Jerash Holdings (US), Inc.

Greetings and welcome to the Juresh Third Quarter Fiscal 2021 Results Conference Call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I'd now like to turn the conference over to your host, Matt Kreps, Investor Relations for Juresh Holdings. Please go ahead, Mr. Kreps.

Thank you, and good morning, and welcome to the Juresh Holdings fiscal third quarter 2021 results conference call. Joining the call today is Sam Choi, our chief executive officer, Gilbert Lee, our chief financial officer, and Eric Tang, who leads our operations in Jordan. Our quarterly results press release was issued earlier today and available in the investor relations section of our website at www.juresholdings.com. Today's call is being recorded and will be available for playback on that site. All participants will be in a listen-only mode. Should you need assistance, please signal the operator by pressing the star key followed by zero. The operator will provide a detailed reminder of the Q&A instruction once management has completed their prepared remarks on today's call. Before we begin, a quick reminder about forward-looking statements made during the course of this call. Statements made by Juresh Management during the course of this presentation They're not purely historical, maybe forward-looking statements and are subject to the safe harbor protection available under the applicable securities laws. Important factors that could cause actual results to differ materially from those in our forward-looking statements are discussed in our funds with the SEC. In particular, our most recent Form 10-K and Form 10-Q. These documents are available in the investor relations section of our website under the link to SEC filings. We do not update our forward-looking statements. The company undertakes no obligation to publicly release the results of any revision to its forward-looking statements, which may be made to reflect events or circumstance after the date hereof, or to reflect the occurrence of unanticipated events. And with that, I will now turn the call over to Sam Choi. Please go ahead.

Thank you, Mac. And hello to everyone joining us on the call today. Our December quarter demonstrates most of the typical seasonality in our business, but the most important parts of the quarter are not in the financial reports. With orders collected during the quarter, we are now set up for not only a 38% plus revenue increase in the fourth quarter, but also a record fiscal 2022 starting April 1st. That includes significant revenue growth in our first and second quarters, ending in June and September. That would generate three quarters in a row of strong year-over-year growth and take us back to gross margins in the high teens, driving better performance through the income statement. We have taken a conservative stance out of prudence during the past few quarters, and it has served us well and we are now back to growth. Right now, we are almost halfway through our fiscal fourth quarter, which we expect will show significant year-over-year growth compared to last year. We also expect a rise in gross margin back to our historical average range. We believe this will result in full recovery to last year's second have revenue levels and year-end revenue in excess of the $85 million we target for the full year. Orders for the first six months of fiscal 2022 have our jet-lag and outerwear capacity sold out even above our internal capacity through September at revenue levels that would lead to quarterly results near or about our prior record quarterly revenue of $33.5 million. Achieving those targets would place the rest on track to reach revenue well above $100 million, and we ensure our initial guidance to support our enthusiasm for this outlook. When the COVID pandemic first emerged, We initially saw cancellation from our customers. Then most of those orders were swiftly reinstate and any excess capacity taken by other doctors' customers. While that was good news, the timing of shipment over the past few quarters was more fluid than in prior years, which is what you are seeing in our third and fourth quarters result right now. This is certainly a positive recovery and direct volumes has been less impact than sales in our end customers, indicating that they have prioritized production at our facilities to ensure access to high quality and zero tariffs. Based on this order, we are now acting very fast to increase capacity in our existing facilities and secure additional capacity to meet their quantity needs. Revenues in this December quarter was 20.7 million, down 19% from 25.4 million a year ago, due to timing of shipment, which is when we recognize the revenue. As such, our fourth quarter is expected To be in excess of 20 million, up from 44 million a year ago, an increase of 39%. Taking all together, our second half-revenue will be fully recovered to pre-COVID levels and more easily distributed than in the past years, a positive move for our business overall. Gross margins declined in the quarter to 12%, mainly due to mix as we shipped higher volumes of local and discount stores in the December quarter. And we'll be shipping heavily of major brand orders with higher margins in the fourth quarter. As a result, we expect fourth quarter's gross margin to be at least 18% compared to 9% a year ago. We are excited for the next nine months as we return to growth and higher margins and can return to investment in our growth through capacity expansion and the relaunch of our construction plans for new buildings on our land in the industrial zone. With that, I will turn the call over to Eric to discuss our factory operation in Jordan Then Gilbert will cover some financial data.