Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 5

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 5
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cash to Alpine Eagle and Sun Choice to Stratum Star is subject to the following: according to the Companies Ordinance of Hong Kong,
JLHK and Sun Choice may only make a distribution out of profits available for distribution.

The
ability of JLVN to transfer cash to JLHK is subject to the following: according to Vietnamese law, JLVN may make dividends distribution
to the extent that JLVN has not accumulated losses and all financial obligations owed to the government of Vietnam have been satisfied:
(i) invested capital and proceeds from liquidation of investments; (ii) income derived from business investment activities; and/or (iii)
other money and assets lawfully owned by the investor. We did not adopt or maintain any cash management policies and procedures as of
the date of this Annual Report..

Currently, majority of our
operations are in Hong Kong. Hong Kong is a special administrative region of the PRC and the basic policies of the PRC regarding Hong
Kong are reflected in the Basic Law. The arrangement provides Hong Kong with a high degree of autonomy and executive, legislative
and independent judicial powers, including that of final adjudication under the principle of “one country, two systems” and
a distinct set of laws and regulations. The laws and regulations of mainland China do not currently have any material impact on transfer
of cash from the Company to JLHK and Sun Choice or from JLHK and Sun Choice to the Company and the investors in the U. S.

As
a result of the above, to the extent cash or assets in the business is in our Hong Kong Operating Subsidiary, the funds or assets may
not be available to fund operations or for other use outside the PRC or Hong Kong due to oversight on or the imposition of restrictions
and limitations by the PRC government on our ability or the ability of our Operating Subsidiary to transfer cash or assets.

We
currently intend to retain all available funds and future earnings, if any, for the operation and expansion of our business and do not
anticipate declaring or paying any dividends in the foreseeable future. Any future determination related to our dividend policy will
be made at the discretion of our board of directors after considering our financial condition, results of operations, capital requirements,
contractual requirements, business prospects and other factors the board of directors deems relevant, and subject to the restrictions
contained in any future financing instruments. See “ Risk Factors - Risks Related to Our Ordinary Shares - We do
not intend to pay dividends