Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 69

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 69
---
 standards applicable to U. S. domestic issuers.

We
may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.

We
are a foreign private issuer, and therefore, we are not required to comply with all of the periodic disclosure and current reporting
requirements of the Exchange Act. The determination of foreign private issuer status is made annually on the last business day
of an issuer’s most recently completed second fiscal quarter. We would lose our foreign private issuer status if, for example,
more than 50% of our Ordinary Shares are directly or indirectly held by residents of the United States and we fail to meet additional
requirements necessary to maintain our foreign private issuer status. If we lose our foreign private issuer status on this date, we will
be required to file with the SEC periodic reports and registration statements on U. S. domestic issuer forms, which are more detailed
and extensive than the forms available to a foreign private issuer. We will also have to mandatorily comply with U. S. federal proxy
requirements, and our officers, directors, and principal shareholders will become subject to the short-swing profit disclosure and recovery
provisions of Section 16 of the Exchange Act. In addition, we will lose our ability to rely upon exemptions from certain corporate
governance requirements under the Nasdaq rules. As a U. S.-listed public company that is not a foreign private issuer, we will incur significant
additional legal, accounting, and other expenses that we will not incur as a foreign private issuer in order to maintain a listing on
a U. S. securities exchange.

There
can be no assurance that we will not be a PFIC for U. S. federal income tax purposes for any taxable year, which could result in
adverse U. S. federal income tax consequences to U. S. holders of our Ordinary Shares.

A
non-U. S. corporation will be a PFIC for any taxable year if either (i) at least 75% of its gross income for such year consists
of certain types of “passive” income, or (ii) at least 50% of the value of its assets (based on an average of the quarterly
values of the assets) during such year is attributable to assets that produce passive income or are held for the production of passive
income (the “asset test”). Based on our current and expected income and assets (taking into account the cash proceeds we
received from our IPO and our anticipated