Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 43

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 43
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and its group companies which mainly include but not limited to, (i) failure to comply with the applicable laws and regulations; (ii)
unauthorized use of the intellectual property rights of our U. S. licensor and its group companies; (iii) failure to maintain adequate
liability insurance; (iv) distribution outside the authorized geographical territories. The terms of the distribution agreement executed
with our U. S. licensor and its group companies ranges from one to three years. If our U. S. licensor and its group companies terminate
their business relationship with us or if there are any unfavorable changes to our business arrangement, and if we are unable to locate
an alternative supplier with comparable brand reputation and quality and on terms and prices equivalent to or better than the current
business arrangements that are acceptable to our customers after such termination or expiry, or unable to replace the materials with
other non-branded materials and products, it may adversely affect our business, results of operations and financial condition.

We
depend on our suppliers for the timely delivery of large quantities of reliable quality materials.

Our
material suppliers for reflective materials and products and heat transfers play a vital role in our business in that we rely on their
ability and efficiency to supply large quantities of products to us for onward supply to our customers. Similarly, we also rely on our
manufacturing services suppliers given the fact that they are responsible for the conversion process of our products. However, we generally
did not enter into long-term agreements with our suppliers and most of our suppliers generally transacted with us on an order-by-order
basis. Although our management monitors our business connection with our suppliers, there is no assurance that our suppliers will continue
to supply products to us with desired quality and in required quantities, in a timely manner and on terms commercially acceptable to
us.

It
is also possible that our major suppliers may suffer financial or other difficulties, adversely affecting their ability to continue to
supply products to us, which in turn could have an adverse effect on our business. In addition, we cannot guarantee that we will not
have any material dispute with our major suppliers in the future in connection with the performance of a party’s obligations or
the scope of a party’s responsibilities under the relevant supply agreement or terms of order. Hence, if we fail to maintain business
relationships with our major suppliers, or to obtain supplies from alternative sources on a timely basis or on commercially reasonable
terms, our ability to deliver our products to our customers on a timely basis or in