Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 56

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 56
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a relatively small-capitalization company with a relatively small public float, we may experience greater stock price volatility, extreme
price run-ups, lower trading volume and less liquidity than large-capitalization companies. In particular, our Ordinary Shares may be
subject to rapid and substantial price volatility, low volumes of trades and large spreads in bid and ask prices. Such volatility, including
any stock-run up, may be unrelated to our actual or expected operating performance and financial condition or prospects, making it difficult
for prospective investors to assess the rapidly changing value of our Ordinary Shares.

The
volatility and wide fluctuations of our trading prices could be due to factors beyond our control. This may happen due to broad market
and industry factors, such as performance and fluctuation in the market prices or underperformance or deteriorating financial results
of other listed companies based in Hong Kong and China. For example, if the trading volumes of our Ordinary Shares are low, persons
buying or selling in relatively small quantities may easily influence prices of our Ordinary Shares. This low volume of trades could
also cause the price of our Ordinary Shares to fluctuate greatly, with large percentage changes in price occurring in any trading day
session. Holders of our Ordinary Shares may also not be able to readily liquidate their investment or may be forced to sell at depressed
prices due to low volume trading. The trading performances of other Hong Kong and Chinese companies’ securities after their
offerings may also affect the attitudes of investors toward Hong Kong-based, U. S.-listed companies. This consequently may affect
the trading performance of our Ordinary Shares, regardless of our actual operating performance. In addition, any negative news or perceptions
about inadequate corporate governance practices or fraudulent accounting, corporate structure or matters of other Hong Kong and
Chinese companies may also negatively affect the attitudes of investors toward Hong Kong and Chinese companies in general, including
us, regardless of whether we have conducted any inappropriate activities. Furthermore, securities markets may from time to time experience
significant price and volume fluctuations that are unrelated to our operating performance, which may have a material and adverse effect
on the trading price of our Ordinary Shares.

In
addition to the above factors, the price and trading volume of our Ordinary Shares may be highly volatile due to multiple factors, including
the following:

  regulatory                                  

  variations                              

  changes                                                                                 
  in the economic performance or market valuations of other apparel manufacturing firms;  
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  actual