Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 95

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 4
Chunk 95
---
 higher rates of inflation in the future. Should inflation in Vietnam increase significantly,
it may lead to an increase in our manufacturing costs, labor costs and transportation costs. If there is any surge in the inflation rate,
in order to mitigate inflationary pressures, we plan to (i) monitor our manufacturing and labor costs carefully in our day-to-day operations;
(ii) outsource or contract certain nonessential employees to reduce labor-related administrative costs; (iii) optimize manufacturing
process to lower per-unit costs; and (iv) diversify sourcing to potentially reduce costs.

REGULATORY
ENVIRONMENT

Regulations
Related to Our Business Operations in Hong Kong

Regulations
Related to Service Providers

Business
Registration Ordinance (Chapter 310 of the Laws of Hong Kong).

Regulations
Related to Supply of Goods

Sales
of Goods Ordinance (Chapter 26 of the Laws of Hong Kong).

When
there is a contract for the sale of goods by description, there is an implied condition that the goods shall correspond with the description,
and if the sale is by sample and by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods
do not also correspond with the description.

Where
the seller sells goods in the course of a business, there is an implied condition that the goods supplied under the contract are of merchantable
quality, except that there is no such condition (a) as regards defects specifically drawn to the buyer’s attention before the contract
is made; or (b) if the buyer examines the goods before the contract is made, as regards defects which that examination ought to reveal;
or (c) if the contract is a contract for sale by sample, regarding the defects which would have been apparent on a reasonable examination
of the sample.

“ Merchantable
quality” is defined in Section 2(5) of the Sale of Goods Ordinance to mean: (a) as fit for the purpose or purposes for which goods
of that kind are commonly bought; (b) of such standard of appearance and finish; (c) as free from defects (including minor defects);
(d) as safe; and (e) as durable, as it is reasonable to expect having regard to any description applied to them, the price (if relevant)
and all the other relevant circumstances; and any reference in the Ordinance to unmerchantable goods shall be construed accordingly.

Where
the seller sells goods in the course of a business and the buyer, expressly or by implication, makes known