Company: JL
Filing Date: 2025-05-20
Form Type: 20-F/A
Source: 0001213900-25-045507
Chunk: 92

Company: J-Long Group Ltd
Filing Date: 2025-05-20
Form: 20-F/A
Chunk 92
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 future and that, should it be needed, suitable additional space will be available on commercially reasonable terms to accommodate any expansion of our operations. Health, Work Safety, Social and Environmental Matters Due to the nature of our Operating Subsidiary’s business, our Operating Subsidiary’s operational activities may be subject to environmental obligations. Our Operating Subsidiary did not directly incur any cost of compliance with applicable environmental protection rules and regulations during the fiscal years ended March 31, 2024 and 2023. Our directors expect that our Operating Subsidiary will not directly incur significant costs for compliance with any applicable environmental protection rules and regulations in the future. As of the date of this Annual Report, our Operating Subsidiary is not in any material non-compliance issues in respect of any applicable laws and regulations on environmental protection, health, and work safety. Legal Proceedings We may from time to time be subject to various legal or administrative claims and proceedings arising in the ordinary course of our business. We are currently not a party to any pending material legal or administrative proceedings, and are not aware of any events that are likely to lead to such material proceedings. Impact of COVID-19 on our Operating Subsidiary’s Business and Operations We source a majority of our raw materials from China, which exercised a strict “zero-covid” policy involving mechanisms to contain the outbreak of COVID-19 from 2020 through 2022. The mechanisms included mass testing to identify infected people, centralized quarantine to isolate the infected and their close contacts and city-wide lockdowns, which affected mobilization of people and goods. We experienced supply chain disruption due to lockdowns in China or its “zero-covid” policy as raw materials were occasionally held in cities for customs clearance during transit. Our sales in Hong Kong and China declined because at times we struggled to receive the US brand products for which we are the authorized distributors on time to meet onward sales demand, and some of our customers who could not afford the wait sourced alternative products elsewhere. China reopened its borders and abolished most of the “zero-covid” mechanisms in early January 2023, and supply chain pressure was released. Our supply of the US brand products that we are licensed to distribute has resumed to a steady level. As a result, for the fiscal year ended March 31, 2024, sales to Hong Kong decreased by approximately US$4.4 million from approximately US$12.5 million for the fiscal year ended March 31, 2023 to approximately US$