Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 34

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 34
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 rates could have a material adverse effect on our results of operations and the price of our Ordinary Shares.

Our
business is heavily conducted in Hong Kong through our HK Operating Subsidiary JLHK, therefore, our books and records are
reported in Hong Kong dollars, which is the currency of Hong Kong. The financial statements that we file with the SEC and
provide to our shareholders are presented in U. S. dollars.

Since
1983, the Hong Kong dollar has been pegged to the U. S. dollar at the rate of approximately HK$7.80 to US$1.00. As of March 31, 2025,
the pegged rate of exchange remains at HK$7.80 to US$1.00. Future changes in the exchange rate between the Hong Kong dollar and
the U. S. dollar may affect the value of our assets and the results of our operations in U. S. dollars. The value of the Hong Kong
dollar against the U. S. dollar and other currencies may fluctuate and is affected by, among other things, changes in Hong Kong’s
political and economic conditions and perceived changes in the economy of Hong Kong and the United States. Any significant
revaluation of the Hong Kong dollar may materially and adversely affect our cash flows, revenue, and financial condition.

We
cannot assure you that the current policy of pegging the Hong Kong dollar to the U. S. dollar will not be changed in the future. If the
pegging system collapses and the Hong Kong dollar suffers devaluation, the Hong Kong dollar cost of our expenditures denominated
in foreign currency may increase. This would in turn adversely affect the operations and profitability of our business.

There
are political risks associated with conducting business in Hong Kong.

Any
adverse economic, social, and/or political conditions, material social unrest, strike, riot, civil disturbance, or disobedience, as well
as significant natural disasters, may affect the market and the business operations of the Company. Hong Kong is a special administrative
region of the PRC and the basic policies of the PRC regarding Hong Kong are reflected in the Basic Law. The arrangement provides
Hong Kong with a high degree of autonomy and executive, legislative, and independent judicial powers, including that of final adjudication
under the principle of “one country, two systems” and a distinct set of laws and regulations. However, there is no assurance
that there will not be any changes in the economic, political, and legal