Exhibit 99.1
J-Long Group Limited Announces First Half 2025 Unaudited Financial Results
HONG KONG, February 21, 2025 (GLOBE NEWSWIRE) -- J-Long Group Limited (“JL” or the “Company”) (NASDAQ: JL), JL conducts its primary operations of apparel trims solution services in Hong Kong, today announced its unaudited financial results for the six months ended September 30, 2024.
Overview:
| ● | Revenue was approximately US$19.0 million for the six months ended September 30, 2024, representing a decrease of approximately 30.6% from the same period in 2023. |
| ● | Net income was approximately US$2.3 million for the six months ended September 30, 2024 (2023: approximately US$1.4 million). |
Six Month Financial Results Ended September 30, 2024
Revenue. Revenue increased by approximately 30.6% from approximately US$14.6 million for the six months ended September 30, 2023, to approximately US$19.0 million for the six months ended September 30, 2024. The growth in revenue during the six-month period ended September 30, 2024, was primarily driven by a rise in orders from key customers, who had previously cleared excess inventory from the prior year.
Selling, general and administrative expenses. Selling, general and administrative expenses increased by approximately 18.3% from approximately US$2.4 million for the six months ended September 30, 2023, to approximately US$2.9 million for the six months ended September 30, 2024, which was mainly due to an increase in payroll to our staff and fees to our directors.
Other income, net. Other net income increased by approximately US$0.2 million from approximately US$0.2 million for the six months ended September 30, 2023, to approximately US$0.4 million for the six months ended September 30, 2024, which was mainly due to an increase in interest income.
Income tax expense. Income tax expense increased to US$0.5 million for the six months ended September 30, 2024 (for the six months ended September 30, 2023: approximately US$0.3 million) which was mainly due to the increase in net income.
Net income. Net income increased by approximately US$0.9 million to approximately US$2.3 million for the six months ended September 30, 2024 (for the six months ended September 30, 2023: approximately US$1.4 million), which was mainly due to the increase in revenue.
Basic and diluted EPS. Basic and diluted EPS were approximately US$0.74 per ordinary share for the six months ended September 30, 2024, as compared to US$0.47 per ordinary share for the six months ended September 30, 2023, respectively.
Liquidity and Capital Resources
As of September 30, 2024, the Company had cash of US$7,706,894, total current assets of US$16,887,672, and total current liabilities of US$6,490,609. Net current assets were US$10,397,063 and the working capital ratio was 2.6. As of September 30, 2024, the Company’s total assets and total liabilities amounted to US$20,024,796 and US$7,543,271, respectively. As of September 30, 2024, the Company’s total stockholder’s equity amounted to US$12,481,525 and its gearing ratio (bank loan divided by stockholder’s equity) was 13.8%.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements, including arrangements that would affect its liquidity, capital resources, market risk support, credit risk support, or other benefits.
About J-Long Group Limited
J-Long Group Limited is an established distributor in Hong Kong of reflective and non-reflective garment trims including, among others, heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers and drawcords. The Company offers a wide range of services to cater to customers’ needs in reflective and non-reflective garment trims, including market trend analysis, product design and development and production and quality control. For more information, visit the Company’s website at http://j-long.com.
Safe Harbor Statement
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC, which are available for review at www.sec.gov.
Hong Kong:
J-Long Group Limited
Edwin Wong, CEO and Director
ir@j-long.com +852 3693 2110
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J-LONG GROUP LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
| As of | ||||||||
| March 31, | September 30, | |||||||
| 2024 | 2024 | |||||||
| USD | USD | |||||||
| (Audited) | (Unaudited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 4,161,818 | 6,706,894 | ||||||
| Restricted cash | 1,000,000 | 1,000,000 | ||||||
| Accounts receivable, net | 2,349,374 | 2,182,222 | ||||||
| Accounts receivable, net – related parties | 33,924 | - | ||||||
| Investment in marketable debt securities | 2,275 | 1,853 | ||||||
| Inventories | 4,449,132 | 4,034,612 | ||||||
| Notes receivable | 143,112 | 917 | ||||||
| Prepaid expenses and other current assets, net | 627,090 | 1,733,208 | ||||||
| Tax recoverable | 938,979 | 768,949 | ||||||
| Due from related parties | 575,341 | 459,017 | ||||||
| Total current assets | 14,281,045 | 16,887,672 | ||||||
| Property, plant and equipment, net | 2,424,572 | 2,514,681 | ||||||
| Right-of-use assets – Operating lease | 85,221 | 11,151 | ||||||
| Other non-current assets | 11,252 | 518,003 | ||||||
| Deferred tax assets | 91,971 | 93,289 | ||||||
| Total non-current assets | 2,613,016 | 3,137,124 | ||||||
| TOTAL ASSETS | 16,894,061 | 20,024,796 | ||||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Bank loans – current | 655,492 | 667,511 | ||||||
| Operating lease liabilities – current – related parties | 88,139 | 11,646 | ||||||
| Accounts payable, accruals and other current liabilities | 1,359,470 | 1,805,032 | ||||||
| Accounts payable – related parties | 1,149,429 | 2,270,622 | ||||||
| Accruals and other current liabilities | 760,992 | 909,311 | ||||||
| Dividend payables | 400,455 | 27,713 | ||||||
| Contract liabilities | 360,475 | 320,941 | ||||||
| Due to related parties | 564,711 | 477,833 | ||||||
| Total current liabilities | 5,339,163 | 6,490,609 | ||||||
| Non-current liabilities | ||||||||
| Bank loans – non-current | 1,381,750 | 1,052,662 | ||||||
| Operating lease liabilities – non-current – related parties | - | - | ||||||
| Total non-current liabilities | 1,381,750 | 1,052,662 | ||||||
| TOTAL LIABILITIES | 6,720,913 | 7,543,271 | ||||||
| Shareholders’ equity | ||||||||
Ordinary shares US$0.000375 par value each; 136,000,000 shares authorized; 3,140,000 shares issued and outstanding respectively (1) | 1,178 | 1,178 | ||||||
| Additional Paid-in Capital | 4,297,632 | 4,297,632 | ||||||
| Retained earnings | 5,874,338 | 8,182,715 | ||||||
| Total shareholders’ equity | 10,173,148 | 12,481,525 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 16,894,061 | 20,024,796 | ||||||
(1) Retroactively adjusted for the effects of the Reverse Stock Split:
On December 9, 2024, J-Long Group Limited implemented a 1-for-10 reverse stock split (share consolidation) of its ordinary shares. As a result, the par value of each share has increased, and the number of outstanding shares has decreased accordingly.
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J-LONG GROUP LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
| For the six months ended September 30, | ||||||||
| 2023 | 2024 | |||||||
| USD | USD | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenues | 14,571,703 | 19,024,229 | ||||||
| Cost of sales | 10,589,566 | 13,735,774 | ||||||
| Gross profit | 3,983,137 | 5,288,455 | ||||||
| Operating expenses: | ||||||||
| Selling and marketing expenses | 1,037,531 | 916,174 | ||||||
| General and administrative expenses | 1,411,237 | 1,981,326 | ||||||
| Total operating expenses | 2,448,768 | 2,897,500 | ||||||
| Income from operations | 1,533,369 | 2,390,955 | ||||||
| Other income, net: | ||||||||
| Other income | 25,816 | 172,783 | ||||||
| Currency exchange gain | 222,203 | 273,999 | ||||||
| Interest expenses, net | (81,420 | ) | (57,540 | ) | ||||
| Total other income, net | 166,599 | 389,242 | ||||||
| Income before tax expense | 1,699,968 | 2,780,197 | ||||||
| Income tax expense | 280,495 | 471,820 | ||||||
| Net income | 1,419,473 | 2,308,377 | ||||||
| Other comprehensive income | ||||||||
| Unrealized gain/losses on investment in marketable debt securities, net of tax | - | - | ||||||
| Total comprehensive income | 1,419,473 | 2,308,377 | ||||||
| Net income per share attributable to ordinary shareholders | ||||||||
| Basic and diluted | 0.47 | 0.74 | ||||||
| Weighted average number of ordinary shares used in computing net income per share | ||||||||
| Basic and diluted | 3,000,000 | 3,140,000 | ||||||
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