Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 62

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 62
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 of the Ordinary Shares sold in the IPO are freely transferable by persons other than our “affiliates” without restriction
or further registration under the Securities Act. Sales of substantial amounts of our Ordinary Shares in the public market, or a perception
that such sales could occur, could adversely affect the prevailing market price of our shares. This fact could impact the trading price
of the Ordinary Shares after our IPO to the detriment of participants who purchased Ordinary Shares in the IPO. We may also find it more
difficult to raise additional capital by selling equity securities in the future, at a time and price that we deem appropriate as a result
of such sales or perception that such sales could occur.

The
Pre-IPO Shareholders may be able to sell their Ordinary Shares pursuant to Rule 144 under the Securities Act. Because these shareholders
paid a lower price per Ordinary Share than participants in the IPO, when they are able to sell their Ordinary Shares under Rule 144,
they may be more willing to accept a lower sales price than the IPO price. This fact could impact the trading price of the stock after
our IPO to the detriment of participants who purchased Ordinary Shares in the IPO. Under Rule 144, before the Pre-IPO Shareholders can
sell their shares, in addition to meeting other requirements, they must meet the required holding period.

A
limited number of participants purchased a significant percentage of our Ordinary Shares in our IPO. Therefore, our public float is smaller
than anticipated and the price of our Ordinary Shares may be more volatile than it otherwise would be.

We
conducted a relatively modest IPO; therefore, we are subject to the risk that a small number of our investors hold a high percentage
of our Ordinary Shares sold in the IPO even though the initial sales by the underwriters were designed to comply with the Nasdaq listing
requirements. As a result, investors may find the price of their Ordinary Shares to be more volatile than they might otherwise anticipate.
Companies that experience such volatility in their stock price may be more likely to be the subject of securities litigation. In addition,
smaller investors may find it more difficult to sell their shares and we may cease to meet the Nasdaq public shareholder requirements.

Because
the amount, timing and whether or not we distribute dividends at all is entirely at the discretion of our Board of Directors, you must
rely on price appreciation of our Ordinary Shares for return on your investment.

Our
Board of Directors has complete discretion as to whether to distribute dividends. In addition, our shareholders may