Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 51

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 51
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 dividends or have sufficient liquidity to meet operating and capital expenditure requirements. Any such acceleration
could cause us to lose a substantial portion of our assets and would substantially adversely affect our ability to continue our operations.

We
face risks associated with seasonal fluctuations in demand.

As
our customers are mainly owners of apparel brands, their apparel manufacturers and local buying offices of apparel brands and the orders
for our products are generally highest (i) from December to March each year as they generally place more orders after the Chinese
New Year in anticipation of the production of apparel products for the upcoming sales in fall and winter and (ii) from July to October
each year in anticipation of the production of apparel products for the upcoming sales in spring and summer. We expect to continue to
experience seasonal fluctuations.

Therefore,
our operating results for a certain period within a calendar year, or between any interim periods, may not correctly indicate our performance
for the entire calendar year. Prospective investors should be aware of this seasonal fluctuation when making any comparison of our operating
results.

We
may be exposed to product returns and product liability claims.

We
distribute materials and products supplied by our U. S. licensor and our suppliers, some of which may be defectively designed or manufactured.
We have a quality control team which performs regular sample check in accordance with our internal quality standard and the requirements
of our customers and for any defect materials and products, we usually return the defective product and request our U. S. licensor and
suppliers to rectify by replacing the defective product. If it cannot be replaced, we will seek to source similar alternatives and propose
to our customers and if that is not acceptable, the customer may request a refund. For the fiscal years ended March 31, 2025 and
2024, we did not receive any material order or claims from our customers in this regard and have not encountered any material product
return request from our customers. However, as the materials and products provided to our customers may be manufactured into consumer
products, we may still be exposed to product liability claims if the products and materials distributed by us are defective. Although
we may have legal recourse against our U. S. licensor and our suppliers for the defective materials and products, the enforcement of our
rights may be expensive, time-consuming and ultimately futile. As a result, any material product liability claim, or related litigation
may have a material and adverse effect on our business, financial condition and results of operations. Even unsuccessful claims could