Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 116

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 5
Chunk 116
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 Income

As a result of the foregoing,
our net profit increased by 48.5% to $6,656,151 for the fiscal year ended March 31, 2023, from $4,483,642 for the fiscal year ended March
31, 2022. Due to the improved gross profit margin and increased other income, our net profit margin improved to 17.4% for the fiscal
year ended March 31, 2023 from 11.7% for the fiscal year ended March 31, 2022.

LIQUIDITY AND CAPITAL RESOURCES

Cash Flow

Our use of cash is primarily
related to operating activities and repayment of bank loans for normal business operation, we also use cash for payment of dividends.
We have historically financed our operations primarily through our cash flow generated from our operations and we also received $6,340,537
of net proceeds from our initial public offering.

The table below summarizes
our cash flows information for the years as indicated:

                                                                   For the fiscal year ended                                                                      
                                                                   March 31,                                                                                      
                                                                   2023                                           2024                      2025                  
                                                                   US$                                            US$                       US$                   
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Cash and cash equivalents and restricted cash at                                                 7,362,748                 5,959,927                 5,161,818  
  Net cash provided by (used in) operating activities                                              1,958,323                (1,500,098                 7,226,013  
  Net cash provided by (used in) investing activities                                              2,061,606                        17                (1,021,495  
  Net cash provided by (used in) financing activities                                             (5,422,750                   701,972                  (669,868  
  Effect of exchange rate changes on cash                                                                                                                (27,334  
  Cash and cash equivalents and restricted cash at the end of                                      5,959,927                 5,161,818                10,669,134  

Operating Activities

Cash flows from operating
activities reflected net income for the year adjusted for non-cash items such as depreciation, gain on disposal of property, plant and
equipment, provision for inventories, credit loss, deferred tax expenses, non-cash operating lease expense, share-based compensation
and changes in working capital.

Net cash provided by operating activities was $