Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 52

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 52
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result in the expenditure of funds and managerial efforts in defending them and could have a negative impact on our reputation.

Our
management team lacks experience in managing a U. S. public company and complying with laws applicable to such company, the failure of
which may adversely affect our business, financial condition and results of operations.

Our
current management team lacks experience in managing a U. S. publicly traded company, interacting with public company investors and complying
with the increasingly complex laws pertaining to U. S. public companies. Prior to the completion of our IPO, we were a private company
mainly operating our businesses in Hong Kong. As a result of our IPO, our company became subject to significant regulatory oversight
and reporting obligations under the federal securities laws and the scrutiny of securities analysts and investors. Our management currently
has no experience in complying with such laws, regulations and obligations. Our management team may not successfully or efficiently manage
our transition to becoming a U. S. public company. These new obligations and constituents will require significant attention from our
senior management and could divert their attention away from the day-to-day management of our business, which could adversely affect
our business, financial condition and results of operations.

We
may be subject to litigation, arbitration, or other legal proceeding risk.

We may be subject to arbitration
claims and lawsuits in the ordinary course of our business. As of the date of this Annual Report, the Company, Stratum Star, Alpine Eagle,
Sun Choice, JLHK and JLVN are not a party to, and are not aware of any threat of, any legal proceeding that, in the opinion of our management,
is likely to have a material adverse effect on our business, financial condition, or operations. Actions brought against us may result
in settlements, awards, injunctions, fines, penalties, and other results adverse to us. A substantial judgment, settlement, fine, or penalty
could be material to our operating results or cash flows for a particular period, depending on our results for that period, or could cause
us significant reputational harm, which could harm our business prospects.

Our
services depend on the reliability of computer systems maintained by us or our outsourcing vendors and the ability to implement, maintain
and upgrade our information technology and security measures.

Our
services depend on the reliability of computer systems maintained by us and our outsourcing vendors to operate efficiently and reliably
at all times. Certain emergencies or contingencies could occur, such as a natural disaster or a significant power outage, which could