Jerash Holdings US Inc
For the period ended Mar 31, 2025. Filed Jun 26, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Jun 26, 2025
JRSH$6.10+3.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-03-31; filed 2024-06-28.
0001213900-24-057324
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-03-31; filed 2025-06-26.
0001213900-25-057935
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 52 previous paragraphs and 52 current paragraphs.
25 unchanged; 23 reworded; 4 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
The increase of approximately 25% in sales to the U.S. during fiscal 2025 was mainly attributable to increases in shipments to two of our major customers in the U.S. Some shipments deferred to the first quarter of fiscal 2025, from the fourth quarter of fiscal 2024 due to disruptions in the logistic route in the Red Sea turmoil.
Current report
Gross profit margin. Our gross profit margin was approximately 15% in fiscal 2025, representing an increase by approximately 1 percentage point from 14% in fiscal 2024. The increase in gross profit margin was primarily influenced by better planning and execution of logistic and production that resulted in higher production and shipment volume that brought down unit cost of production.
Current report
***Selling, general, and administrative expenses.***Selling, general, and administrative expenses increased by approximately 19% from approximately $17.6 million in fiscal 2024 to $20.9 million in fiscal 2025. The increase was mainly attributable to higher shipment costs due to higher sales volume and also some air shipping costs for garments in the first quarter of fiscal 2025 due to logistic hiccups in early 2024 and an increase in share-based compensation expenses of $772,000.
Current report
***Net loss.***Net loss for fiscal 2025 was $0.8 million, compared to net loss of approximately $2.0 million for fiscal 2024. The net loss mainly attributable to higher logistic costs and labor costs incurred in early to mid-2024 arisen from the logistic hiccups in the short period after the Red Sea crisis broke out.
Removed paragraphs (4)
Previous report
The decrease of approximately 16% in sales to the U.S. during fiscal 2024 was mainly attributable to the reduced shipments to our major customers in the U.S., which is our main export market. This decline was influenced by higher inflation and uncertain retail sentiment as well as the supply chain logistics disruptions with the Red Sea crisis.
Previous report
Gross profit margin. Our gross profit margin was approximately 14% in fiscal 2024, representing a decrease by approximately two percentage points from 16% in fiscal 2023. The decrease in gross profit margin was primarily influenced by the lower margin on orders from new customers, introduced to compensate the decrease in shipments to our two major customers in the U.S.
Previous report
***Selling, general, and administrative expenses.***Selling, general, and administrative expenses increased slightly and remained almost the same at approximately $17.4 million and $17.6 million in fiscal 2023 and fiscal 2024. The slight increase was mainly attributable to penalties of approximately $180,000 in aggregate in two legal cases. One case was in relation to the implementation of LED facilities without completing all necessary official procedures. The other case was in relation to the movement of raw materials across tax zones in Jordan without prior customs notification and completing official procedures for our cut-and-make orders.
Previous report
***Net loss.***Net loss for fiscal 2024 was $2.0 million, compared to net profit of approximately $2.4 million for fiscal 2023. The net loss mainly attributable to lower sales and gross margins discussed above.
Reworded paragraphs (23)
Previous wording
The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this filing.
Current wording
The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this annual report.
Previous wording
The following table presents certain information from our consolidated statements of operations and comprehensive income (loss) for the fiscal years ended March 31, 2024 and 2023 and should be read, along with all of the information in this management’s discussion and analysis, in conjunction with the consolidated financial statements and related notes included elsewhere in this filing.
Current wording
The following table presents certain information from our consolidated statements of operations and comprehensive loss for the fiscal years ended March 31, 2025 and 2024 and should be read, along with all of the information in this management’s discussion and analysis, in conjunction with the consolidated financial statements and related notes included elsewhere in this annual report.
Previous wording
***Revenue.***Our revenue was $117.2 million for fiscal 2024, compared to $138.1 million for fiscal 2023, a decrease of $20.9 million, or 15%, primarily due to reduced shipments to two of our major customers in the U.S., which is our main export market.
Current wording
***Revenue.***Our revenue was $145.8 million for fiscal 2025, compared to $117.2 million for fiscal 2024, an increase of $28.6 million, or 24%, primarily due to increases in shipments to two of our major customers in the U.S., which is our main export market.
Previous wording
Since January 2010, all apparel manufactured in Jordan can be exported to the U.S. without customs duty being imposed, pursuant to the United States-Jordan Free Trade Agreement entered into in December 2001. This free trade agreement provides us with substantial competitiveness and benefit that allowed us to expand our garment export business in the U.S.
Current wording
Since January 2010, all apparel manufactured in Jordan can be exported to the U.S. without customs duty being imposed, pursuant to the United States-Jordan Free Trade Agreement entered into in December 2001. This free trade agreement provides us with substantial competitiveness and benefit that allowed us to expand our garment export business in the U.S. Effective from April 5, 2025, the U.S. imposed a baseline tariff of 10% on imports from almost all countries, including Jordan. Then, effective from April 9, 2025, it had announced “reciprocal” tariffs of imports from specified countries, amongst them Jordan with a prevailing rate of then 20%. These “reciprocal” tariffs are postponed for 90 days, whilst the 10% baseline tariff persists. Up to the date of this annual report, the 90 days postponement of the “reciprocal” tariff has not expired. Impact of the tariff would also be affected by the comparative levels of the tariffs of Jordan and other countries.
Previous wording
During fiscal 2024, aggregate sales to Jordan, Hong Kong, Germany, and other locations, such as mainland China, decreased by 7% from approximately $15.7 million in fiscal 2023 to $14.7 million. This decline can be attributed to a decrease in shipments sent to a major customer in Hong Kong, which was not fully offset by the increase in sales to a customer in Germany.
Current wording
During fiscal 2025, aggregate sales to Jordan, China and Hong Kong, Germany, and other locations, such as Mexico and Indonesia, increased by 18% from approximately $14.7 million in fiscal 2024 to $17.2 million. This increase can be attributed to growth in businesses with customers in these countries introduced in the past few years.
Previous wording
Cost of goods sold*.* Our cost of goods sold experienced a decrease of approximately $16.0 million to approximately $100.3 million in fiscal 2024 from approximately $116.3 million in fiscal 2023. As a percentage of revenue, the cost of goods sold increased by approximately two percentage points to 86% in fiscal 2024 from 84% in fiscal 2023. The increase in the cost of goods sold as a percentage of revenue was primarily attributable to changes in the product mix of one of our major customers, which led to more sales of lower margin items. In addition, the reduced shipments to another U.S. customer in fiscal 2024 was only partially offset by new customers with lower margin.
Current wording
Cost of goods sold*.* Our cost of goods sold experienced an increase of approximately $23.2 million to approximately $123.5 million in fiscal 2025 from approximately $100.3 million in fiscal 2024. As a percentage of revenue, the cost of goods sold decreased by approximately 1 percentage point to 85% in fiscal 2025 from 86% in fiscal 2024. The decrease in the cost of goods sold as a percentage of revenue was primarily attributable to higher production and shipment volume that generated higher margin through economy of scale.
Previous wording
For the fiscal year ended March 31, 2024 and 2023, we purchased approximately 10% and 11%, respectively, of our garments from one major supplier.
Current wording
For the fiscal year ended March 31, 2025 and 2024, we purchased approximately 10% of our garments from one major supplier.
Previous wording
Other expenses, net*.* Other expenses, net were approximately $0.7 million in fiscal 2024, compared to other expenses, net of approximately $0.3 million in fiscal 2023. The increase in other expenses from fiscal 2023 to fiscal 2024 was primarily due to an increase in financing costs arisen from the supply chain financing programs of two major customers, which was only partially offset by the interest income from fixed deposit in banks.
Current wording
Other expenses, net*.* Other expenses, net were approximately $1.3 million in fiscal 2025, compared to other expenses, net of approximately $0.7 million in fiscal 2024. The increase in other expenses from fiscal 2024 to fiscal 2025 was primarily due to increase in interest expenses from the supply chain financing programs of our major customers, more proceeds from short-term loan from credit facility and higher interest rate in fiscal 2025.
Previous wording
***Taxation.***Income tax expenses for fiscal 2024 were approximately $0.7 million, compared to income tax expenses of approximately $1.7 million for fiscal 2023. The effective tax rate for fiscal 2024 decreased to -49.1%, compared to 40.7% for fiscal 2023. The decrease in the effective tax rate mainly resulted from a higher proportion of the operating loss of a Hong Kong subsidiary and our holding company, and the decrease in operating profit in Jordan companies. In addition, Jordan increased the corporate income tax rate from a combined rate of 18% as of January 1, 2022 to 21% effective on January 1, 2024, which further reduced the effective tax rate as we had a net operating loss in fiscal 2024.
Current wording
***Taxation.***Income tax expenses for fiscal 2025 were approximately $1.0 million, compared to income tax expenses of approximately $0.7 million for fiscal 2024. The effective tax rate for fiscal 2025 increased to 656%, compared to -49.1% for fiscal 2024. The increase in the effective tax rate mainly resulted from the increase in operating profit in a Hong Kong subsidiary and $175,290 amendment of federal tax returns for the fiscal years ended March 31, 2022 and March 31, 2023, related to the inclusion of Subpart F income during the fiscal year.
Previous wording
Jerash Holdings is a holding company incorporated in Delaware. As a holding company, we rely on dividends and other distributions from our Jordanian and Hong Kong subsidiaries to satisfy our liquidity requirements. Current Jordanian regulations permit our Jordanian subsidiaries to pay dividends to us only out of their accumulated profits, if any, determined in accordance with Jordanian accounting standards and regulations. In addition, our Jordanian subsidiaries are required to set aside at least 10% of their respective accumulated profits each year, if any, to fund certain reserve funds. These reserves are not distributable as cash dividends. We have relied on direct payments of expenses by our subsidiaries to meet our obligations to date. To the extent payments are due in U.S. dollars, we have occasionally paid such amounts in JOD to an entity controlled by our management capable of paying such amounts in U.S. dollars. Such transactions have been made at prevailing exchange rates and have resulted in immaterial losses or gains on currency exchange.
Current wording
Jerash Holdings is a holding company incorporated in Delaware. As a holding company, we rely on dividends and other distributions from our Jordanian and Hong Kong subsidiaries to satisfy our liquidity requirements. Current Jordanian regulations permit our Jordanian subsidiaries to pay dividends to us only out of their accumulated profits, if any, determined in accordance with Jordanian accounting standards and regulations. In addition, our Jordanian subsidiaries are required to set aside at least 10% of their respective accumulated profits each year until the reserve is equal to 100% of the entity’s share capital, if any, to fund certain reserve funds. These reserves are not distributable as cash dividends. We have relied on direct payments of expenses by our subsidiaries to meet our obligations to date. To the extent payments are due in U.S. dollars, we have occasionally paid such amounts in JOD to an entity controlled by our management capable of paying such amounts in U.S. dollars. Such transactions have been made at prevailing exchange rates and have resulted in immaterial losses or gains on currency exchange.
Previous wording
As of March 31, 2024, our cash balance was approximately $12.4 million and restricted cash was approximately $1.6 million, compared to cash of approximately $17.8 million and restricted cash of approximately $1.6 million as of March 31, 2023. The decrease in total cash during fiscal 2024 was primarily due to dividend payments of $2.5 million and payment of $4.8 million on additional property, plant, and equipment and construction of properties in fiscal 2024.
Current wording
As of March 31, 2025, our cash balance was approximately $13.3 million and restricted cash was approximately $1.7 million, compared to cash of approximately $12.4 million and restricted cash of approximately $1.6 million as of March 31, 2024. The increase in total cash during fiscal 2025 was primarily due to the utilization of the supply chain financing programs of our major customers that expedited receivable collections and also the drawdown of $4.5 million of short-term bank financing to support purchases of raw materials for orders to be shipped in fiscal 2026.
Previous wording
Our current assets as of March 31, 2024 were approximately $50.9 million, and our current liabilities were approximately $14.8 million, which resulted in a current ratio of approximately 3.4 to 1. Our current assets as of March 31, 2023 were approximately $57.3 million, and our current liabilities were approximately $14.4 million, which resulted in a current ratio of approximately 4.0:1. For fiscal 2024, the decrease in current assets were primarily due to the decrease in inventory and cash, which was partially offset by the increase in accounts receivable and advances to suppliers. The decrease in current liabilities was primarily driven by the decrease in income tax payable and deferred revenue, which was partially compensated by the increase in accounts payables, accruals, and other payables.
Current wording
Our current assets as of March 31, 2025 were approximately $54.4 million, and our current liabilities were approximately $19.8 million, which resulted in a current ratio of approximately 2.7 to 1. Our current assets as of March 31, 2024 were approximately $50.9 million, and our current liabilities were approximately $14.8 million, which resulted in a current ratio of approximately 3.4:1. For fiscal 2025, the increase in current assets were primarily due to increases in advances to suppliers to support raw material purchases, prepaid expenses, cash, and inventory, which was offset partially by decreases in accounts receivable balance due to the use of customers’ supply chain financing programs.
Previous wording
We had net working capital of $36.1 million and $42.8 million as of March 31, 2024 and 2023, respectively. Based on our current operating plan, we believe that cash on hand and cash generated from operation will be sufficient to support our working capital needs for the next 12 months from the date of this Annually Report.
Current wording
We had net working capital of $34.6 million and $36.1 million as of March 31, 2025 and 2024, respectively. Based on our current operating plan, we believe that cash on hand and cash generated from operation will be sufficient to support our working capital needs for the next 12 months from the date of this Annual Report.
Previous wording
Since May and October 2021, we have participated in supply chain financing programs of two of our major customers, respectively. The programs allow us to receive early payments for approved sales invoices submitted by us through the bank the customer cooperates with. For any early payments received, we are subject to an early payment charge imposed by the customer’s bank, for which the rate is Secured Overnight Financing Rate (“SOFR”) plus a spread. The arrangement allows us to have better liquidity without the need to incur administrative charges and handling fees as in bank financing.
Current wording
Since May and October 2021, we have participated in supply chain financing programs of two of our major customers, respectively. The programs allow us to receive early payments for approved sales invoices submitted by us through the bank the customer cooperates with. For any early payments received, we are subject to an early payment charge imposed by the customer’s bank, for which the rate is Secured Overnight Financing Rate (“SOFR”) plus a spread. The arrangement allows us to have better liquidity without the need to incur administrative charges and handling fees as in bank financing. In March 2024, we participated in an additional supply chain financing program with one customer.
Previous wording
Pursuant to the DBS facility letter dated January 12, 2022, DBSHK provided a bank facility of up to $5.0 million to Treasure Success, which was amended pursuant to a facility letter dated January 4, 2024. Pursuant to the amended agreement, DBSHK agreed to finance cargo receipt, trust receipt, account payable financing, and certain type of import and export invoice financing up to an aggregate of $5.0 million, subject to certain financial covenants. The DBSHK facility bears interest at 1.5% per annum over HIBOR for HKD bills and 1.1% to 1.3% per annum over DBSHK’s cost of funds for foreign currency bills. The facility is guaranteed by Jerash Holdings and became available to the Company on June 17, 2022. As of March 31, 2024 and 2023, we had $nil outstanding under this DBSHK facility.
Current wording
Pursuant to the DBS facility letter dated January 12, 2022, DBSHK provided a bank facility of up to $5.0 million to Treasure Success, which was amended pursuant to a facility letter dated January 4, 2024. Pursuant to the amended agreement, DBSHK agreed to finance cargo receipt, trust receipt, account payable financing, and certain types of import and export invoice financing up to an aggregate of $5.0 million, subject to certain financial covenants. The DBSHK facility bears interest at 1.5% per annum over HIBOR for HKD bills and 1.1% to 1.3% per annum over DBSHK’s cost of funds for foreign currency bills. The facility is guaranteed by Jerash Holdings and became available to the Company on June 17, 2022. As of March 31, 2025 and 2024, the outstanding balances were $4.5 million and $nil, respectively, under this DBSHK facility. The increase in short-term bank financing was to support purchases of raw materials to support orders to be shipped in fiscal 2026.
Previous wording
Net cash provided by operating activities was approximately $2.5 million in fiscal 2024, compared to net cash provided by operating activities of approximately $10.8 million in fiscal 2023. The decrease in net cash provided by operating activities was primarily attributable to the following factors:
Current wording
Net cash provided by operating activities was approximately $1.4 million in fiscal 2025, compared to net cash provided by operating activities of approximately $2.5 million in fiscal 2024. The decrease in net cash provided by operating activities was primarily attributable to the following factors:
Previous wording
Net cash used in investing activities was approximately $5.1 million and $13.8 million for fiscal 2024 and 2023, respectively. The net cash used in investing activities in the fiscal year ended March 31, 2024 was used in investment in property, plant, and machinery, including construction of a dormitory and factory expansion. The decrease in net cash used in fiscal 2024 compared to fiscal 2023 was primarily because $7.3 million was used in the acquisition of Ever Winland and Kawkab Venue in fiscal 2023.
Current wording
Net cash used in investing activities was approximately $2.4 million and $5.1 million for fiscal 2025 and 2024, respectively. The decrease in net cash used in fiscal year 2025 compared to 2024 was primarily due to the capital expenditures for the dormitory construction of $3.6 million and $1.1 million in fiscal 2024 and fiscal 2025, respectively. There was a slight decrease in capital expenditures in property, plant, and equipment for expansions in fiscal 2025.
Previous wording
Cash used in financing activities was $2.4 million in fiscal 2024, which was primarily related to dividend payments in the period. Net cash used in financing activities was approximately $4.0 million for fiscal 2023, mainly due to dividend payments of approximately $2.5 million and payments for a share repurchase program of approximately $1.2 million.
Current wording
Cash provided by financing activities was $2.1 million in fiscal 2025, which was primarily related to the net draw down of short-term bank financing of $4.5 million, which was offset by the distribution of dividends of $2.4 million. Net cash used in financing activities was approximately $2.4 million for fiscal 2024, mainly due to dividend payments in the period.
Previous wording
In accordance with the corporate Law in Jordan, Jerash Holdings’ subsidiaries in Jordan are required to make appropriations to certain reserve funds, based on net income determined in accordance with generally accepted accounting principles of Jordan. Appropriations to the statutory reserve are required to be 10% of net income until the reserve is equal to 100% of the entity’s share capital. Jiangmen Treasure Success is required to set aside 10% of its net income as statutory surplus reserve until such reserve is equal to 50% of its registered capital. These reserves are not available for dividend distribution. The statutory reserve was $413,821 and $410,847 as of March 31, 2024 and 2023, respectively.
Current wording
In accordance with the corporate Law in Jordan, Jerash Holdings’ subsidiaries in Jordan are required to make appropriations to certain reserve funds, based on net income determined in accordance with generally accepted accounting principles of Jordan. Appropriations to the statutory reserve are required to be 10% of net income until the reserve is equal to 100% of the entity’s share capital. Jiangmen Treasure Success is required to set aside 10% of its net income as statutory surplus reserve until such reserve is equal to 50% of its registered capital. These reserves are not available for dividend distribution. The statutory reserve was $413,821 as of March 31, 2025 and 2024.
Previous wording
Total restricted net assets accounted for approximately 0.64% of our consolidated net assets as of March 31, 2024. As our subsidiaries in Jordan are only required to set aside 10% of net profits to fund the statutory reserves, we believe the potential impact of such restricted net assets on our liquidity is limited.
Current wording
Total restricted net assets accounted for approximately 0.66% of our consolidated net assets as of March 31, 2025. As our subsidiaries in Jordan are only required to set aside 10% of net profits to fund the statutory reserves with the maximum reserve equal to 100% of the entity’s capital, we believe the potential impact of such restricted net assets on our liquidity is limited.
Previous wording
We had capital expenditures of approximately $5.1 million and $13.8 million in fiscal 2024 and 2023, respectively. For the fiscal year ended March 31, 2024, payments for additional plant and machinery, and construction of a dormitory and factory expansion, amounted to approximately $1.2 million and $3.6 million, respectively. For the fiscal year ended March 31, 2023, our capital expenditures included investments in additional plant and machinery, the construction of a dormitory and factory expansion, the acquisition of Kawkab Venus, and the acquisition of Ever Winland, which totaled approximately $0.7 million, $5.1 million, $2.2 million, and $5.1 million, respectively.
Current wording
We had capital expenditures of approximately $2.4 million and $5.1 million in fiscal 2025 and 2024, respectively. For the fiscal year ended March 31, 2025, our capital expenditures included payments for additional plant and machinery of approximately $1.0 million and payments for construction of properties of approximately $1.1 million. For the fiscal year ended March 31, 2024, payments for additional plant and machinery, and construction of a dormitory and factory expansion, amounted to approximately $1.2 million and $3.6 million, respectively.
Previous wording
On August 7, 2019, we completed a transaction to acquire 12,340 square meters (approximately three acres) of land in Al Tajamouat Industrial City, Jordan, from a third party to construct a dormitory for our employees with aggregate purchase price JOD863,800 (approximately $1,218,303). Management has revised the plan to construct both dormitory and production facilities on the land in order to capture the increasing demand for our capacity. We are conducting engineering design and study on this project with the business growth potential brought about by the new business collaboration with Busana Apparel Group. On February 6, 2020, we completed a transaction to acquire 4,516 square meters (approximately 48,608 square feet) of land in Al Tajamouat Industrial City, Jordan, from a third party to construct a dormitory for our employee with aggregate purchase price JOD313,501 (approximately $442,162). The dormitory is expected to be fully completed in second quarter of fiscal year 2025. We have spent approximately $9.3 million in capital expenditures to build the dormitory. The dormitory’s kitchen is under construction at an estimated cost of approximately $0.9 million.
Current wording
On August 7, 2019, we completed a transaction to acquire 12,340 square meters (approximately three acres) of land in Al Tajamouat Industrial City, Jordan, from a third party to construct a dormitory for our employees with aggregate purchase price JOD863,800 (approximately $1,218,303). Management has revised the plan to construct both dormitory and production facilities on the land in order to capture the increasing demand for our capacity. We are conducting engineering design and study on this project with the business growth prospect of new customers to be introduced in the coming few years. On February 6, 2020, we completed a transaction to acquire 4,516 square meters (approximately 48,608 square feet) of land in Al Tajamouat Industrial City, Jordan, from a third party to construct a dormitory for our employee with aggregate purchase price JOD313,501 (approximately US$442,162). The dormitory and dormitory kitchen were completed in the second quarter and the fourth quarter of fiscal year 2025, respectively. We have spent approximately $10.6 million in capital expenditures to build the dormitory and the dormitory kitchen.
Previous wording
We project that there will be an aggregate of approximately $12.6 million and $14.9 million of capital expenditures in the fiscal years ending March 31, 2025 and 2026, respectively, for further enhancement of production capacity to meet future sales growth. The realization of these investments depends on the progress of our business development, including expanding our client base and securing increased commitments from existing customers. We expect that our capital expenditures will increase in the future as our business continues to develop and expand. We have used cash generated from operations of our subsidiaries to fund our capital commitments in the past and anticipate using such funds to fund capital expenditure commitments in the future.
Current wording
We project that there will be an aggregate of approximately $1.3 million and $7.8 million of capital expenditures in the fiscal years ending March 31, 2026 and 2027, respectively, for further enhancement of production capacity to meet future sales growth. The realization of these investments depends on the progress of our business development, including expanding our client base and securing increased commitments from existing customers. We expect that our capital expenditures will increase in the future as our business continues to develop and expand. We have used cash generated from operations of our subsidiaries to fund our capital commitments in the past and anticipate using such funds to fund capital expenditure commitments in the future.