EX-99.1 2 ea027018901ex99-1_jlong.htm PRESS RELEASE, DATED DECEMBER 23, 2025

Exhibit 99.1

 

 

J-Long Group Limited Announces First Half 2025 Unaudited Financial Results

 

HONG KONG, December 23, 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, 2025.

 

Overview:

 

  Delivers Strong First Half 2025 Results: Revenue growth by 19.3% and Adjusted EBITDA growth by 40.3% compared to the same period in 2024

 

  Revenue was approximately US$22.7 million for the six months ended September 30, 2025, representing a strong growth of approximately 19.3% from the same period in 2024 on robust customer demand.

 

  Adjusted EBITDA was approximately US$3.9 million for the six months ended September 30, 2025, achieving 40.3% growth with the same period in 2024 (2024: approximately US$2.8 million).

 

“We are very pleased with our strong first-half results and encouraged by the continuing positive momentum in our business,” said Edwin Chun Yin Wong, Chief Executive Officer. “Driven by robust customer demand and favorable feedback on our recent product developments, along with a healthy pipeline of inquiries, we anticipate continued strong performance through the end of the fiscal year and believe we are well positioned for future revenue growth.”

 

Use of Non-GAAP Financial Measure

 

We use earnings before interest expenses and income, income tax expense/(benefit) and depreciation, and amortization ("EBlTDA”) and adjusted EBITDA, non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. EBlTDA represents net profit excluding income tax expense/(benefit), interest expenses, interest income and depreciation and amortization. Adjusted EBITDA represents net loss excluding changes in share-based awards expense, income tax expense/(benefit), interest expense, interest income and depreciation and amortization.

 

We believe that the adjusted EBITDA helps to identify underly trends in our business that could otherwise be distorted by the effect of certain expenses that we are included in net loss. We believe that adjusted EBITDA provided useful information about our operating results, enhance the overall understanding of our past performance and future prospect and allow for greater visibility with respect to key metrics used by our management uses in its financial and operational decision making, In additions, the company provides EBITDA because we believe that investors and analysts may find it useful in measuring operating performance without regard to items such as income tax expense/(benefit), interest expenses and interest income and depreciation and amortization.

 

 

 

   For the six months ended
September 30,
 
   2024   2025 
   USD   USD 
   (Unaudited)   (Unaudited) 
Net income attributable to ordinary shareholders   2,308,377    2,302,875 
Add:          
Income tax expense   471,820    676,643 
Interest expenses   57,540    35,221 
Interest income   (115,827)   (209,466)
Depreciation   85,350    176,626 
EBITDA   2,807,260    2,981,899 
Add:          
Share-based awards   -    955,916 
Adjusted EBITDA   2,807,260    3,937,815 

 

Six Month Financial Results Ended September 30, 2025

 

Revenue. Revenue increased by approximately 19.3% from approximately US$19.0 million for the six months ended September 30, 2024, to approximately US$22.7 million for the six months ended September 30, 2025. The growth in revenue during the six-month period ended September 30, 2025, was driven by stronger demand from key customers.

 

Selling, general and administrative expenses. Selling, general and administrative expenses increased by approximately 59.5% from approximately US$2.9 million for the six months ended September 30, 2024, to approximately US$4.6 million for the six months ended September 30, 2025, which was mainly due to share-based awards recognized in respect of awards granted to five members.

 

Other income, net. Other net income increased by approximately US$0.1 million from approximately US$0.4 million for the six months ended September 30, 2024, to approximately US$0.5 million for the six months ended September 30, 2025, which was mainly due to an increase in interest income.

 

Income tax expense. Income tax expense increased to US$0.7 million for the six months ended September 30, 2025 (for the six months ended September 30, 2024: approximately US$0.5 million) which was mainly due to the increase in income before tax in the current period.

 

Net income. For the six months ended September 30, 2025, net income was approximately US$2.3 million, consistent with the prior year period (2024: approximately US$2.3 million).

 

Basic and diluted EPS. Basic and diluted EPS were approximately US$0.62 per ordinary share for the six months ended September 30, 2025, as compared to US$0.74 per ordinary share for the six months ended September 30, 2024, respectively.

 

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Liquidity and Capital Resources

 

As of September 30, 2025, the Company had cash of US$11,358,839, total current assets of US$20,371,822, and total current liabilities of US$7,289,739. Net current assets were US$13,082,083 and the working capital ratio was 2.8. As of September 30, 2025, the Company’s total assets and total liabilities amounted to US$25,663,983 and US$8,625,254, respectively. As of September 30, 2025, the Company’s total stockholder’s equity amounted to US$17,038,729 and its gearing ratio (bank loan divided by stockholder’s equity) was 6.2%.

 

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 Chun Yin 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, 
   2025   2025 
   USD   USD 
   (Audited)   (Unaudited) 
Assets        
Current assets:        
Cash and cash equivalents   10,669,134    11,358,839 
Accounts receivable, net   3,102,393    4,231,847 
Investment in marketable debt securities   2,220    2,220 
Inventories   3,066,276    3,163,816 
Notes receivable   103,522    - 
Prepaid expenses and other current assets, net   2,027,376    1,615,100 
Due from related parties   4,634    - 
Total current assets   18,975,555    20,371,822 
Property, plant and equipment, net   3,224,673    3,493,481 
Right-of-use assets – Operating lease   983,097    1,531,941 
Other non-current assets   178,786    174,713 
Deferred tax assets   92,026    93,026 
Total non-current assets   4,478,582    5,292,161 
TOTAL ASSETS   23,454,137    25,663,983 
           
Liabilities          
Current liabilities:          
Bank loans – current   685,016    702,949 
Operating lease liabilities – current   153,579    435,701 
Operating lease liabilities – current – related parties   251,567    149,188 
Accounts payable   1,964,406    1,716,120 
Accounts payable – related parties   2,302,962    1,779,196 
Accruals and other current liabilities   679,227    787,799 
Contract liabilities   427,110    140,235 
Loan from related parties   200,000    429,175 
Income taxes payable   423,693    1,105,748 
Total current liabilities   7,087,560    7,289,739 
           
Non-current liabilities          
Bank loans – non-current   706,811    345,859 
Operating lease liabilities – non-current   593,749    989,656 
Operating lease liabilities – non-current – related parties   21,617    - 
Total non-current liabilities   1,322,177    1,335,515 
TOTAL LIABILITIES   8,409,737    8,625,254 
           
Shareholders’ equity          
Class A ordinary shares (US$0.000375 par value each; 133,000,000 shares authorized; 1,652,701 shares issued and outstanding respectively) (1)   1,410    615 
Class B ordinary shares ($US$0.000375 par value per share, 3,000,000 shares authorized; 2,109,000 issued and outstanding as of September 30, 2025) (1)   -    795 
Additional Paid-in Capital   6,193,646    6,193,646 
Accumulated other comprehensive income/(loss)   (23,364)   (86,874)
Non-controlling interests   405,122    388,585 
Treasury stock   -    (245,037)
Retained earnings   8,467,586    10,786,999 
Total shareholders’ equity   15,044,400    17,038,729 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   23,454,137    25,663,983 

 

(1) Retroactively adjusted for the effects of the Share Re-designation and Re-classification:

 

On August 7, 2025, the Company implemented the re-designation and re-classification of its issued and unissued ordinary shares of par value US$0.000375 each in the share capital of the Company into Class A ordinary shares (1 vote per share) and Class B ordinary shares (20 votes per share), effective the same day. As a result, the 136,000,000 ordinary shares in the share capital of the Company were re-designated into 133,000,000 Class A ordinary shares and 3,000,000 Class B ordinary shares, and all the then issued 3,761,701 ordinary shares were concurrently re-designated and re-classified on a one-for-one basis into 1,652,701 Class A ordinary shares and 2,109,000 Class B ordinary shares.

 

(2) Share Repurchase Program:

 

On September 15, 2025, the board of directors of the Company approved a share repurchase program authorizing the repurchase of up to US$5,000,000 of the Company’s Class A ordinary shares in the open market over the next six months. The Company has commenced repurchases under the program.

 

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J-LONG GROUP LIMITED 

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

 

   For the six months ended
September 30,
 
   2024   2025 
   USD   USD 
   (Unaudited)   (Unaudited) 
Revenues   19,024,229    22,699,837 
Cost of sales   13,735,774    15,620,656 
Gross profit   5,288,455    7,079,181 
           
Operating expenses:          
Selling and marketing expenses   916,174    1,978,757 
General and administrative expenses   1,981,326    2,641,384 
Total operating expenses   2,897,500    4,620,141 
           
Income from operations   2,390,955    2,459,040 
           
Other income, net:          
Other income   172,783    256,991 
Currency exchange gain   273,999    298,708 
Interest expenses, net   (57,540)   (35,221)
Total other income, net   389,242    520,478 
           
Income before tax expense   2,780,197    2,979,518 
Income tax expense   471,820    676,643 
Net income attributable to ordinary shareholders   2,308,377    2,302,875 
           
Net income (loss) attributable to non-controlling interest   -    (16,538)
           
Net income attributable to J-LONG GROUP LIMITED   2,308,377    2,319,413 
           
Other comprehensive income/(loss)          
Foreign currency translation adjustments   -    (36,176)
Total other comprehensive income   2,308,377    2,283,237 
           
Comprehensive income attributable to ordinary shareholders   2,308,377    2,283,237 
           
Comprehensive income attributable to non-controlling interest   -    (16,538)
           
Total comprehensive income attributable to J-LONG GROUP LIMITED   2,308,377    2,266,699 
           
Net income per share attributable to ordinary shareholders          
Basic and diluted   0.74    0.62 
Weighted average number of ordinary shares used in computing net income per share          
Basic and diluted   3,140,000    3,760,517 

 

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