Jerash Holdings (US) Inc (JRSH) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Jerash Holdings Fiscal 2024 second quarter financial results. (Operator Instructions) I will now turn the conference over to your host, Mr. Roger Pondel, Investor Relations. You may begin.

您好，歡迎閱讀傑拉什控股 2024 財年第二季財務業績。 （操作員指示）我現在將會議轉交給東道主投資者關係部門的 Roger Pondel 先生。你可以開始了。

Thanks so much, operator, and good morning again, everyone, and welcome to Jerash Holdings Fiscal 2024 quarter conference call. I'm Roger Pondel with Pondel Wilkinson, Jerash Holdings Investor Relations firm, and it will be my pleasure momentarily to introduce the company's Chairman and Chief Executive Officer, Sam Choi, its Chief Financial Officer, Gilbert Lee, and Eric Tang, who leads the Company's operations in Jordan.

非常感謝運營商，大家早上好，歡迎參加杰拉什控股 2024 財年季度電話會議。我是 Jerash Holdings 投資者關係公司 Pondel Wilkinson 的 Roger Pondel，我很高興能立即介紹該公司的董事長兼首席執行官 Sam Choi、首席財務官 Gilbert Lee 以及領導該公司的 Eric Tang。公司在約旦的業務。

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 factors section of the Company's most recent Form 10K as filed with the Securities and Exchange Commission.

在我將電話轉交給Sam 之前，我想提醒我們的聽眾，今天的電話會議可能包含1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。此類前瞻性陳述受到多種條件的約束，其中許多條件包括：這些超出了公司的控制範圍，包括公司向美國證券交易委員會提交的最新 10K 表格的風險因素部分中列出的因素。

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 Geron Holdings undertakes no obligation to update any forward-looking statements except as required by law. And with that, it's my pleasure to turn the call over to Sam Choi. Sam?

其副本以及不時向 SEC 提交的其他公司文件可在 SEC 網站 www.sec.gov 上取得。實際結果可能與這些前瞻性聲明有重大差異，除法律要求外，Geron Holdings 不承擔更新任何前瞻性聲明的義務。至此，我很高興將電話轉給 Sam Choi。薩姆？

Thank you, Roger, and hello, everyone. Our second quarter demos performance has again demonstrated Jerash ability to attract new customers and our resiliency near challenging apparel environment. With today's market conditions for global brands in the US and Europe has been slow to recover, which in return is impacting our business compare with the prior year. Customers' orders have generally shipped to lower priced items, which carry lower margins.

謝謝你，羅傑，大家好。我們第二季的演示表現再次證明了傑拉什吸引新客戶的能力以及我們在充滿挑戰的服裝環境中的彈性。如今，美國和歐洲全球品牌的市場狀況恢復緩慢，這反過來又影響了我們與去年相比的業務。顧客的訂單通常都是價格較低的商品，這些商品的利潤率較低。

Nevertheless, our revenue and gross margin remained essentially stable from a consequence on a sequential basis. During the quarter, good progress was made with our [two center joint venture] partner has farm five John winter premium brand customers have committed to placing orders.

儘管如此，我們的收入和毛利率仍基本保持穩定。本季度，我們的[兩中心合資]合作夥伴取得了良好進展，農場的五個約翰冬季優質品牌客戶已承諾下訂單。

Marketing to additional prospective customers is continuing and feedback is encouraging. Current projections from the $12 million share for the next 12 months call for about $8 million to 9 million in new orders starting in a meaningful way in our fiscal fourth quarters.

正在繼續向更多潛在客戶進行行銷，並且反饋令人鼓舞。目前對未來 12 個月 1,200 萬美元份額的預測要求，在我們第四財季開始有意義的新訂單約為 800 萬至 900 萬美元。

On tourist customer front, Timberland has increased its orders significantly. It became the second largest global brand to Jerash. We are also producing our first trial orders for wet apparel, another, we have co-operate brands and confident order flow from wins will be increased liquid in the next fiscal year as well. This is from our first European pace. High end apparel brand continues to expand. We are currently projecting a doubling of orders in the second half of fiscal 2024.

在旅遊客戶方面，Timberland 的訂單大幅增加。它成為僅次於傑拉什的第二大全球品牌。我們也正在生產第一批濕服裝的試訂單，另外，我們有合作品牌，並且有信心來自勝利的訂單流在下一財年也將增加流動性。這是我們在歐洲的第一個步伐。高端服飾品牌不斷擴張。我們目前預計 2024 財年下半年的訂單量將增加一倍。

Furthermore, we are excited about the opportunity created by our recently established joint venture with New Tech Tec star, our textile innovation and solution company. This venture is expected to enable direct. We employ the latest technology to offer customers a new array of sustainable and innovative textile products.

此外，我們對最近與我們的紡織創新和解決方案公司 New Tech Tec star 建立的合資企業所創造的機會感到興奮。該合資企業預計將直接啟用。我們採用最新技術為客戶提供一系列新的永續和創新紡織產品。

So popular edge three textile dyeing process technology is expected to reduce water usage by approximately 90%. Energy consuming by approximately 65% in carbon footprint by over 50% in comparison with traditional processes. To achieve this, we plan to build a state of Oct fabric facility in Jordan with construction to begin in 2024 and then move to Reg it's a leader in ESG textile manufacturing, which is in keeping with our long-standing commitment to sustainability and possible growth.

因此流行的三邊紡織染色製程技術預計可減少用水量約90%。與傳統製程相比，能源消耗約 65%，碳足跡減少 50% 以上。為了實現這一目標，我們計劃在約旦建造一座十月織物工廠，將於2024 年開始建設，然後遷至Reg，它是ESG 紡織品製造的領導者，這符合我們對永續發展和可能成長的長期承諾。

Lastly, I want to give an update regarding Middle East, which is on everyone's mind. Since chrome ore began, we have been closely monitoring the situation and keeping our customers informed. Thirdly, flotation is ongoing as usual, there have been no changes with customers' orders or commitments. And both Paul, that Suresh uses for important in this scope of functioning.

最後，我想介紹一下大家都關心的中東問題的最新情況。自從鉻礦石開始生產以來，我們一直在密切關注情況並隨時向客戶通報情況。第三，發行活動照常進行，客戶訂單或承諾沒有變更。蘇雷什（Suresh）在這功能範圍內所使用的保羅（Paul）都很重要。

Normally, I will now turn the call over to Eric to talk about our operations and Gilbert will then discuss new service results.

通常情況下，我現在會將電話轉給埃里克（Eric）談論我們的運營，然後吉爾伯特（Gilbert）將討論新的服務結果。

Thank you, Sam, and hello, everyone. Activities in Jordan continue to progress at fixed pace. We are expected about both of our joint ventures. Our present Partnership is well underway and bearing fruit, marketing efforts continue to accelerate, and we believe the partnership is forcing and well positioned for growth ahead.

謝謝你，山姆，大家好。約旦的活動繼續以固定的速度進行。我們對兩家合資企業都充滿期待。我們目前的合作關係正在順利進行並取得成果，行銷工作繼續加速，我們相信這種夥伴關係正在推動並為未來的成長做好準備。

Now we are very busy forming trends of our new tech textile joint venture partner. At this juncture, we are actively identifying potential sites in a nearby industrial zone on which to build our new textile company. Jerash is conferring with the Jordanian government for possible support and collaboration on this project, which will foster new employment in high tech related jobs.

現在我們正忙著形成我們的新技術紡織合資夥伴的趨勢。目前，我們正在附近的工業區積極物色潛在地點，以建立我們新的紡織公司。杰拉什正在與約旦政府商討對該計畫的可能支持和合作，這將促進高科技相關工作的新就業。

Spending patterns at the consumer level are still geared towards lower margin items, which in turn has impacted order mix as well as volume from our customers. However, we are maintaining and growing our strong relationship with existing customers and moving forward to rush initiative to diversify and grow to our customer base.

消費者層面的支出模式仍然面向利潤率較低的商品，這反過來又影響了訂單組合以及客戶的數量。然而，我們正在維持和發展與現有客戶的牢固關係，並繼續採取主動行動，實現客戶群多元化和發展。

Jerash is a trusted manufacturing partner for VF Corp., which owns multiple global brands. We have been producing chapters and other payroll for its North Face brands for more than eight years. Starting last fiscal year, we began producing apparel for Timberland another.

Jerash 是 VF Corp. 值得信賴的製造合作夥伴，該公司擁有多個全球品牌。八年多來，我們一直為其 North Face 品牌製作章節和其他薪資單。從上個財年開始，我們又開始為 Timberland 生產服裝。

We have Brent and the order volume has increased significantly becoming our second largest brand now. We look forward to working closely with other with brands such as well. Our first European-based high end apparel brand is also progressing very well and order volume is anticipated to double for the second half of fiscal 2024.

我們有布倫特，訂單量大幅增加，現在成為我們的第二大品牌。我們也期待與其他品牌密切合作。我們的第一個歐洲高端服飾品牌也進展順利，預計 2024 財年下半年訂單量將翻倍。

Additionally, we are receiving inquiries from other high-profile global brands, both from the US and Europe with new common sampling and costing underway. To amplify on Sam's comment regarding the Middle East situation, we use both the upper and high support for important export.

此外，我們還收到來自美國和歐洲的其他知名全球品牌的詢問，新的通用樣品和成本核算正在進行中。為了放大薩姆對中東局勢的評論，我們使用了對重要出口的上支撐和高支撐。

Thankfully, so far both parts are operating with business as usual. That said, in the event of any potential impact on the ports, we have a contingency plan, which is in place that has been approved by our major customers for temporary relocating production and that's necessary through alternative regions.

值得慶幸的是，到目前為止，這兩個部門都一切正常。也就是說，如果港口受到任何潛在影響，我們已經制定了應急計劃，該計劃已得到我們主要客戶的批准，可以臨時轉移生產，並且有必要透過其他地區進行轉移。

Our leadership position in Jordan provides unique and tangible benefits to customers around the globe. The initiatives and trends we have increased, including vertical integration, sustainable textile solutions and focus on the enrollment positions, the rush of a distinct competitive advantage and EBITs, an attractive partner for premium apparel brands.

我們在約旦的領導地位為全球客戶提供了獨特而實際的好處。我們增加的措施和趨勢，包括垂直整合、永續紡織解決方案和對招生職位的關注、明顯的競爭優勢和息稅前利潤的激增、優質服裝品牌有吸引力的合作夥伴。

I will now turn the call over to Gilbert to discuss our financial results and the fiscal 2024 outlook here with Chris.

我現在將把電話轉給吉爾伯特，與克里斯討論我們的財務表現和 2024 財年前景。

Thank you, Eric.

謝謝你，埃里克。

Revenue for fiscal 2020 for second quarter amounted to $33.4 million, compared with $37.8 million for the same period last year. The decrease was primarily due to fewer shipments being delivered to some of the major customers in the US, partially offset by shipments to other new geographical locations, including Hong Kong and Germany.

2020財年第二季營收為3,340萬美元，去年同期為3,780萬美元。下降的主要原因是向美國一些主要客戶交付的貨物減少，部分被向其他新地理位置（包括香港和德國）的發貨量所抵消。

Gross profit was $5.4 million for the fiscal 2024 second quarter compared with $6.9 million in the same quarter last year. The gross margin was 16.1% compared with 18.3% a year ago, principally driven by a shift in customer mix with lower profit margin orders.

2024 財年第二季的毛利為 540 萬美元，去年同期為 690 萬美元。毛利率為 16.1%，而去年同期為 18.3%，主要是由於客戶結構發生變化，訂單利潤率較低。

Operating expenses for the fiscal 2024 for second quarter increased slightly to $4.5 million from $4.3 million last year. Operating income totaled $888,000 in the most recent second quarter, versus $2.6 million in the same period last year.

2024 財年第二季的營運支出從去年的 430 萬美元小幅增加至 450 萬美元。最近第二季的營業收入總計 888,000 美元，而去年同期為 260 萬美元。

Total other expenses were $167,000 in this fiscal year 2024 second quarter compared with $106,000 in the same quarter last year. The increase was primarily due to higher interest expenses, arisen from participating in supply chain financing programs of certain customers, partially offset by income some fixed deposits in banks.

2024 財年第二季的其他費用總額為 167,000 美元，而去年同期為 106,000 美元。這一增長主要是由於參與某些客戶的供應鏈融資計劃而產生的利息費用增加，部分被銀行定期存款收入所抵銷。

Net income was $369,000 or $0.03 per share, in the fiscal year 2020 for second quarter compared with $1.8 million or $0.14 per diluted share in the same period last year. Jerash's balance sheet and cash position remains strong with 22.8 million of cash and restricted cash and net working capital of $40.5 million. As of September 30, 2023, inventory was $18.7 million and accounts receivable was $5.2 million.

2020 財年第二季淨利為 369,000 美元，即每股 0.03 美元，而去年同期淨利為 180 萬美元，即每股攤薄收益 0.14 美元。傑拉什的資產負債表和現金狀況依然強勁，現金為 2,280 萬美元，限制性現金和淨營運資本為 4,050 萬美元。截至2023年9月30日，庫存為1,870萬美元，應收帳款為520萬美元。

Net cash provided by operating activities was approximately $8.2 million for the six months ended September 30, 2023, compared with $9.6 million for the same period last year. As Sam mentioned earlier, retail market conditions have not yet fully recovered.

截至2023年9月30日的六個月，經營活動提供的淨現金約為820萬美元，去年同期為960萬美元。正如 Sam 之前提到的，零售市場狀況尚未完全恢復。

Therefore, we are taking a conservative approach to guide our revenue for fiscal 2024 to be down about 3% to 5% from last fiscal year. Our gross margin goal for the current fiscal year is expected to be approximately 15% to 16%. Our outlook is subject to final product mix of shipments as well as order flow from the new customers through our joint venture with Rozana.

因此，我們採取保守的做法，指導我們2024財年的收入比上一財年下降約3%至5%。我們本財年的毛利率目標預計約為 15% 至 16%。我們的前景取決於最終產品的發貨組合以及透過我們與 Rozana 的合資企業獲得的新客戶的訂單流。

Lastly, on November 3, 2023 our Board of Directors approved a quarterly dividend of $0.05 per share payable on November 28, to stockholders of record as of November 14. And with that, we will now open up the call for questions. Operator, may we have the first question, please?

最後，我們的董事會於 2023 年 11 月 3 日批准了每股 0.05 美元的季度股息，將於 11 月 28 日向截至 11 月 14 日登記在冊的股東支付。現在，我們將開始提問。接線員，我們可以問第一個問題嗎？

(Operator Instructions)

（操作員說明）

Mike Baker, DA Davidson.

麥克貝克，地方檢察官戴維森。

Okay, thanks. Just I'm going to have two questions first, maybe it's obvious, but what are you hearing from your big customers in the US as it relates to consumer spending, holiday outlook, those kinds of things? Is that what is really causing the results to come in a little bit less than expected? Is it weakness in US consumer spending or is there something else to consider?

好的謝謝。我首先要問兩個問題，也許這是顯而易見的，但是您從美國的大客戶那裡聽到了什麼，因為這與消費者支出、假期前景等有關？這真的是導致結果略低於預期的原因嗎？是美國消費者支出疲軟還是有其他需要考慮的因素？

Well, thanks, Mike. Yes, I think in this mainly because of the slowly recovering of the consumer market, that the spending is still not back to the same level as before. So, our existing customers' orders are shifting more toward the lower margin products instead of the high dollar value, high margin products such as the North Face jackets. Eric, do you have anything to say about this, you've been yes, we've been talking to the customer (multiple speakers).

嗯，謝謝，麥克。是的，我認為這主要是因為消費市場的緩慢復甦，支出仍然沒有回到以前的水平。因此，我們現有客戶的訂單更轉向利潤率較低的產品，而不是高價值、高利潤率的產品，例如 North Face 夾克。艾瑞克，你對此有什麼要說的嗎？你是的，我們一直在與客戶交談（多個發言者）。

What Yes, I totally agree to what you have mentioned. I talked to many, many brands. Okay. You are right, because the spending power in the Europe and US is still deduction recover so much still very weak. So people and trying not to spend too much on the luxurious brands or luxuries product like our Northeast jacket or other types of highway jackets.

什麼是的，我完全同意你所提到的。我和很多很多品牌談過。好的。你是對的，因為歐美的消費能力還扣除恢復這麼多還很弱。因此，人們盡量不要在奢侈品牌或奢侈品上花費太多，例如我們的東北夾克或其他類型的公路夾克。

So order pricing to us is slightly less than before, but we have very big demand for low cost, a T-shirt, low-cost chapters from some other brands, which is also very popular in the US. So that's why we can still be able to occupy all our current capacity and running on the food for time basis, and this is the situation.

所以我們的訂單定價比以前稍微少了一些，但是我們對低成本的需求非常大，一件T卹，一些其他品牌的低成本章，這些在美國也很受歡迎。所以這就是為什麼我們仍然能夠佔據我們目前所有的能力並以食物為時間基礎運行，這就是情況。

Okay, that makes sense. Thanks. One other question as it relates to the new joint venture for the textile situation. Can you just talk about so you said, I think construction begins in 2024. I assume you mean calendar 2024 and what the cost of that might be how what are your expected ways to fund that just some of the CapEx involved in that joint venture who funds you guys or your partners, et cetera?

好吧，這是有道理的。謝謝。另一個問題與新的紡織合資企業的情況有關。您能簡單談談您所說的嗎？我認為施工將於 2024 年開始。我假設您的意思是 2024 年，其成本可能是多少，您預期如何為該合資企業涉及的部分資本支出提供資金資助你們或你們的合作夥伴等等？

Well, the joint venture is a 51 49 joint venture and Giraffe owns 51%. So any funding will be in that proportion to the joint venture company. And yes, you're right. The 2024 is calendar year. I think we have almost finalized the site of where we're going to build and we have been discussing funding opportunities with a number of financing parties.

嗯，合資公司是51 49合資公司，長頸鹿擁有51%。因此，任何資金都將按該比例分配給合資公司。是的，你是對的。 2024 年是公曆年。我認為我們幾乎已經確定了要建造的地點，並且我們一直在與許多融資方討論融資機會。

And at this point, we cannot disclose who they are yet because nothing has been finalized, but there will be financing parties from China from Asia from Hong Kong and also possibly from the Middle East. And yes, what part of the part of the funding could be financed from our own cash flow from operating cash flow, but that would definitely not be enough because, if I'm correct, I think the I think, the overall projection for the CapEx is about $20 million to $30 million. Am I correct, Eric?

目前，我們還不能透露他們是誰，因為一切都還沒有最終確定，但將會有來自中國、亞洲、香港，也可能來自中東的融資方。是的，資金的哪一部分可以從我們自己的經營現金流中的現金流中籌集，但這肯定是不夠的，因為，如果我是正確的，我認為我認為，總體預測資本支出約為2000 萬至3000 萬美元。我說得對嗎，艾瑞克？

Yes, you are absolutely correct, is between $25 million to $30 million. Okay. They're already very interested. The financial institution, okay. They are very interested in this project. We are.

是的，你完全正確，在 2500 萬美元到 3000 萬美元之間。好的。他們已經很感興趣了。金融機構，好。他們對這個項目非常感興趣。我們是。

Okay. I'm discussing with them. So it's not appropriate to disclose the identity of each one, but all of them are very positive about the funding of this project --

好的。我正在和他們討論。所以不宜透露每個人的身份，但他們都對這個計畫的資助非常積極——

About $25 million that's yes, that's the total cost, not your 51%.

大約 2500 萬美元，是的，這是總成本，而不是 51%。

That's the total cost of a not a 51% overall.

這並不是總成本的 51%。

Got it.

知道了。

And I would say from a China. We'll point this is a One Belt One Road project. So time will definitely support this project initially. So this will be not be the not only One Belt, One Road project and also a One Belt One Road ESG. project. So we'll attract some interest parties for this project. Jonathan?

我想說的是來自中國。我們會指出這是一個「一帶一路」計畫。所以時間一定會在初期支持這個計畫。因此，這不僅是「一帶一路」項目，也是「一帶一路」ESG。專案.所以我們會為這個計畫吸引一些有興趣的團體。喬納森？

Thank you.

謝謝。

Certainly, because of the ESG. on the ESG. part of it, both China and both the Middle East they z governments they are very interested in supporting us.

當然，因為 ESG。關於 ESG。其中一部分，中國和中東各國政府都非常有興趣支持我們。

I'm Sure. Thank you.

我敢肯定。謝謝。

Mark Argento, Lake Street Capital Markets.

馬克‧阿基托 (Mark Argento)，湖街資本市場。

Thanks. Good morning, guys. A couple of quick questions. So in terms of Busana you said you anticipate seeing revenue from that partnership in Q4? And then I think you mentioned $8 million to $9 million for the next 12 months. Maybe just help us think through like what does that means for Q4 as a couple of million dollars in Q4, getting bigger from there, the eight to $9 million in Q4, we'll have clarity around that would be helpful.

謝謝。早上好傢伙。幾個簡單的問題。那麼就 Busana 而言，您說您預計會在第四季度從該合作夥伴關係中看到收入？然後我想您提到了未來 12 個月的 800 萬至 900 萬美元。也許只是幫助我們思考一下，這對第四季意味著什麼，因為第四季的幾百萬美元，從那裡開始增加，第四季的八到九百萬美元，我們會對此有所幫助。

Eric, do you want to take this one? Eric?

艾瑞克，你想要這個嗎？艾瑞克？

(multiple speakers) It may not be the same as this one. Yes, I couldn't hear the president projection. I think a few media and in the fourth quarter of fiscal 2024 will be the orders from percentage. But up, I think our order would be growing with the solicitation of orders from at least five customers derived from present them. And I think that will be very purposeful.

（多位發言者）可能和這個不一樣。是的，我聽不到總統的預測。我認為一些媒體預計2024財年第四季的訂單將以百分比計算。但向上，我認為我們的訂單將會隨著來自至少五個客戶的訂單徵求而成長。我認為這將是非常有目的的。

So I guess maybe just asking another question. So another way that $8 million to $9 million was in revenue. Was that for Q4 or is that in the next 12 months?

所以我想也許只是問另一個問題。換句話說，800 萬到 900 萬美元是收入。這是第四季的情況還是未來 12 個月的情況？

(multiple speakers) I was that was the wrong direction for me. That was the projection for the next 12 months starting from Q4 of fiscal 2024. So basically in the next 12 months or in the calendar year of 2024, we are projecting about $8 million to $9 million in additional incremental revenues from the Rasana JV.

（多個發言者）我認為這對我來說是錯誤的方向。這是從2024 財年第四季開始的未來12 個月的預測。因此基本上在未來12 個月或2024 年日曆年，我們預計Rasana 合資企業將帶來約800 萬至900 萬美元的額外增量收入。

Okay. So $8 million to $9 billion in incremental revenue in calendar 24.

好的。因此，24 日曆年的增量收入為 800 萬至 90 億美元。

Right. That's.

正確的。那是。

And then more of a housekeeping question for you, Norbert, I saw the tax rate was up a little bit. I know it was up in Q1 for the first time in the third quarter. It was like 40%-some. What tell what's going on in the tax rate there?

還有一個關於你的家政問題，諾伯特，我看到稅率上升了一點。我知道它在第三季首次在第一季度上升。大概是40%左右。那裡的稅率是怎麼回事？

Where the tax rate? Most of our most of our income, this is really from Jordan. That's where we that's where we focus most of our income and our US operation and also the Hong Kong operations are mainly just expenses. So the expenses kind of remain the same. And slightly increasing because of the growing in size, but income has dropped significantly.

稅率在哪裡？我們大部分的收入，這確實是來自約旦。這就是我們大部分收入的重點，我們的美國業務和香港業務主要只是支出。所以費用保持不變。並因規模的擴大而略有增加，但收入卻大幅下降。

So when you combine all of those on as the earnings as the consolidated earnings decline, some sort of proportion of the tax comparing to the operating income is at a higher proportion. Now when income goes back up, this effective tax rate will come back down.

因此，當您將所有這些收入合併為綜合收益下降時，稅收與營業收入相比的某種比例會更高。現在，當收入回升時，有效稅率將會回落。

A bit of our follow up with you offline analogy to walk you through that a little bit more just And just lastly from me on down. So Kelly, just total capacity.

我們對您的離線類比進行了一些跟進，以引導您了解更多一點，最後從我開始。所以凱利，只是總容量。

And then with Busana coming online, are you building incremental capacity to support them to sign a JV or using some of your existing capacity at this point? And then you guys booked up through the end of the year? Or maybe just talk about your order book right now.

然後，隨著 Busana 上線，您是否正在建立增量產能以支援他們簽署合資企業，或者此時使用您的一些現有產能？然後你們就預訂到年底了嗎？或現在就談談您的訂單簿。

I think right now, we're pretty much fully booked through the end of the fiscal year may be there depending on the order flow that maybe there are a couple of hundred thousand pieces in one of those months that we still have capacity, but that is also filling up very quickly.

我認為現在，到本財年結束時，我們的訂單幾乎已經全部預訂完畢，這取決於訂單流，在我們仍然有產能的月份中，可能有幾十萬件，但那也很快就滿了。

We are afraid to be double booked and not able to deliver, but we are also looking at ways to be able to take the order and get a complete fully booked on our capacity. And if we will need additional capacity, we could outsource some of the productions. And this is all approved by our customers.

我們擔心被重複預訂而無法交貨，但我們也在尋找能夠接受訂單並在我們的產能上獲得完整預訂的方法。如果我們需要額外的產能，我們可以外包一些生產。這一切都得到了我們客戶的認可。

Now with Busana and our business coming in and you know, we have always been very conservative. And last year we have increased internally. We have expanded our capacity internally, and we believe we will be able to handle at least for the next fiscal year on the increase in business.

現在隨著 Busana 和我們的業務的發展，你知道，我們一直都非常保守。去年我們內部增加了。我們已經在內部擴大了產能，我們相信我們至少能夠應對下一個財年的業務成長。

But overall, I think that we it will be of the reverse of this year's situation. When Busana business come in, it will be also for premium brands for department stores that are in the US that will be for the products that are of higher ASP and higher gross margin.

但總體而言，我認為我們的情況將與今年相反。當Busana業務進來時，也將針對美國百貨公司的高端品牌，銷售平均售價更高、毛利率更高的產品。

This year, we were able to backfill some of the reduced orders from the higher end products are the higher end brands by lower gross margin products, some CM orders with high volume, but low gross margin, low gross profit. But next year when Busana business comes in we will be able to take the higher margin orders but forego some of the low margin orders.

今年，我們能夠透過毛利率較低的產品來填補高端產品中高端品牌減少的一些訂單，一些CM訂單量大，但毛利率低，毛利低。但明年當 Busana 業務進入時，我們將能夠接受更高利潤的訂單，但放棄一些低利潤的訂單。

We have already told some of the some of the new customers that we that we are doing business with that next year, we may not be able to handle all their orders. So if they want the business, they may have to increase the price or increase the margin that they give us. So I think the situation next year when new business from Busana comes in, it will give us opportunity to improve ASP. and improve our gross margins.

我們已經告訴一些新客戶，我們明年將與他們開展業務，我們可能無法處理他們的所有訂單。因此，如果他們想要這項業務，他們可能必須提高價格或增加給我們的利潤。因此，我認為明年 Busana 的新業務進入時，這將為我們提供提高 ASP 的機會。並提高我們的毛利率。

That's helpful. And to this point, you guys have been able to hold onto your production staff using some of the lower margin orders on that was the objective right to be able to keep everything intact. So you can service the customer when the when the order books return for the higher pricing financially --

這很有幫助。到目前為止，你們已經能夠使用一些利潤較低的訂單來留住你們的生產人員，這是能夠保持一切完好無損的客觀權利。因此，當訂單簿以更高的財務價格返回時，您可以為客戶提供服務 -

Exactly, that has been our strategy. I mean, if you compare Jerash with order, manufacturing facilities are the companies in Jordan and other companies, their business are down of almost 50%, some 60%, 70% and they have a significant layoff of their of their workers.

確實，這就是我們的策略。我的意思是，如果你將傑拉什與訂單進行比較，製造設施是約旦的公司和其他公司，他們的業務下降了近 50%、約 60%、70%，而且他們的工人大幅裁員。

So whereas we are keeping a very conservative approach, we would rather build up our capacity than letting go of our workers because it will be very difficult to find and to backfill our capacity when business turn comes back. So our strategy has been to even to take on lower margin, low profit orders and customers then to shut down the factory or two to lead our workers go because we know the business will come back very soon.

因此，儘管我們採取了非常保守的做法，但我們寧願增強我們的產能，而不是解僱我們的員工，因為當業務恢復時，將很難找到並補充我們的產能。因此，我們的策略是甚至接受較低利潤、低利潤的訂單和客戶，然後關閉一兩家工廠，帶領我們的工人離開，因為我們知道業務很快就會恢復。

Great. Thanks. Guys and good luck to us the way this year.

偉大的。謝謝。夥計們，祝我們今年一切順利。

Thank you.

謝謝。

Thank you, Jaime. While we appear to have reached the end of our question-and-answer session, I will now turn the call back over to Sam Choi for closing.

謝謝你，海梅。雖然我們的問答環節似乎已經結束，但我現在將把電話轉回給 Sam Choi 結束。

Okay.

好的。

Thank you, Janie, and thanks to all of you for joining us today and for your continuous support. We look forward to speaking with you next quarter and reporting our business progress. Thank you very much. Thank you.

謝謝你，珍妮，謝謝大家今天加入我們並感謝你們的持續支持。我們期待下個季度與您交談並報告我們的業務進展。非常感謝。謝謝。

Thank you very much.

非常感謝。

And thank you, everybody. That does conclude today's conference you may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

謝謝大家。今天的會議到此結束，您可以在此時斷開電話線並度過美好的一天。感謝您的參與。