Company: JL
Filing Date: 2025-04-03
Form Type: 20-F/A
Source: 0001213900-25-028675
Chunk: 108

Company: J-Long Group Ltd
Filing Date: 2025-04-03
Form: 20-F/A
Chunk 108
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 zipper pull products, as customer demand was not as high as the previous fiscal year. Drawcord products, on the other hand, recorded a significant increase in sales. As China and Hong Kong abolished almost all COVID-19 measures in January 2023, i.e. the fourth fiscal quarter of 2023, our directors expected that the supply chain issues within China would gradually normalize and would not pose significant long term risk to our operations, but its impact was yet to be reflected for the 2023 fiscal year. As a result of the lockdown, sales generated from China saw a decline while non-Asia sales recorded significant growth as revenue increased by $3,541,295 to $8,236,692 for the fiscal year ended March 31, 2023, from $4,695,397 for the fiscal year ended March 31, 2022 due to the growing demand of American clients as the global supply chain normalized. Cost of Sales Our cost of sales is comprised of direct materials and sub-contractor fees. Cost of sales decreased by 4.0% to $28,253,752 for the fiscal year ended March 31, 2023, from $29,436,421 for the fiscal year ended March 31, 2022. For the fiscal year ended March 31, 2023, our processing and packaging costs decreased due to an increase in the proportion of sales of products with lower processing and packaging costs. On the other hand, we sold a larger volume of products that had a higher profit margin to certain key customers, resulting in a lower level of cost of sales as compared to a relatively steady revenue level in fiscal year 2023. Gross Profit Our gross profit increased by 13.4% to $10,038,645 for the fiscal year ended March 31, 2023, from $8,855,991 for the fiscal year ended March 31, 2022. The increase in gross profit was mainly due to increased sales to certain key customers, and an increase in the proportion of sales of products with lower processing and packaging costs, which produced a better profit margin. As a result of the above and given the increase in our selling prices, our gross profit margin was slightly improved to 26.2% for the fiscal year ended March 31, 2023, as compared to 23.1% for the fiscal year ended March 31, 2022. 67 Selling and Marketing Expenses Selling and marketing expenses are primarily comprised of marketing and