> logistics and shipping charges and product mix. |
| --- | --- |
Fiscal2025 Second Quarter Results
Fiscal 2025 second quarter revenue increased 20.6 percent to $40.2 million, from $33.4 million in the same period last year, reflecting an increase in shipments to Jerash’s major U.S. customers.
Gross profit for the fiscal 2025 second quarter increased 31.4 percent to $7.1 million from $5.4 million in the same quarter last year. Gross margin increased 140 basis points to 17.5 percent, from 16.1 percent in the same period last year. The expansion in gross margin was primarily due to higher production volume, with increased orders shipped to the U.S. customers that typically carry higher margins.
Operating expenses totaled $5.9 million in the fiscal 2025 second quarter, compared with $4.5 million in the same period last year. The increase was primarily due to higher logistics costs to catch up with garment shipment schedules, and increased stock-based compensation expenses.
Operating income increased to $1.1 million in the fiscal 2025 second quarter, from $888,000 in the same period last year.
Total other expenses were $364,000 in the fiscal 2025 second quarter, versus $167,000 in the same quarter last year. The increase primarily reflected higher interest expenses.
Net income in the fiscal 2025 second quarter increased 80.1 percent to $665,000 from $369,000 for the prior-year quarter. Net income per diluted share for the fiscal 2025 second quarter increased to $0.05, from $0.03 in the same quarter last year.
Comprehensive income attributable to the Company’s common stockholders totaled $663,000 in the fiscal 2025 second quarter, compared with $306,000 in the same period last year.
Six-MonthFiscal Year 2025 Results
Revenue for the first six months of fiscal year 2025 rose to $81.2 million, from $68.1 million in the same period last year.
Gross profit was $11.7 million for the first half of fiscal year 2025, compared with $10.9 million for the same period last year. Gross margin for the first six months of fiscal year 2025 was 14.4 percent, compared with 16.1 percent in the same period last year.
Operating expenses for the first six months of fiscal year 2025 were $11.4 million, compared with $9.0 million for the same period last year. Operating income was $306,000 for the first six months of fiscal year 2025, compared with $2.0 million for the same period last year.
Net loss for the first six months of fiscal year 2025 was $702,000, or $0.06 per share, compared with net income of $864,000, or $0.07 per share, in the same period last year.
Comprehensive loss attributable to Jerash’s common stockholders was $673,000 in the first six months of fiscal year 2025, compared with comprehensive income of $708,000 for the same period last year.
2
BalanceSheet, Cash Flow, and Dividends
Cash and restricted cash totaled $17.9 million, and net working capital was $35.2 million as of September 30, 2024. Net cash provided by operating activities was approximately $2.4 million for the six-months ended September 30, 2024, compared with $8.2 million for the same period last year.
On November 8, 2024, Jerash’s board of directors approved a regular quarterly dividend of $0.05 per share on its common stock, payable on or about November 29, 2024 to stockholders of record as of November 22, 2024.
ConferenceCall
Jerash Holdings will host an investor conference call to discuss its fiscal 2025 second quarter results today, November 12, 2024, at 9:00 a.m. Eastern Time.
Phone: 888-506-0062 (domestic); 973-528-0011 (international)
**ConferenceID:**454213
A live and archived webcast will be available online in the investor relations section of Jerash’s website at www.jerashholdings.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.
AboutJerash Holdings (US), Inc.
Jerash manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands such as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle, and Skechers. Jerash’s existing production facilities comprise six factory units and four warehouses, and Jerash currently employs approximately 6,000 people. Additional information is available at www.jerashholdings.com.
Forward-LookingStatements
This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “seek”, “potential,” “outlook” and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, Jerash’s current views with respect to future events and its financial forecasts, and expansion of the customer base among high-profile global brands, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.
Contact:
PondelWilkinson Inc.
Judy Lin or Roger Pondel
310-279-5980
jlin@pondel.com
rpondel@pondel.com
# # #
(tables below)
3
JERASHHOLDINGS (US), INC.,
ANDSUBSIDIARIES
UNAUDITEDCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| For the Three Months Ended <br> September 30, | For the Six Months Ended<br> September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue, net | $ | 40,240,127 | $ | 33,357,108 | $ | 81,175,843 | $ | 68,092,765 | ||||
| Cost of goods sold | 33,182,244 | 27,985,077 | 69,478,089 | 57,153,194 | ||||||||
| Gross Profit | 7,057,883 | 5,372,031 | 11,697,754 | 10,939,571 | ||||||||
| Selling, general, and administrative expenses | 5,449,386 | 4,240,588 | 10,449,130 | 8,475,506 | ||||||||
| Stock-based compensation expenses | 474,088 | 243,448 | 943,023 | 484,250 | ||||||||
| Total Operating Expenses | 5,923,474 | 4,484,036 | 11,392,153 | 8,959,756 | ||||||||
| Income from Operations | 1,134,409 | 887,995 | 305,601 | 1,979,815 | ||||||||
| Other Income (Expenses): | ||||||||||||
| Interest expenses | (503,149 | ) | (359,234 | ) | (983,352 | ) | (748,185 | ) | ||||
| Other income, net | 139,166 | 192,523 | 193,201 | 282,750 | ||||||||
| Total other expenses, net | (363,983 | ) | (166,711 | ) | (790,151 | ) | (465,435 | ) | ||||
| Net income (loss) before provision for income taxes | 770,426 | 721,284 | (484,550 | ) | 1,514,380 | |||||||
| Income tax expenses | 105,877 | 352,340 | 217,598 | 650,321 | ||||||||
| Net income (loss) | 664,549 | 368,944 | (702,148 | ) | 864,059 | |||||||
| Net gain (loss) attributable to noncontrolling interest | 9,261 | 3,327 | (12,220 | ) | 1,916 | |||||||
| Net income (loss) attributable to Jerash Holdings (US), Inc.’s Common Stockholders | $ | 655,288 | $ | 365,617 | $ | (689,928 | ) | $ | 862,143 | |||
| Net income (loss) | $ | 664,549 | $ | 368,944 | $ | (702,148 | ) | $ | 864,059 | |||
| Other Comprehensive Income (Loss): | ||||||||||||
| Foreign currency translation gain (loss) | 7,583 | (59,841 | ) | 16,496 | (154,500 | ) | ||||||
| Total Comprehensive Income (Loss) | 672,132 | 309,103 | (685,652 | ) | 709,559 | |||||||
| Comprehensive gain (loss) attributable to noncontrolling interest | 9,261 | 3,327 | (12,220 | ) | 1,916 | |||||||
| Comprehensive Income (Loss) Attributable to Jerash Holdings (US), Inc.’s Common Stockholders | $ | 662,871 | $ | 305,776 | $ | (673,432 | ) | $ | 707,643 | |||
| Earnings (Loss) Per Share Attributable to Common Stockholders: | ||||||||||||
| Basic and diluted | $ | 0.05 | $ | 0.03 | $ | (0.06 | ) | $ | 0.07 | |||
| Weighted Average Number of Shares | ||||||||||||
| Basic | 12,294,840 | 12,294,840 | 12,294,840 | 12,294,840 | ||||||||
| Diluted | 12,460,241 | 12,294,840 | 12,294,840 | 12,294,840 | ||||||||
| Dividend per share | $ | 0.05 | $ | 0.05 | $ | 0.10 | $ | 0.10 |
4
JERASHHOLDINGS (US), INC.,
ANDSUBSIDIARIES
CONDENSEDCONSOLIDATED BALANCE SHEETS
| March 31,<br> 2024 | |||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Current Assets: | |||||
| Cash | 16,338,578 | $ | 12,428,369 | ||
| Accounts receivable, net | 5,793,228 | 5,417,513 | |||
| Inventories | 20,206,799 | 27,241,573 | |||
| Prepaid expenses and other current assets | 3,216,845 | 2,746,068 | |||
| Advance to suppliers, net | 6,028,433 | 3,086,137 | |||
| Total Current Assets | 51,583,883 | 50,919,660 | |||
| Restricted cash - non-current | 1,545,457 | 1,608,498 | |||
| Long-term deposits | 852,842 | 802,306 | |||
| Deferred tax assets, net | 158,329 | 158,329 | |||
| Property, plant, and equipment, net | 24,674,730 | 24,998,096 | |||
| Goodwill | 499,282 | 499,282 | |||
| Operating lease right of use assets | 1,033,412 | 1,259,395 | |||
| Total Assets | 80,347,935 | $ | 80,245,566 | ||
| LIABILITIES AND EQUITY | |||||
| Current Liabilities: | |||||
| Credit facilities | 3,570,237 | $ | - | ||
| Accounts payable | 4,394,732 | 6,340,237 | |||
| Accrued expenses | 3,654,895 | 4,175,843 | |||
| Income tax payable - current | 952,108 | 1,647,199 | |||
| Other payables | 2,368,807 | 2,234,870 | |||
| Deferred revenue | 1,123,163 | 10,200 | |||
| Operating lease liabilities - current | 343,868 | 370,802 | |||
| Total Current Liabilities | 16,407,810 | 14,779,151 | |||
| Operating lease liabilities - non-current | 481,575 | 618,302 | |||
| Income tax payable - non-current | - | 417,450 | |||
| Total Liabilities | 16,889,385 | 15,814,903 | |||
| Equity | |||||
| Preferred stock, 0.001 par value; 500,000 shares authorized; none issued and outstanding | - | $ | - | ||
| Common stock, 0.001 par value; 30,000,000 shares authorized; 12,534,318 shares issued and 12,294,840 shares outstanding | 12,534 | 12,534 | |||
| Additional paid-in capital | 24,860,117 | 23,917,094 | |||
| Treasury stock, 239,478 shares | (1,169,046 | ) | (1,169,046 | ) | |
| Statutory reserve | 413,821 | 413,821 | |||
| Retained earnings | 39,784,826 | 41,704,238 | |||
| Accumulated other comprehensive loss | (475,823 | ) | (492,319 | ) | |
| Total Jerash Holdings (US), Inc. Stockholders’ Equity | 63,426,429 | 64,386,322 | |||
| Noncontrolling interest | 32,121 | 44,341 | |||
| Total Equity | 63,458,550 | 64,430,663 | |||
| Total Liabilities and Equity | 80,347,935 | $ | 80,245,566 |
All values are in US Dollars.
5
JERASHHOLDINGS (US), INC.,
AND SUBSIDIARIES
UNAUDITEDCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Six Months Ended<br> September 30, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net (loss) income | $ | (702,148 | ) | $ | 864,059 | |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||
| Depreciation and amortization | 1,209,053 | 1,224,322 | ||||
| Stock-based compensation expenses | 943,023 | 484,250 | ||||
| Credit Loss (recovery) | 16,768 | (66,980 | ) | |||
| Amortization of operating lease right-of-use assets | 300,559 | 416,090 | ||||
| Changes in operating assets: | ||||||
| Accounts receivable | (392,484 | ) | (2,894,162 | ) | ||
| Bills receivable | - | 87,573 | ||||
| Inventories | 7,034,774 | 13,942,970 | ||||
| Prepaid expenses and other current assets | (470,777 | ) | 814,878 | |||
| Advance to suppliers | (2,942,296 | ) | (1,910,244 | ) | ||
| Changes in operating liabilities: | ||||||
| Accounts payable | (1,945,505 | ) | (1,530,458 | ) | ||
| Accrued expenses | (520,948 | ) | (251,048 | ) | ||
| Other payables | 133,937 | (265,119 | ) | |||
| Deferred revenue | 1,112,963 | (696,006 | ) | |||
| Operating lease liabilities | (238,237 | ) | (336,984 | ) | ||
| Income tax payable | (1,112,062 | ) | (1,704,261 | ) | ||
| Net cash provided by operating activities | 2,426,620 | 8,178,880 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Purchases of property, plant, and equipment | (348,238 | ) | (635,878 | ) | ||
| Payments for construction of properties | (270,599 | ) | (2,575,669 | ) | ||
| Payment for long-term deposits | (317,386 | ) | (247,610 | ) | ||
| Net cash used in investing activities | (936,223 | ) | (3,459,157 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Dividend payments | (1,229,484 | ) | (1,229,484 | ) | ||
| Investment of noncontrolling interest | - | 31,365 | ||||
| Repayment from short-term loan | (5,566,040 | ) | (3,118,339 | ) | ||
| Proceeds from short-term loan | 9,136,277 | 3,118,339 | ||||
| Net cash provided by (used in) financing activities | 2,340,753 | (1,198,119 | ) | |||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH | 16,018 | (123,491 | ) | |||
| NET INCREASE IN CASH AND RESTRICTED CASH | 3,847,168 | 3,398,113 | ||||
| CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD | 14,036,867 | 19,411,603 | ||||
| CASH, AND RESTRICTED CASH, END OF THE PERIOD | $ | 17,884,035 | $ | 22,809,716 | ||
| CASH, AND RESTRICTED CASH, END OF THE PERIOD | $ | 17,884,035 | $ | 22,809,716 | ||
| LESS: NON-CURRENT RESTRICTED CASH | 1,545,457 | 1,608,074 | ||||
| CASH, END OF THE PERIOD | $ | 16,338,578 | $ | 21,201,642 | ||
| Supplemental disclosure information: | ||||||
| Cash paid for interest | $ | 983,352 | $ | 748,185 | ||
| Income tax paid | $ | 1,329,150 | $ | 2,371,705 | ||
| Non-cash investing and financing activities | ||||||
| Equipment obtained by utilizing long-term deposit | $ | 262,017 | $ | 358,620 | ||
| Operating lease right of use assets obtained in exchange for operating lease obligations | $ | 67,512 | $ | 177,068 |
6