EX-99.1 2 ea026468601ex99-1_jerash.htm PRESS RELEASE DATED NOVEMBER 12, 2025

Exhibit 99.1

 

 

Jerash Holdings Reports Fiscal 2026 Second Quarter Financial Results

 

FAIRFIELD, N.J., November 12, 2025 – 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 2026 second quarter ended September 30, 2025.

 

Fiscal 2026 Second Quarter Highlights

 

Revenue increased 4.3 percent to $42.0 million, from $40.2 million in the prior year quarter.

 

Gross margin was 15.0 percent, compared with 17.5 percent in the prior year quarter.

 

Operating income was $1.09 million, compared with $1.13 million in the prior year quarter.

 

Net income was $479,000, compared with $665,000 in the prior year quarter.

 

Outlook

 

Revenue for the fiscal 2026 third quarter is expected to increase by 19 to 21 percent over the same quarter last year.

 

Gross margin goal for the fiscal 2026 third quarter is approximately 13 to 15 percent.

 

“Amid ongoing trade uncertainties, we continue to experience growing demand from our customers, as Jordan is increasingly becoming a preferred destination for global brands seeking to diversify their manufacturing partnerships beyond Asia,” said Sam Choi, Jerash’s chairman and chief executive officer.

 

“In late June, we completed an expansion of our existing manufacturing facilities, adding approximately 15 percent to our much-needed production capacity. With increasing capacity requests from our global customers and strategic partners, we have initiated a long-term expansion plan to support anticipated growth. This includes exploring potential acquisitions and facility development on our own land to ensure that Jerash remains well-positioned to sustain our competitive edge and meet evolving market demands.

 

 

 

 

“Gross margin for the quarter was lower than that for the same period last year, which benefited from catch-up production of higher-margin outerwear originally scheduled for the first quarter of fiscal 2025. Additionally, as we successfully continue to diversify our customer base and product mix, we expect a slightly lower average gross margin in the near term. As order volumes for our expanded product offerings continue to scale, our goal is to improve gross profit margins through increased production automation and the benefits of economies of scale.

 

“During this important period of progress for the Company, we remain attentive to potential impacts of geopolitical uncertainties in the region and evolving tariff developments as we continue advancing our growth strategy,” Choi added.

 

Fiscal 2026 Second Quarter Results

 

Revenue for the fiscal 2026 second quarter grew 4.3 percent to $42.0 million, from $40.2 million in the same quarter last year. The increase was primarily driven an increase in shipments to the U.S., resulting from a more diverse customer base in fiscal 2026.

 

Gross profit was $6.3 million for the fiscal 2026 second quarter, compared with $7.1 million in the same quarter last year. Gross profit margin for the quarter declined to 15.0 percent, from 17.5 percent in the same period last year, which benefited from catch-up production of some outerwear that carried higher margins originally scheduled for the first quarter of fiscal 2025. The decrease was primarily driven by the diversification of customer base and product mix, which resulted in a lower average gross margin.

 

Operating expenses totaled $5.2 million in the fiscal 2026 second quarter, compared with $5.9 million in the same quarter last year. The decrease was primarily due to better control of export costs and lower stock-based compensation expenses.

 

Operating income was $1.09 million in the fiscal 2026 second quarter, slightly lower than $1.13 million in the same quarter last year.

 

Total other expenses were $456,000 in the fiscal 2026 second quarter, compared with $364,000 in the same quarter last year. The increase was primarily due to the increase in financing needs to support business growth.

 

Income tax expenses were $154,000 in the fiscal 2026 second quarter, compared with $106,000 in the prior year quarter.

 

Net income was $479,000, or $0.04 per diluted share, in the fiscal 2026 second quarter, compared with $665,000, or $0.05 per diluted share, in the same quarter last year.

 

Comprehensive income attributable to the Company’s common stockholders totaled $444,000 in the fiscal 2026 second quarter, compared with $663,000 in the same quarter last year.

 

Six-Month Fiscal Year 2026 Results

 

Revenue for the first six months of fiscal year 2026 rose to $81.6 million, from $81.2 million in the same period last year. The increase was mainly due to the increase in overall demands for most of Jerash’s major customers following the Company’s efforts to diversify customer base.

 

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Gross profit increased 5.8 percent to $12.4 million for the first half of fiscal year 2026, compared with $11.7 million for the same period last year. Gross margin for the first six months of fiscal year 2026 increased to 15.2 percent, compared with 14.4 percent in the same period last year.

 

Operating expenses for the first six months of fiscal year 2026 were $10.3 million, compared with $11.4 million for the same period last year. Operating income increased to $2.0 million for the first six months of fiscal year 2026, compared with $306,000 for the same period last year. The improvement was mainly attributable to reduced export logistics costs, lower stock-based compensation expenses, and reduced spending on repairs and maintenance.

 

Total other expenses for the first six months of fiscal 2026 decreased to $763,000, compared with $790,000 for the same period last year, primarily due to lower interest expense.

 

Income tax expenses were $483,000 for the first six months of fiscal year 2026, compared with $218,000 for the same period in prior year.

 

Net income for the first six months of fiscal year 2026 was $803,000, or $0.06 per diluted share, compared with a net loss of $702,000, or $0.06 per share, in the same period last year. The increase was primarily driven by greater overall demand, improved control over import and export costs, and business growth that enabled lower average costs through economies of scale.

 

Comprehensive income attributable to Jerash’s common stockholders was $773,000 in the first six months of fiscal year 2026, compared with comprehensive loss of $673,000 for the same period last year.

 

Balance Sheet, Cash Flow, and Dividends

 

Cash and restricted cash totaled $13.7 million, and net working capital was $35.2 million as of September 30, 2025.

 

On November 7, 2025, Jerash’s board of directors approved a regular quarterly dividend of $0.05 per share on its common stock, payable on November 26, 2025 to stockholders of record as of November 19, 2025.

 

Conference Call

 

Jerash Holdings will host an investor conference call to discuss its fiscal 2026 second quarter results today, November 12, 2025, at 9:00 a.m. Eastern Time. 

 

Phone: 888-506-0062 (domestic); 973-528-0011 (international)

 

Conference ID: 589743

 

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. 

 

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About Jerash Holdings (US), Inc. 

 

Jerash Holdings (US), Inc. 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 DKNY and Nautica), Acushnet Holdings Corp (which owns the brand FootJoy), 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-Looking Statements

 

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. These and other risks and uncertainties are detailed in the Company’s filings 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; [email protected]  

 

#   #   # 

(tables below)

 

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JERASH HOLDINGS (US), INC., AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) 

 

 

   For the
Three Months Ended
September 30,
   For the
Six Months Ended
September 30,
 
   2025   2024   2025   2024 
                 
Revenue, net  $41,968,534   $40,240,127   $81,597,842   $81,175,843 
Cost of goods sold   35,678,854    33,182,244    69,219,282    69,478,089 
Gross Profit   6,289,680    7,057,883    12,378,560    11,697,754 
                     
Selling, general, and administrative expenses   4,971,466    5,449,386    9,878,681    10,449,130 
Stock-based compensation expenses   228,826    474,088    451,495    943,023 
Total Operating Expenses   5,200,292    5,923,474    10,330,176    11,392,153 
                     
Income from Operations   1,089,388    1,134,409    2,048,384    305,601 
                     
Other Income (Expenses):                    
Interest expenses   (493,482)   (503,149)   (849,330)   (983,352)
Other income, net   37,153    139,166    86,467    193,201 
Total other expenses, net   (456,329)   (363,983)   (762,863)   (790,151)
                     
Net income (loss) before provision for income taxes   633,059    770,426    1,285,521    (484,550)
                     
Income tax expenses   153,756    105,877    482,588    217,598 
                     
Net income (loss)   479,303    664,549   802,933    (702,148)
                     
Net (gain) loss attributable to noncontrolling interest   (17,698)   (9,261)   (22,652)   12,220 
Net income (loss) attributable to Jerash Holdings (US), Inc.’s Common Stockholders  $461,605   $655,288   $780,281   $(689,928)
                     
Net income (loss)  $479,303   $664,549   $802,933   $(702,148)
Other Comprehensive Income (Loss):                    
Foreign currency translation (loss) gain   (17,215)   7,583    (7,651)   16,496 
Total Comprehensive Income (Loss)   462,088    672,132    795,282    (685,652)
Comprehensive (income) loss attributable to noncontrolling interest   (17,698)   (9,261)   (22,652)   12,220 
Comprehensive Income (Loss) Attributable to Jerash Holdings (US), Inc.’s Common Stockholders  $444,390   $662,871   $772,630   $(673,432)
                     
Earnings (Loss) Per Share Attributable to Common Stockholders:                    
Basic and diluted  $0.04   $0.05   $0.06   $(0.06)
                     
Weighted Average Number of Shares                    
Basic   12,699,940    12,294,840    12,699,940    12,294,840 
Diluted   13,174,524    12,460,241    13,125,459    12,294,840 
                     
Dividend per share  $0.05   $0.05   $0.10   $0.10 

 

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JERASH HOLDINGS (US), INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

   September 30,
2025
   March 31,
2025
 
   (Unaudited)     
ASSETS                
Current Assets:        
Cash  $12,002,314   $13,346,791 
Accounts receivable, net   5,798,578    3,076,074 
Inventories   26,256,890    27,704,829 
Prepaid expenses and other current assets   3,500,397    3,648,321 
Advance to suppliers, net   7,995,085    6,644,194 
Total Current Assets   55,553,264    54,420,209 
           
Restricted cash - non-current   1,700,539    1,717,248 
Long-term deposits   379,283    464,934 
Property, plant, and equipment, net   24,667,532    25,023,681 
Goodwill   499,282    499,282 
Operating lease right of use assets   535,512    850,172 
Total Assets  $83,335,412   $82,975,526 
           
LIABILITIES AND EQUITY          
           
Current Liabilities:          
Credit facilities  $5,176,438   $4,512,462 
Accounts payable   7,755,534    6,507,308 
Accrued expenses   4,075,252    4,342,436 
Income tax payable - current   865,161    1,305,386 
Uncertain tax provision   -    175,290 
Other payables   1,502,010    2,149,185 
Deferred revenue   691,264    487,004 
Operating lease liabilities - current   314,685    339,699 
Total Current Liabilities   20,380,344    19,818,770 
           
Deferred tax liabilities, net   120    120 
Operating lease liabilities - non-current   109,056    287,527 
Total Liabilities   20,489,520    20,106,417 
           
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; 12,939,418 shares issued, and 12,699,940 shares outstanding as of September 30, 2025 and March 31, 2025, respectively   12,939    12,939 
Additional paid-in capital   26,126,330    25,674,835 
Treasury stock, 239,478 shares   (1,169,046)   (1,169,046)
Statutory reserve   413,821    413,821 
Retained earnings   37,907,188    38,396,901 
Accumulated other comprehensive loss   (520,773)   (513,122)
Total Jerash Holdings (US), Inc. Stockholders’ Equity   62,770,459    62,816,328 
           
Noncontrolling interest   75,433    52,781 
Total Equity   62,845,892    62,869,109 
           
Total Liabilities and Equity  $83,335,412   $82,975,526 

 

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JERASH HOLDINGS (US), INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

   For the
Six Months Ended
September 30,
 
   2025   2024 
CASH FLOWS FROM OPERATING ACTIVITIES        
Net income (loss)  $802,933   $(702,148)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:          
Depreciation   1,506,793    1,209,053 
Stock-based compensation expenses   451,495    943,023 
Credit loss   -    16,768 
Amortization of operating lease right-of-use assets   316,722    300,559 
           
Changes in operating assets:          
Accounts receivable   (2,722,504)   (392,484)
Inventories   1,447,940    7,034,774 
Prepaid expenses and other current assets   147,924    (470,777)
Advance to suppliers   (1,350,891)   (2,942,296)
Changes in operating liabilities:          
Accounts payable   1,248,225    (1,945,505)
Accrued expenses   (267,184)   (520,948)
Other payables   (647,175)   133,937 
Deferred revenue   204,260    1,112,963 
Operating lease liabilities   (205,547)   (238,237)
Income tax payable   (614,713)   (1,112,062)
Net cash provided by operating activities   318,278    2,426,620 
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchases of property, plant, and equipment   (844,401)   (348,238)
Payments for construction of properties   -    (270,599)
Payment for long-term deposits   (209,543)   (317,386)
Net cash used in investing activities   (1,053,944)   (936,223)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Dividend payment   (1,269,994)   (1,229,484)
Repayment from short-term loan   (10,003,284)   (5,566,040)
Proceeds from short-term loan   10,667,260    9,136,277 
Net cash (used in) provided by financing activities   (606,018)   2,340,753 
           
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH   (19,502)   16,018 
           
NET (DECREASE) INCREASE IN CASH AND RESTRICTED CASH   (1,361,186)   3,847,168 
           
CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD   15,064,039    14,036,867 
           
CASH, AND RESTRICTED CASH, END OF THE PERIOD  $13,702,853   $17,884,035 
           
CASH, AND RESTRICTED CASH, END OF THE PERIOD  $13,702,853   $17,884,035 
LESS: NON-CURRENT RESTRICTED CASH   1,700,539    1,545,457 
CASH, END OF THE PERIOD  $12,002,314   $16,338,578 
           
Supplemental disclosure information:          
Cash paid for interest  $849,330   $983,352 
Income tax paid  $1,105,128   $1,329,150 
           
Non-cash investing and financing activities          
Equipment obtained by utilizing long-term deposit  $295,195   $262,017 
Operating lease right of use assets obtained in exchange for operating lease obligations  $-   $67,512 

 

 

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