Company: JL
Filing Date: 2025-05-20
Form Type: 20-F/A
Source: 0001213900-25-045507
Chunk: 18

Company: J-Long Group Ltd
Filing Date: 2025-05-20
Form: 20-F/A
Chunk 18
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 non-reflective garment trims, which is neither a prohibited nor a restricted industry on the Negative List (2024) as promulgated by the National Development and Reform Commission (the “NDRC”) and the Ministry of Commerce pursuant to the Foreign Investment Law. Therefore, our holding company structure is not used to provide investors with exposure to foreign investment in China-based companies where Chinese law prohibits direct foreign investment in the operating companies. However, the PRC government may implement changes to the existing laws and regulations in the future, which may result in the prohibition or restriction of foreign investors from owning equity interests in our PRC operating subsidiary. The holding company structure involves unique risks to investors. As a holding company, we may rely on dividends from our Operating Subsidiary, JLHK, for cash requirements, including any payment of dividends to our shareholders. The ability of our Operating Subsidiary to pay dividends or make distributions to us may be restricted by laws and regulations applicable to it. In addition, if our Operating Subsidiary incurs debt on its own behalf, the instruments governing its debt may restrict its ability to pay dividends to us. 10 Further, we are subject to risks due to uncertainty of the interpretation and the application of the PRC laws and regulations, including but not limited to, limitations on foreign ownership and regulatory review of overseas listings of PRC companies, and the validity and enforcement of such structures. We are also subject to the risks of uncertainty of any future actions of the PRC government in this regard that could disallow the holding company structure, which could result in a material change in the operations of our Hong Kong Operating Subsidiary, JLHK, and/cause the value of our securities to decrease significantly or become worthless. Hong Kong is a special administrative region of the PRC. As such, we are subject to certain legal and operational risks associated with our operations in Hong Kong, including changes in the legal, political and economic policies of the PRC government, the relationship between China and the United States, and the fact that Chinese or United States regulations may materially and adversely affect our business, financial condition and results of operation. We are aware that recently, the PRC government initiated a series of regulatory actions and new policies in certain areas to regulate business operations in China with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas using a VIE structure, adopting new measures to extend the scope of cybersecurity review and expanding the efforts in anti