Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 85

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 4
Chunk 85
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 warehouse
and storage facilities in Hong Kong. We source a majority of our products and materials when our customers confirm their purchase
orders with us. If a certain type of material or product has been repeatedly ordered in a particular quarter, our procurement team will
discuss with our management whether to place a bulk order of that specific material or product for use in the coming two to six months.
Towards the end of each quarter, our procurement team also discusses with our management and our sales and marketing teams the estimated
quantity required for the following quarter.

As
an authorized distributor of our licensed U. S. brand, we also have non-mandatory procurement targets under the license agreement.
Although there is no penalty for not meeting our targets, we maintain a certain level of inventory of materials of our licensed U. S. brand
and procure more if the level of inventory of the materials or products of our licensed U. S. brands falls below the threshold as
determined by our management and relevant inventory management staff. Our inventory management staff normally discusses the inventory
level with our management at least once every quarter.

As
the supply of the materials and products under our licensed U. S. brand originates from the United States, the suppliers are
generally able to deliver to us the materials and products we ordered within a period of six to eight weeks upon receipt of our
orders.

Seasonality

The
apparel market exhibits seasonality with dynamic changes in trends and consumers’ preferences depending on the time of year. We
experience peak seasons typically from December to March each year as the apparel brands and their apparel manufacturers generally place
more orders prior to Chinese New Year in anticipation of the production of apparel products. We normally experience a drop in orders
in May each year following the peak season orders.

Quality
Control

We
are committed to a high standard of quality control in all aspects of our operations. The following describes the quality control practices
we use in the design, production and delivery of our products:

  Purchase                                                                                                                              

  Production                                                                                                                                 

Competition

The
industry in which we operate is large, fragmented and highly competitive. We face fierce competition among service providers in terms
of the product design, price, quality control and delivery of products. Our competitors include other apparel labels and trim
products companies. While the market is fragmented, many of our direct competitors operate on a larger scale and have substantially greater
resources than us. Access to offshore manufacturing and the growth of e-commerce have made it easier for new companies to enter the