Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 32

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 32
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 to the risk that such data and personal information could be “affected, controlled,
and maliciously exploited by foreign governments.”

The
enactment of Law of the PRC on Safeguarding the Hong Kong National Security Law could impact JLHK.

On
June 30, 2020, the Standing Committee of the PRC National People’s Congress adopted the Hong Kong National Security Law
(the “ Hong Kong National Security Law”). This law defines the duties and government bodies of the Hong Kong National
Security Law for safeguarding national security and four categories of offenses - secession, subversion, terrorist activities,
and collusion with a foreign country or external elements to endanger national security - and their corresponding penalties.
On July 14, 2020, former U. S. President Donald Trump signed the Hong Kong Autonomy Act (“ HKAA”) into law,
authorizing the U. S. administration to impose blocking sanctions against individuals and entities who are determined to have materially
contributed to the erosion of Hong Kong’s autonomy. On August 7, 2020, the U. S. government imposed HKAA-authorized
sanctions on 11 individuals, including then-HKSAR chief executive Carrie Lam and John Lee, who later replaced Carrie Lam as chief executive
on July 1, 2022.

In
July 2021, President Joe Biden warned investors about the risks of doing business in Hong Kong, issuing an advisory saying
China’s push to exert more control over Hong Kong threatens the rule of law and endangers employees and data. The HKAA further
authorizes secondary sanctions, including the imposition of blocking sanctions, against foreign financial institutions that knowingly
conduct a significant transaction with foreign persons sanctioned under this authority. The imposition of sanctions may directly affect
the foreign financial institutions as well as any third parties or customers dealing with any foreign financial institution that are
targeted. It is difficult to predict the full impact of the Hong Kong National Security Law and HKAA on Hong Kong and companies
located in Hong Kong. If our subsidiaries are determined to be in violation of the Hong Kong National Security Law or the HKAA
by competent authorities, our business operations could be materially and adversely affected.

If
we become subject to the recent scrutiny, criticism, and negative publicity involving U. S.-listed China-based companies, we may have
to expend significant resources to investigate and/or defend the matter, which could harm our business operations and our reputation,
and could result in a loss of your investment in our Ordinary Shares,