Company: JL
Filing Date: 2025-04-03
Form Type: 20-F/A
Source: 0001213900-25-028675
Chunk: 76

Company: J-Long Group Ltd
Filing Date: 2025-04-03
Form: 20-F/A
Chunk 76
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 performance based on the above criteria. An internal grading is given to our suppliers following the performance reviews and we adjust our ongoing purchase orders with the suppliers with reference to such internal grading. Similar criteria are also applied when we select and approve manufacturing services suppliers which supply us with converted products when requested by our customers. Procurement and Inventory Management Our products mainly consist of reflective and non-reflective garment trims. For non-branded products, we make procurement based on anticipated and actual purchase orders, the historical order amount and our storage capacity. We store all our materials and products in our warehouse and storage facilities in Hong Kong. We source a majority of our products and materials when our customers confirm their purchase orders with us. If a certain type of material or product has been repeatedly ordered in a particular quarter, our procurement team will discuss with our management whether to place a bulk order of that specific material or product for use in the coming two to six months. Towards the end of each quarter, our procurement team also discusses with our management and our sales and marketing teams the estimated quantity required for the following quarter. As an authorized distributor of our licensed U.S. brand, we also have non-mandatory procurement targets under the license agreement. Although there is no penalty for not meeting our targets, we maintain a certain level of inventory of materials of our licensed U.S. brand and procure more if the level of inventory of the materials or products of our licensed U.S. brands falls below the threshold as determined by our management and relevant inventory management staff. Our inventory management staff normally discusses the inventory level with our management at least once every quarter. As the supply of the materials and products under our licensed U.S. brand originates from the United States, the suppliers are generally able to deliver to us the materials and products we ordered within a period of six to eight weeks upon receipt of our orders. 46 Seasonality The apparel market exhibits seasonality with dynamic changes in trends and consumers’ preferences depending on the time of year. We experience peak seasons typically from December to March each year as the apparel brands and their apparel manufacturers generally place more orders prior to Chinese New Year in anticipation of the production of apparel products. We normally experience a drop in orders in May each year following the peak season orders. Quality Control We are committed to a high standard of quality control in all aspects of our operations. The following describes the quality control practices we use in the design, production and delivery of our products:

| ● | Purchase of materials and products — We                                                                                                
 only purchase our materials and products