Jerash Holdings (US) Inc (JRSH) 2024 Q4 法說會逐字稿

Good morning, everyone, and welcome to the Jerash Holdings fiscal 2024 fourth quarter and full year financial results conference call. (Operator Instructions) Please note this conference is being recorded.

大家早安，歡迎參加傑拉什控股 2024 財年第四季和全年財務業績電話會議。（操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to your host, Roger Pondel, Investor Relations at Jerash Holdings. Roger, the floor is yours.

我現在將會議交給主持人傑拉什控股公司投資者關係部門的羅傑·龐德爾 (Roger Pondel)。羅傑，地板是你的。

Thanks so much, Jenny. Good morning, everyone, and welcome to Jerash Holdings fiscal 2024 fourth quarter and full year conference call. I'm Roger Pondel with PondelWilkinson, Jerash Holdings Investor Relations firm. 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. Both Sam and Eric are in Jordan.

非常感謝，珍妮。大家早安，歡迎參加傑拉什控股 2024 財年第四季和全年電話會議。我是 Jerash Holdings 投資者關係公司 PondelWilkinson 的 Roger Pondel。我很高興立即介紹該公司的主席兼首席執行官 Sam Choi；財務長吉爾伯特李；艾瑞克唐（Eric Tang）領導該公司在約旦的業務。山姆和埃里克都在約旦。

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, 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.

在我將電話轉給 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許多條件的影響，其中許多條件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 10-K 表格的風險因素部分中規定的條件，該表格的副本可在SEC 網站www.sec.gov 上獲取，以及不時向SEC 提交的其他公司文件。

Actual results could differ materially from those forward-looking statements and Jerash Holdings undertakes no obligation to update any forward-looking statements, of course except as required by law.

實際結果可能與這些前瞻性陳述有重大差異，傑拉什控股公司不承擔更新任何前瞻性陳述的義務，當然，法律要求的除外。

And with that, I will turn the call over to Sam Choi. Sam?

接下來，我會將電話轉給 Sam Choi。薩姆？

Thank you, Roger. Since of October of last year, the Red Sea crisis triggered by multiple attacks on cargo ships by healthy rebels has continued to cause supply chain disruption throughout the Middle East region. Even though an alternative shipping route has been established to receive raw materials, bottlenecks, and vessel bunching post delays, impacting production for our group of customers and in turn, the company's financial performance for quarter and fiscal 2024.

謝謝你，羅傑。去年10月以來，健康的叛亂分子多次攻擊貨船引發的紅海危機持續造成整個中東地區的供應鏈中斷。儘管已經建立了替代運輸路線來接收原材料，但瓶頸和船舶延誤後的擁擠影響了我們客戶群的生產，進而影響了公司 2024 年季度和財年的財務業績。

Gross margin likewise was down due to the significantly higher ocean freight and transportation costs from Asia to Jordan. Despite the shipping situation, we have identified and now to aggressively increasing our source of raw materials from Turkey and Egypt. This is allowing us to bypass the treacherous shipping routes and mitigate related logistic costs.

由於從亞洲到約旦的海運和運輸成本大幅上漲，毛利率也有所下降。儘管運輸狀況不佳，我們已經確定並正在積極增加來自土耳其和埃及的原材料來源。這使我們能夠繞過危險的運輸路線並減輕相關的物流成本。

Also on a positive note, we are experiencing a tangible increase in purchase orders from long-term customers. Additionally, we are receiving a fresh pipeline of business from new high profile global brands, both directly and through our joint venture with Busana.

另外一個積極的方面是，我們的長期客戶的採購訂單明顯增加。此外，我們也直接或透過與 Busana 的合資企業從新的知名全球品牌獲得新的業務管道。

We are now increasing orders from four global brands through Busana. Our joint marketing efforts are continuing and believe there will be a solid new business opportunities ahead as more companies look to reduce costs by shifting their production to tariff-free countries such as Jordan.

我們現在透過 Busana 增加了四個全球品牌的訂單。我們的聯合行銷工作仍在繼續，相信隨著越來越多的公司希望透過將生產轉移到約旦等免關稅國家來降低成本，未來將會有堅實的新商機。

In view of the current geopolitical situation, we have decided to delay our plans to build a state of the art fabric mill in Jordan with another joint venture partner, Newtech Textile. For long term, our objective remains being a trusted manufacturer partner, providing sustainable solutions as an environmentally cautious leader in the apparel industry.

鑑於當前的地緣政治局勢，我們決定推遲與另一家合資夥伴 Newtech Textile 在約旦建造最先進的布料廠的計劃。從長遠來看，我們的目標仍然是成為值得信賴的製造商合作夥伴，作為服裝業環保的領導者提供可持續的解決方案。

I will now turn the call over to Eric Tang, who is in charge of our operations in Jordan.

我現在將把電話轉給負責我們約旦業務的 Eric Tang。

Thank you, Sam. Hello, everyone. The supply chain disruptions have delayed our production during the fiscal fourth quarter. Since we were not able to receive an adequate supply of materials from Asia to produce orders to our major customers. Approximately 16% to 18% of orders were delayed and shipped in the fiscal 2025 first quarter.

謝謝你，山姆。大家好。供應鏈中斷導致我們第四財季的生產延遲。由於我們無法從亞洲獲得足夠的材料供應來為我們的主要客戶生產訂單。2025 財年第一季度，約 16% 至 18% 的訂單被延遲出貨。

As Sam mentioned earlier, we are now increasing our sourcing of materials locally in the Middle East and we have trends in place that are allowing us to produce and ship orders on a more normalized basis as we move forward.

正如薩姆之前提到的，我們現在正在增加中東當地的材料採購，並且我們所掌握的趨勢使我們能夠在前進的過程中以更規範的方式生產和運輸訂單。

Despite the uncertain external environment, we were able to capture local orders during the fiscal fourth quarter. To keep our factories running and maintain our staff in part in anticipation of growth in the new fiscal year. Today our manufacturing facilities are fully active with orders booked well into the fiscal second quarter.

儘管外部環境不確定，我們仍能夠在第四財季獲得當地訂單。為了保持我們的工廠運作並維持我們的員工，部分是為了預期新財年的成長。今天，我們的製造設施全面活躍，訂單已預訂到第二財季。

Currently, we are experiencing steady order patterns from our major customers after a protracted two year period of economic restraint at the retail level. We also are realizing the benefits of our strategic plan to diversify our customer base as we are now producing garments for a number of new brand customers.

目前，在零售層面經歷了長達兩年的經濟限制之後，我們的主要客戶的訂單模式保持穩定。我們也意識到我們的策略計劃使我們的客戶群多元化的好處，因為我們現在正在為許多新品牌客戶生產服裝。

Jerash has been a trusted Tier 1 manufacturer and assembly partner for VF Corporation for more than 60 years. In addition to producing apparel for VF North Face and Timberland brands, we are now receiving purchase orders from Vans, following the initial trial orders placed during the second half of last fiscal year.

60 多年來，Jerash 一直是 VF Corporation 值得信賴的一級製造商和組裝合作夥伴。除了為 VF North Face 和 Timberland 品牌生產服裝外，繼上一財年下半年收到初步試單後，我們現在還收到了 Vans 的採購訂單。

Orders from our first European-based high end apparel brand are steadily increasing, and our second European-based apparel brand is starting to place order for fiscal 2025, following several successful trial orders.

我們的第一個歐洲高端服裝品牌的訂單正在穩步增加，我們的第二個歐洲服裝品牌在多次成功試訂單後，開始下 2025 財年的訂單。

We are excited to grow the European market and look forward to rolling out production for new apparel items in the new fiscal year. Proceeding into our new fiscal year, we are feeling better and breathing easier. I will now turn the call over to Gilbert to discuss our financial results. Gilbert, please?

我們很高興能夠發展歐洲市場，並期待在新財年推出新服飾產品的生產。進入新的財政年度，我們感覺好多了，呼吸變得更輕鬆了。我現在將把電話轉給吉爾伯特，討論我們的財務表現。吉爾伯特，請嗎？

Thank you, Eric. Revenue for our fiscal 2024 fourth quarter was $21.6 million compared with $23.8 million for the same period last year. The decrease was primarily caused by inadequate materials for production due to logistical disruptions and extended supply chain lead times in the Middle East. Revenue was negatively impacted by approximately $3 million to $4 million of orders that were delayed to the first quarter in fiscal 2025.

謝謝你，埃里克。2024 財年第四季的營收為 2,160 萬美元，去年同期為 2,380 萬美元。下降的主要原因是中東物流中斷和供應鏈交貨時間延長導致生產材料不足。大約 300 萬至 400 萬美元的訂單被推遲到 2025 財年第一季度，對收入產生了負面影響。

Gross profit was $1.5 million for the fiscal 2024 fourth quarter compared with $2.5 million in the same quarter last year. Gross margin decreased to 7.0% from 10.3% in the same period last year. The decrease in gross margin reflected higher ocean freight and transportation costs, as well as manufacturing lower margin orders from local customers to offset production delays for US customers.

2024 財年第四季的毛利為 150 萬美元，去年同期為 250 萬美元。毛利率從去年同期的10.3%下降至7.0%。毛利率的下降反映了海運費和運輸成本的上升，以及來自當地客戶的製造利潤較低的訂單，以抵消美國客戶的生產延誤。

Operating expenses for the fiscal 2024 fourth quarter were $4.5 million compared with $4.3 million for the same quarter last year. SG&A expenses were higher at $4.3 million in the fiscal year 2024 fourth quarter compared with $4.2 million in the same quarter last year.

2024 財年第四季的營運支出為 450 萬美元，而去年同期為 430 萬美元。2024 財年第四季的 SG&A 費用為 430 萬美元，高於去年同期的 420 萬美元。

Stock-based compensation expenses were $258,000 compared with $119,000 in the same quarter of last year. Operating loss was $3 million for the fiscal 2024 fourth quarter compared with operating loss of $1.8 million for the same quarter last year.

股票薪資支出為 258,000 美元，而去年同期為 119,000 美元。2024 財年第四季的營運虧損為 300 萬美元，而去年同期的營運虧損為 180 萬美元。

Total other expenses were $134,000 in the fiscal 2024 fourth quarter compared with $86,000 in the same quarter last year. Net loss was $3.1 million or $0.25 per share for the fiscal 2024 fourth quarter, compared with net loss of $2.0 million or $0.16 per share in the same period last year.

2024 財年第四季的其他費用總額為 134,000 美元，而去年同期為 86,000 美元。2024 財年第四季的淨虧損為 310 萬美元，即每股 0.25 美元，而去年同期的淨虧損為 200 萬美元，即每股 0.16 美元。

As of March 31, 2024, Jerash had cash and restricted cash of $14.0 million and net working capital of $36.1 million. Inventory was $27.2 million and accounts receivable was $5.4 million. Net cash provided by operating activities was approximately $2.5 million for the fiscal year ended March 31, 2024, compared with $10.8 million in fiscal 2023.

截至2024年3月31日，傑拉什擁有現金及限制性現金1,400萬美元，淨營運資本為3,610萬美元。庫存為 2,720 萬美元，應收帳款為 540 萬美元。截至 2024 年 3 月 31 日的財年，經營活動提供的淨現金約為 250 萬美元，而 2023 年財年為 1,080 萬美元。

As Sam and Eric mentioned earlier, we're seeing better order patterns into fiscal 2025. Our revenue for the fiscal first quarter is expected to increase by 14% to 15% from the prior year quarter. And full year revenue is anticipated to be up by 15% to 18%. Our gross margin goal for the fiscal 2025 year is expected to be approximately 13% to 15%. The outlook is of course subject to final product mix of shipments as well as order flow from the new customers through our joint venture with Busana.

正如 Sam 和 Eric 之前提到的，我們看到 2025 財年的訂單模式有所改善。我們第一財季的營收預計將比去年同期成長 14% 至 15%。預計全年營收將成長 15% 至 18%。我們2025財年的毛利率目標預計約為13%至15%。當然，前景取決於最終產品的出貨量以及透過我們與 Busana 合資企業獲得的新客戶的訂單流。

On May 21, 2024, Jerash approved a regular quarterly dividend of $0.05 per share on its common stock. The dividend was paid on June 7, 2024, to stockholders of record as of May 31, 2024.

2024 年 5 月 21 日，傑拉什批准了普通股每股 0.05 美元的定期季度股息。該股於2024年6月7日支付給截至2024年5月31日在冊的股東。

With that, I will now open up the call for questions. Operator?

現在，我將開始提問。操作員？

(Operator Instructions) Mike Baker, DA Davidson.

（操作員說明）麥克貝克 (Mike Baker)，DA Davidson。

Great. Thanks. Hi, guys. So how much of the sales ramp that you're seeing is some of it is delayed from the first quarter, but it sounds like new customers, but also some of your legacy customers ramping back up. So I wonder if you can parse that out a little bit how much from each and what I'm getting at is, is this a sign that your customers Timberland or VF Corp in particular is feeling a little bit better, starting to restock some shelves due to better demand after you know, as you said, what's been a couple of years of really weak order, I just trying to understand the underlying sort of apparel demand that you're seeing. Thanks.

偉大的。謝謝。嗨，大家好。因此，您看到的銷售成長有多少是從第一季開始延遲的，但這聽起來像是新客戶，但也有一些舊客戶正在回升。所以我想知道你是否能分析一下每種產品的價格，我所得到的是，這是否表明你的客戶 Timberland 或 VF Corp 特別感覺好一點，開始重新進貨一些貨架正如您所說，由於需求有所改善，正如您所說，這幾年的訂單非常疲軟，我只是想了解您所看到的潛在服裝需求類型。謝謝。

First of all, the Busana joint venture, we believe order projection for this coming year is about, I would say, $6 million to $8 million. Is that correct, Eric?

首先，Busana 合資企業，我們認為來年的訂單預測約為 600 萬至 800 萬美元。這是正確的嗎，艾瑞克？

Yes. Yeah, correct. Yeah.

是的。是的，正確。是的。

Okay. So that part, I think we are still trying to figure out how to improve. But we are we are taking purchase orders from four new customers, from that is bringing -- that is brought by Busana. Hugo Boss, which we have been doing business with them actually even before Busana and us join -- form the joint venture, and then there is a Macy's, Dillard's and Brooks Brothers. So all these four, we will be taking orders from them in this fiscal 2025.

好的。因此，我認為我們仍在努力找出如何改進的部分。但我們正在接受四個新客戶的採購訂單，這些新客戶是布薩納帶來的。Hugo Boss，實際上甚至在 Busana 和我們加入之前我們就一直在與他們做生意——組建合資企業，然後還有梅西百貨、迪拉德百貨和布魯克斯兄弟百貨。因此，我們將在 2025 財政年度接受這四家公司的訂單。

Now our legacy customers, such as VF, which North Face and Timberland and Vans -- Vans is going to start in this fiscal year. But VF I'm looking at their increase is actually -- they're looking to increase by about 8% comparing to 2025. Of course, VF is the most the -- is our number one customer.

現在，我們的老客戶，例如 VF、North Face 和 Timberland 以及 Vans - Vans 將於本財年開始合作。但 VF 我看到的成長實際上是——與 2025 年相比，他們希望成長約 8%。當然，VF 是我們的第一大客戶。

And then New Balance is also -- let me see. I think New Balance is about -- it's about the same comparing to 2024. But Hugo Boss has significant increase, about 17%. But we have a bunch of other customers that are going to have significant growth other than this three. So that's why we're projecting a double digit growth in 2025, especially in the first two quarters.

然後 New Balance 也是——讓我想想。我認為 New Balance 與 2024 年相比大致相同。但Hugo Boss增幅明顯，約17%。但除了這三個客戶之外，我們還有很多其他客戶也將顯著成長。這就是為什麼我們預計 2025 年將實現兩位數成長，尤其是前兩個季度。

I've got.

我有。

Anything to add, Eric?

艾瑞克，還有什麼要補充的嗎？

Yes, I think more or less the same also that our projection apart from we have, we have additional growth in the coming year. New Balance, we also have additional growth also, so that this is the reason why our projection for the new fiscal year is a bit higher than before, a two digit higher?

是的，我認為我們的預測或多或少是相同的，除了我們已經實現的之外，我們在來年還有額外的成長。New Balance，我們也有額外的成長，所以這就是為什麼我們對新財年的預測比以前高一點，高兩位數的原因？

Yeah. Makes sense. One more, if I could -- the gross margin outlook for next year, I guess it is about flat on a year-over-year basis, but obviously much lower than what you've done in the past. Now, I guess, I understand the reasons that the Red Sea disruption and higher freight costs, et cetera.

是的。說得通。還有一點，如果可以的話，明年的毛利率前景，我想與去年同期相比基本持平，但顯然比你們過去所做的要低得多。現在，我想，我明白了紅海中斷和運費上漲等原因。

I guess the question is how much of that gross margin degradation versus past years do you think is permanent because you have to find different routes in the like or how much you think is just due to the temporary disruption and can eventually come back to where it once was?

我想問題是，與過去幾年相比，您認為毛利率下降有多少是永久性的，因為您必須找到類似的不同路線，或者您認為有多少只是由於暫時的中斷而最終會回到原來的水平曾經是？

We're anticipating the freight cost is definitely going to be higher because the crisis is still going on. And we don't know when it's going to have to end. Even though we now find a route that can kind of pretty consistently getting the containers into Jordan, but we're going to have to pay a higher cost.

我們預計運費肯定會更高，因為危機仍在繼續。我們不知道它什麼時候才能結束。儘管我們現在找到了一條可以相當穩定地將貨櫃運送到約旦的路線，但我們將不得不支付更高的成本。

I mean even during the past four to six months, some of the containers were stuck and we spend like 3 times to 4 times as much as normal to get those containers in. And that's part of the reason why the margin was so low in the fourth quarter.

我的意思是，即使在過去的四到六個月裡，一些貨櫃也被卡住了，我們花了平常的三到四倍的時間來把這些貨櫃裝進去。這就是第四季利潤率如此低的部分原因。

So but going forward, at least in the foreseeable future, we anticipate the shipping costs to be higher. And the other reason is that now we are seeing some pre-competitive our situation in the market, so we were getting pricing pressure from our customers and we were pricing our products very competitively.

因此，但展望未來，至少在可預見的未來，我們預計運輸成本將會更高。另一個原因是，現在我們在市場上看到了一些競爭前的情況，因此我們受到了來自客戶的定價壓力，我們對產品的定價非常有競爭力。

So even though and also with some new customers that we're bringing in, those customers, at least at the beginning, the overall margin is not going to be great. It's not going to be as great as our legacy customers because we have to spend extra money on developing the products and developing the process of doing those new orders. So we're trying to be more conservative in terms of projecting the margin.

因此，即使我們引進了一些新客戶，這些客戶，至少在開始時，整體利潤率也不會很高。它不會像我們的老客戶那麼好，因為我們必須花費額外的錢來開發產品和開發處理這些新訂單的流程。因此，我們在預測利潤方面嘗試更加保守。

Okay. Makes sense. Thank you.

好的。說得通。謝謝。

Certainly.

當然。

Thank you.

謝謝。

Mark Argento, Lake Street.

馬克·阿基托，湖街。

Yeah. Hi, guys. Just a couple of additional questions for you. Gilbert, you had just mentioned kind of costs. And my question was around inflation. Obviously, inflation world wise, obviously we're running rampant right now.

是的。嗨，大家好。還有幾個問題想問您。吉爾伯特，你剛才提到了某種成本。我的問題是關於通貨膨脹的。顯然，就世界範圍內的通貨膨脹而言，我們現在顯然正在猖獗。

You could touch a little bit on kind of pricing, what are you seeing our current, your obviously your customers are being more aggressive in terms of pricing, but are you guys able to take some pricing and keep up and maintain that margin? What you're seeing now from the impact of come to broad-based inflation of the business?

您可以稍微談一下定價，您對我們目前的情況有何看法，顯然您的客戶在定價方面更加激進，但是你們能夠接受一些定價並保持並維持該利潤嗎？現在您看到的普遍通膨對企業的影響是什麼？

Well, the inflation is definitely there, but it is affecting our costs, besides the shipping costs, but everything else is increasing. I think our inflation, at least on the operating side, the labor costs in Jordan, and also other operating costs, those are increasing too.

嗯，通貨膨脹是肯定存在的，但是它影響了我們的成本，除了運輸成本之外，其他一切都在增加。我認為我們的通貨膨脹，至少在營運方面，約旦的勞動成本以及其他營運成本也在增加。

Now we are looking at very diligently trying to cut costs in our operations like the new dorm is now -- we are occupying the new dorm. So I think in fiscal 2025, we will be able to save some of the cost -- some of the rent, leasing costs for the old dorms when we vacate the old dorms and start paying rent.

現在我們正在非常努力地努力削減我們的營運成本，就像現在的新宿捨一樣——我們正在佔用新宿舍。所以我認為在2025財年，當我們騰出舊宿舍並開始支付租金時，我們將能夠節省一些成本——舊宿舍的一些租金、租賃成本。

So in that area, we can save some money and hopefully help the margin. However, the retail market is like I said before, is getting quite competitive. In order to attract new customers and to increase our volume with existing customers, we want to have to price very competitively. So to answer your question, I don't see that we will be able to raise our prices to our existing customer and improve our margin, at least in the next year or so.

因此，在這方面，我們可以節省一些錢，並有望提高利潤。然而，正如我之前所說，零售市場的競爭正變得相當激烈。為了吸引新客戶並增加現有客戶的數量，我們希望定價非常有競爭力。因此，回答你的問題，我認為至少在未來一年左右的時間裡，我們無法提高對現有客戶的價格並提高我們的利潤率。

All right. So if the vendors at retail taken prices up 10% on a garment, then you know, kind of your price delivered is -- are you able to maintain that? Are you taking a lot of that hit right now, I hear you, you know, are you able to raise prices at least stay, kind of consistent with inflation? Are you guys kind of losing margin because of inflation, sounds like the latter?

好的。因此，如果零售供應商將一件服裝的價格上漲 10%，那麼你知道，你的交貨價格是——你能維持這個價格嗎？你現在是否受到了很大的打擊，我聽說你知道，你是否能夠提高價格，至少保持不變，與通貨膨脹保持一致？你們是否因為通貨膨脹而損失了利潤，聽起來像是後者？

Yeah, I think overall it's the latter. But in certain customers, the margins are increasing. So it is -- it all depends on the brand, it all depends on the customer. Like customers such as Hugo Boss, the margins are very good. But VF, I think we are improving margin on Timberland, especially right now, we're trying to source our fabrics from Egypt and from Turkey.

是的，我認為總體來說是後者。但對某些客戶來說，利潤正在增加。事實就是如此——這一切都取決於品牌，這一切都取決於客戶。像Hugo Boss這樣的客戶一樣，利潤率非常好。但是 VF，我認為我們正在提高 Timberland 的利潤率，特別是現在，我們正嘗試從埃及和土耳其採購布料。

So in that sense, we should be able to improve our margin with Timberland. For TNF or North Face, their margin is actually holding, but it is going to be very difficult to get that margins up.

因此從這個意義上來說，我們應該能夠提高 Timberland 的利潤率。對於 TNF 或 North Face 來說，他們的利潤率實際上保持不變，但要提高利潤率將非常困難。

Right.

正確的。

Is that pretty accurate, Eric? You have anything to add?

艾瑞克，這很準確嗎？有什麼要補充的嗎？

Yeah, very accurate. Yeah, but in addition, in order to increase more rapidly, we are also implementing a several saving trends for cost reductions such as we are going to install more solar energy system in order to reduce the cost of the electricity here. Because here in Jordan, the cost of which is really is pretty much expensive. Also we are trying to use for the boiler, okay, we are trying to do some water and diesel savings, okay? This is already reinstalled in one of our factory.

是的，非常準確。是的，但除此之外，為了更快成長，我們也實施了一些降低成本的節省趨勢，例如我們將安裝更多的太陽能係統，以降低這裡的電力成本。因為在約旦這裡，費用確實相當昂貴。我們也在嘗試用於鍋爐，好吧，我們正在嘗試節省一些水和柴油，好嗎？這已經在我們的一間工廠重新安裝了。

And we are also -- this is also one of the cost saving measure. And for the production line we are trying to bring in more automatic machines in order to save, okay, the number of production people or all the cost saving plan we are currently, okay, carry out.

我們也是──這也是節省成本的措施之一。對於生產線，我們正在嘗試引進更多的自動化機器，以節省生產人員的數量或我們目前正在執行的所有成本節約計畫。

Good. Thanks guys. Appreciate it. Good luck.

好的。多謝你們。欣賞它。祝你好運。

Thank you.

謝謝。

Thank you.

謝謝。

(Operator Instructions) [Mike Tessler, AMNX].

（操作員說明）[Mike Tessler，AMNX]。

Yes, good afternoon over there gentleman, and Gilbert here in the US.

是的，那邊的先生下午好，吉伯特在美國。

Yes.

是的。

Just two quick questions. First, well, actually, just one question really just I'm glad you tabled the new mill, the joint venture for at least short term, intermediate term, that sounds like a smart capital outlay. And I just want to make sure that you have available, you said $14 million approximately in cash available plus $36 million accessible. Is your available capital no issue going forward just for the next six to nine months kind of thing, you're good to go?

只是兩個簡單的問題。首先，好吧，實際上，只有一個問題，我很高興您提出了新工廠，合資企業至少是短期、中期的要求，這聽起來像是一筆明智的資本支出。我只是想確保你們有大約 1400 萬美元的可用現金加上 3600 萬美元的可用現金。您的可用資金在接下來的六到九個月內沒有問題嗎？

No, we believe we'll be able to generate sufficient operating cash. And I mean, if we look at in last fiscal -- well, the prior fiscal year '23, we generated almost $11 million in operating cash. Of course, this year is down to $2.5 million, but also last -- prior fiscal year we spent a lot of money finishing up the dormitory and also doing some internal expansion, upgrading, and also expanding our capacity in fiscal 2023, and some of them flow over to fiscal 2024.

不，我們相信我們將能夠產生足夠的營運現金。我的意思是，如果我們看看上一財年——好吧，上一個財年 '23，我們產生了近 1100 萬美元的營運現金。當然，今年下降到了 250 萬美元，但也是上一財年，我們花了很多錢裝修宿舍，還做了一些內部擴建、升級，並在 2023 財年擴大了我們的產能，以及一些它們會流向2024財年。

So in '24, we spent about $5.1 million in that area. So that's primarily why our cash flow decreased by $5.3 million, $5.4 million in fiscal 2024. So and we don't have any debt, we don't have to payback anything. So we believe with the improved profitability in 2025, sales growing at 15%, whatever up to 20%, it will bring a lot of cash flow into our account.

因此，24 年，我們在該領域花費了約 510 萬美元。因此，這就是我們 2024 財年現金流減少 530 萬美元、540 萬美元的主要原因。所以我們沒有任何債務，我們不需要償還任何東西。所以我們相信隨著2025年獲利能力的提高，銷售額成長15%，甚至達到20%，都會為我們的帳戶帶來大量的現金流。

And we're right now not looking at having any significant amount of capital expenditure in this fiscal year, the delay of the fabric mill. And on that, we still have the option of raising capital or borrowing money. So we don't believe that this cash is going to be a problem for us.

我們現在不考慮在本財年有任何大量的資本支出，即布料廠的延遲。在這一點上，我們仍然可以選擇籌集資金或借款。因此，我們認為這筆現金不會成為我們的問題。

Okay. That's terrific. And thank you. Thanks, Gilbert. Sam, Eric, keep up the good work and thank you very much all. Have a good day.

好的。真了不起。謝謝你。謝謝，吉爾伯特。山姆、艾瑞克，繼續努力，非常感謝你們所有人。祝你有美好的一天。

Thank you.

謝謝。

Thank you.

謝謝。

Bye, bye.

再見。

Thank you very much. Well we have reached the end of our question and answer session, I will now hand back over to Sam for some closing comments.

非常感謝。好了，我們的問答環節已經結束，我現在將把一些結束語交給 Sam。

Yeah. Thank you very much, operator, and thanks to all of you for joining us today and for our continuous support -- and for your continuous support. We look forward to speaking with you next quarter. Thank you.

是的。非常感謝您，運營商，感謝大家今天加入我們並感謝我們的持續支持 - 以及您們的持續支持。我們期待下個季度與您交談。謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you very much, everyone. This does conclude today's conference. You may now disconnect your phone lines and have a wonderful day. Thank you for your participation.

非常感謝大家。今天的會議到此結束。您現在可以斷開電話線並度過美好的一天。感謝您的參與。

Thank you very much, have a wonderful day.

非常感謝，祝您有美好的一天。

Thank you.

謝謝。