Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 58

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 58
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 and we rely on dividends and other distributions on equity paid by our subsidiaries for our cash and financing
requirements, including the funds necessary to pay dividends and other cash distributions to our shareholders and to service any debt
we may incur. We do not expect to pay cash dividends in the foreseeable future. We anticipate that we will retain any earnings to support
operations and to finance the growth and development of our business. If any of our subsidiaries incurs debt on its own behalf in the
future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us.

According
to the BVI Business Companies Act 2004 (as amended), a BVI company may make dividend distributions to the extent that immediately
after the distribution, the value of the company’s assets exceeds its liabilities and such company is able to pay its debts as
they fall due. According to the Companies Ordinance of Hong Kong, a Hong Kong company may only make a distribution out of profits
available for distribution. Under the current practice of the Inland Revenue Department of Hong Kong, no tax is payable in Hong Kong
with respect to dividends paid by us. The PRC laws and regulations do not currently have any material impact on transfers of cash from
the Company to JLHK and Sun Choice or from JLHK and Sun Choice to the Company. However, the Chinese government may, in the future, impose
restrictions or limitations on our ability to transfer money out of Hong Kong, to distribute earnings and pay dividends to the other
entities within our organization or to reinvest in our business outside of Hong Kong. Such restrictions and limitations, if imposed in
the future, may delay or hinder the expansion of our business to outside of Hong Kong and may affect our ability to receive funds from
our Operating Subsidiary in Hong Kong. The promulgation of new laws or regulations, or the new interpretation of existing laws and regulations,
in each case, that restrict or otherwise unfavorably impact our ability or the way we conduct our business, could require us to change
certain aspects of our business to ensure compliance, which could decrease demand for our services, reduce revenues, increase costs,
require us to obtain more licenses, permits, approvals or certificates, or subject us to additional liabilities. To the extent any new
or more stringent measures are required to be implemented, our business, financial condition and results of operations could be adversely
affected, which could materially decrease the value of our Ordinary Shares, potentially rendering them worthless. Further,