The company's operational performance has deteriorated sharply, with revenue falling 88.9% year-over-year and gross margins compressing to 19.3% in 2024Q4.
| Sales/Revenue | 21.99M | 39.08M | 28.38M | 38.29M | 38.29M | 3.03M |
| Revenue Growth % | - | 37.69% | -25.89% | 0% | 1162.28% | - |
| Cost of Goods Sold | 25.92M | 27.82M | 21.58M | 3.63M | 3.81M | 2.44M |
| COGS % of Revenue | - | 71.19% | 76.05% | 9.47% | 9.94% | 80.33% |
| Gross Profit | 5.64M | 11.26M | 6.8M | 1.26M | 1.11M | 596.72K |
| Gross Margin % | 25.64% | 28.81% | 23.95% | 3.29% | 2.9% | 19.67% |
| Gross Profit Growth % | - | 65.61% | 439.87% | 13.27% | 86.28% | - |
| Operating Expenses | 1.45M | 8.86M | 6.42M | 3.81M | 3.33M | 332.32K |
| OpEx % of Revenue | - | 22.67% | 22.61% | 9.94% | 8.68% | 10.95% |
| Selling, General & Admin | 2.8M | 8.4M | 6.05M | 3.48M | 2.83M | 332.32K |
| SG&A % of Revenue | - | 21.5% | 21.32% | 9.08% | 7.38% | 10.95% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 456.31K | 367.38K | 330.16K | 497.84K | 0 |
| Operating Income | 2.84M | 2.4M | 380.3K | 6.23M | 5.53M | 2.05M |
| Operating Margin % | 12.9% | 6.14% | 1.34% | 16.28% | 14.44% | 67.57% |
| Operating Income Growth % | - | 530.63% | -93.9% | 12.7% | 169.81% | - |
| EBITDA | 3.02M | 2.62M | 528.07K | 6.25M | 5.73M | 2.08M |
| EBITDA Margin % | 13.71% | 6.7% | 1.86% | 16.33% | 14.97% | 68.46% |
| EBITDA Growth % | - | 396.09% | -91.56% | 9.09% | 176.06% | - |
| D&A (Non-Cash Add-back) | 177.79K | 221.39K | 147.77K | 21.59K | 202.82K | 27.06K |
| EBIT | 5.29M | 3.3M | 1.06M | 6.23M | 5.53M | 264.4K |
| Net Interest Income | 101.42K | -16.19K | -215.94K | 135.62K | 75.92K | -37.83K |
| Interest Income | 128.32K | 0 | 0 | 135.62K | 75.92K | 0 |
| Interest Expense | 26.91K | 16.19K | 215.94K | 0 | 0 | 37.83K |
| Other Income/Expense | 1.24M | 771.65K | 530.2K | 1.52M | -170.41K | 566.6K |
| Pretax Income | 4.05M | 3.17M | 910.5K | 7.75M | 5.36M | 337.48K |
| Pretax Margin % | 18.43% | 8.11% | 3.21% | 20.25% | 14% | 11.12% |
| Income Tax | 480.51K | 657.57K | 126.84K | 1.1M | 876.4K | 47.01K |
| Effective Tax Rate % | 11.86% | 20.74% | 13.93% | 14.16% | 16.35% | 13.93% |
| Net Income | 3.1M | 2.59M | 783.66K | 6.66M | 4.48M | 290.47K |
| Net Margin % | 14.09% | 6.64% | 2.76% | 17.38% | 11.71% | 9.57% |
| Net Income Growth % | - | 230.91% | -88.23% | 48.45% | 1443.59% | - |
| Net Income (Continuing) | 3.65M | 2.51M | 783.66K | 6.66M | 4.48M | 290.47K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 405.12K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.99 | 0.83 | 0.26 | 2.12 | 1.43 | 0.09 |
| EPS Growth % | - | 219.23% | -87.74% | 48.25% | 1445.95% | - |
| EPS (Basic) | - | 0.83 | 0.26 | 2.12 | 1.43 | 0.09 |
| Diluted Shares Outstanding | 3.14M | 3.14M | 3.02M | 3.14M | 3.14M | 3.14M |
| Basic Shares Outstanding | 3.14M | 3.14M | 3.02M | 3.14M | 3.14M | 3.14M |
| Dividend Payout Ratio | - | 15.44% | 213.96% | - | 8.45% | 68.32% |
Extreme Revenue Volatility
According to the most recent quarterly financial statements, J-Long Group experienced a dramatic 88.9% year-over-year revenue decline, signaling a significant disruption in demand that contrasts sharply with the growth patterns observed in previous periods where the company benefited from seasonal apparel production cycles.
The precipitous drop in revenue to $1.8 million suggests that the company's reliance on specific apparel brand cycles may be creating extreme top-line volatility. Investors should monitor whether this contraction represents a structural loss of market share or merely a temporary timing mismatch in order fulfillment.
As reported in the latest income statement, gross margins compressed to 19.3% from historical levels exceeding 26%, indicating that the company is struggling to maintain pricing power or absorb fixed costs effectively during this period of significantly reduced operational throughput.
The decline in gross margin suggests that the company may be forced to offer pricing concessions to retain customers or that it is failing to achieve the economies of scale necessary to cover its procurement costs. This margin erosion warrants further investigation into whether the company's value-added services are being commoditized.
Based on the reported figures, the company's operating income swung to a loss of $147.5K, demonstrating that the firm lacks the cost flexibility to protect profitability when revenue experiences such a severe and sudden decline in its core apparel manufacturing segment.
The shift to an operating loss highlights the risks inherent in the company's current cost structure, which appears to have significant fixed components that do not scale down with revenue. This lack of operating leverage suggests that the business model may be highly sensitive to even minor fluctuations in order volume.
Financial data indicates that the company's net margin plummeted to -36.0% in the most recent quarter, raising serious questions about the viability of the current operating model if the observed revenue volatility persists beyond a single reporting period.
Short-term observers might argue that the recent performance is an outlier, yet the magnitude of the loss suggests that the company's reliance on a narrow set of apparel clients may be a structural weakness. The inability to maintain profitability during a downturn suggests that the company's competitive moat may be thinner than previously assumed.
Quick answers to the most common questions about buying JL stock.
For fiscal year 2025, J-Long Group Limited (JL) reported total revenue of $39.1M. This represents a 1188.1% increase compared to $3.0M in 2021.
J-Long Group Limited (JL) is profitable, generating $2.6M in net income for the fiscal year ending 2025 with a net profit margin of 6.6%.
J-Long Group Limited (JL) reported an operating income of $2.4M, resulting in an operating profit margin of 6.1%. This margin reflects the operational efficiency of the business before interest and taxes.
J-Long Group Limited (JL) generated $11.3M in gross profit for the year, representing a gross profit margin of 28.8%. This demonstrates the company's core pricing power and production efficiency.