Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 189

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 18
Chunk 189
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 the Company and its subsidiaries. All inter-company transactions and balances between
the Company and its subsidiaries have been eliminated upon consolidation

Public Offering of
Shares

On
January 26, 2024, the Company completed an initial public offering (the “ IPO”) of1,400,000(pre-Reverse Stock Split)
of its ordinary shares, par value $0.0000375per share (the “ Shares”), at a public offering price of $5.00per
share for total gross proceeds of USD7,000,000before deducting underwriting discounts and commissions.

Reverse Stock Split

As of December 5, 2024,
every10shares of the Company’s issued and outstanding Ordinary Shares were combined into one issued and outstanding Ordinary
Share. The total number of authorized Ordinary Shares were reduced from31,400,000to3,140,000, and the par value changed to $0.000375per share.

F-8

J-LONG GROUP LIMITED

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of estimates

The preparation of financial
statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the
reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to allowance for uncollectible
accounts receivable and other receivable, inventory valuation and assessment of impaired securities to determine whether or not the securities
are other-than-temporarily impaired. Management believes that the estimates utilized in preparing its consolidated financial statements
are reasonable and prudent. Actual results could differ from these estimates.

Risks and uncertainties

The main operations of the
Company are located in Hong Kong. Accordingly, the Company’s business, financial condition, and results of operations may
be influenced by political, economic, and legal environments in Hong Kong, as well as by the general state of the economy in Hong Kong.
The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in Hong Kong.
Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations
including its organization and structure disclosed in Note 1, such experience may not be indicative of future results.

The Company’s business,
financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather
conditions, health epidemics and other catastrophic incidents, which