Good morning, everyone, and welcome to the Jerash Holdings fiscal 2024 fourth quarter and full year financial results conference call. At this time, all participants are in a listen-only mode, and we will open for questions following the presentation. If you should require any assistance during the conference, please press star zero on your phone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Roger Pondel, Investor Relations at Jerash Holdings. Roger, the floor is yours. Thanks so much, Jenny. Good morning, everyone. Welcome to Jerash Holdings fiscal 2024 fourth quarter and full year conference call. I'm Roger Pondel with PondelWilkinson, Jerash Holdings investor relations firm. It will be my pleasure momentarily to introduce the company's Chairman and Chief Executive Officer, Sam Choi; his Chief Financial Officer, Gilbert Lee; and Eric Tang, who leads the company's operations in Jordan. Both Sam and Eric are in Jordan. Before I turn the call over to Sam, I want to remind our listeners that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to numerous conditions, many of which are beyond the company's control, including those set forth in the risk factors section of the company's most recent Form 10-K, as filed with the Securities and Exchange Commission. Copies of which are available on the SEC's website at www.sec.gov, along with other company filings made with the SEC from time to time. Actual results could differ materially from those forward-looking statements, and Jerash Holdings undertakes no obligation to update any forward-looking statements, of course, except as required by law. With that, I will turn the call over to Sam Choi. Sam? Thank you, Roger. Since October of last year, the Red Sea crisis, triggered by multiple attacks on cargo ships by Houthi rebels, has continued to cause supply chain disruption throughout the Middle East region. Even though an alternative shipping route has been established to receive raw materials, bottleneck and vessel bunching cause delays, impacting production for our group of customers, and in turn, the company's financial performance for the quarter and fiscal 2024. Gross margin, likewise, was down due to the significantly higher ocean freight and transportation costs from Asia to Jordan. Despite the shipping situation, we have identified and are aggressively increasing our source of raw materials from Turkey and Egypt. This is allowing us to bypass the treacherous shipping routes and mitigate related logistic costs. Also, on a positive note, we are experiencing a tangible increase in purchase orders from long-term customers. Additionally, we are receiving a fresh pipeline of business from new high-profile global brands, both directly and through our joint venture with Busana. We are now increasing orders from four groups of brands through Busana. Our joint marketing efforts are continuing, and we believe there will be solid new business opportunities ahead as more companies look to reduce costs by shifting their production to tariff-free countries such as Jordan. In view of the current geopolitical situation, we have decided to delay our plans to build a state-of-the-art fabric mill in Jordan with another joint venture partner, Newt ech Textile. For the long term, our objective remains being a trusted manufacturer partner, providing sustainable solutions as an environmentally conscious leader in the apparel industry. I will now turn the call over to Eric Tang, who is in charge of our operations in Jordan. Thank you, Sam. Hello, everyone. The supply chain disruptions have delayed our production during the fiscal fourth quarter. Since we were not able to receive an adequate supply of materials from Asia to produce orders to our major customers, approximately 16%-18% of orders were delayed and shipped in the fiscal 2025 first quarter. As Sam mentioned earlier, we are now increasing our sourcing of materials locally in the Middle East, and we have plans in place that are allowing us to produce and ship orders on a more normalized basis as we move forward. Despite the unsettled external environment, we were able to capture local orders during the fiscal fourth quarter to keep our factories running and maintain our staff, in part, in anticipation of growth in the new fiscal year. Today, our manufacturing facilities are fully active, with orders booked well into the fiscal second quarter. Currently, we are experiencing steady order patterns from our major customers after a protracted two-year period of economic restraint at the retail level. We also are realizing the benefits of our strategic plan to diversify our customer base, as we are now producing garments for a number of new brand customers. Jerash has been a trusted tier-one manufacturer and assembly partner for VF Corporation for more than 60 years. In addition to producing apparel for VF, North Face, and Timberland brands, we are now receiving purchase orders from Vans following the initial trial orders placed during the second half of last fiscal year. Orders from our first European-based high-end apparel brand are steadily increasing, and our second European-based apparel brand is starting to place order for fiscal 2025, following several successful trial orders. We are excited to grow the European market and look forward to rolling out production for new apparel items in the new fiscal year. Proceeding into our new fiscal year, we are feeling better and breathing easier. I will now turn the call over to Gilbert to discuss our financial results. Gilbert, please. Thank you, Eric. Revenue for our fiscal 2024 fourth quarter was $21.6 million, compared with $23.8 million for the same period last year. The decrease was primarily caused by inadequate materials for production due to logistical disruptions and extended supply chain lead times in the Middle East. Revenue was negatively impacted by approximately $3 million-$4 million of orders that were delayed to the first quarter in fiscal 2025. Gross profit was $1 million for the fiscal 2024 fourth quarter, compared with $2.5 million in the same quarter last year. Gross margin decreased to 7.0% from 10.3% in the same period last year. The decrease in gross margin reflected higher ocean freight and transportation costs, as well as manufacturing lower margin orders from local customers to offset production delays for U.S. customers. Operating expenses for the fiscal 2024 fourth quarter were $4.5 million, compared with $4.3 million for the same quarter last year. SG&A expenses were higher at $4.3 million in the fiscal year 2024 fourth quarter, compared with $4.2 million in the same quarter last year. Stock-based compensation expenses were $258,000, compared with $119,000 in the same quarter of last year. Operating loss was $3 million for the fiscal 2024 fourth quarter, compared with operating loss of $1.8 million for the same quarter last year. Total other expenses were $134,000 in the fiscal 2024 fourth quarter, compared with $86,000 in the same quarter last year. Net loss was $3.1 million, or $0.25 per share for the fiscal 2024 fourth quarter, compared with net loss of $2.0 million, or $0.16 per share in the same period last year. As of March 31, 2024, Jerash had cash and restricted cash of $14.0 million and net working capital of $36.1 million. Inventory was $27.2 million, and accounts receivable was $5.4 million. Net cash provided by operating activities was approximately $2.5 million for the fiscal year ended March 31, 2024, compared with $10.8 million in fiscal 2023. As Sam and Eric mentioned earlier, we're seeing better order patterns into fiscal 2025. Our revenue for the fiscal first quarter is expected to increase by 14%-15% from the prior year quarter, and full year revenue is anticipated to be up by 15%-18%. Our gross margin goal for the fiscal 2025 year is expected to be approximately 13%-15%. The outlook is, of course, subject to final product mix of shipments, as well as order flow from the new customers through our joint venture with Busana. On May 21, 2024, Jerash approved a regular quarterly dividend of $0.05 per share on its common stock. The dividend was paid on June 7, 2024, to stockholders of record as of May 31, 2024. With that, we will now open up the call for questions. Operator? Thank you very much. We will now be conducting our question and answer session. If you would like to ask a question, please press star one on your phone keypad now. A confirmation tone will indicate that your line is in the queue. You may press star two if you would like to remove your question from the queue. For any participants using speaker equipment, it may be necessary to pick up your handset before you press the keys. Please pause a moment while we poll for questions. Thank you. Your first question is coming from Mike Baker of D.A. Davidson. Mike, your line is live. Great, thanks. Hi, guys. So, how much of the sales ramp that you're seeing, some of it is the delay from the first quarter, but it sounds like new customers but also some of your legacy customers ramping back up. So I wonder if you can parse that out a little bit. How much from each, and what I'm getting at is this a sign that your customers, Timberland or VF Corp in particular, is feeling a little bit better, starting to restock some shelves due to better demand after you know, as you said, what's been a couple of years of really weak ordering? Just trying to understand the underlying sort of you know, apparel demand that you're seeing. Thanks. First of all, the Busana joint venture, we believe, or the projection for this coming year is about, I would say $6 million-$8 million. Is that correct, Eric? Yes. Yeah, correct. Yeah. Okay. So that part, I think we are still trying to figure out how to improve, but we are taking purchase orders from four new customers from that is brought by Busana. Hugo Boss, which we have been doing business with them actually even before Busana and us joined the formed the joint venture. And then there's Macy's, Dillard's and Brooks Brothers. So all these four, we will be taking orders from them in the in this fiscal 2025. Now, our legacy customers, such as VF, which North Face and Timberland and Vans. Vans is going to start in this fiscal year. But, VF, I'm looking at their increase is actually they're looking to increase by about 8% comparing to 2025. Of course, VF is the most is our number one customer. And then New Balance is also l et me see. I think New Balance is about the same comparing to 2024, but Hugo Boss has a significant increase, about 17%. But we have a bunch of other customers that are going to have significant growth other than these three. So that's why we're projecting a double-digit growth in 2025, especially in the first two quarters. Okay. Anything to add, Eric? Yes, I think, more or less the same. Also, our projection, apart from VF, we have additional growth in the coming year. New Balance, we also have additional growth also. So that's, this is the reason why our projection for the new fiscal year is a bit higher than before. Two digit higher. Yep, makes sense. One more, if I could. The gross margin outlook for next year, I guess it's about flat on a year-over-year basis, but obviously much lower than what you've done in the past. Now, I guess I understand the reasons, the Red Sea disruption and higher freight costs, et cetera. Right. I guess the question is: How much of that gross margin degradation versus past years do you think is permanent, because you have to find different routes and the like, or how much do you think is just due to the temporary disruption and can eventually come back to where it once was? We're anticipating the freight cost is definitely going to be higher because the crisis is still going on, and we don't know when it's going to end. Even though we now find a route that can kind of pretty consistently getting the containers into Jordan, but we're gonna have to pay a higher cost. I mean, even during the past four to six months, some of the containers were stuck, and we spent like three to four times as much as normal to get those containers in and that's part of the reason why the margin was so low in the fourth quarter. So but going forward, at least in the foreseeable future, we anticipate the shipping costs to be higher. And the other reason is that, now we're seeing some pretty competitive situation in the market. So we're getting pricing pressure from our customers, and we're pricing our products very competitively. So even though, and also with some new customers that we're bringing in, those customers, at least at the beginning, the overall margin is not going to be great. It's not gonna be as great as our legacy customers, because we have to spend extra money on developing the products and developing the process of doing those new orders. So we're trying to be more conservative in terms of projecting the margin. Okay. Makes sense. Thank you. Sure. Thank you. Thank you very much. Your next question is coming from Mark Argento of Lake Street. Mark, your line is live. Yeah. Hi, guys. Just a couple of additional questions for you. You know what? You had just mentioned kind of costs, and my question was around inflation. Obviously, inflation worldwide is obviously running rampant right now. You just touched a little bit on kind of pricing. What are you seeing? Are your—obviously, your customers are being more aggressive in terms of pricing, but are you guys able to, you know, take some price and keep up and maintain that margin? What are you seeing, you know, from the impact of kind of just broad-based inflation on the business? Well, the inflation is definitely there, but it is affecting our costs. Besides the shipping costs, but everything else is increasing. I think our inflation, at least on the operating side, the labor costs in Jordan, and also other operating costs, those are increasing too. Now, we're looking at very diligently trying to cut costs in our operations. Like, the new dorm is now we're occupying the new dorm. So I think in fiscal 2025, we will be able to save some of the rent or leasing costs for the old dorms when we vacate the old dorms and stop paying rent. So in that area, we could save some, we could save some money and hopefully help the margin. However, the retail market is, like I said before, is getting quite competitive. In order to attract new customers and to, increase our volume with existing customers, we're going to have to price, very competitively. So to answer your question, I don't see that we will be able to, raise our prices to our existing customer and, and improve our margin, at least in the, in the next, year or so. All right, so, like, if, you know, if the vendors at retail taking prices up 10% on a garment, I mean, yeah, kind of your price delivered, are you able to, you know, maintain that? Are you taking a lot of that hit right now, i.e., are you, you know, able to raise prices at least to stay, you know, kind of consistent with inflation, or are you guys kind of losing margin because of inflation? Sounds like the latter. Yeah, it's, I think overall it's the latter, but in certain customers, the margins are increasing. So it all depends on the brand. It all depends on the customer. Like, customers such as Hugo Boss, the margins are very good. But, VF, I think we're improving margin on Timberland, especially right now, we're trying to source our fabrics from Egypt and from Turkey. So in that sense, we should be able to improve our margin with Timberland. For TNF or North Face, their margin is actually holding, but it is going to be very difficult to get their margins up. Great. Is that pretty accurate, Eric? Do you have anything to add? Yeah, very accurate. Yeah, but in addition, in order to increase more revenue, we are also implementing several saving plans for cost reduction, such as we are going to install more solar energy system in order to reduce the cost of the electricity. Right here, because here in Jordan, the cost of the electricity is pretty much expensive. Also, we are trying to use, for the boiler, okay, we are trying to do some water and diesel saving. Okay, this is already reinstalled in one of our factory, and we are also, this is also one of the cost-saving measure. And for the production line, we are trying to bring in more automatic machines in order to save, okay, and the number, number of production people. For all the cost-saving plan, we are currently, okay, carry out. Thanks, guys. Appreciate it. Good luck. Thank you. Thank you very much. Just a reminder there, if you have any remaining questions, you can press star one on your phone keypad now. Our next question is coming from Mike Distler of AMNIX. Mike, your line is live. Yes, good afternoon over there, gentlemen, and Gilbert, here in the U.S. Yes. Just two quick questions. First, w ell, actually, just one question, really. Just I'm glad you tabled the, the new mill, the joint venture, for at least short-term, intermediate term. That sounds like a smart capital outlay. I just wanna make sure that you have available, you said $14 million approximately in cash available, plus $36 million accessible. Is your available capital no issue, going forward, just for the next six to nine months kind of thing? You're, you're good to go? No, we, we believe we'll be able to generate sufficient operating cash. And, I mean, if we look at in last fiscal well, the prior fiscal year, 2023, we generated almost $11 million in operating cash. Yeah. Of course, this year, it's down to $2.5 million. But also, last prior fiscal year, we spent a lot of money finishing up the dormitory and also doing some internal expansion, upgrading and also expanding our capacity in fiscal 2023. Right. Some of them flow over to fiscal 2024. So in 2024, we spent about $5.1 million in that area. So that's primarily why our cash flow decreased by $5.3 million-$5.4 million in fiscal 2024. So and we don't have any debt. We don't have to pay back any anything. So we believe with the improved profitability in 2025, sales growing at 15% or whatever, up to 20%, it will bring a lot of cash flow into our account. And we're right now not looking at having any significant amount of capital expenditure in this fiscal year. The delay of the fabric mill. On that, we still have the option of raising capital or borrowing money, so we don't, we don't believe that this cash is going to be a problem for us. Okay. That's terrific, and, thank you. Thanks, Gilbert. Right. Sam, Eric, keep up the good work. Yeah. Thank you very much, all. Thank you. Have a good day. Thank you. Thank you. Bye-bye. Thank you very much. Well, we have reached the end of our question and answer session. I will now hand back over to Sam for some closing comments. Yeah, thank you very much, operator, and thanks to all of you for joining us today and for our continuous support, and for your continuous support. We look forward to speaking with you next quarter. Thank you. Thank you. Yeah. Thank you very much, everyone. This does conclude today's conference. You may now disconnect your phone lines and have a wonderful day. Thank you for your participation. Thank you very much. Thank you. Have a wonderful day. Thank you.