Jerash Holdings (US) Inc (JRSH) 2025 Q1 法說會逐字稿

Greetings. Welcome to the Jerash Holdings fiscal 2025 first-quarter financial results conference call. (Operator Instructions) Please note this conference is being recorded. I will now hand the conference over to your host, Roger Pondel, Investor Relations for Jerash Holdings. You may begin.

問候。歡迎參加傑拉什控股 2025 財年第一季財務業績電話會議。（操作員說明）請注意，本次會議正在錄製中。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)。你可以開始了。

Thank you, Holly, and good morning, everyone, and welcome to Jerash Holdings fiscal '25 first-quarter and full year conference call. I'm Roger Pondel with Pondel Wilkinson, Jerash Holdings Investor Relations firm. It will be my pleasure momentarily to introduce the company's Chairman and Chief Executive Officer, Sam Choi; Chief Financial Officer, Gilbert Lee, and Eric Tang, who leads the company's operations in Jordan.

謝謝 Holly，大家早安，歡迎參加 Jerash Holdings '25 財年第一季和全年電話會議。我是 Jerash Holdings 投資者關係公司 Pondel Wilkinson 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 (Gilbert Lee) 和負責公司約旦業務的艾瑞克唐 (Eric Tang)。

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 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.

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 表格及其副本的風險因素部分中規定的條件。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 these forward-looking statements, and direct Holdings undertakes no obligation to update any forward-looking statements except as required by law.

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，Direct Holdings 不承擔更新任何前瞻性聲明的義務。

And with that, it's my pleasure to turn the call over to Sam Choi. Sam?

至此，我很高興將電話轉給 Sam Choi。薩姆？

Thank you, Roger. And the rest in due course, first quarter of fiscal 2025 increased nearly 18% over last year's first quarter. Attending our conference, and I'm pleased to report that we are continuing to receive an increasing number of purchase orders for export shipments to Grupo customers in the US and Europe. Gross margin was affected again by the ongoing turmoil in the RSC, which continued to disrupt ocean trade routes and drove up ocean freight wages and in venture concessions.

謝謝你，羅傑。其餘的在適當的時候，2025 財年第一季比去年第一季成長近 18%。參加我們的會議，我很高興地向大家報告，我們繼續收到越來越多的向美國和歐洲的 Grupo 客戶出口貨物的採購訂單。毛利率再次受到 RSC 持續動盪的影響，該動盪繼續擾亂海洋貿易路線，推高海運工資和風險特許權。

We also incurred additional manufacturing costs associated with challenges in constructions, state-related and catch up deliveries to our customers at GTT lase carry over from last quarter, primarily related to some of the key issues. Nevertheless, gross margin for the first-quarter improved by more than 400 basis points over the preceding quarter ended March 31. Although some of the higher costs continue in the second-quarter in fiscal 2025, we anticipate a return to a more stable operating environment in the second half of this fiscal year.

我們還產生了額外的製造成本，這些成本與上季度結轉的 GTT 雷射結轉的施工挑戰、與狀態相關的問題以及向客戶的趕上交付有關，主要與一些關鍵問題有關。儘管如此，第一季的毛利率比截至 3 月 31 日的上一季提高了 400 個基點以上。儘管一些較高的成本在 2025 財年第二季繼續存在，但我們預計本財年下半年將恢復到更穩定的營運環境。

To help address the logistics situation, we are seeking to add more vendors from Turkey and Egypt to source raw materials, which repel it alleviates some delayed calls and shorten transportation time. All in all, we are encouraged by the positive momentum as we proceed into fiscal 2025. [Territories] orders from our long-term global customers are coming in at a pace we have seen in the past two years. As well we are receiving additional trial orders from other major brands through present at zero book of a joint venture partner.

為了幫助解決物流問題，我們正在尋求增加更多來自土耳其和埃及的供應商來採購原材料，這可以減少一些延遲的呼叫並縮短運輸時間。總而言之，隨著我們進入 2025 財年，我們對積極的勢頭感到鼓舞。此外，我們也透過合資夥伴的零訂單收到了其他主要品牌的額外試訂單。

Our initiative and strategy of diversifying our customer base is paying off. We believe it will position us well for growth as economic environment improves. We are grateful that business and day-to-day life in Jordan remains stable and safe. However, due to the uncertainty in the surrounding countries. Contingency plans have been put in place to ensure minimal disruption to our operations in the event of an escalating political situation in the region.

我們使客戶群多元化的措施和策略正在取得成效。我們相信，隨著經濟環境的改善，這將為我們的成長奠定良好的基礎。我們很高興約旦的商業和日常生活保持穩定和安全。然而，由於週邊國家的不確定性。我們已經制定了應急計劃，以確保在該地區政治局勢升級時盡量減少對我們營運的干擾。

Eric Tang, who's in charge of our operations mature will share more about that shortly. And I'll now turn the call over to Eric.

負責我們成熟營運的 Eric Tang 很快就會分享更多相關內容。我現在將把電話轉給埃里克。

And thank you, Sam. As we mentioned during the last quarter's call, the supply chain disruptions affected our ability to receive adequate supply of materials from Asia, which in turn delayed production. Approximately 16% to 18% of orders from last quarter were delayed and shipped in the fiscal 2025 first-quarter. To catch up on delivery schedules to our customers. We had to ramp up production of overtime and in some cases, we had to [airfreight] certain shipments incurring significant added costs.

謝謝你，山姆。正如我們在上個季度的電話會議中提到的，供應鏈中斷影響了我們從亞洲獲得充足材料供應的能力，從而推遲了生產。上一季約 16% 至 18% 的訂單被推遲並在 2025 財年第一季出貨。趕上客戶的交貨時間表。我們必須加班加點地提高產量，在某些情況下，我們必須[空運]某些貨物，從而導致大量的額外成本。

We expect overtime to moderate starting in late August and hopefully no additional airfreight shipments going forward despite the unstable environment in the Middle East. Our customers continue to have confidence in Josh to be their trusted responsive and responsible manufacturing partner.

我們預計從八月下旬開始，加班時間將會減少，儘管中東環境不穩定，但希望未來不會有額外的空運出貨。我們的客戶繼續對 Josh 充滿信心，相信他將成為他們值得信賴的響應迅速且負責任的製造合作夥伴。

Thus far into our new fiscal year, we are experiencing good growth, our manufacturing facilities are operating at full capacity with orders are fully booked well into the [SAM D24]. Currently, we are experiencing it (inaudible) from major customers following a prolonged period of constraint at the retail level. Sam and supervising our customer base and we are delighted that we are starting to realize the benefits of this strategy.

到目前為止，進入我們的新財年，我們正在經歷良好的成長，我們的製造設施正在滿載運轉，訂單已全部預訂完畢[SAM D24]。目前，在零售層面長期受到限制之後，我們正在從主要客戶那裡體驗到這種情況（聽不清楚）。山姆和監督我們的客戶群，我們很高興我們開始意識到這項策略的好處。

Today we are producing garments to a number of new branded customers, and we are continuing to expand our product mix with new product categories. Our objective remains on balancing production capacity utilization throughout the year to minimize revenue seasonality. Marketing efforts to sell apparel group are continuing, and we are receiving additional trial orders from four global brands through this joint venture. We expect additional new business opportunities will arise in the future.

如今，我們正在為許多新品牌客戶生產服裝，並繼續透過新產品類別擴大我們的產品組合。我們的目標仍然是平衡全年產能利用率，以盡量減少收入季節性。出售服裝集團的行銷工作仍在繼續，我們透過這家合資企業收到了來自四個全球品牌的額外試訂單。我們預計未來將會出現更多新的商機。

Orders from our two European base, high end apparel brands, including a Monday, are steadily increasing, and we are receiving additional trial orders for money other premium growth in lines. We are excited about the new products and look forward to expanding the brands further, which we anticipate will well, hence, our margins.

來自我們兩個歐洲基地的高端服裝品牌（包括週一）的訂單正在穩步增加，我們正在收到額外的試訂單，以換取其他溢價增長。我們對新產品感到興奮，並期待進一步擴大品牌，我們預計這將會很好，因此我們的利潤率也會提高。

As Sam mentioned before, contingency plans are in place with our partners in Indonesia and other locations to minimize disruptions to our operations. In the event of an escalator frame up in the region. We have discuss such plans with our customers as well.

正如 Sam 之前提到的，我們與印尼和其他地點的合作夥伴制定了應急計劃，以最大程度地減少對我們營運的干擾。如果該地區出現自動扶梯框架。我們也與客戶討論了此類計劃。

I will now turn the call over to Gilbert to discuss our financial results. Gilbert, please?

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, but revenue for our fiscal 2025 first-quarter increased 17.8% to $40.9 million from $34.7 million for the same quarter last year. This record first-quarter revenue reflected an increase in shipments to [grash] major US customers and growth with new customers in other regions that the company onboarded during the past two years. It also included approximately $3 million to $4 million of orders that were delayed from the previous quarter due to reasons mentioned earlier by Sam and Eric.

謝謝艾瑞克，我們 2025 財年第一季的營收從去年同期的 3,470 萬美元成長了 17.8%，達到 4,090 萬美元。這項創紀錄的第一季收入反映了美國主要客戶出貨量的增加以及該公司過去兩年在其他地區新客戶的成長。它還包括由於 Sam 和 Eric 前面提到的原因而比上一季延遲的約 300 萬至 400 萬美元的訂單。

Gross profit was $4.6 million for the fiscal 2025 first quarter compared with $5.6 million in the same quarter last year. Gross margin decreased to 11.3% from 16.0% in the same period last year, primarily due to the higher raw material import costs caused by the RSC shipping disruption as well as additional manufacturing costs associated with catching up on delivery schedules to customers.

2025 財年第一季的毛利為 460 萬美元，去年同期為 560 萬美元。毛利率從去年同期的 16.0% 下降至 11.3%，主要是由於 RSC 運輸中斷導致原材料進口成本上升，以及為趕上向客戶交付時間表而產生的額外製造成本。

The increased logistics and labor costs had a combined negative impact of 440 basis points on gross margin in this quarter. Operating expenses for the fiscal 2025 first-quarter was $5.5 million compared with $4.5 million for the same quarter last year.

物流和勞動成本的增加對本季毛利率產生了 440 個基點的綜合負面影響。2025 財年第一季的營運支出為 550 萬美元，而去年同期為 450 萬美元。

SG&A expenses increased 18% to $5.0 million in this first quarter compared with $4.2 million in same quarter last year. This increase included an additional airfreight costs of approximately $300,000 to catch up deliveries to customers.

第一季的 SG&A 費用增加了 18%，達到 500 萬美元，而去年同期為 420 萬美元。這一增加包括約 30 萬美元的額外空運費用，以趕上向客戶交付的貨物。

Stock-based compensation expenses for the fiscal 2025 first-quarter were $469,000 compared with $241,000 for the same quarter last year. Our increases in operating expenses included higher sampling support costs and payroll expenses. Operating loss totaled $829,000 in the fiscal 2025 first-quarter versus operating income of $1.1 million in the same period last year.

2025 財年第一季的股票薪酬支出為 469,000 美元，去年同期為 241,000 美元。我們的營運費用增加包括更高的採樣支援成本和工資費用。2025 財年第一季的營運虧損總計 829,000 美元，而去年同期的營運收入為 110 萬美元。

Total other expenses were $426,000 in the fiscal 2025 first-quarter compared with $299,000 in the same quarter last year. The increase primarily reflected higher interest expenses from the supply chain financing program of certain major customers.

2025 財年第一季的其他費用總額為 426,000 美元，而去年同期為 299,000 美元。這一增長主要是由於某些主要客戶的供應鏈融資計劃利息支出增加。

Net loss was $1.4 million or $0.11 per share in the fiscal 2025 first-quarter compared with net income of $495,000 or $0.04 per share in the same period last year. As of June 30, 2024, Jerash had cash and restricted cash of $13 million and net working capital of $34.5 million.

2025 財年第一季淨虧損為 140 萬美元，即每股 0.11 美元，去年同期淨利為 49.5 萬美元，即每股 0.04 美元。截至2024年6月30日，傑拉什擁有現金及限制性現金1,300萬美元，淨營運資本為3,450萬美元。

Inventory was $20.7 million in accounts receivables was $9.4 million. Net cash used in operating activities, was approximately $2.2 million for the quarter ended June 30, 2024 compared with net cash provided by operating activities of $25,000 for the same period last year.

庫存為 2,070 萬美元，應收帳款為 940 萬美元。截至 2024 年 6 月 30 日的季度，經營活動使用的現金淨額約為 220 萬美元，而去年同期經營活動提供的現金淨額為 25,000 美元。

As Sam and Eric mentioned earlier, we see ordering patterns increasing with larger quantities into fiscal 2025 and factories are fully booked through December. Revenue for the second-quarter is expected to increase by 11% to 13% from the prior year quarter and full year 2025 revenue is anticipated to grow by 20% to 25%.

正如 Sam 和 Eric 之前提到的，我們看到 2025 財年的訂購模式隨著數量的增加而增加，並且工廠在 12 月之前都已預訂滿。第二季營收預計將比去年同期成長 11% 至 13%，2025 年全年營收預計將成長 20% 至 25%。

Our gross margin goal for the 2025 fiscal year is expected to be approximately 12% to 14%, subject to logistics and shipping charges and product mix. On August 5, 2024 the rash Board of Directors approved a regular quarterly dividend of $0.05 per share on its common stock payable on August 23, 2024 to stockholders of record as of August 16, 2024.

我們 2025 財年的毛利率目標預計約為 12% 至 14%，具體取決於物流和運輸費用以及產品組合。2024 年 8 月 5 日，董事會草率地批准了普通股每股 0.05 美元的定期季度股息，該股息將於 2024 年 8 月 23 日支付給截至 2024 年 8 月 16 日在冊的股東。

With that, we will now open up the call for questions, and I will turn the call back to the operator.

現在，我們將打開提問電話，我會將電話轉回給接線生。

(Operator Instructions)

（操作員說明）

Mark Argento, Lake Street.

馬克·阿基托，湖街。

Hi, good morning guys. First question I had was on the revenue guidance, but what I do I just want to make sure I understand this regulatory review. It took it up fairly meaningfully from a 15% to 18% for the full year now to 20% to 25% was a couple of specific new wins in there. Maybe you can I'm going to break that apart a little bit for us, understand where all that additional revenue is coming from.

嗨，大家早安。我的第一個問題是關於收入指導，但我所做的只是想確保我理解這項監管審查。它相當有意義地從全年的 15% 到 18% 提高到 20% 到 25%，這是其中的一些具體的新勝利。也許你可以，我將為我們稍微分解一下，了解所有額外收入來自哪裡。

Thank you, Mark. Our revenue increase for this fiscal year is going to be a more on the second half of the year versus the last fiscal year. As you remember, our seasonality is always going to be more heavy on the first half and then the second half when we're producing more of the summer weather closings, the revenue will be somewhat lower.

謝謝你，馬克。我們本財年下半年的營收成長將比上一財年更多。正如您所記得的，我們的季節性總是在上半年更加嚴重，然後下半年，當我們生產更多的夏季天氣收盤時，收入會有所下降。

But this year, the first-quarter we already achieved a record quarter for the first-quarter and second-quarter is continued coming in strong, but we're anticipating that the third and fourth-quarter to be almost on par with the first half of the year. Because we see strong orders coming in, especially now that we were actually fully booked through the third-quarter through December of 2024. And orders are still coming in for the full spring for the quarter on or our last fiscal quarter, which is January to March of 2025.

但今年第一季我們已經實現了創紀錄的季度業績，第一季和第二季繼續強勁，但我們預計第三和第四季將與上半年幾乎持平今年的。因為我們看到大量訂單湧入，特別是現在我們從第三季到 2024 年 12 月的訂單實際上已經滿了。我們上一財季（即 2025 年 1 月至 3 月）整個春季的訂單仍在不斷到來。

So even though those orders are not confirmed or booked yet, but we see the strength of the turnaround. So we forecast the second half to be almost as high as the first half of this year. So we will see a much higher percentage growth in the second half comparing to last year's second half, does it make sense from India in the first two quarters, we're seeing growth in the teens, but then the second half of the year, we're seeing stronger growth comparatively.

因此，儘管這些訂單尚未確認或預訂，但我們看到了扭虧為盈的力量。所以我們預測下半年幾乎跟今年上半年一樣高。因此，與去年下半年相比，我們下半年將看到更高的百分比成長，這對印度前兩個季度有意義嗎？看到了更強勁的成長。

And do you attribute that those are kind of catch-up orders with existing customers, or is that kind of new new customers coming on and incrementally adding to the order flow.

您認為這些訂單是現有客戶的追趕訂單，還是新客戶的出現並逐漸加入訂單流。

It's more the latter is more new new customers coming in that we are anticipating that, especially in the past couple of years, we did a lot of trial order sampling and those those customers are now starting to place regular orders and they indicated that they will they will increase their ordering.

後者更多的是更多的新客戶進來，我們預計，特別是在過去的幾年裡，我們做了很多試訂單抽樣，這些客戶現在開始定期下訂單，他們表示他們會他們會增加訂購量。

But the first half is more for catching up. So up until now I'm putting into August, we're still trying to get rid of some of the back orders that was the delay in enough in spring.

但上半場更多的是追趕。因此，直到現在，我將進入八月份，我們仍在努力擺脫一些延遲交貨的訂單，這些訂單在春季已經足夠延誤了。

The gross margin came in below what we were looking for in the quarter. We obviously knew that there's still trying to play a little bit of catch up in the supply chain disruptions adding to the expense there you feeling as you guys had around that now, what kind of gross margin expectations, you know, do you have for Q2 and that I think the full year, you maybe bump that down a little bit.

本季毛利率低於我們的預期。我們顯然知道，仍然在努力彌補供應鏈中斷的影響，增加了你們現在所感受到的費用，你們知道，你們對第二季度的毛利率預期是多少我認為全年，你可能會稍微降低一點。

I'm guessing that's going to from what happened in Q1 or from the Q1 results. But should we see sequential improvement in our MD&A yet fully at your hands around the supply chain issues at this point?

我猜測這將來自第一季發生的事情或第一季的結果。但是，我們是否應該看到 MD&A 的連續改進，但此時供應鏈問題完全由您掌控？

Well, we are seeing that the flow obviously first-quarter and second-quarter, we're still having pretty significant higher manufacturing costs because of labor cost and also because of the inbound freight that we have to pay higher on the bringing the raw materials. But we're looking at maybe after the August, the situation will become stabilized.

嗯，我們看到第一季和第二季的流量明顯增加，由於勞動力成本以及我們在運送原材料時必須支付更高的入境運費，我們的製造成本仍然相當高。但我們預計八月之後，情況可能會趨於穩定。

And then also we are implementing a and a lot of them cost cutting and cost reduction kind of projects to lower our overhead, lower our even the SG&A, we're trying to reduce costs, but I'm thrilled hopefully, I think the second half of the year, even though is still not going to be a high teens, but it will stabilize. It's not going to be like the first and second-quarter.

然後我們還實施了很多成本削減和成本削減類型的項目，以降低我們的管理費用，甚至降低我們的SG&A，我們正在努力降低成本，但我希望我很興奮，我認為第二個半年後，雖然還不會達到高十幾歲，但會穩定下來。不會像第一季和第二季那樣。

Last question, I know, is there any provisions where you can work with your customers where they bear some of the incremental expense, if you're airfreighting or because of the disruptions that feels a little unfair that you guys end up having to take the brunt of all of that relative to some of your customers you might be able to share in some of the expenses. Are you sharing in those expenses? Or is there any kind of provision for you guys to be able to be made on some of that?

我知道最後一個問題，是否有任何規定可以讓您與客戶合作，讓他們承擔一些增量費用，如果您是空運，或者因為感覺有點不公平的中斷，您最終不得不承擔與您的某些客戶相關的所有這些首當其衝，您可能可以分擔一些費用。你分擔這些費用嗎？或者有什麼辦法可以為你們提供一些幫助嗎？

Well, each order that we that we have with with our customers, they will condensate. They understand our situation and in most cases they will add a little bit on the on the margin that they allow us to have. But if it is a day one directly compensate for the additional costs that we incurred, especially on inbound freight.

好吧，我們與客戶簽訂的每個訂單，他們都會凝結。他們了解我們的情況，在大多數情況下，他們會在允許我們擁有的餘裕上增加一點。但如果是第一天，則直接補償我們產生的額外費用，特別是入境運費。

Those are the situation that nobody anticipated, but they will understand that we are paying more and they will also allow us as much as possible, not having to airfreight the shipments to them if they can accept a longer delivery time. So just to answer your question, there's no direct compensation for contingent additional cost for manufacturing. But for the orders going forward, they will allow for a little bit of it catching up margin.

這些都是沒有人預料到的情況，但他們會理解我們付出了更多，他們也會盡可能地允許我們，如果他們能接受更長的交貨時間，就不必空運貨物給他們。因此，只是為了回答您的問題，對於或有的額外製造成本沒有直接補償。但對於未來的訂單，他們將允許其中一點點追趕利潤。

Yes, maybe regarding the inbound freight charges, some of our major customers, they are willing to absorb some of I mean, for the future order on the fact what mining future order intake has been there since the last several months, when we quote our equity price to them, we let them know our increase in bank franchises and some major customer, they are moving to willing to absorb some of the increase of inbound freight charges already here.

是的，也許就入境運費而言，我們的一些主要客戶，他們願意吸收一些我的意思是，對於未來的訂單，事實上自過去幾個月以來，當我們引用我們的報價時，挖掘未來訂單的攝取量一直存在。

There is one last thing for Gilbert, on the supply chain financing, are you guys actively utilizing that? Where are you in terms of leaning in on on that, I know historically that's been kind of expensive.

吉爾伯特還有最後一件事，關於供應鏈融資，你們積極利用它嗎？你在這方面的依賴在哪裡，我知道從歷史上看，這有點昂貴。

Yeah, especially when interest rates are still pretty high and that financing cost is tied to silver. So we're trying not to use it as much as we can but as the ordering and as the sales increase, sometimes we just have to tap into that and to make sure that we have enough cash flow to purchase raw material to them to pay for freight and so on. So yes, the interest expenses were a little bit high in the last quarter, but we're watching it we every time and make sure that we don't incur too much unnecessary interest costs.

是的，特別是當利率仍然相當高且融資成本與白銀掛鉤時。因此，我們盡量不使用它，但隨著訂單和銷售額的增加，有時我們只需要利用它並確保我們有足夠的現金流來購買原材料給他們支付用於貨運等。所以，是的，上個季度的利息支出有點高，但我們每次都會關注它，並確保我們不會產生太多不必要的利息成本。

Great. Appreciate the color, guys. Good luck.

偉大的。欣賞一下這個顏色，夥計們。祝你好運。

(Operator Instructions) 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.

（操作員說明）我們的問答環節已經結束。現在我將把電話轉給 Sam Choi 致閉幕詞。

Well, thank you, operator. And thanks to all of you for joining us today. And for your continuous support and look forward to speaking with you next quarter. Thank you, everyone.

好的，謝謝你，接線生。感謝大家今天加入我們。感謝您的持續支持，並期待下個季度與您交談。謝謝大家。

This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，此時您可以掛斷電話。感謝您的參與。