J‑Long Group Limited reported first‑half 2025 results that showed a 19.3% year‑over‑year increase in revenue to US$22.7 million, driven by stronger demand from key apparel‑trim customers. Net income held steady at US$2.3 million, matching the prior year’s figure, while basic and diluted earnings per share fell to US$0.62 from US$0.74 in the same period a year earlier.
Revenue growth was supported by robust demand across the company’s core product lines, including reflective and non‑reflective garment trims such as heat transfers, woven labels, and zipper pullers. The company’s focus on high‑margin specialty trims helped offset any pressure from lower‑margin commodity trims, keeping the top line on an upward trajectory.
Operating margins contracted as selling, general and administrative expenses surged 59.5% to US$4.6 million, largely due to share‑based awards. The higher expense load, combined with an increase in shares outstanding, explains why earnings per share declined despite flat net income. The company’s management highlighted that the share‑based awards are part of a broader strategy to attract and retain talent in a competitive market.
Liquidity remained strong, with a cash balance of US$11.36 million and a working‑capital ratio of 2.8, indicating ample short‑term resources to support ongoing operations and potential capital investments.
CEO Edwin Chun Yin Wong expressed confidence in the company’s trajectory, noting that “robust customer demand and positive feedback on product developments” underpin the results. He also mentioned a share repurchase program of up to US$5 million, underscoring management’s commitment to shareholder value.
The results underscore J‑Long Group’s ability to grow revenue while managing costs, but the margin compression signals the need for continued focus on operational efficiency as the company scales its business.
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