Jerash Holdings (US) Inc (JRSH) 2025 Q4 法說會逐字稿

Good morning, everyone. Welcome to Jerash Holdings fiscal 2025 fourth-quarter and full-year financial results. (Operator Instructions) Please note this conference is being recorded.

各位早安。歡迎閱讀 Jerash Holdings 2025 財年第四季及全年財務表現報告。（操作員說明）請注意，本次會議正在錄音。

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

現在我將把會議交給主持人，投資者關係部門的羅傑龐德爾。羅傑，請開始吧。

Jenny, thank you so much. Good morning or afternoon, everyone, wherever you may be. I'm Roger Pondel, Jerash Holdings Investor Relations firm, and welcome to the 2025 fourth-quarter conference call. On the call today from the company are Chairman and Chief Executive Officer, Sam Choi; Chief Financial Officer, Gilbert Lee; and Eric Tang, who leads the company's operations in Jordan.

珍妮，非常感謝你。各位早安或下午好，無論你們身在何處。我是傑拉什控股投資者關係公司的羅傑龐德爾，歡迎參加 2025 年第四季電話會議。今天出席公司電話會議的有：董事長兼執行長崔山；財務長李吉爾伯特；以及負責公司在約旦業務的唐埃里克。

Before I turn the call over to Sam, I want to remind all 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, copies of which are available on the SEC's website at www.sec.gov, along with other filings made with the SEC from time to time. Actual results could differ materially from these forward-looking statements, and Jerash Holdings undertakes no obligation to update any forward-looking statements, except of course, as required by law.

在將電話交給 Sam 之前，我想提醒所有聽眾，今天的電話會議可能包含 1995 年《私人證券訴訟改革法案》意義上的前瞻性陳述。此類前瞻性聲明受諸多條件限制，其中許多條件超出公司的控制範圍，包括公司最近向美國證券交易委員會提交的 10-K 表格「風險因素」部分中列出的條件，該表格的副本以及公司不時向美國證券交易委員會提交的其他文件均可在 SEC 網站 www.sec.gov 上查閱。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，Jerash Holdings 不承擔更新任何前瞻性聲明的義務。

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

接下來，我很高興將電話交給 Sam Choi。山姆？

Thank you, Roger. We continue to see strong demand from our existing customers and a notable increase in new inquiries from brands and large apparel manufacturers seeking strategic collaboration. While this is an exciting time for Jerash on the business front, revenue remains affected by logistic disruptions at Israel's Haifa Port driven by ongoing geopolitical instability in the region.

謝謝你，羅傑。我們持續看到現有客戶強勁的需求，同時，尋求策略合作的品牌和大型服裝製造商的新詢價也顯著增加。雖然對傑拉什公司而言，這是商業方面令人興奮的時期，但由於該地區持續的地緣政治不穩定，以色列海法港的物流中斷仍然影響著公司的收入。

Our fiscal fourth-quarter revenue increased by nearly 36%, yet results were lower than originally anticipated. We estimated approximately $3 million to $4 million of finished goods not shipped until early in the fiscal 2026 first quarter.

我們第四財季的營收成長了近 36%，但業績低於預期。我們估計約有 300 萬至 400 萬美元的成品要到 2026 財年第一季初才能出貨。

To mitigate further shipping delays due to the recent bombing of the Haifa Port, we are actively collaborating with our customers to reroute shipments through Jordan's Aqaba Port. As recently announced, Jerash secured a major initial order for one of the largest US-based multinational and omnichannel retail corporation through a strategic collaboration with Hansoll Textile, a leading South Korea-based global apparel group that supplies a wide range of garments to major international retail and fashion brands. Production for the order, which marks one of the largest initial orders in Jerash's history is scheduled to begin in August with FOB delivery planned for the third and fourth quarters of 2025.

為了緩解最近海法港遭轟炸造成的進一步運輸延誤，我們正在積極與客戶合作，將貨物改道通過約旦亞喀巴港運輸。正如最近宣布的那樣，Jerash 透過與韓國領先的全球服裝集團 Hansoll Textile 的策略合作，獲得了美國最大的跨國全通路零售公司之一的首筆大訂單。 Hansoll Textile 為主要的國際零售和時尚品牌提供各種服裝。該訂單是傑拉什歷史上最大的初始訂單之一，計劃於 8 月開始生產，FOB 交貨計劃於 2025 年第三季和第四季進行。

Following this initial order, it is both our and Hansoll's mutual intention to explore additional synergies and identify opportunities for continued growth and collaborations.

繼此次初步訂單之後，我們和漢索爾雙方都希望探索更多協同效應，並尋找持續成長和合作的機會。

Amid ongoing tariff uncertainties, global brands are actively seeking manufacturing alternatives out of China and Southeast Asia to stay competitive in an increasingly dynamic trade environment. With long established operations in Jordan and our reputation for high quality, Jerash is well-positioned to meet this growing demand, supported by the country's free trade agreements with the EU, UK, and Canada as well as the favorable tariff treatment currently in place from the US.

在關稅不確定性持續存在的情況下，全球品牌正積極尋求在中國和東南亞以外地區進行生產，以在日益動態的貿易環境中保持競爭力。憑藉在約旦長期穩定的營運和高品質的聲譽，Jerash 完全有能力滿足不斷增長的需求，這得益於約旦與歐盟、英國和加拿大之間的自由貿易協定，以及美國目前給予的優惠關稅待遇。

Due to rising demand for our production capacity directly from global brands, we have decided to terminate the joint venture with Busana after more than two years of limited progress. Dissolution of the joint venture is expected to be done by April 2027, upon fully completion of outstanding customer orders, collection of receivables, and other matters.

由於全球品牌對我們的生產能力需求不斷增長，在兩年多的合作進展有限之後，我們決定終止與 Busana 的合資企業。預計合資企業將於 2027 年 4 月解散，屆時所有未結客戶訂單、應收帳款及其他事項將全部完成。

Our focus is now on further advancing Jerash's goal of diversifying our direct customer base and expanding our product mix to increase year-round capacity utilization and reduce revenue seasonality.

我們現在的重點是進一步推進 Jerash 的目標，即實現直接客戶群多元化，擴大產品組合，以提高全年產能利用率並減少收入季節性波動。

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

現在我將把電話轉交給負責我們在約旦業務的埃里克唐。嗨，艾瑞克。

Thank you, Sam. Our factories are fully booked through the end of December with growing order volume from our global brand customer. We are also working diligently to accommodate new business inquiries.

謝謝你，山姆。由於來自全球品牌客戶的訂單量不斷成長，我們的工廠一直排到12月底的檔期。我們也在努力滿足新的業務諮詢。

We are excited very much about our strategic collaboration with Hansoll and the initial large order placed for high-profile retail corporation. With FOB orders, we are achieving better margins compared with traditional contract manufacturing through third parties that we often took on during Jordan's Jerash seasonally slower period in the second half of our fiscal year. With the strategic collaboration in place, we are hopeful to continue developing additional synergies and identifying new opportunities for mutual growth.

我們對與 Hansoll 的策略合作以及為一家知名零售公司下的首筆大訂單感到非常興奮。透過 FOB 訂單，我們獲得了比透過第三方進行傳統合約製造更高的利潤率，而這些合約製造通常是在我們財政年度下半年約旦杰拉什的季節性淡季期間進行的。透過建立策略合作關係，我們希望繼續發展更多協同效應，並尋找新的共同發展機會。

Additionally, we are working on sample orders and pricing for other well-known brands in regions like Europe and Persian Gulf. This new business opportunity further reinforce our growth strategy, which centers on expanding our customer base and product mix to more effectively balance production capacity throughout the year.

此外，我們正在為歐洲和波斯灣等地區的其他知名品牌處理樣品訂單和定價事宜。這項新的商機進一步鞏固了我們的成長策略，該策略的核心是擴大客戶群和產品組合，從而更有效地平衡全年的生產能力。

To support our growth, we are pleased to announce the completion of expansion at our existing manufacturing facility in Oman, and we are now in the progress of onboarding additional foreign workers. The expansion are expected to increase our production capacity by approximately 15%, starting in the second fiscal year -- fiscal quarter.

為了支持我們的發展，我們很高興地宣布，我們在阿曼的現有製造工廠的擴建工程已經完成，目前我們正在引進更多外籍勞工。預計此次擴建將使我們的產能提高約 15%，從第二個財政年度（即財政季度）開始。

Separately, we are actively collaborating with the Jordan Ministry of Labor to develop an extension adjacent to our existing factory in Al-Hasa. This project is expected to get an additional 5% to 10% in overall production capacity, and it is currently targeted for completion in early calendar year 2026.

另外，我們正在積極與約旦勞動部合作，在哈薩現有工廠附近開發一個擴建計畫。該項目預計將使總產能提高 5% 至 10%，目前計劃於 2026 年初完成。

We also are assessing longer-term larger-scale expansion plans to construct manufacturing, warehousing and accommodation facilities on the land that we purchased several years ago. The persistent regional geopolitical tensions continue to cause delay in export shipment from Haifa Port. However, Jordan remains a skilled and stable country with a full operational port.

我們也正在評估更長期的、更大規模的擴張計劃，以便在我們幾年前購買的土地上建造製造、倉儲和住宿設施。持續的地區地緣政治緊張局勢繼續導致海法港的出口貨物運輸延誤。然而，約旦仍然是一個技術精湛、局勢穩定的國家，擁有一個全面運作的港口。

We are also exploring additional logistics channel to ensure reliable and timely deliveries.

我們也正在探索其他物流管道，以確保可靠及時的交付。

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

接下來，我將把電話交給吉爾伯特，讓他來討論我們的財務表現。請叫吉爾伯特。

Thank you, Eric. Revenue for our fiscal 2025 fourth quarter increased by 35.6% to $29.3 million from $21.6 million in the same quarter last year. The quarter's revenue reflected an increase in shipments to Jerash's major US customers. As Sam mentioned, due to congestions at Israel's Haifa Port, which caused delays in shipments, revenue for the fiscal fourth quarter was impacted by approximately $3 million to $4 million.

謝謝你，埃里克。我們 2025 財年第四季的營收比去年同期成長了 35.6%，達到 2,930 萬美元，而去年同期為 2,160 萬美元。本季營收反映了傑拉什公司對美國主要客戶的出貨量增加。正如 Sam 所提到的，由於以色列海法港的擁塞導致貨物運輸延誤，第四財季的收入受到了約 300 萬至 400 萬美元的影響。

Gross profit for the fiscal 2025 fourth quarter advanced nearly 250% to $5.2 million from $1.5 million in the same quarter of last year. Gross margin increased to 17.9% in the fiscal 2025 fourth quarter from 7.0% in the same quarter last year. The increase was primarily driven by higher production and shipment volume, which lowered the unit cost of production and generated higher margins through economies of scale.

2025 財年第四季毛利成長近 250%，從去年同期的 150 萬美元增至 520 萬美元。2025財年第四季毛利率從去年同期的7.0%成長至17.9%。成長主要由更高的產量和出貨量推動，這降低了單位生產成本，並透過規模經濟產生了更高的利潤率。

Operating expenses for fiscal 2025 fourth quarter increased by $284,000 to $4.8 million from $4.5 million in the same period last year. The higher costs included a 4.7% increase in SG&A expenses due to higher sales and an $83,000 increase in stock-based compensation.

2025 財年第四季營運支出較上年同期的 450 萬美元增加 28.4 萬美元，達到 480 萬美元。成本增加包括由於銷售額成長導致的銷售、一般及行政費用增加 4.7%，以及股票選擇權費用增加 83,000 美元。

Operating income was $434,000 for the fiscal 2025 fourth quarter compared with an operating loss of $3 million a year ago. Total other expenses in the fiscal 2025 fourth quarter was $254,000 compared with $134,000 for the same quarter last year. The increase was primarily attributable to higher interest expense from supply chain financing programs and short-term debt as a result of higher sales.

2025 財年第四季營業收入為 43.4 萬美元，而上年同期營業虧損為 300 萬美元。2025 財年第四季其他總支出為 254,000 美元，而去年同期為 134,000 美元。成長主要歸因於供應鏈融資計畫和短期債務的利息支出增加，而這又是由於銷售額成長所致。

Income tax expenses for fiscal 2025 fourth quarter were approximately $324,000 compared with tax income of $16,000 in the same period in fiscal 2024. The effective tax rate was high due to some tax provision adjustments stemmed from prior year amended tax returns and increase foreign tax income at operating subsidiaries in Jordan and Hong Kong. Certain nondeductible expenses were reinstated included interest expense limitations, stock-based compensation and entertainment expenses. We expect the effective tax rate to normalize going forward as consolidated income rises and adjustments are now behind us. We intend to consult international tax experts on improving our tax structure.

2025 財年第四季所得稅支出約為 324,000 美元，而 2024 財年同期所得稅收入為 16,000 美元。由於前一年修改後的報稅表導致一些稅務準備金調整，以及約旦和香港的經營子公司增加的外國稅收收入，實際稅率較高。某些不可扣除的費用恢復執行，包括利息支出限制、股票選擇權補償和招待費。我們預計，隨著合併收入的成長和調整措施的完成，實際稅率將逐步恢復正常。我們計劃諮詢國際稅務專家，以改善我們的稅務架構。

Net loss was reduced to $144,000 or $0.01 per share for the fiscal 2025 fourth quarter from a net loss of $3.1 million or $0.25 per share in the same period last year. As of March 31, 2025, Jerash had $15.1 million in cash and restricted cash and net working capital was $34.6 million. Inventory was $27.7 million and $3.1 million in accounts receivable. Net cash provided by operating activities was approximately $1.4 million for the fiscal year ended March 31, 2025, compared with $2.5 million for fiscal year 2024.

2025 財年第四季淨虧損減少至 14.4 萬美元，即每股虧損 0.01 美元，去年同期淨虧損為 310 萬美元，即每股虧損 0.25 美元。截至 2025 年 3 月 31 日，Jerash 擁有 1,510 萬美元現金和受限現金，淨營運資本為 3,460 萬美元。庫存價值 2,770 萬美元，應收帳款 310 萬美元。截至 2025 年 3 月 31 日的財政年度，經營活動產生的淨現金約為 140 萬美元，而 2024 財政年度為 250 萬美元。

As Sam and Eric mentioned, our business remains solid and continues to grow, demonstrated by a record high revenue in fiscal 2025 of $146 million. Despite a $772,000 increase in stock-based compensation to $1.8 million in fiscal 2025 from fiscal 2024's $986,000, our operating income in fiscal year 2025 was $1.4 million compared with an operating loss of $665,000 in fiscal year 2024.

正如 Sam 和 Eric 所提到的，我們的業務依然穩健，並且持續成長，2025 財年的營收創下 1.46 億美元的紀錄。儘管 2025 財年的股票選擇權補償金從 2024 財年的 98.6 萬美元增加到 180 萬美元（77.2 萬美元），但我們 2025 財年的營業收入為 140 萬美元，而 2024 財年的營業虧損為 66.5 萬美元。

Looking ahead, we are focused on driving continued growth and operational efficiency. Revenue for the fiscal 2026 first quarter is expected to be approximately $38 million to $40 million, pending outbound shipping port conditions for the remainder of June.

展望未來，我們將專注於推動持續成長和提高營運效率。預計 2026 財年第一季的營收約為 3,800 萬美元至 4,000 萬美元，具體金額取決於 6 月剩餘時間的出港貨運情況。

Our gross margin goal for the fiscal 2026 first quarter is expected to be approximately 15% to 16%. On May 20, 2025, Jerash's Board of Directors approved a regular quarterly dividend of $0.05 per share on its common stock, payable on June 6, 2025, to stockholders of record as of May 30, 2025.

我們預計 2026 財年第一季的毛利率目標約為 15% 至 16%。2025 年 5 月 20 日，傑拉什董事會批准向其普通股股東派發每股 0.05 美元的季度股息，將於 2025 年 6 月 6 日支付給截至 2025 年 5 月 30 日登記在冊的股東。

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

現在我們將開放提問環節，我將把電話轉回給接線生。

(Operator Instructions) Mark Argento.

（操作說明）馬克·阿根托。

Just a few quick ones here. Can you maybe help us understand or think about the incremental costs around having to move ports from Haifa to the Jordanian port? And I'm assuming, is that built into the gross margin expectations for Q1?

這裡就簡單說幾句。您能否幫助我們理解或考慮將港口從海法港遷至約旦港所帶來的額外成本？我猜想，這是否已經計入第一季的毛利率預期中了？

Well, actually, Mark, the cost to Aqaba for us is actually lower than transporting it to Haifa. If I remember the numbers right, I think each truckload traveling to Aqaba is about $1,200 and to Haifa is about $3,200. That is our cost because once we deliver to the port, the shipping cost -- shipping the container to its destination will be the cost for our customers.

實際上，馬克，運到亞喀巴的成本比運到海法的成本要低。如果我沒記錯的話，每輛車運往亞喀巴的貨物大約是 1,200 美元，運往海法的貨物大約是 3,200 美元。這就是我們的成本，因為一旦我們把貨物送到港口，運輸成本——將貨櫃運送到目的地的成本——將由我們的客戶承擔。

Got it. And I'm assuming that shipping costs from Aqaba is higher than Haifa for the customer, and that's why you guys have historically --

知道了。我猜想從亞喀巴發貨的運費比從海法發貨高，所以你們歷來…--

For that we don't really have visibility on the shipping costs for the customer, whether they ship from Aqaba or from Haifa. But I know, usually, they want to use Haifa because the lead time for shipping is shorter. I think it's about one week shorter. Am I right, Eric?

因此，我們無法真正了解客戶的運費，無論他們是從亞喀巴發貨還是從海法發貨。但我知道，通常情況下，他們想用海法港，因為運輸週期更短。我認為會縮短大約一周。我說得對嗎，艾瑞克？

Yeah, around 10 to 12 days shorter. And the lead time is more important than the customer, especially, this is on the cost of Jerash. So they choose Haifa because the garments can arrive to New York, I think, at least 10 days earlier. But through Aqaba, of course, we always recommend in the beginning to go through Aqaba. They have been going through Agaba for many years already, okay?

是的，大約縮短了10到12天。而且交貨時間比顧客更重要，尤其是在傑拉什的成本方面。所以他們選擇海法是因為服裝可以比紐約提早至少 10 天運到。當然，我們始終建議一開始就途經亞喀巴。他們已經經過阿加巴很多年了，好嗎？

And we pay less in the logistic cost as -- because trucking we pay almost 30%, 40% less, okay? So now they have no choice because Haifa Port has been, I mean, attacked, and Haifa was closed, they have to shift back to Aqaba, which is more beneficial to us on the cost side.

而且我們在物流成本方面支付的費用也更少——因為卡車運輸我們支付的費用減少了近 30%、40%，明白嗎？現在他們別無選擇，因為海法港遭到襲擊，海法港被關閉了，他們不得不遷回亞喀巴，這在成本方面對我們來說更有利。

Okay. That's helpful. Just pivoting in terms of the timing of orders. I know in last quarter, we saw some shift from Q3 into Q4, and now we're seeing a little bit of shift from Q4 to Q1. You just talk about that dynamic a little bit. Have you seen any orders being canceled, or is this really just a timing issue at this point?

好的。那很有幫助。只是調整了訂單處理時間。我知道上個季度我們看到了一些從第三季到第四季的變化，而現在我們看到了一些從第四季到第一季的變化。你只需稍微談談這種動態即可。你有沒有看到任何訂單被取消的情況？還是說目前這只是時間上的問題？

No, it's just a timing issue. No order has been canceled. And it's just that there was some congestions toward the end of March that some containers did not reach the delivery point in Haifa. It was too many containers going through Haifa to be shipped out.

不，只是時間安排的問題。沒有訂單被取消。只是在三月底出現了一些擁堵，導致一些貨櫃未能到達海法的交貨點。有太多貨櫃需要經由海法運出。

So there were about $3 million to $4 million worth of merchandise or worth of sales that didn't get booked because it was not shown on the customer's system. We already shipped it out from our factory, but it didn't reach the customer's system. So they didn't recognize it as a receipt, the FCR was not issued. Once the FCR is issued, it can be booked as sales.

因此，大約有價值 300 萬至 400 萬美元的商品或銷售額沒有被記錄在案，因為這些商品或銷售額沒有顯示在客戶的系統中。我們已經從工廠發貨了，但還沒有到達客戶的系統。所以他們沒有將其識別為收據，因此沒有開立 FCR。一旦 FCR 發出，即可將其記為銷售。

Got it. And then last kind of question for me. Could you just talk a little bit more about the decision to dissolve the Busana JV?

知道了。最後，還有最後一類問題。能否再詳細談談解散佈薩納合資企業的決定？

And then also maybe in conjunction with that, talk about this new opportunity with Hansoll, in particular that you referenced in the press release?

此外，或許還可以談談您在新聞稿中提到的與漢索爾公司合作的新機會？

Well, Sam, you want to talk about Busana decision?

山姆，你想談談布薩納的決定嗎？

Yes. In fact, up to two years of collaboration, the joint venture with Busana, we didn't see great events in the progress. And in fact, most of their referred customers by the joint venture, we can independently handle those customers. So it's on a mutual understanding basis that we terminate the joint venture. And in fact, some customers, they are actively, I mean, contacting us that we can do the business with them directly.

是的。事實上，在與 Busana 的合資企業長達兩年的合作中，我們並沒有看到任何重大進展。事實上，合資企業介紹的大部分客戶，我們都可以獨立處理。因此，我們以相互理解的態度終止了合資企業。事實上，有些客戶主動聯絡我們，表示我們可以直接與他們做生意。

So I mean, we expect there will be more and more direct business through ourselves instead of going through the joint venture.

所以我的意思是，我們預計未來會有越來越多的業務直接透過我們自己開展，而不是透過合資企業。

And then in terms of the Hansoll and the new domestic customer you're talking about, maybe touch on who Hansoll is and why that's important?

然後，關於你提到的漢索爾和新的國內客戶，能否簡單介紹一下漢索爾是誰，以及為什麼這很重要？

For Hansoll, just to say something because Hansoll is one of the largest importers in South Korea. So I think everyone knows this company, and they are actually the number one supplier for Walmart order and Sam's Club.

順便提一下韓索爾，因為韓索爾是韓國最大的進口商之一。所以我覺得大家都知道這家公司，他們其實是沃爾瑪訂單和山姆會員店的第一大供應商。

So actually, they want to -- they got the green light from Walmart and Sam's Club that they want to increase the business with Hansoll, but they want Hansoll to go to duty-free countries, especially Jordan. So Hansoll agreed that, okay, they will come to Jordan, okay?

實際上，他們希望——他們已經從沃爾瑪和山姆會員店獲得了許可，希望擴大與漢索爾的業務合作，但他們希望漢索爾能夠進入免稅國家，特別是約旦。所以漢索爾同意了，好吧，他們會來約旦，好嗎？

And then it is Walmart who introduced Jerash to Hansoll, okay? So the question is, okay, Walmart said, according to the top management, they don't -- at this sensitive period, they don't want to increase one more additional vendor directly doing business for Walmart, okay? Otherwise, Walmart will directly approach us. They want -- they will give the expansion of the business to Hansoll, and advise Hansoll work together with Jerash. This is why we are coming in together.

然後，是沃爾瑪把傑拉什介紹給了漢索爾，懂嗎？所以問題是，沃爾瑪高層表示，在這個敏感時期，他們不想再增加一家直接為沃爾瑪做生意的供應商，好嗎？否則，沃爾瑪會直接聯絡我們。他們希望——他們將業務擴張交給漢索爾，並建議漢索爾與傑拉什合作。這就是我們一起行動的原因。

So last month, Sam, the Chairman and Ringo, the Marketing Director, also visited Hansoll and see their top management, including the CEO, and we have a very good discussion, and then they are very seriously consider to open more business, okay, with Jerash in 2026.

所以上個月，董事長 Sam 和市場總監 Ringo 也拜訪了 Hansoll，會見了他們的高層管理人員，包括首席執行官，我們進行了非常好的討論，然後他們非常認真地考慮在 2026 年與 Jerash 開展更多業務。

Meanwhile, we already got the first confirmed order from them, and we already placed order to the supplier, okay? And it is around the first order is ready 3.2 million pieces girls' short. And the total volume in US dollars of the business is around USD6.5 million.

同時，我們已經收到了他們的第一份確認訂單，並且我們已經向供應商下了訂單，好嗎？第一批訂單大約準備了 320 萬件女童短褲。該業務的總交易額約為 650 萬美元。

This is only the first order. They keep telling me for 2026, maybe each month you will be getting okay, at least 0.5 million to 1 million pieces of order, okay? So we have to work out the capacity ourselves, okay, and try to choose the good customer, and then that's why we also placed in the earnings call about our expansion on the factory capacity.

這只是第一筆訂單。他們一直跟我說，到 2026 年，也許每個月你至少可以拿到 50 萬到 100 萬件訂單，好嗎？所以我們必須自己確定產能，好嗎？也要努力選擇好的客戶，這也是為什麼我們在財報電話會議上也提到了擴大工廠產能的原因。

Mike Baker, D.A. Davidson.

麥克貝克，D.A.戴維森。

Okay, thanks. Just to follow up on that last point, how -- can you quantify or at least give some qualitative color on the kind of conversations you're having with tariffs from China and other places? Is that compelling more companies like presumably Walmart to look for other sources? And yes, if you can sort of contextualize that or give any metrics or anything along those lines to give some color on how that tariff situation is impacting you either positively or negatively?

好的，謝謝。關於最後一點，您如何量化或至少定性地描述您與中國和其他地方就關稅問題進行的對話？這是否會促使更多像沃爾瑪這樣的公司尋找其他貨源？是的，如果您能提供一些背景信息，或者給出一些指標或其他類似數據，來說明關稅情況對您產生的影響（無論是積極的還是消極的），那就太好了。

Well, I think --

嗯，我覺得--

That is a bit -- yes, you please.

那有點——是的，謝謝。

Okay. Ever since President Trump announced his tariff or what we call the liberation date, we have seen almost every existing customer or new customers, they're kind of having an urgency to try to find alternative suppliers. In the past few years, we have already seen a trend of people trying to get out of China, trying to get out of Asia into duty-free countries.

好的。自從川普總統宣布他的關稅政策（或我們稱之為「解放日」）以來，我們看到幾乎所有現有客戶或新客戶都在迫切地尋找替代供應商。過去幾年，我們已經看到一種趨勢，那就是人們試圖離開中國，離開亞洲，前往免稅國家。

But ever since Mr. Trump announced his matrix of tariff increases and -- if you remember, Jordan was, and among some other countries were placed on the basic 10% tariff line, which is very competitive comparing to some other major, whether it's China or Southeast Asian countries.

但自從川普先生宣布了他的關稅上調計劃以來——如果你還記得的話，約旦和其他一些國家被列入了10%的基本關稅線，這與其他一些主要國家（無論是中國還是東南亞國家）相比，都極具競爭力。

So buyers and brands they are approaching Jerash because this is just making the exodus out of Asia, a more urgency. And they want to have -- they want us to commit to more capacity. They want to start some inquiries and come to the factory to see some new customers.

因此，買家和品牌都在與傑拉什接洽，因為這使得亞洲人口外流的趨勢更加緊迫。他們希望——他們希望我們承諾增加產能。他們想進行一些調查，並到工廠拜訪一些新客戶。

Actually, I was here a few weeks ago, and I've seen many customers actually people that I don't know of, they just came and visited us and tour our factory and wanted to start doing business. So after they toured the factory, they were very pleased and they wanted to send us some samples or send us some pricing exercise so that we can start doing some pricing.

事實上，我幾週前來過這裡，我看到了很多客戶，其實都是我不認識的人，他們只是來參觀我們的工廠，想和我們開展業務。參觀工廠後，他們非常滿意，想給我們一些樣品或報價單，以便我們開始進行定價。

So I see this as a very good opportunity for us to even further diversify our customer base away from the major customers such as VF and New Balance. If you see our 2025 distribution of customers, you can see even though VF sales has -- still has increased, but the percentage has dropped and we have increased significantly some other customers' sales. So I think we are going to the right direction, and this tariff war is actually providing it more stimulus to get to that point.

所以我認為這對我們來說是一個很好的機會，可以進一步拓展客戶群，擺脫對 VF 和 New Balance 等主要客戶的依賴。如果您查看我們 2025 年的客戶分佈情況，您會發現，儘管 VF 的銷售額仍然有所增長，但百分比卻有所下降，而且我們大幅提高了其他一些客戶的銷售額。所以我認為我們正朝著正確的方向前進，而這場關稅戰實際上為實現這一目標提供了更多刺激。

So right now, nobody knows what the final tariff rates are going to be. We have some indications from the Prime Minister of Jordan because they have been talking with US department or representative of trade, and they I'm pretty sure that the rate is not going to be significant.

所以目前，沒有人知道最終的關稅稅率會是多少。我們從約旦首相那裡得到了一些消息，因為他們一直在與美國貿易部代表交談，我很確定匯率不會有太大變化。

Right now, we're thinking about maybe just keeping the 10% or even lower. But that is already very competitive comparing with China, comparing with Vietnam and some other Southeast Asian countries. So I see the trend continue, and our capacity is really in need of some major increase. But we're considering who to partner with and what way to increase our capacity.

目前，我們正在考慮或許將比例維持在 10% 甚至更低。但與中國、越南以及其他一些東南亞國家相比，這已經非常有競爭力了。所以我認為這種趨勢還會持續下去，我們的產能確實需要大幅提升。但我們正在考慮與誰合作以及如何提高我們的產能。

So we are being conservative actually for fiscal year 2026. Just projecting that we will have a minor increase in our capacity and minor increase in sales. So that's why you can see the first quarter, we are only projecting about, I think, 10% increase for the first quarter? No, actually, first quarter comparing to last year is a decrease by 4% because last year first quarter, we had $41 million in sales, and this year, it's only $39 million.

所以，實際上我們對 2026 財年採取了保守的預測。我們預計產能和銷售額將略有成長。所以這就是為什麼你會看到第一季度，我們預計第一季的成長幅度只有10%左右？不，實際上，與去年同期相比，第一季下降了 4%，因為去年第一季我們的銷售額為 4,100 萬美元，而今年只有 3,900 萬美元。

Yeah, it makes sense. But to follow up on that, the increased capacity, you talked about, well, you completed some expansion and talking about another 5% to 10% increase in existing facilities, I'm curious about the longer-term idea of presumably opening more manufacturing facilities and warehousing on the land that you already own. Any timing on when you would think about doing that, or how likely that is to come to fruition?

是的，這很有道理。但關於產能提升的問題，您提到已經完成了一些擴建，並且正在討論在現有設施的基礎上再增加 5% 到 10% 的產能，我很好奇您更長遠的想法，即在您已經擁有的土地上開設更多的製造工廠和倉庫。您認為何時會考慮這樣做？或者說，這樣做實現的可能性有多大？

Right now, our projection or our CapEx projection is it will not happen in year 2026 because it is still a very unstable geopolitical situation here. And unless we can be sure that we will fill up that factory almost immediately, I think we're just going to hold off. But in the meantime, we will continue to do studies. We'll continue to talk to potential partners and also find ways of financing the expansion because we're talking about $20 million to $30 million in investment. So we need to find some way of financing it.

目前，我們的預測或資本支出預測是，該項目在 2026 年不會實現，因為這裡的地緣政治局勢仍然非常不穩定。除非我們能確定能立即填滿那座工廠，否則我認為我們還是先等等吧。但同時，我們將繼續進行研究。我們將繼續與潛在合作夥伴洽談，並尋找擴張融資途徑，因為我們談論的是 2,000 萬至 3,000 萬美元的投資。所以我們需要找到某種融資方式。

Igor Novgorodtsev, Lares Capital.

伊戈爾·諾夫哥羅德采夫，拉雷斯資本。

The follow-up on increase after the tariff in Jordan is expected to become much more competitive to Vietnam and other big manufacturing countries. Do you think it will positively affect the gross margin? Because I remember that during the highest demand right post-COVID, or during COVID, you had margin close to 20%. Now your gross margin is more like 15%, 16%. What do you think is going to happen to your gross margin if you have a higher demand but limited capacity?

預計約旦加徵關稅後，該國產品將更具競爭力，足以與越南和其他大型製造業國家相提並論。你認為這會對毛利率產生正面影響嗎？因為我記得在新冠疫情爆發後需求最旺盛的時候，或是在新冠疫情期間，你們的利潤率接近 20%。現在你的毛利率大概在 15% 到 16% 之間。如果需求增加但產能有限，你認為你的毛利率會發生什麼變化？

I believe the gross margin will definitely be improved, because right now, we're switching more and more over to what we call FOB business. In the past, when our capacity was not fully utilized, especially during our slow season, which is the second fiscal year -- second half of the fiscal year, we tend to take on business that what we call CM business, cut and make business.

我相信毛利率肯定會提高，因為目前我們正在越來越多地轉向我們所說的FOB業務。過去，當我們的產能沒有充分利用時，尤其是在淡季，也就是第二個財政年度的下半年，我們往往會承接一些我們稱之為 CM 業務、削減和製造業務的業務。

So for those business, we're just doing more simple styles but higher volume because that is our -- in our industry, it is the summer season. Our strength is in producing jackets, outerwear, those are more complicated styles that we can do the FOB business and gain more ASP and gain more margin. But now, the situation has changed because we have more business than we can handle. So we will forgo some of the or the majority of the CM business and take on more FOB business.

所以對於這些企業，我們只是做更多簡單的款式，但產量更高，因為這是我們——在我們這個行業，這是夏季旺季。我們的優勢在於生產夾克、外套等更複雜的款式，我們可以進行 FOB 貿易，獲得更高的平均售價和更高的利潤率。但現在情況發生了變化，因為我們的業務量已經超過了我們的處理能力。因此，我們將放棄部分或大部分CM業務，轉而承接更多FOB業務。

So naturally, that will improve our ASP, that will improve our gross margin percentage. But at the same time, the market is getting more and more competitive. Our buyers continue to put pressure on us to make us be more competitive in terms of pricing.

所以，這自然會提高我們的平均售價，也會提高我們的毛利率。但同時，市場競爭也變得越來越激烈。我們的買家不斷向我們施壓，要求我們在價格方面更具競爭力。

So this -- overall, there are some offsetting, but I believe going forward, we will be able to maintain a pretty healthy gross margin. And with the Hansoll business because it's high volume, while we will be able to gain a pretty significant or a pretty healthy gross margin, I think the efficiency will also help us to achieve a higher gross margin.

所以總的來說，雖然有一些相互抵消的因素，但我相信展望未來，我們將能夠維持相當健康的毛利率。由於漢索爾業務的銷量很高，我們不僅能夠獲得相當可觀或相當健康的毛利率，而且我認為效率的提高也將幫助我們實現更高的毛利率。

Okay. Following up on that, your press release says that you fully booked through December. So if you're fully booked, does it mean that you already know your gross margin for the rest of the year, or this is still somewhat up in the year?

好的。隨後，你們的新聞稿稱，你們的檔期已排滿至12月。如果房間已全部預訂完畢，這是否意味著您已經知道今年剩餘時間的毛利率，還是說毛利率仍會在今年內上升？

And also, I believe you projected the gross margin for the next quarter, but can you project the gross margin for the rest of the year or at least through December or you don't know yet?

另外，我相信您已經預測了下一季的毛利率，但是您能否預測今年剩餘時間或至少到 12 月的毛利率，還是您還不知道？

Well, we are fully booked through the rest of the year, but there could still be changes. I think, Eric, maybe you can add to this, how do we -- what kind of changes do we still anticipate that could affect the overall margin that we project.

目前我們今年的檔期已經全部訂滿了，但情況仍有可能改變。艾瑞克，我想，或許你可以補充一點，我們——我們預計還有哪些變化可能會影響我們預測的整體利潤率。

Okay. It will be more or less the same actually. But usually, the buyer place to Jerash each year two times orders. Okay. So now they are giving us the -- I mean, another batch of order, which is a projection.

好的。實際上結果大同小異。但通常情況下，買家每年會向傑拉什下兩單。好的。所以現在他們又給我們下了一批訂單，這是一個預測。

Usually, the confirmed PO will be sent to us maybe three to four months before, I mean actual delivery, at least four months. So this is a projection.

通常情況下，確認的採購訂單會在實際發貨前三到四個月發送給我們，我的意思是，至少提前四個月。所以這只是一個預測。

That's why, okay, Gilbert can tell you, okay, up to the first quarter, what is our actual profit margin because it is already an actual order we have the PO already. But for, I mean, September onwards, we still are waiting for the official PO from the buyer, although more or less the same. And there will be a little bit changes in sometimes the figure but the price usually will be the same.

所以，吉爾伯特可以告訴你，到第一季為止，我們的實際利潤率是多少，因為訂單已經到賬，我們已經拿到採購訂單了。但就我所知，從九月開始，我們仍在等待買家的正式採購訂單，儘管情況大致相同。有時數字可能會略有變化，但價格通常保持不變。

So this is the reason why until December, we cannot give you an actual profit margin percentage. But it will be more or less the same as we project.

所以這就是為什麼在12月之前我們無法提供實際利潤率的原因。但結果應該和我們預測的大致相同。

And may I say, I mean, because of the tariff issue, they're already a trend that some customers are moving their sourcing from China or Southeast Asia to Jordan. And through that transition, Jerash can pitch a more higher gross profit margin from those orders, brand name like FootJoy or even like Walmart, they're willing to place in duty-free country to secure their production and their supply, yes. And then -- so for that kind of order, Jerash can pitch a relatively higher margin and efficiency.

而且，我想說的是，由於關稅問題，一些客戶已經將採購從中國或東南亞轉移到約旦，這已經成為一種趨勢。透過這種轉變，傑拉什可以從這些訂單中獲得更高的毛利率，像 FootJoy 這樣的品牌，甚至是像沃爾瑪這樣的公司，都願意將訂單放在免稅國家，以確保他們的生產和供應，是的。因此，對於這類訂單，杰拉什可以提供相對較高的利潤率和效率。

My other question is, we obviously mentioned geopolitics several times during this call. And I understand that customers come to tour your factory and try samples and very interested. But how much do you think the persistent issues with Middle East political issues hold them back from working with your long term? Are they really concerned that something may be even worse in the year or it's not something that really comes into play?

我的另一個問題是，我們在這通電話中顯然多次提到了地緣政治。我了解到，很多客戶會來參觀你們的工廠，試用樣品，他們對此非常感興趣。但您認為中東政治問題持續存在，這會在多大程度上阻礙他們與您的長期合作？他們真的擔心今年情況會變得更糟嗎？還是說這根本不是需要考慮的問題？

Well, first, how the Middle East conflict will play out is anybody's guess. And so far, Jordan is still considered the most peaceful and the safest country within the Middle East, even though it's in between Israel and Iraq and Iran, but Jordan is able to stay out of the conflict. And the missiles are going around Jordan to -- for those two countries to hit each other, and US has the most interest in keeping Jordan to be a peaceful and safe place.

首先，中東衝突將如何發展，誰也無法預料。到目前為止，約旦仍然被認為是中東最和平、最安全的國家，儘管它位於以色列、伊拉克和伊朗之間，約旦仍能置身於衝突之外。這些飛彈繞過約旦，目的是讓這兩個國家互相攻擊，而美國最希望約旦保持和平與安全。

Many countries, when they evacuate their citizens from Israel as they are doing right now, they actually move their citizens away from Israel into Jordan because they believe Jordan would be a safe haven for their citizens. Obviously, people cannot fly out of Israel. Tel Aviv is closed, shut down the airport. So they have to get to somewhere if they want to go back to their country, and the first choice is go to Jordan.

許多國家在從以色列撤離本國公民時（就像現在一樣），實際上是將公民轉移到約旦，因為他們認為約旦對他們的公民來說是一個安全的避難所。顯然，人們無法搭飛機離開以色列。特拉維夫關閉，機場關閉。所以，如果他們想回國，就必須去某個地方，而首選目的地就是約旦。

And anyone who has visited Jordan, a lot of our new customers, once they came to Jordan, they would agree that this is a very safe and calm place. So unless they have never visited Jordan, they shouldn't have a concern of the safety and the continuity of doing business in Jordan.

凡是到過約旦的人，包括我們許多新的客戶，一旦來到約旦，都會認同這裡是一個非常安全、平靜的地方。因此，除非他們從未到訪過約旦，否則他們不應該擔心在約旦開展業務的安全性和持續性。

Okay. I mean, that's great to hear. My last question is also on geopolitics is how are you getting your supplies? Because at some point of time, a year ago, you had trouble because of Houthis getting your supplies obviously from Asia. Is that -- do you guys have alternatives, you don't anticipate anything? Or how do you think about this because you don't know what may happen in a few weeks, if Houthis will become -- start targeting the ships? Or how do you guys think about that?

好的。聽到這個消息真是太好了。我的最後一個問題也與地緣政治有關，你們的物資供應來自哪裡？因為在一年前的某個時候，你們遇到了麻煩，因為胡塞武裝顯然是從亞洲獲取你們的物資。也就是說──你們有其他方案嗎？你們沒有預料到任何情況嗎？或者，你如何看待這個問題？因為你不知道幾週後會發生什麼，如果胡塞武裝開始攻擊船隻的話？你們對此有什麼看法？

Yeah. Learning from that experience, a year ago, which mainly the fourth quarter of fiscal 2024 and the first quarter of 2025. During that six-month period was when we lost so much money because of this -- the supply chain issue. We couldn't get containers into Jordan. We try many different ways.

是的。從一年前的經驗中吸取教訓，主要針對 2024 財年第四季和 2025 財年第一季。正是在那六個月期間，我們因為供應鏈問題而損失了很多錢。我們無法將貨櫃運進約旦。我們嘗試了很多不同的方法。

Sometimes even have to air freight some very urgent fabrics or supplies into Jordan. So that was what caused us to lost money in the fourth quarter of '24 and the first quarter of '25. So we learned the lesson from this. And now, we have multiple alternatives of routes getting supplies and materials from Asia into Aqaba, into the port in Jordan.

有時甚至需要空運一些非常緊急的布料或物資到約旦。這就是導致我們在 2024 年第四季和 2025 年第一季虧損的原因。所以我們從中吸取了教訓。現在，我們有多種途徑可以將亞洲的物資和材料運送到亞喀巴，再運送到約旦的港口。

In addition to that, we have also strengthened our sourcing within the region, sourcing of fabrics and supplies in the countries like Turkey and Egypt so that it will shorten the lead time of getting supplies in comparing to relying on the sourcing -- relying on the supply chain from China or other Asian countries.

除此之外，我們也加強了在區域內的採購，從土耳其和埃及等國家採購布料和輔料，這樣與依賴中國或其他亞洲國家的供應鏈相比，就能縮短供應的交貨時間。

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

非常感謝。好了，我們的問答環節似乎已經結束了。現在我將把發言權交還給薩姆，請他做最後的總結發言。

Thank you, Jenny. And thanks to all of you for joining us today. We are certainly in interesting times and appreciate your continued support. We look forward to speaking with you this quarter. Thank you very much.

謝謝你，珍妮。感謝各位今天蒞臨。我們確實正處於一個充滿挑戰的時代，感謝您一直以來的支持。我們期待在本季與您進行交流。非常感謝。

Thank you very much. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. We thank you for your participation.

非常感謝。今天的電話會議到此結束。現在您可以斷開電話線了，祝您有美好的一天。感謝您的參與。