JRSH Jerash Holdings US Inc

Item 8.01 Other Events

Completion of the Acquisition of Ever Winland Limited

On August 29, 2022, Treasure Success International Limited (“Treasure Success”), a wholly owned Hong Kong subsidiary of Jerash Holdings (US), Inc. (the “Company”), completed the previously announced acquisition of Ever Winland Limited (“Ever Winland”), a Hong Kong company, pursuant to a Purchase and Sale Agreement (the “Purchase Agreement”) dated June 22, 2022 with Wong Bing Lun and Chow Lai Ming (the “Sellers”). The Sellers are independent from all directors and officers of the Company, and the Company itself. Pursuant to the Purchase Agreement, the Sellers sold, and Treasure Success purchased, 100% of the ownership interests in, and the Sellers’ benefit of the shareholder/director loans owed to, Ever Winland for a consideration of HKD39.6 million.

Ever Winland solely holds the title to Unit A on the 19th Floor of “Ford Glory Plaza,” a 2009 built industrial building located at No. 37 Wing Hong Street, Kowloon, Hong Kong (the “Property”), which unit is a business office space of approximate 5,735 square feet. The Company, through Treasure Success, has leased the Property since October 2016 and has been using it as offices for the Company’s management, sales and marketing team, merchandising team, and supporting teams, including shipping and accounting.

The Company acquired the Property mainly to maintain continuity of its operation and to avoid high set up and moving costs for a new office. Owning the Property will also allow the Company to save rental expenses, which may increase due to anticipated inflation. The board of directors of the Company has reviewed and unanimously approved the transaction after reviewing a written report from an independent valuation company. The Company also engaged an independent legal advisor to conduct due diligence on Ever Winland and the Property and received satisfactory results before proceeding to completion.

The foregoing description of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Purchase Agreement, which was filed as Exhibit 10.19 to the Company’s Annual Report on Form 10-K filed on June 27, 2022 and is incorporated herein by reference.