Jerash Holdings (US), Inc.
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 12, 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-Q
Period ended 2025-06-30; filed 2025-08-14.
0001213900-25-075941
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001213900-25-109194
Item 2. 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 59 previous paragraphs and 74 current paragraphs.
30 unchanged; 22 reworded; 18 added; 5 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 11 previous and 15 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 (18)
Current report
Revenue. Revenue increased by approximately $1.7 million, or 4%, to $42.0 million, for the three months ended September 30, 2025, from approximately $40.2 million for the same period in fiscal 2025. The increase was mainly due to an increase in shipments to the U.S. resulting from a more diverse customer base in fiscal 2026.
Current report
The increase of approximately 8% in sales to the U.S. during the three months ended September 30, 2025, was mainly attributable to our effort on diversification of customer base in the region, which resulted in increases in demands in most of our top U.S. customers in the period.
Current report
During the three months ended September 30, 2025, aggregate sales to China, Germany, Jordan, and other locations decreased by 18% from $5.7 million to $4.7 million from the same period last year. This decrease was mainly because more capacity has been devoted to U.S. orders.
Current report
Cost of goods sold. Following the increase in sales revenue, our cost of goods sold increased by approximately $2.5 million, or 8%, to approximately $35.7 million, for the three months ended September 30, 2025, from approximately $33.2 million for the same period in fiscal 2025. As a percentage of revenue, the cost of goods sold increase by approximately 3 percentage points, from 82% for the same period in fiscal 2025 to 85% for the three months ended September 30, 2025. The increase in the cost of goods sold as a percentage of revenue was primarily attributable to catch-up production of some outerwear orders that carried higher margin, which were originally schedule for the first quarter of fiscal 2025 and deferred to the second quarter of fiscal 2025. For the three months ended September 30, 2025, the production and shipments were back to normal level that on average produced lower profit margins.
Current report
Gross profit margin. Gross profit margin was approximately 15% for the three months ended September 30, 2025, which decreased by 3 percentage points from approximately 18% for the same period in fiscal 2025. The decrease in gross profit margin was primarily driven by one-off higher margin outerwear orders originally scheduled for the first quarter of fiscal 2025 and deferred to the second quarter of fiscal 2025.
Current report
Net income. Net income for the three months ended September 30, 2025, was approximately $0.5 million compared to net income of approximately $0.7 million for the same period in fiscal 2025. The decrease in net income was mainly attributable to the different customer mix and product mix in fiscal 2025 that on average produced lower profit margins, partially offset by the decrease in operating expenses due to better control of export costs and lower stock-based compensation expenses in fiscal 2026.
Current report
Six months ended September 30, 2025 and 2024
Current report
Revenue. Revenue increased by approximately $0.4 million, or 1%, to $81.6 million, for the six months ended September 30, 2025, from approximately $81.2 million for the same period in fiscal 2025. The slight increase was mainly due to the increase in the overall demand of most of our major customers following the Company’s effort in diversification of the customer base.
Current report
Revenue by Geographic Area
Current report
The decrease of approximately 3% in sales to the U.S. during the six months ended September 30, 2025, was mainly attributable to a decrease in shipments to our top customer in the period, which was partially compensated by the increases in shipments to our other customers in the U.S.
Current report
***Operating expenses.***Operating expenses for the six months ended September 30, 2025 decreased by 9%, or approximately $1.1 million, to approximately $10.3 million, compared to the same period in fiscal 2025. The decrease was primarily due to better control of export costs, decrease in stock-based compensation expenses, and reduced spending in repair and maintenance in fiscal 2026.
Current report
Other expenses, net. Other expenses, net was approximately $763,000 for the six months ended September 30, 2025, as compared to other expenses, net of approximately $790,000 for the same period in fiscal 2025. The slight decrease was primarily due to more shipments completed around the end of September 2025 while the proceeds from certain customers’ supply chain financing programs were not processed by end of the quarter in fiscal 2026, resulting in relatively lower interest expense in current period.
Current report
***Income tax expenses.***Income tax expenses for the six months ended September 30, 2025 were approximately $0.5 million compared to income tax expenses of approximately $0.2 million for the same period in fiscal 2025. The increase in the income tax expenses was mainly due to increased operating profit of Treasure Success, related to the inclusion of Subpart F income under the U.S. Internal Revenue Code, offset of uncertain tax provision, which was provided in the prior year and subsequently amended the overstatement of approximately $150,000 in fiscal 2026. The effective tax rate increased to 37.5% for the six months ended September 30, 2025, as compared to (44.9%) for the six months ended September 30, 2024.
Current report
Net income/(loss). Net income for the six months ended September 30, 2025 was approximately $0.8 million compared to net loss of approximately $0.7 million for the same period in fiscal 2025. The increase in net income was mainly attributable the increase in the overall demand of most of our major customers, better control of import costs, and the lower average costs due to economy of scale.
Current report
The primary drivers in the increase in current assets were the increase in accounts receivable due to more goods shipped around the end of September 2025 with advances to suppliers for shipments to be completed in the following quarters. The primary driver in the increase in current liabilities was the increase in accounts payable supporting the purchases for shipments in the following quarters.
Current report
Bank al Etihad Credit Facility
Current report
On July 31, 2025, Bank al Etihad offered to provide a credit facility of up to $6.0 million to Jerash Garments. Pursuant to the facility, Bank al Etihad agreed to finance import invoices of up to $6.0 million with condition that such invoices are secured by letter of credit issued by customers. The facility bears an interest rate at the Prime Lending Rate announced by Bank al Etihad. As of September 30, 2025, the Company had $247,520 outstanding under the Bank al Etihad facility.
Current report
Six months ended September 30, 2025 and 2024
Removed paragraphs (5)
Previous report
***Revenue.***Revenue decreased by approximately $1.3 million, or 3%, to $39.6 million, for the three months ended June 30, 2025, from approximately $40.9 million for the same period in fiscal 2025. The decrease was mainly due to the switching of some of the shipments to Aqaba Port in Jordan to avoid disruptions in Haifa Port that started in late June 2025 that delayed the shipments to July 2025.
Previous report
The decrease of approximately 13% in sales to the U.S. during the three months ended June 30, 2025, was mainly attributable to the delays in shipments because of switching shipping ports to Aqaba Port in Jordan as per customers’ requests in June 2025.
Previous report
Net income/loss. Net income for the three months ended June 30, 2025, was approximately $0.3 million compared to net loss of approximately $1.4 million for the same period in fiscal 2025. The increase in net income was mainly attributable to lower import logistic costs as more shipments to Aqaba Port in Jordan resumed and a lower level of overtime work with better logistic and production planning, lower stock-based compensation expenses and lower expenses on repair and maintenance, as well as lower interest rates and lower sales to customers with supply chain financing programs resulting in less interest expenses comparing to last year.
Previous report
The primary drivers in the decrease in current assets were lower cash balances attributable to some orders not shipped on time in mid-late June 2025 due to the disruption in export through Haifa Port in Israel. The primary driver in the decrease in current liabilities was lower accrual expenses and accounts payable.
Previous report
For the three months ended June 30, 2025, the cash used in operating activities was primarily attributable to the increase in accounts receivable and the decreases in accrual expenses, accounts payable, and other payables.
Reworded paragraphs (22)
Previous wording
For the three months ended June 30, 2024, we purchased 12% and 11% of our total purchase in garments and raw materials from two major suppliers, respectively.
Current wording
For the three months ended September 30, 2025 and 2024, we purchased 14% and 10% of our total purchase in garments and raw materials from one major supplier, respectively.
Previous wording
Operating expenses. Operating expenses decreased by 6%, or approximately $0.3 million, from approximately $5.5 million for the same period in fiscal 2025, to approximately $5.1 million for the three months ended June 30, 2025. The decrease was primarily due to lower stock-based compensation expenses and lower expenses on repair and maintenance.
Current wording
***Operating expenses.***Operating expenses decreased by 12%, or approximately $0.7 million, from approximately $5.9 million for the three months ended September 30, 2024, to approximately $5.2 million for the three months ended September 30, 2025. The decrease was primarily due to better control of export costs and lower stock-based compensation expenses in fiscal 2026.
Previous wording
Other expenses, net. Other expenses, net were approximately $307,000 for the three months ended June 30, 2025, as compared to other expenses, net of approximately $426,000 for the same period in fiscal 2025. The decrease was primarily due to lower interest rates and lower sales to customers with supply chain financing programs, which caused net interest expenses to be lower.
Current wording
Other expenses, net. Other expenses, net were approximately $456,000 for the three months ended September 30, 2025, as compared to other expenses, net of approximately $364,000 for the same period in fiscal 2025. The increase was primarily due to an increase in financing needs to fund growth in business, which was in turn, due to less interest income from fixed term deposits.
Previous wording
***Income tax expenses.***Income tax expenses for the three months ended June 30, 2025, were approximately $329,000 compared to income tax expenses of approximately $112,000 for the same period in fiscal 2025. The increase in the income tax expenses was mainly due to an increase in net profit in Jordan and Hong Kong subsidiaries, offsetting federal tax provision adjustment compared to the same period in fiscal 2025. The effective tax rate increased to 50.4% for the three months ended June 30, 2025, as compared to (8.9%) for the same period in fiscal 2025.
Current wording
***Income tax expenses.***Income tax expenses for the three months ended September 30, 2025, were approximately $154,000 compared to income tax expenses of approximately $106,000 for the same period in fiscal 2025. The increase in the income tax expenses was mainly due to the increase in operating profit of Treasure Success, related to the inclusion of Subpart F income under the U.S. Internal Revenue Code, offset by uncertain tax provision, which was provided in the prior year and subsequently amended the overstatement of approximately $150,000 in fiscal 2026. The effective tax rate increased to 24.3% for the three months ended September 30, 2025, as compared to 13.7% for the three months ended September 30, 2024.
Previous wording
During the three months ended June 30, 2025, aggregate sales to China and Hong Kong, Germany, Jordan, and other locations increased by 94% from $3.9 million to $7.6 million from the same period last year. This increase was mainly because demand of our capacity increased for customers in those regions.
Current wording
During the six months ended September 30, 2025, aggregate sales to China, Germany, Jordan, and other locations increased by 28% from approximately $9.6 million to $12.3 million from the same period last year due to higher demands of our capacity for the customers in those regions.
Previous wording
Cost of goods sold. Following the decrease in sales revenue, our cost of goods sold decreased by approximately $2.8 million, or 8%, to approximately $33.5 million, for the three months ended June 30, 2025, from approximately $36.3 million for the same period in fiscal 2025. As a percentage of revenue, the cost of goods sold decreased by approximately four percentage points, from 89% for the same period in fiscal 2025 to 85% for the three months ended June 30, 2025. The decrease in the cost of goods sold as a percentage of revenue was primarily attributable to lower import logistic costs comparing to last year as more shipments to Aqaba Port in Jordan resumed and lower level of overtime work was required with better logistic and production planning.
Current wording
Cost of goods sold. In contrast to the increase in sales revenue, our cost of goods sold decreased by approximately $0.3 million, or 0.4%, to approximately $69.2 million, for the six months ended September 30, 2025, from approximately $69.5 million for the same period in fiscal 2025. As a percentage of revenue, the cost of goods sold decreased by approximately 1 percentage point to 85% for the six months ended September 30, 2025 from 86% for the same period in fiscal 2025. The decrease in cost of goods sold as a percentage of revenue was primarily attributable to better control of the import logistic costs and lower average production costs resulted from economy of scale.
Previous wording
Gross profit margin. Gross profit margin was approximately 15% for the three months ended June 30, 2025, which increased by four percentage points from approximately 11% for the same period in fiscal 2025. The increase in gross profit margin was primarily driven by better execution of logistic and production plans with import sea routes resuming to go to Aqaba Port in Jordan that shortened the lead time with lower costs.
Current wording
Gross profit margin. Gross profit margin was approximately 15% for the six months ended September 30, 2025, which increased by 1 percentage point from 14% for the same period in fiscal 2025. The increase in gross profit margin was primarily driven by better control of import costs and lowered average costs due to economy of scale.
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 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.
Current wording
Jerash Holdings is a holding company incorporated in Delaware. As a holding company, we rely on dividends and other distributions from our subsidiaries formed in Jordan and Hong Kong 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.
Previous wording
As of June 30, 2025, we had cash of approximately $5.8 million and restricted cash of approximately $1.7 million compared to cash of approximately $13.3 million and restricted cash of approximately $1.7 million as of March 31, 2025. The total cash decreased mainly because more shipments were completed at the end of June 2025, and the receivables were not collected until early July 2025 through the supply chain financing programs of customers.
Current wording
As of September 30, 2025, we had cash of approximately $12.0 million and restricted cash of approximately $1.7 million compared to cash of approximately $13.3 million and restricted cash of approximately $1.7 million as of March 31, 2025. The decrease in total cash was mainly a result of higher accounts receivable due to more goods shipped around the end of September 2025 with advances to suppliers for shipments to be completed in the following quarters.
Previous wording
Our current assets as of June 30, 2025 were approximately $53.4 million and our current liabilities were approximately $18.8 million, which resulted in a ratio of approximately 2.8 to 1. 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.
Current wording
Our current assets as of September 30, 2025 were approximately $55.6 million and our current liabilities were approximately $20.4 million, which resulted in a ratio of approximately 2.7 to 1. 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.
Previous wording
We had net working capital of $34.6 million as of June 30, 2025 and March 31, 2025. Based on our current operating plan, we believe that cash on hand and cash generated from operating activities will be sufficient to support our working capital needs for the next 12 months from the date this Quarterly Report is released.
Current wording
We had net working capital of $35.2 million and $34.6 million as of September 30, 2025 and March 31, 2025, respectively. Based on our current operating plan, we believe that cash on hand and cash generated from operating activities will be sufficient to support our working capital needs for the next 12 months from the date this Quarterly Report is released.
Previous wording
We have funded our working capital needs from operations. Our working capital requirements are influenced by the level of our operations, the numerical and dollar volume of our sales contracts, the progress of execution on our customer contracts, and the timing of accounts receivable collections.
Current wording
We have funded our working capital needs from our operations. Our working capital requirements are influenced by the level of our operations, the numerical and dollar volume of our sales contracts, the progress of execution on our customer contracts, and the timing of accounts receivable collections.
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 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 June 30, 2025 and March 31, 2025, we had $4.8 million and $4.5 million outstanding under this DBSHK facility, respectively.
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 September 30, 2025 and March 31, 2025, we had $4.9 million and $4.5 million outstanding under this DBSHK facility, respectively.
Previous wording
Net cash used in operating activities was approximately $6.5 million for the three months ended June 30, 2025, compared to cash used in operating activities of approximately $2.2 million for the same period in fiscal 2025. For the three months ended June 30, 2025, the increase in net cash used in operating activities was primarily attributable to an increase in accounts receivable and a decrease in inventory, partially offset by higher net profit, and a decrease in accounts payable, summarized with the following factors:
Current wording
Net cash provided by operating activities was approximately $0.3 million for the six months ended September 30, 2025, compared to approximately $2.4 million for the same period in fiscal 2025. 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 $0.7 million for the three months ended June 30, 2025, compared to approximately $0.4 million in the same period in fiscal 2025. The net cash used in investing activities during the three months ended June 30, 2025 and 2024 was mainly for purchases of property, plant, and machineries, and deposit payments for fixed assets.
Current wording
Net cash used in investing activities was approximately $1.1 million for the six months ended September 30, 2025, compared to approximately $0.9 million in the same period in fiscal 2025. The increase was primarily due to higher capital expenditure in property, plant, and equipment.
Previous wording
Net cash used in financing activities was approximately $0.4 million for the three months ended June 30, 2025, which was the net proceeds of short-term loan of $0.3 million and $0.6 million of dividend payment. Net cash provided by financing activities was approximately $1.5 million for the three months ended June 30, 2024, which was the net proceeds from short-term loan of $2.1 million and $0.6 million dividend payment in the period.
Current wording
Net cash used in financing activities was approximately $0.6 million for the six months ended September 30, 2025, which primarily consisted the payments of $1.3 million of dividend, partially offset by a slight increase in proceeds from short-term loans. Net cash provided by financing activities was approximately $2.3 million for the six months ended September 30, 2024, which was the net effect of proceeds from short-term loans of approximately $3.6 million and the payments of $1.2 million of dividend.
Previous wording
In accordance with the corporate law in Jordan, subsidiaries of Jerash Holdings 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 $0.4 million and $0.4 million as of June 30, 2025 and 2024, respectively.
Current wording
In accordance with the corporate law in Jordan, subsidiaries of Jerash Holdings 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 $0.4 million as of September 30, 2025 and 2024.
Previous wording
Total restricted net assets accounted for approximately 0.66% of our consolidated net assets as of June 30, 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 declared capital, 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 September 30, 2025. 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.
Previous wording
We had capital expenditures of approximately $0.7 million and $0.4 million for the three months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025, our capital expenditures in payments for additional plant and machinery were approximately $0.7 million. For the three months ended June 30, 2024, payments for additional plant and machinery and construction of properties amounted to approximately $370,000 and $15,000, respectively.
Current wording
We had capital expenditures of approximately $1.1 million and $0.9 million for the six months ended September 30, 2025 and 2024, for plant and machinery in both periods and the construction of a dormitory in fiscal 2025. For the six months ended September 30, 2025, our capital expenditures in payments for additional plant and machinery were approximately $1.1 million. For the six months ended September 30, 2024, payments for additional plant and machinery and the construction of a dormitory amounted to approximately $0.6 million and $0.3 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 JOD 863,800 (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 JOD 313,501 (approximately $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.
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 JOD 863,800 (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 JOD 313,501 (approximately $442,162). The dormitory is completed in second quarter of fiscal year 2025. 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 $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.
Current wording
We expect that our capital expenditures will increase in the future as our business continues to develop and expand. We project that there will be an aggregate of approximately $7.8 million, $14.5 million, $16.5 million, $3.5 million and $2 million of capital expenditures, respectively, in each of the five fiscal years from the fiscal year ending March 31, 2026 to the fiscal year ending March 31, 2030, for further enhancement of production capacity to meet future sales growth based on the current market response and communication with key customers. 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 have used cash generated from operations of our subsidiaries to fund our capital commitments in the past. Our capital expenditure plan is highly related to customer commitments and market responses to the demand of our capacity. If growth in demand is in line with our projection, other than cash generated from the operations of our subsidiaries, we may also obtain further bank financing and raise funds from the capital market to meet our capital expenditure plan and fund our capital commitments. As of the date of this report, no material commitment has been made for the capital expenditure projections above.
Previous wording
We prepare our consolidated financial statements in conformity with accounting principles generally accepted by the United States of America (“U.S. GAAP”), which require us to make judgments, estimates, and assumptions that affect our reported amount of assets, liabilities, revenue, costs and expenses, and any related disclosures. Although there were no material changes made to the accounting estimates and assumptions in the past two years, we continually evaluate these estimates and assumptions based on the most recently available information, our own historical experience and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations as a result of changes in our estimates. We have not identified any critical accounting estimates.
Current wording
We prepare our consolidated financial statements in conformity with accounting principles generally accepted by the United States of America (“U.S. GAAP”), which require us to make judgments, estimates, and assumptions that affect our reported amount of assets, liabilities, revenue, costs and expenses, and any related disclosures. Although there were no material changes made to the accounting estimates and assumptions in the past three years, we continually evaluate these estimates and assumptions based on the most recently available information, our own historical experience and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations as a result of changes in our estimates. We have not identified any critical accounting estimates.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
The following table summarizes the results of our operations during the six-month periods ended September 30, 2025 and 2024, and provides information regarding the dollar and percentage increase or (decrease) during such periods.
Current report — wording carried from elsewhere
The following table outlines the dollar amount and percentage of total sales to our customers for the six months ended September 30, 2025 and 2024, respectively.
Current report — wording carried from elsewhere
Between January 2010 and March 2025, all apparel manufactured in Jordan could 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 provided 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 report, the tariff has been modified to 15% according to an executive order of presidential actions on July 31, 2025. While the payment of the tariff is typically the responsibility of the importer (Jerash’s customers), the impact of the tariff on customers demand would be affected by the comparative levels of the tariffs on imports from Jordan compared to other countries.
Current report — wording carried from elsewhere
For the six months ended September 30, 2025 and 2024, we purchased 12% and 11% of our garments and raw materials from one major supplier, respectively.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
For the three months ended June 30, 2025, we did not purchase more than 10% of our total purchase in garments and raw materials from any supplier.
Previous report — wording carried elsewhere
Three months ended June 30, 2025 and 2024