Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 59

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 59
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 any limitation
on the ability of our subsidiaries to pay dividends or make other distributions to us could materially and adversely limit our ability
to grow, make investments or acquisitions that could be beneficial to our business, pay dividends or otherwise fund and conduct our business.

Any
lack of effective internal controls over financial reporting may affect our ability to accurately report our financial results or prevent
fraud, which may affect the market for and price of our Ordinary Shares.

Prior
to our IPO, we were a private company with limited accounting personnel and other resources with which to address our internal controls
and procedures. As of March 31, 2025, our management completed an assessment of the effectiveness of our internal control over financial
reporting and identified certain material weaknesses in our internal control over financial reporting. As defined in the standards established
by the PCAOB, a “material weakness” is a deficiency, or a combination of deficiencies, in internal control over financial
reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will
not be prevented or detected on a timely basis.

The material weaknesses
identified primarily relate to the lack of sufficient competent financial reporting and accounting personnel with appropriate understanding
of US GAAP and SEC rules and regulations to address complex technical accounting issues and SEC reporting requirements. To remedy the
identified material weaknesses, we have implement and will continue to implement several measures to improve our internal control over
financial reporting, including: (i) recruiting additional employees and external consultants with extensive knowledge of U. S. GAAP
and SEC financial reporting requirements within our finance and accounting department; (ii) setting up a comprehensive accounting
policy, checklists and procedure manual in accordance with U. S. GAAP and SEC financial reporting requirements; (iii) implementing
new closing and reporting procedures to ensure the accuracy and adequacy of financial data for the preparation of financial statements;
(iv) conducting regular and continuous U. S. GAAP training programs and webinars for our financial reporting and accounting
personnel; (v) improving our financial oversight function for handling complex accounting issues under U. S. GAAP; and (vi) continuously
developing and enhancing our internal audit function for financial reporting matters. However, we cannot assure you that these measures
will fully address the material weakness in our internal control over financial reporting or that we may not identify additional material
weaknesses or significant deficiencies in the future.

Upon
completion of our IPO, we became a public company in the