Jerash Holdings (US), Inc.
For the period ended Dec 31, 2025. Filed Feb 10, 2026.
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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.
Dec 31, 2025 · Filed Feb 10, 2026
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 2025-09-30; filed 2025-11-12.
0001213900-25-109194
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-10.
0001213900-26-014379
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 74 previous paragraphs and 76 current paragraphs.
36 unchanged; 30 reworded; 9 added; 8 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 15 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 (9)
Current report
Revenue. Revenue increased by approximately $6.4 million, or 18%, to $41.8 million, for the three months ended December 31, 2025, from approximately $35.4 million for the same period in fiscal 2025. The increase was mainly due to increases in shipments to some of the customers in the U.S. and the introduction of a new customer in Korea.
Current report
Net income. Net income for the three months ended December 31, 2025, was approximately $1.2 million compared to net income of approximately $6,000 for the same period in fiscal 2025. The increase in net income was mainly attributable to improvement of gross profit in efficiency through economies of scale with higher revenue, decrease of corporate tax in a Jordan subsidiary offset exchange loss and the increase in operating expenses.
Current report
Nine months ended December 31, 2025 and 2024
Current report
Revenue. Revenue increased by approximately $6.8 million, or 6%, to $123.4 million, for the nine months ended December 31, 2025, from approximately $116.6 million for the same period in fiscal 2025. The increase was mainly due to the increase in shipments to some of our major customers in the U.S. and sales increases to some of our new customers introduced during the past few years.
Current report
During the nine months ended December 31, 2025, aggregate sales to China, Korea, Jordan, and other locations increased by 34% from approximately $13.9 million to $18.6 million from the same period last year, as we diversified our customer mix by introducing new customers in new locations such as Korea during the nine months ended December 31, 2025.
Current report
Other expenses, net. Other expenses, net was approximately $1.2 million for the nine months ended December 31, 2025, compared to other expenses, net of approximately $1.0 million for the same period in fiscal 2025. The increase was primarily due to exchange loss offsetting interesting rate decrease in net interest expenses for higher utilization of bank facility and customers’ supply chain financing programs to cope with business growth.
Current report
The primary drivers of the increase in current assets were the increase in accounts receivable and advances to suppliers. The primary driver of the increase in current liabilities was the increase in credit facilities which were offset partially by decreases in accounts payable, accrued expenses and other payables, and income tax payable.
Current report
Nine months ended December 31, 2025 and 2024
Current report
On February 2, 2026, Jerash Garments received the approval from the Housing Bank of the Property Purchase Request submitted by Jerash Garments to the Housing Bank on January 20, 2026 for the purchase of the Property located on Property No. 1326, Basin No. 3 Abu Sawwana, Al-Ruqaim Village, from the lands of South Amman, Jordan. The purchase price is JOD 2,400,000 (approximately $3,384,000), to be paid via down payment and bank financing from the Housing Bank. Jerash Garments has inspected the Property, accepted responsibility for all fees and expenses related to the transfer of ownership, and agreed to register the Property in its name and bear all ownership transfer fees payable by both the seller and the buyer at the Land and Survey Department.
Removed paragraphs (8)
Previous 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.
Previous 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.
Previous report
Six months ended September 30, 2025 and 2024
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Six months ended September 30, 2025 and 2024
Reworded paragraphs (30)
Previous wording
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 wording
The increase of approximately 14% in sales to the U.S. during the three months ended December 31, 2025, was mainly attributable to a general increase in shipments to our major U.S. customers.
Previous 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.
Current wording
During the three months ended December 31, 2025, aggregate sales to China, Korea, Jordan, and other locations increased by 47% from $4.3 million to $6.3 million from the same period last year. This increase was mainly due to the introduction of a customer in Korea, which started to have bulk shipments during the quarter.
Previous wording
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 wording
Cost of goods sold. Following the increase in sales revenue, our cost of goods sold increased by approximately $4.7 million, or 16%, to approximately $34.7 million, for the three months ended December 31, 2025, from approximately $30.0 million for the same period in fiscal 2025. As a percentage of revenue, the cost of goods sold decrease by approximately 2 percentage points, from 85% for the same period in fiscal 2025 to 83% for the three months ended December 31, 2025. The decrease in the cost of goods sold as a percentage of revenue was primarily attributable to improvements in efficiency through economies of scale and adjustments in product mix following the introduction of new customers.
Previous 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.
Current wording
For the three months ended December 31, 2024, we purchased 14% of our total purchase in garments and raw materials from one major supplier.
Previous wording
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 wording
Gross profit margin. Gross profit margin was approximately 17% for the three months ended December 31, 2025, which increased by 2 percentage points from approximately 15% for the same period in fiscal 2025. The increase in gross profit margin was primarily driven by changes in product mix resulting from new customers introduced in the past few years and the growth in scale of production.
Previous 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.
Current wording
***Operating expenses.***Operating expenses increased by 9%, or approximately $0.4 million, from approximately $4.7 million for the three months ended December 31, 2024, to approximately $5.1 million for the three months ended December 31, 2025. The increase in operating expenses was primarily due to the increase in export-related expenses following the growth in sales and an increase in recruitment expenses in relation to headcount increase, offsetting a decrease in stock-based compensation expenses.
Previous 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.
Current wording
Other expenses, net. Other expenses, net were approximately $418,000 for the three months ended December 31, 2025, compared to other expenses, net of approximately $252,000 for the same period in fiscal 2025. The increase was primarily due to exchange loss and the increase in utilization of bank facility and customers’ supply chain financing programs to support the growth in business.
Previous wording
***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 wording
***Income tax expenses.***Income tax expenses for the three months ended December 31, 2025, were approximately $368,000 compared to income tax expenses of approximately $450,000 for the same period in fiscal 2025. The decrease in the income tax expenses was mainly due to tax provision adjustment in fiscal 2025 in GILTI, primarily resulting from the retroactive reinstatement of the subpart F income that was enacted for previous fiscal years andan increase in operating profit of Jordan subsidiaries related to GILTI provision. The effective tax rate declined to 24.1% for the three months ended December 31, 2025, compared to 98.6% for the three months ended December 31, 2024.
Previous wording
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 wording
The following table summarizes the results of our operations during the nine-month periods ended December 31, 2025 and 2024, and provides information regarding the dollar and percentage increase or (decrease) during such periods.
Previous wording
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 wording
The following table outlines the dollar amount and percentage of total sales to our customers for the nine months ended December 31, 2025 and 2024, respectively.
Previous wording
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 wording
The increase of approximately 2% in sales to the U.S. during the nine months ended December 31, 2025, was mainly attributable to a general increase in shipments to some of our major customers in the U.S.
Previous 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.
Current wording
Cost of goods sold. Following the increase in sales revenue, our cost of goods sold increased by approximately $4.5 million, or 4%, to approximately $103.9 million, for the nine months ended December 31, 2025, from approximately $99.5 million for the same period in fiscal 2025. As a percentage of revenue, the cost of goods sold decreased by approximately 1% point to 84% for the nine months ended December 31, 2025 from 85% for the same period in fiscal 2025. The decrease in cost of goods sold as a percentage of revenue was primarily attributable to changes in product mix following the introduction of new customers and the improvement in efficiency through economies of scale.
Previous wording
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.
Current wording
For the nine months ended December 31, 2025 and 2024, we purchased 14% and 12% of our garments and raw materials from one major supplier, respectively.
Previous 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.
Current wording
Gross profit margin. Gross profit margin was approximately 16% for the nine months ended December 31, 2025, which increased by 1% point from 15% for the same period in fiscal 2025. The increase in gross profit margin was primarily driven by improvement in productivity from changes in product mix and economies of scale.
Previous wording
***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 wording
***Operating expenses.***Operating expenses for the nine months ended December 31, 2025 decreased by 4%, or approximately $0.6 million, to approximately $15.4 million, compared to the same period in fiscal 2025. The decrease was primarily due to better control over export costs, the decrease in stock-based compensation expenses, and reduced spending in repair and maintenance in fiscal 2026.
Previous 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.
Current wording
***Income tax expenses.***Income tax expenses for the nine months ended December 31, 2025 were approximately $851,000 compared to income tax expenses of approximately $667,000 for the same period in fiscal 2025. The increase in the income tax expenses was mainly due to higher operating profit in fiscal 2026. The effective tax rate declined to 30.3% for the nine months ended December 31, 2025, compared to (2,339.6%) for the nine months ended December 31, 2024. The decrease in effective tax rate primarily related to uncertain tax provision, which was provided in the prior year and subsequently amended in connection with the overstatement of approximately $150,000 in fiscal 2026.
Previous wording
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 wording
Net income (loss). Net income for the nine months ended December 31, 2025 was approximately $2.0 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 to improvement in productivity through changes in product mix and economies of scale, better control over logistics costs, lower interest expenses benefit from the decrease in SOFR, and lower stock-based compensation expenses during the period.
Previous 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.
Current wording
As of December 31, 2025, we had cash of approximately $11.5 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 account receivable balances arising from sales made closer to the end of the quarter, which were mostly collected in early fourth quarter through customers’ supply chain financing programs.
Previous 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.
Current wording
Our current assets as of December 31, 2025 were approximately $56.8 million and our current liabilities were approximately $20.4 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.
Previous wording
Total equity as of September 30, 2025 was approximately $62.8 million compared to $62.9 million as of March 31, 2025.
Current wording
Total equity as of December 31, 2025 was approximately $63.7 million compared to $62.9 million as of March 31, 2025.
Previous 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.
Current wording
We had net working capital of $36.4 million and $34.6 million as of December 31, 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
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.
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 December 31, 2025 and March 31, 2025, we had $4.5 million and $4.5 million outstanding under this DBSHK facility, respectively.
Previous wording
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 wording
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, currently 8% per annum. As of December 31, 2025, the Company had $4.8 million outstanding under the Bank al Etihad facility.
Previous 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:
Current wording
Net cash used in operating activities was approximately $3.5 million for the nine months ended December 31, 2025, compared to cash used in operating activities of approximately $581,000 for the same period in fiscal 2025. The increase in net cash used in operating activities was primarily attributable to the following factors:
Previous 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.
Current wording
Net cash used in investing activities was approximately $1.4 million for the nine months ended December 31, 2025, compared to approximately $1.7 million in the same period in fiscal 2025. The net cash used in investing activities during the nine months ended December 31, 2025 was mainly for investments in property, plant, and equipment. The net cash used in investing activities during the nine months ended December 31, 2024 was mainly for investment in property, plant, and equipment and the construction of a dormitory.
Previous 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.
Current wording
Net cash provided by in financing activities was approximately $2.9 million for the nine months ended December 31, 2025, which was net proceeds of $4.8 million from bank financing facilities and dividend payments of $1.9 million in the period. Net cash provided by financing activities was approximately $3.1 million for the nine months ended December 31, 2024, which was the net effect of proceeds from credit facilities of approximately $5.0 million and the dividend payments of approximately $1.8 million.
Previous 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.
Current wording
Total restricted net assets accounted for approximately 0.65% of our consolidated net assets as of December 31, 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 $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.
Current wording
We had capital expenditures of approximately $1.4 million and $1.7 million for the nine months ended December 31, 2025 and 2024, for plant and machinery in both periods and the construction of a dormitory in fiscal 2025. For the nine months ended December 31, 2025, our capital expenditures in payments for additional plant and machinery were approximately $1.4 million. For the nine months ended December 31, 2024, payments for additional plant and machinery and the construction of a dormitory amounted to approximately $1.1 million and $0.6 million respectively.
Previous 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.
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, $17.9 million, $18.0 million, $2.8 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 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.
Current wording
We prepare our consolidated financial statements in conformity with 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 (1)
Current report — wording carried from elsewhere
For the three months ended December 31, 2025, we purchased 16% and 10% of our total purchase in garments and raw materials from two major suppliers, respectively.