Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 108

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 5
Chunk 108
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 is subject to the following:
according to the BVI Business Companies Act 2004 (as amended), Stratum Star and Alpine Eagle may make dividends distribution to
the extent that immediately after the distribution, the value of the company’s assets exceeds its liabilities and that such company
is able to pay its debts as they fall due.

The ability of JLHK to transfer
cash to Alpine Eagle and Sun Choice to Stratum Star is subject to the following: according to the Companies Ordinance of Hong Kong,
JLHK and Sun Choice may only make a distribution out of profits available for distribution.

The
ability of JLVN to transfer cash to JLHK is subject to the following: according to Vietnamese law, JLVN may make dividends distribution
to the extent that JLVN has not accumulated losses and all financial obligations owed to the government of Vietnam have been satisfied:
(i) invested capital and proceeds from liquidation of investments; (ii) income derived from business investment activities; and/or (iii)
other money and assets lawfully owned by the investor. We did not adopt or maintain any cash management policies and procedures as of
the date of this Annual Report.

Currently, majority of our
operations are conducted in Hong Kong. Hong Kong is a special administrative region of the PRC and the basic policies of the PRC regarding
Hong Kong are reflected in the Basic Law. The arrangement provides Hong Kong with a high degree of autonomy and executive, legislative
and independent judicial powers, including that of final adjudication under the principle of “one country, two systems” and
a distinct set of laws and regulations. The laws and regulations of mainland China do not currently have any material impact on transfer
of cash from the Company to JLHK and Sun Choice or from JLHK and Sun Choice to the Company and the investors in the U. S.

As
of the date of this Annual Report, there are no restrictions or limitations imposed by the Hong Kong government on the transfer
of capital within, into and out of Hong Kong (including funds from Hong Kong to our subsidiaries), except for the transfer
of funds involving money laundering and criminal activities. However, there is no guarantee that the Hong Kong government will not
promulgate new laws or regulations that may impose such restrictions in the future.

As
a result of the above, to the extent cash or assets in the business is in the PRC or Hong Kong or our Hong Kong Operating Subsidiary,
the funds or assets may not be available to fund operations or