Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 29

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 29
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 an issuer’s securities from trading on any U. S. stock exchanges if its auditor is not subject to PCAOB inspections
for two consecutive years instead of three, and thus, reduced the time before our Ordinary Shares may be prohibited from trading or delisted.

The
SEC is assessing how to implement other requirements of the HFCA Act, including the listing and trading prohibition requirements described
above. Future developments in respect to increasing U. S. regulatory access to audit information are uncertain, as the legislative
developments are subject to the legislative process and the regulatory developments are subject to the rule-making process and other
administrative procedures.

While
we understand that there has been dialogue among the CSRC, the SEC, and the PCAOB regarding the inspection of PCAOB registered accounting
firms in mainland China and Hong Kong, there can be no assurance that we will be able to comply with requirements imposed by U. S. regulators
if there is significant change to current political arrangements between mainland China and Hong Kong or if any component of our
auditor’s work papers become located in mainland China in the future. Delisting of our Ordinary Shares would force holders of our
Ordinary Shares to sell their Ordinary Shares. The market price of our Ordinary Shares could be adversely affected as a result of anticipated
negative impacts of these executive or legislative actions, regardless of whether these executive or legislative actions are implemented
and regardless of our actual operating performance.

The
recent joint statement by the SEC, proposed rule changes submitted by Nasdaq, and an act passed by the U. S. Senate and the U. S. House
of Representatives all call for additional and more stringent criteria to be applied to emerging market companies. These developments
could add uncertainties to our offering, business operations, share price, and reputation.

U. S. public
companies with substantially all of their operations in China (including in Hong Kong) have been the subject of intense scrutiny,
criticism, and negative publicity by investors, financial commentators, and regulatory agencies, such as the SEC. Much of the scrutiny,
criticism, and negative publicity has centered on financial and accounting irregularities and mistakes, a lack of effective internal
controls over financial accounting, inadequate corporate governance policies, or a lack of adherence thereto and, in many cases, allegations
of fraud.

On
December 7, 2018, the SEC and the PCAOB issued a joint statement highlighting continued challenges faced by the U. S. regulators
in their oversight of financial statement audits of U. S