Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 114

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 5
Chunk 114
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% and 13%, respectively. For the fiscal year ended March 31, 2024, we experienced
a decrease in overall sales mainly because many of our customers reduced their orders as they were still attempting to sell their inventory
due to the slowdown in the economy after Covid-19. Sales during the fiscal year ended March 31, 2024 from Hong Kong, China and non-Asian
countries all decreased compared to the fiscal year ended March 31, 2023, resulting in a $9,913,728 decrease in revenue for the fiscal
year ended March 31, 2024 as compared to the fiscal year ended March 31, 2023.

Cost of Sales

Our cost of sales is comprised
of the cost of direct materials, sub-contractor fees, product inspection costs, warehouse lease expenses and packing and design costs.
Cost of sales decreased by 24% to $21,581,411 for the fiscal year ended March 31, 2024 from $28,253,752 for the fiscal year ended March
31, 2023 in line with our decrease in revenues.

Gross Profit

Our gross profit decreased
by 32% to $6,797,258 for the fiscal year ended March 31, 2024 compared to $10,038,645 for the fiscal year ended March 31, 2023.
Our gross profit margin decreased to 24% for the fiscal year ended March 31, 2024 as compared to 26% for 2023, essentially remaining
stable.

Selling and Marketing Expenses

Selling and marketing expenses
are primarily comprised of marketing and promotion fees paid to consultants for overseas sales, wages and salaries for our sales and
marketing personnel and outbound transportation expenses. Our selling and marketing expenses increased by 24.7% to $2,170,570 for the
fiscal year ended March 31, 2023, from $1,740,278 for the fiscal year ended March 31, 2022. We paid commissions to our overseas consultants
who are mainly stationed in non-Asian countries with respect to non-Asia sales. We incurred higher commissions in fiscal year 2023 due
to an increase in non-Asia sales. In line with inflation and the market trend, we also increased salaries to our sales and marketing
department to keep our Company competitive and attractive to prospective employees.

General and Administrative Expenses

General and administrative
expenses are mainly comprised of staff costs and directors’ rem