Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 4

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 4
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 Annual Report.                                                              
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  Transfers                             

We are a holding company
incorporated in the Cayman Islands with no material operations of our own, and we conduct our operations primarily through our Operating
Subsidiaries in Hong Kong and Vietnam, J-Long Limited (“ JLHK”) and J-Long Trims Vietnam Co. (“ JLVN”), Ltd respectively.
As a result of our corporate structure, our ability to pay dividends may depend upon dividends paid by JLHK or JLVN. If JLHK, JLVN, or
any newly formed operating subsidiary incurs debt on its own behalf in the future, the instrument governing its debt may restrict its
ability to pay dividends to us.

Our management monitors
the cash position of the Company and our Operating Subsidiaries regularly and prepares budgets on a monthly basis to ensure it has the
necessary funds to fulfill its obligations for the foreseeable future and to ensure adequate liquidity. In the event that there is a
need for cash or a potential liquidity issue, it will be reported to our Chief Financial Officer and subject to approval by our board
of directors.

The ability of the Company
to transfer cash to its subsidiaries is subject to the following: The Company is permitted under the laws of the Cayman Islands and its
memorandum and articles of association (as amended from time to time) to provide funding to our subsidiaries incorporated in the BVI
and Hong Kong through loans or capital contributions. The Company’s subsidiaries formed under the laws of the BVI, Stratum
Star and Alpine Eagle, are permitted under the laws of the BVI to provide funding to our Hong Kong Operating Subsidiary. The HK
Operating Subsidiary is subject to certain restrictions laid down in the BVI Business Companies Act 2004 (as amended) and memorandum
and articles of association of the relevant Company’s subsidiaries incorporated under the laws of the BVI.

The
ability of Stratum Star and Alpine Eagle, the direct subsidiaries of the Company, to transfer cash to the Company is subject to the following:
according to the BVI Business Companies Act 2004 (as amended), Stratum Star and Alpine Eagle may make dividends distribution to
the extent that immediately after the distribution, the value of the company’s assets exceeds its liabilities and that such company
is able to pay its debts as they fall due.

The ability of JLHK to transfer