Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 42

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 42
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 operations.

Our profitability depends
on the cost of procuring the materials and products from our materials suppliers and manufacturing services suppliers and increases for
the price of the relevant raw materials may lead to an increase in price from our suppliers for our procurement of the materials and
products. Since we generally do not enter into any long-term agreements with our materials suppliers and manufacturing services suppliers,
there can be no assurance that they will not significantly increase our purchase price of materials or products in the future, in particular,
upon the increase in the market price of or the market demand for such materials or products. While we typically price our products on
a cost-plus basis and pass on increases in cost of materials and products to our customers, there can be no assurance that we will be
able to pass on any increase in such costs to our customers in the future, in a timely manner or at all to avoid any adverse impacts
on our profitability. Furthermore, the prices of these materials and products may be affected by factors beyond our control, including
global demand for and supply of such materials and products, general economic condition, international trade barriers, and government
price control measures.

We
depend on a U. S. licensor for most of our products.

A
significant portion of our products consists of reflective materials equipped with licensed performance labels owned by a US-based multinational
conglomerate, such as 3M™ Scotchlite™. Some of these products are items that we tailor-make for our customers, and the remaining
are products that we distribute on behalf of our U. S. licensor. As one of the authorized distributors of reflective materials from our
U. S. licensor, we rely on the ability and efficiency of our U. S. licensor and its group companies to supply us the materials as
they play an important role in our business. The U. S. licensor is our primary suppliers, and we have been their authorized distributor
for a continuous period of approximately 25 years. Our role as distributor is governed by various distribution agreements, some with
our U. S. licensor and others with its affiliates. The distribution agreements are not exclusive and terminable by either party with 30 days’
prior written notice or can be terminable unilaterally by written notice from our U. S. licensor if we are found to be in breach of the
terms of the distribution agreements, including breach of obligations, covenants, warranties and representations owed to our U. S. licensor