Jerash Holdings (US) Inc (JRSH) 2026 Q1 法說會逐字稿

Greetings. Welcome to Jerash Holdings fiscal 2026 first quarter financial results conference call (Operator Instructions) Please note, this conference is being recorded.

問候。歡迎參加 Jerash Holdings 2026 財年第一季財務業績電話會議（操作說明）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, you may begin.

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，你可以開始了。

Thank you, operator, and good morning, everyone, or afternoon, depending on where you are, and welcome to Jerash Holdings fiscal 2026 first quarter conference call. I'm Roger Pondel with PondelWilkinson, Jerash Holdings Investor Relations firm.

謝謝接線員，各位早安，或下午好，這取決於你們所在的地方，歡迎參加 Jerash Holdings 2026 財年第一季電話會議。我是 Roger Pondel，來自 PondelWilkinson，Jerash Holdings 投資者關係公司。

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.

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 everyone 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.

在將電話交給 Sam 之前，我想提醒大家，今天的電話會議可能包含 1995 年《私人證券訴訟改革法案》所界定的前瞻性陳述。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美國證券交易委員會網站 www.sec.gov 上查閱。

Actual results could differ materially from these forward-looking statements, and Jerash 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，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. Our fiscal first quarter performance reflects growing customer demand as companies continue to seek alternative manufacturing partners and diversify their supply chain away from China and Southeast Asia. Even with the most recently announced 15% US tariff on products from Jordan, exporting from Jordan remains significantly more advantageous compared with most other countries, especially those in Asia with total effective tariff raise on apparel currently ranging from 20% to more than 60%.

謝謝你，羅傑。我們第一財季的業績反映了客戶需求的成長，因為各公司不斷尋求替代製造合作夥伴，並使其供應鏈擺脫對中國和東南亞的依賴。即使美國最近宣布對約旦產品徵收 15% 的關稅，從約旦出口仍然比大多數其他國家更有優勢，尤其是亞洲國家，這些國家目前對服裝徵收的有效關稅總額在 20% 到 60% 以上。

We also made meaningful improvements in operating efficiency during the quarter. By optimizing our logistics and better production planning, we were able to reduce costs and significantly limit the need for overtime. Another key contributor to our positive performance was the return to routing raw materials imports through Aqaba port in Jordan. This shift allows shorter lead times and lower transportation costs, especially when compared to the alternative routes we had to use during the Red Sea shipping disruptions.

本季我們在營運效率方面也取得了顯著提升。透過優化物流和改進生產計劃，我們降低了成本，並大幅減少了加班需求。我們取得良好業績的另一個關鍵因素是恢復透過約旦亞喀巴港進口原料。這種轉變可以縮短交貨時間並降低運輸成本，尤其與我們在紅海航運中斷期間不得不使用的替代路線相比更是如此。

With strong FOB orders and improved cost efficiencies, we experienced a significant turnaround in our financial performance. Operating income climbed to nearly $1 million compared with a loss of more than $800,000 in the same quarter last year. Net income also turned positive, making a solid recovery from the net loss sustained in the prior year quarter.

憑藉強勁的離岸價訂單和更高的成本效益，我們的財務表現實現了顯著的扭轉。營業收入攀升至近 100 萬美元，去年同期虧損超過 80 萬美元。淨利潤也轉正，從上年同期的淨虧損中實現了穩健復甦。

I'm pleased to report that we have successfully completed production of the first phase of a major initial order from one of the largest US based multinational and omnichannel retailers through our strategic collaboration with Hansoll Textile, a leading global apparel group based in South Korea. With the success of this initial order, we remain focused on identifying and pursuing additional collaborations that create mutual value and help strengthen long-term partnership.

我很高興地宣布，我們已成功完成與韓國領先的全球服裝集團 Hansoll Textile 的策略合作，為美國最大的跨國全通路零售商之一完成了首批主要訂單的第一階段生產。憑藉首筆訂單的成功，我們將繼續專注於尋找和尋求更多能夠創造共同價值並有助於加強長期合作關係的合作機會。

This is certainly an exciting time for Jerash. As we continue to see growing interest and increasing inquiries from global brands. At the same time, we are staying vigilant about the potential impacts of recently announced tariff changes and the ongoing geopolitical instability in the region as we continue to plan for additional expansion opportunities to support future growth.

對傑拉什來說，這無疑是一個激動人心的時刻。我們持續看到來自全球品牌的興趣日益濃厚，諮詢量也不斷增加。同時，我們密切關注近期宣布的關稅調整和該地區持續的地緣政治不穩定可能帶來的影響，並繼續規劃進一步的擴張機會以支持未來的成長。

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

Thank you, Sam. The first quarter was a particularly active and productive period for Jerash. As we continue to operate in what we believe is a positive and expanding business environment. We are seeing a steady increase in new business inquiries from global brands as well as other strategic collaboration opportunities, showing strong interest in our manufacturing capabilities and capacity. Additionally, the recent announcements regarding increased US tariffs have accelerated the pace at which businesses are seeking to diversify their manufacturing base.

謝謝你，山姆。第一季對傑拉什來說是一個特別活躍且富有成效的時期。我們繼續在我們認為積極且不斷發展的商業環境中經營。我們看到來自全球品牌的新業務諮詢以及其他策略合作機會穩步增加，這表明他們對我們的製造能力和產能表現出濃厚的興趣。此外，近期美國宣布提高關稅，也加快了企業尋求實現生產基地多元化的步伐。

I am also pleased to share that the shipping logistics difficulty in the region for over one year is essentially behind us, and things have been largely back to normal since mid-July 2025. With Haifa port in Israel now fully operational again, along with returning to receive raw materials through Aqaba port, we are able to resume and maintain much more reliable shipping routes to support our global customers.

我也很高興地告訴大家，該地區持續一年多的航運物流困難基本上已經過去，自 2025 年 7 月中旬以來，情況已基本恢復正常。隨著以色列海法港全面恢復運營，以及透過亞喀巴港恢復接收原材料，我們能夠恢復並維持更可靠的航運路線，從而為我們的全球客戶提供支援。

As Sam mentioned earlier, in August, we will complete production of the first phase of a major initial order placed through our collaboration with Hansoll. Shipments are scheduled to begin in September, continuing through February of 2026.

正如 Sam 之前提到的，8 月我們將完成透過與 Hansoll 的合作而下的首批主要訂單的第一階段的生產。預計出貨將於9月開始，一直持續到2026年2月。

Additionally, we continue to work on sample orders and pricing exercise with several new products for other well-known brands in other regions outside of the US where Jordan free trade agreement still stand and offer strategic advantages. These new business opportunities strengthen our growth outlook and strategy, which is focused on diversifying our customers and product mix to optimize production capacity and deliver better margins year-round.

此外，我們也繼續與美國以外其他地區的知名品牌合作，進行樣品訂單和定價工作，這些地區與約旦簽訂了自由貿易協定，具有戰略優勢。這些新的商業機會增強了我們的成長前景和策略，我們的策略重點是實現客戶和產品組合多元化，以優化生產能力並全年提供更高的利潤率。

The expansion of our existing manufacturing facilities in Amman was completed in June and we are now onboarding additional skilled workers from other countries to support an estimated 15% increase in production capacity. This added capacity is expected to begin contributing to Jerash performance starting in the second fiscal quarter, a much needed and timely expansion since our facilities are already fully booked through February 2026.

我們在安曼的現有製造設施擴建工程已於 6 月完成，目前我們正在從其他國家引進更多技術工人，以支持預計 15% 的產能成長。預計新增產能將從第二財季開始為傑拉什的業績做出貢獻，這是一項非常必要且及時的擴張，因為我們的設施已經全部預訂到 2026 年 2 月。

Separately, the other expansion project through collaboration with the Jordanian Ministry of Labor to develop an expansion adjacent to our existing facility in Al-Hasa is ongoing. We are still targeted from completion of that project in early calendar year 2026, and it should add another 5% to 10% in total production capacity.

另外，我們正在與約旦勞動部合作，在哈薩現有工廠附近進行擴建項目，該項目也在進行中。我們仍計劃在 2026 年初完成該項目，屆時總產能將增加 5% 至 10%。

With that, I 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 the fiscal 2026 first quarter was $39.6 million compared with $40.9 million in the same quarter of last year. The slight decline was primarily caused by some customer shipments being redirected to Aqaba port in Jordan in order to avoid disruptions at Haifa port in Israel, which began in late June 2025 and delayed shipments on several orders.

謝謝你，埃里克。2026 財年第一季營收為 3,960 萬美元，去年同期為 4,090 萬美元。稍微下降的主要原因是，為了避免以色列海法港的運輸中斷，一些客戶的貨物被改道運往約旦的亞喀巴港。海法港的運輸中斷始於 2025 年 6 月下旬，導致幾筆訂單的貨物運輸延誤。

Gross profit for the fiscal 2026 first quarter advanced 31.2% to $6.1 million from $4.6 million in the same quarter last year. Gross margin increased to 15.4% in the fiscal 2026 first quarter from 11.3% in the same quarter last year. The increase was primarily driven by improved logistics and production planning along with the resumption of import sea routes through Aqaba port, which provides shorter lead times and lower transportation costs.

2026 財年第一季毛利成長 31.2%，從去年同期的 460 萬美元增至 610 萬美元。2026 財年第一季毛利率從去年同期的 11.3% 成長至 15.4%。此次成長主要得益於物流和生產計畫的改進，以及透過亞喀巴港恢復進口海運航線，這縮短了交貨時間，並降低了運輸成本。

Operating expenses totaled $5.1 million in the fiscal 2026 first quarter compared with $5.5 million in the same quarter last year. The decrease was primarily due to lower stock-based compensation expenses and lower cost on repair and maintenance.

2026 財年第一季營運支出總計 510 萬美元，而去年同期為 550 萬美元。下降的主要原因是股票選擇權激勵費用降低以及維修保養成本降低。

Operating income increased meaningfully to $959,000 in the fiscal 2026 first quarter from an operating loss of $829,000 in the same period of last year. The improvement was mainly attributable to reduced import logistics costs for raw materials, lower overtime expense from improved logistics and production planning, lower stock-based compensation expenses and reduced spending on repair and maintenance.

2026 財年第一季營業收入大幅成長至 959,000 美元，而去年同期營業虧損為 829,000 美元。這項改善主要歸功於原材料進口物流成本的降低、物流和生產計劃的改進降低了加班費用、股票選擇權補償費用的降低以及維修和維護支出的減少。

Total other expenses were $307,000 in the fiscal 2026 first quarter compared with $426,000 in the same quarter last year, primarily reflecting lower interest rates and a decline in supply chain financing program usage.

2026 財年第一季其他總支出為 307,000 美元，而去年同期為 426,000 美元，主要反映了利率下降和供應鏈融資計劃使用量的減少。

Income tax expenses were $329,000 in the fiscal 2026 first quarter compared with $112,000 in the prior year quarter. We are in the process of consulting with international tax experts on developing global tax planning for achieving a more optimized tax structure.

2026 財年第一季所得稅支出為 329,000 美元，而去年同期為 112,000 美元。我們正在諮詢國際稅務專家，制定全球稅務規劃，以實現更優化的稅務架構。

Net income for the fiscal 2026 first quarter increased to $324,000 or $0.03 per diluted share from a net loss of $1.4 million or $0.11 per diluted share in the same quarter of last year.

2026 財年第一季淨利增至 324,000 美元，即每股攤薄收益 0.03 美元，而去年同期淨虧損為 140 萬美元，即每股攤薄虧損 0.11 美元。

Comprehensive profit attributable to the company's common stockholders totaled $328,000 in the fiscal 2026 first quarter versus a comprehensive loss of $1.3 million in the same period of last year.

公司2026財年第一季歸屬於普通股股東的綜合利潤總額為32.8萬美元，去年同期則虧損130萬美元。

As of June 30, 2025, Jerash had cash and restricted cash totaled $7.5 million and net working capital was $34.6 million. Inventory was $27.3 million and accounts receivable amounted to $10 million. Cash at the end of the quarter was lower because of substantially higher receivable balance as a result of delays and inventory shutdown at the Haifa port throughout the month of June, forcing accumulated orders to be rerouted to the port of Aqaba and shipped out in the final week of June. These receivables were all collected in July.

截至 2025 年 6 月 30 日，Jerash 的現金和受限現金總額為 750 萬美元，淨營運資本為 3,460 萬美元。庫存價值 2,730 萬美元，應收帳款金額為 1,000 萬美元。由於海法港在整個 6 月出現延誤和庫存關閉，導致應收帳款餘額大幅增加，因此本季末的現金有所下降，迫使累積的訂單改道至亞喀巴港，並在 6 月的最後一周發貨。這些應收帳款已於7月全部收回。

Net cash used by operating activities was approximately $6.5 million for the quarter ended June 30, 2025, compared with $2.2 million for the same quarter last year.

截至 2025 年 6 月 30 日的季度，經營活動所用的淨現金約為 650 萬美元，而去年同期為 220 萬美元。

As Sam and Eric mentioned, our business remains solid with visible opportunities ahead. We are evaluating longer-term larger scale expansion plans for the coming year while remaining focused on driving growth and enhancing operational efficiency.

正如Sam和Eric所說，我們的業務依然穩健，未來發展機會顯而易見。我們正在評估來年更長期的、更大規模的擴張計劃，同時繼續專注於推動成長和提高營運效率。

On August 8, 2025, Jerash's Board of Directors approved a quarterly regular dividend of $0.05 per share on its common stock payable on August 29 to stockholders of record as of August 22. Looking ahead, we expect revenue for the fiscal 2026 second quarter to be approximately $40 million to $42 million, and our gross margin for the fiscal 2026 second quarter is expected to be approximately 15% to 16%.

2025 年 8 月 8 日，Jerash 董事會批准向其普通股股東派發每股 0.05 美元的季度常規股息，將於 8 月 29 日支付給截至 8 月 22 日登記在冊的股東。展望未來，我們預計 2026 財年第二季的營收約為 4,000 萬美元至 4,200 萬美元，2026 財年第二季的毛利率預計約為 15% 至 16%。

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

現在我們將開放提問環節，我會把電話轉回給接線生。

(Operator Instructions)

（操作說明）

Michael Baker from DA Davidson.

來自 DA Davidson 的 Michael Baker。

Great, thanks a couple real quick here. First, on tariffs, and forgive me for losing track, it's been all over the place. But are there now tariffs being paid for products from Jordan? Historically, it was a tariff-free zone, but has it now been the 15% tariff put in place for Jordan?

太好了，非常感謝。首先，關於關稅，請原諒我記不清具體情況了，關稅政策一直變化無常。但現在從約旦進口的產品需要繳關稅嗎？歷史上，這裡曾是免稅區，但現在是否已對約旦實施了 15% 的關稅？

Yes, currently it's 15%.

是的，目前是15%。

Okay. So the idea is more than it was when there was no tariff, but less than 20% to 60% from other Asian countries. That's the right way to think about it, correct?

好的。所以，現在的情況比沒有關稅時好，但比其他亞洲國家的關稅低了 20% 到 60%。這樣想才對，對吧？

Yes, that's correct.

是的，沒錯。

Understood. Two more quick ones. You talked about some delays at the end of the quarter. So was there some can you quantify, was there a sales shift from the first quarter into the second quarter?

明白了。再來兩個快的。您提到季度末出現了一些延誤。那麼，你能量化一下嗎？銷售額從第一季到第二季是否有所變動？

Yeah, There were maybe a few orders that didn't get out at the end of June that was shifted to July, but it was not significant.

是的，可能有一些訂單在六月底沒有發出，而是推遲到了七月份，但數量並不多。

Okay. Last one for me. You just spoke, Gilbert, at the end there about evaluating longer-term expansion plans. So that's above and beyond the 5% to 10% increase for next year from expanding the building that you already have. Is that correct? And if so, could you go into a little bit more details of what those longer-term expansion plans could look like?

好的。這是我最後一個了。吉爾伯特，你剛才最後談到了評估長期擴張計劃。所以，這還不包括明年擴建現有建築所帶來的 5% 到 10% 的成長。是這樣嗎？如果是這樣的話，您能否更詳細地介紹一下這些長期擴張計畫的具體內容？

Well, basically, we have been talking about and we have been planning about a longer-term expansion, which involves building on the piece of land that we have owned for the past six to seven years. However, we're still being cautious, especially during this time where the conflict in the Middle East just ended and who knows when it is going to start again. Plus the tariff situation is still creating a lot of uncertainties.

嗯，基本上，我們一直在討論和計劃一項長期的擴張計劃，其中包括在我們過去六、七年擁有的那塊土地上進行建設。然而，我們仍然保持謹慎，尤其是在中東衝突剛結束、誰也不知道何時會再次爆發的這段時間。此外，關稅情勢仍造成許多不確定因素。

Even though we believe the demand of our capacity and Jordan's production, people shifting, the trend is going to continue and it's going to intensify. But just because of the uncertainty, we're kind of tabling the major expansion maybe to fiscal year 2027.

儘管我們相信，隨著約旦產能和人口流動的需求增加，這種趨勢將會持續下去，並且會愈演愈烈。但由於存在不確定性，我們暫時擱置了這項重大擴張計劃，或許會延後到 2027 財年。

For 2026, I think we're going to try to focus on, number one, to bring in and train sufficient new workers to our existing facilities so that we can capitalize on the 10% to 15% increase in the capacity by adding machineries and adding people.

我認為，到 2026 年，我們將努力把重點放在兩方面：第一，引進和培訓足夠的新工人到我們現有的工廠，以便我們能夠透過增加機器和人員來利用產能提高 10% 到 15% 的機會。

And then on the second project of expanding our facility in Al-Hasa, which is in the desert, and we're in cooperation with the Jordanian government, the Ministry of Labor and the Royal Court and they're supporting us. And this is the investment on this expansion is not going to be

然後，在第二個項目中，我們將擴建位於沙漠中的哈薩工廠，我們與約旦政府、勞動部和皇家法院合作，他們為我們提供了支持。而這項擴建投資不會是…

a lot of money, and we could definitely finance it ourselves, but it will give us more capacity and also creating more employment opportunity for the local people in Al-Hasa. So this one and our internal expansion should keep us busy for this current fiscal year.

這需要一大筆錢，我們當然可以自己籌集資金，但這將使我們擁有更大的產能，同時也將為哈薩當地人民創造更多的就業機會。所以，這項業務和我們的內部擴張應該會讓我們在本財年忙得不可開交。

And then we'll look at the situation and then decide on when and how to expand on our piece of land, which is to build additional factory dormitory warehouses. So right now, we're actually studying the design, studying the architecture and because that will take some time to really decide on how to move forward.

然後我們會審視情況，再決定何時以及如何擴建我們的土地，也就是建造更多的工廠宿舍倉庫。所以現在，我們實際上是在研究設計，研究架構，因為這需要一些時間才能真正決定如何前進。

Got it thank you thank you for that detailed answer.

明白了，謝謝您如此詳細的解答。

Mark Argento from Lake Street.

來自湖街的馬克·阿根托。

Yeah, excuse me, good morning guys just drill down a little bit on some of the incremental order activity. I know you talked about the Hansoll relationship last quarter. Can you just maybe drill down a little bit further there? And how quickly could that scale up to be something meaningful?

好的，打擾一下，各位早安，我們來深入分析一下新增訂單活動的情況。我知道你上個季度談到了與漢索爾的關係。您能不能再深入挖掘一下？而這種規模化發展到產生實際影響的速度有多快？

Eric, do you want to answer this one?

艾瑞克，你想回答這個問題嗎？

Yes. Okay. For the past 6 months, we have numerous contact with Hansoll, which is one of the leading apparels in Korea. So after several rounds of negotiation, we have successfully obtained two orders from Hansoll. One is from the one is the one is the Sam's order, okay, which we are now producing as a trial order, okay? And the quantity is around 150,000 pieces. And the other big order, which we already secured, okay, is another order of 3.2 million pieces, which we are going to start this week. So currently, okay, we are very optimistic about our cooperation with Hansoll.

是的。好的。在過去6個月裡，我們與韓國領先的服裝企業之一Hansoll保持著多次聯繫。經過幾輪談判，我們成功地從漢索爾公司獲得了兩份訂單。一個是來自 Sam 的訂單，好的，我們現在正在試生產這個訂單，好的？數量約15萬件。另一筆大訂單，我們已經拿到了，是 320 萬件，我們將在本週開始生產。所以目前來看，我們對與漢索爾的合作非常樂觀。

And Hansoll also send the team here in Jordan since two weeks ago to watching our production daily production every day. And another team of leaders from Hansoll is coming this weekend, to have a further discussion with us for how we are going to cooperate together in 2026. Okay, so we are very optimistic in the expansion of business with Hansoll.

兩週前，漢索爾也派團隊來約旦，每天觀看我們的生產過程。漢索爾的另一支領導團隊將於本週末前來，與我們進一步討論2026年我們將如何合作。好的，我們對與漢索爾的業務拓展非常樂觀。

Yeah, that's helpful. I mean it seems like those are pretty chunky orders. I mean if things go well, can you the relationship progresses, the opportunity to expand and add some capacity, we think would think that would make a tough plans, are you guys being just conservative in the expansion plans right now? Or do you see you could change gears pretty quickly and add the capacity and really jump-start growth?

是的，這很有幫助。我的意思是，這些訂單看起來都相當大。我的意思是，如果一切順利，你們的關係能否發展，能否有機會擴張並增加一些產能？我們認為這會是一個艱難的計劃，你們現在在擴張計劃上是不是比較保守？或者您認為您可以迅速改變策略，增加產能，從而真正啟動成長？

Well, I'm Sam Choi. Maybe I answer this question. In fact, one of our biggest customer, they told us they will have a five year expansion plan for the top line, and they will play a strong emphasis in sourcing from Jordan. So I mean, to cope with this larger customer expansion plan, we will in line with them to expand our capacity.

我是 Sam Choi。或許我可以回答這個問題。事實上，我們最大的客戶之一告訴我們，他們將製定一個五年的營收成長計劃，並將重點從約旦採購。所以我的意思是，為了應對這個更大的客戶擴張計劃，我們將與他們保持一致，擴大我們的產能。

But the solid plan, I mean, we will wait until the plan of our major customer, how to cope with them on a yearly basis to meet their five year expansion plan. So that will be one of our three- to five-year expansion plan. I do believe maybe within two to three months, we will formulate a three- to five-year expansion plan, then we'll tell all of you or the public about our expansion plan.

但是，要製定切實可行的計劃，我的意思是，我們會等到我們主要客戶的計劃出爐，看看如何才能每年都滿足他們的五年擴張計劃。所以這將是我們未來三到五年擴張計畫的一部分。我相信，或許在兩到三個月內，我們將製定一個三到五年的擴張計劃，然後我們會把我們的擴張計劃告訴大家或公眾。

Great. It seems with all the tariffs and everything else going on and some of the relationships you guys have, the opportunity to expand that capacity is probably the best in a long time. I know you guys are conservative, obviously, but I just wanted to get your thoughts on that. So we'll look for more, more information going forward. In terms of I know you talked about the tax rate, you're working through that. What oing forward, what are some options for you guys in terms of trying to make that a little bit more consistent?

偉大的。考慮到各種關稅和其他因素，以及你們的一些關係，現在可能是很長一段時間以來擴大產能的最佳時機。我知道你們的政治立場比較保守，這點毋庸置疑，但我只是想聽聽你們的看法。所以接下來我們會尋找更多資訊。我知道你談到了稅率問題，你正在努力解決這個問題。接下來，你們有哪些方案可以讓這種情況更穩定一些？

Well, I think the effective tax rate in last year and also the first quarter of this year has been high, mainly because we make money, we have profits in our operating entities in Jordan and also in our Hong Kong entity. So we have to pay local taxes, but we don't have any income in our U.S. corporations and we cannot take advantage of the expenses that we have being a U.S. company.

我認為去年和今年第一季的實際稅率都很高，主要是因為我們獲利，我們在約旦的營運實體和香港實體都有利潤。所以我們必須繳納地方稅，但我們在美國的公司沒有任何收入，我們也不能享受作為美國公司所享有的費用優惠。

So we and you know about the ll the duty tax and tax. So that's making us kind of difficult because of our structure. So we're talking with tax experts, especially international tax experts to see if there are ways that we can kind of find the best way to organize our company structure and our tax structure so that we don't unnecessarily pay more tax than we are supposed to. But as the earnings of the consolidated company as the earnings improve, I think the effective tax rate will go down.

所以我們和你們都知道所有的關稅、稅金等等。所以，由於我們的組織結構，這讓我們有點難以應付。因此，我們正在與稅務專家，特別是國際稅務專家進行討論，看看是否有辦法找到最佳方式來組織我們的公司結構和稅務結構，以便我們不會不必要地繳納超過我們應該繳納的稅款。但隨著合併後公司獲利的改善，我認為實際稅率將會下降。

Got it. Okay. Just one last one. I know I think in the prepared remarks, you guys said you're booked up through February, and then you're going to be adding additional capacity of that additional capacity, 15% is coming online starting next quarter. I'm assuming that additional 15% is all booked up as well when you made that comment?

知道了。好的。最後一個。我知道，我想在你們事先準備好的發言稿中，你們說過你們的檔期已經排到二月份了，然後你們將增加額外的產能，其中15%的額外產能將從下個季度開始投入使用。我假設你發表那番評論時，額外的15%也已經被預訂一空了？

Yes, we have included the increase in capacity because it is gradually improving every month, gradually increasing every month starting from the end of June as we bring in additional workers. We don't expect the Al-Hasa expansion will come online before the end of this fiscal year. But the increasing capacity in our Amman facilities, we are projecting the gradual increase while we bring in workers and train them. So those are within the consideration of how we ramp up. And as we make the comment of all the facility, all the factories are fully booked.

是的，我們已經將產能成長納入考量，因為產能從六月底開始逐月逐步提高，隨著我們引進更多工人，產能也逐月逐步增加。我們預計 Al-Hasa 擴建計畫在本財年結束前不會投入營運。但隨著我們在安曼的工廠產能不斷提高，我們預計在引進工人並對他們進行培訓的同時，產能將逐步成長。所以這些都是我們在擴大規模時需要考慮的因素。當我們對所有設施發表評論時，所有工廠都已全部預訂完畢。

Additional 15%, that kind of feathers in over a couple of quarters. It's not just one big stair step up 15%.

額外增加 15%，這種羽毛在幾個季度內就能得到。這並非一下子就上升了 15%。

That's correct. Yes.

沒錯。是的。

Great, thanks for the answers guys. Good luck.

太好了，謝謝各位的解答。祝你好運。

Thank you.

謝謝。

(Operator Instructions)

（操作說明）

Igor Novgorodtsev from Lares Capital.

Lares Capital 的 Igor Novgorodtsev。

Hello and thank you for saying my last name correctly. So I have a few questions. Let's get started with the currency. So my understanding is that Jordanian currency is pegged to U.S. dollar and dollar has weakened significantly this year. Could you just tell me, did it have any impact on your expenses, your salaries, your SG&A and how that plays out? And I'm talking about both the European delivery to your European clients and American clients. How does currency come into play?

您好，謝謝您正確地念出我的姓。我有幾個問題。我們先從貨幣開始說起。我的理解是，約旦貨幣與美元掛鉤，美元今年大幅貶值。請問這是否對您的支出、薪資、銷售、管理及行政費用產生了任何影響？具體情況如何？我指的是向歐洲客戶和美國客戶交付歐洲產品的情況。貨幣在其中扮演什麼角色？

We I believe all our invoicing or billings are in U.S. dollars. And U.S. dollar and Jordanian dollars, yes, they're closely related, they're paid. So in Jordan, we will pay in JOD, Jordanian dollars. So even if the U.S. dollar, whether it appreciates or depreciates, the impact to us is relatively minor.

我相信我們所有的發票或帳單都是以美元結算的。美元和約旦元，是的，它們關係密切，可以互相支付。所以在約旦，我們將以約旦元（JOD）支付。因此，即使美元升值或貶值，對我們的影響也相對較小。

Well, would it not help to sell more to Europe since the euro obviously appreciated and you're relatively but you are able to stay in dollars and expenses?

既然歐元明顯升值，那麼向歐洲銷售更多產品豈不是更有幫助嗎？而且你們還能以美元結算，控制支出。

Will it help us to sell more to Europe?

這能幫助我們增加對歐洲的銷售嗎？

Right.

正確的。

I think we are already increasing our sales to Europe quite significantly as we have our timberland sales to EU and also acquiring new and the luxurious brands like in Italy and Hugo Boss in Germany. So I think we are gradually increasing our presence in Europe, but that has nothing to do with whether the currency fluctuation or not.

我認為，隨著我們在歐盟銷售Timberland產品，以及收購義大利的新奢侈品牌和德國的Hugo Boss等品牌，我們已經大幅提高了對歐洲的銷售額。所以我認為我們正在逐步擴大在歐洲的影響力，但這與貨幣波動無關。

Okay my other question is a little bit more clarification on tariffs, and I know that everybody is confused and while the situation seems to have stabilized in August, we don't know if it's the final. Could you just give a little bit of a more detailed breakdown of your overall tariff rate on apparel vis-a-vis other big apparel manufacturing countries such as Bangladesh, Indonesia and so on? Because I understand that you have Jordan has 15% tariff. They have like 19%, 20%, I think Vietnam, 25%, but they also pay other tariff on textile. So what's the overall rate of your tariff, which is at 15% versus their tariff?

好的，我的另一個問題是關於關稅的，需要進一步澄清。我知道大家都很困惑，雖然8月情況似乎穩定下來，但我們不知道這是否是最終結果。能否更詳細分析貴國服裝關稅稅率與其他主要服飾生產國（如孟加拉、印尼等）的稅率比較？因為我了解到約旦的關稅是15%。他們那裡大概有 19%、20% 的稅率，越南好像是 25%，但他們還要為紡織品支付其他關稅。那麼，你們的關稅整體費率是多少？你們的關稅是15%，而他們的關稅是15%。

Well, we know that our is 15% currently, but the Jordanian government is still in negotiation with the U.S. government to try to lower that. I think our target is to get it back down to 10% or maybe even more.

我們知道目前約旦的稅率是 15%，但約旦政府仍在與美國政府談判，試圖降低這項稅率。我認為我們的目標是將其降至 10% 甚至更低。

Comparing to other countries, especially countries in Southeast Asia or China, we are significantly lower in an advantage with them. And I think because of US and Jordan, we have a longtime free trade agreement and the relationship between US and Jordan are very steady and stable. So brands, global brands and retailers, their strategy is to try to stay away from the forever changing situation in Asia and get to somewhere like Jordan, that it is more stable, that is more favorable.

與其他國家，特別是東南亞國家或中國相比，我們的優勢要小得多。我認為正因為美國和約旦之間有著長期的自由貿易協定，美約關係才如此穩定。因此，全球品牌和零售商的策略是盡量遠離亞洲瞬息萬變的局勢，轉而前往像約旦這樣更穩定、更有利的地方。

We also, to compare our situation with Egypt, which currently they have a 10% tariff. However, our goal is to get back down to 10% so that we are competitive with Egypt. However, Egypt, as everybody knows, is a much more difficult country to work with. their quality, their efficiency, work ethics. So customers would much more prefer to work with Jordan than to work with Egypt if our tariff rates are comparable.

我們也可以與埃及的情況進行比較，埃及目前徵收 10% 的關稅。但是，我們的目標是將比率降回 10%，這樣我們才能與埃及競爭。然而，眾所周知，埃及是一個更難合作的國家，他們的品質、效率和職業道德都存在問題。因此，如果我們的關稅費率相近，客戶會更願意與約旦合作，而不是與埃及合作。

Allow me to say a few words. Okay. Currently, okay, even though the tariff for Jordan is 15%, but compared to our main competitors, we are still very, very competitive. I would like to quote some examples. Our main competitors, like Bangladesh, the tariff is 20%. India is 50%. Cambodia is 19%. And then Pakistan is 19%. And Taiwan is 20%; Thailand 90%, and Vietnam is 20%, okay? These are the rate of the tariff from all our so-called competitors. So compared with that, Jordan is still very, very competitive.

請允許我說幾句話。好的。目前，雖然約旦的關稅是 15%，但與我們的主要競爭對手相比，我們仍然非常有競爭力。我想舉幾個例子。我們的主要競爭對手，如孟加拉國，關稅為 20%。印度佔50%。柬埔寨佔19%。巴基斯坦佔19%。台灣佔20%，泰國佔90%，越南佔20%，懂了嗎？這些是我們所有所謂競爭對手的關稅稅率。所以相較之下，約旦仍然非常有競爭力。

So maybe I say a few words again. In fact, I mean, this now what we call this additional reciprocal tariff. And for our product because, I mean, for the cotton product from those exporting countries in Asia, they have to pay 16% to 18% when they export to USA. And for polyester garment, they have to pay over 30% duty. But where because Jordan enjoyed the duty free, we don't need to pay any duty.

所以也許我會再說幾句。事實上，我的意思是，這就是我們現在所說的額外互惠關稅。至於我們的產品，我的意思是，來自亞洲出口國的棉花產品，出口到美國時需要支付 16% 到 18% 的稅。而對於聚酯服裝，他們則需要繳納超過30%的關稅。但由於約旦享有免稅待遇，我們無需繳納任何關稅。

What the reciprocal tariffs mean is in additional to the polyester government, 30% for, for example, I mean, Vietnam, they have to pay 30% plus 20%. That means 50% import duty to the US. Whereas for Jordan, we only need to pay 15% because we enjoy the duty-free privilege since 2000, years. So it will be a big difference in terms of real tariff in addition to the reciprocal tariff. I don't know whether it's clear.

互惠關稅的含義是，除了聚酯纖維政府規定的 30% 的關稅外，例如越南，他們還必須支付 30% 的關稅加上 20% 的關稅。這意味著對美國徵收50%的進口關稅。而對於約旦，我們只需要支付 15% 的稅款，因為我們自 2000 年以來就享有免稅特權。因此，除了互惠關稅之外，實際關稅也會有很大的不同。我不知道是否清楚。

Perfect. Yes. This is exactly the information I was looking for because I want to see the overall effective tariff. So if anything, it seems to be the situation as it stands right now since April, actually, that's a little bit more favorable for you because now you also have a

完美的。是的。這正是我要找的訊息，因為我想看的是整體實際關稅。所以，如果有什麼變化的話，那就是自四月以來的現狀，實際上，這對你來說稍微有利一些，因為現在你也有了…

differentiation on a reciprocal tariff vis-a-vis your competing countries, which is like 4%, 5% higher in addition to what it was even before.

與競爭對手國家之間實行互惠關稅差異化，比以前還要高出 4% 到 5%。

Yes, you are correct. Yeah.

是的，你說得對。是的。

Excellent. My final question is about Busana. So I know that you have a joint venture. It's just been a little bit quiet lately. If you can just tell me if this is ongoing, if it's ramping up or it's steady? How is it doing?

出色的。我的最後一個問題是關於Busana的。我知道你們有一家合資企業。最近有點安靜。你能告訴我一下這種情況是否還在持續，是在加劇還是保持穩定嗎？情況如何？

In fact, in our last announcement, we terminated the joint venture.

事實上，在我們上次的公告中，我們已經終止了合資企業。

Okay. I'm sorry, if I missed it.

好的。如果我錯過了，我很抱歉。

Yeah, because most of the customer, we can directly deal with. Yes.

是的，因為大多數客戶我們都可以直接打交道。是的。

Okay. But you still have those customers, you just don't need to do it through the joint venture.

好的。但你仍然擁有這些客戶，只是不需要透過合資企業來實現。

You're right. Yeah.

你說得對。是的。

Okay.

好的。

Okay, I don't have any more questions thank you very much for your detailed answers.

好的，我沒有其他問題了，我非常感謝您的詳細解答。

Thank you.

謝謝。

[Mike Distler from AMX].

[來自 AMX 的 Mike Distler]

Thank you good afternoon good morning, gentlemen. SAM Gilbert, Eric, thank you once again. I'll be very fast. Congratulations on navigating a very difficult period. We always appreciate the level of transparency you have with your investors and shareholders and your continued return of capital, all of that.

謝謝，下午好，先生們早安。SAM Gilbert，Eric，再次感謝你們。我會很快。恭喜你順利度過了這段非常艱難的時期。我們一直很欣賞您對投資者和股東保持的透明度，以及您持續的資本回報等等。

The essence of my thing, basically, Mike, Mark and Igor got to the essence of my questions. The one thing I just was pointing out for you, Gilbert, in particular, regarding the global taxes and having been a four-decade veteran in textiles and global textiles, the strategic allocation of the sourcing of your raw materials and then the intercompany transfers is where you should direct the folks, the accounting folks that you are dealing with because that is where I believe you will find you will uncover things that are completely legitimate that will allow you to allow the company, all of us to save some funds in those allocations for taxes.

基本上，Mike、Mark 和 Igor 抓住了我問題的本質。我剛才特別想跟你指出的一點是，吉爾伯特，關於全球稅收，我從事紡織業和全球紡織業四十年了，我認為你應該指導你和你的會計人員，讓他們關注原材料採購的戰略分配以及公司間的資金轉移，因為我相信你會發現一些完全合法的事情，這些事情可以讓公司，也就是我們所有人，在這些稅收分配方面節省一些資金。

$And that's it. I just want to say thank you guys are killing it, and that's all. I just want to point that out to you. Sam, thank you, Eric.

就這樣。我只想說謝謝，你們做得太棒了，就這些。我只是想指出這一點。山姆，謝謝你，艾瑞克。

Thank you. yes.

謝謝。是的。

Yes. We appreciate everything you.

是的。我們非常感激你。

Can we talk offline and maybe I could ask you from your experience in terms of more strategically allocating our raw material because we besides looking at our international tax structure, we are also doing an intercompany or transfer pricing study with some experts. So if you could...

我們能否私下談談？或許我可以根據您的經驗，請教您一些關於如何更具策略性地分配原材料的問題，因為除了研究我們的國際稅務結構外，我們還在與一些專家進行公司間或轉讓定價研究。所以，如果你可以的話…

I've your number, Gilbert. Yes, I have your number. Okay. We'll do. That's all. I just want to tell you guys that you're really delivering on everything you've ever promised, and it's really exceptional to listen to the quality of your calls.

吉伯特，我知道你的底細。是的，我有你的電話號碼。好的。我們會的。就這樣。我只想告訴你們，你們真的兌現了所有承諾，而且你們的通話品質也真的非常出色。

Okay.

好的。

Thank you. This does conclude today's Q&A session. I will now hand the call back to Sam Choi for closing remarks.

謝謝。今天的問答環節到此結束。現在我將把電話交還給 Sam Choi，請他作總結發言。

Okay. Thank you very much, operator. Thanks to all of you for joining us today. We are certainly in interesting times, definitely going in the right direction. We appreciate your continuous support and interest in Jerash, and we look forward to speaking with you next quarter. Thank you very much.

好的。非常感謝接線生。感謝各位今天蒞臨。我們確實正處於一個有趣的時代，而且肯定朝著正確的方向前進。我們感謝您一直以來對傑拉什的支持和關注，期待下個季度與您再次交流。非常感謝。

Thank you. Thanks.

謝謝。謝謝。

Thank you, everyone.

謝謝大家。

Thank you.

謝謝。

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。您可以在此時斷開線路。感謝您的參與。