Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 84

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 4
Chunk 84
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 and the conversion service are subject to fast changing fashion trends in
the market.

We
generally place orders for our materials and products on an order-by-order basis after seeking and confirming quotations from the suppliers.
Our purchase order includes order information such as unit price, quantity, delivery schedule and payment details.

For
our manufacturing services suppliers, once our customer confirms the product design and specifications with us, we pass the final designs
and specifications to our manufacturing services suppliers to obtain a fee quotation for the converted products. Similar to our materials
suppliers, our purchase order also includes information such as designs, specifications, quantity, delivery schedule and payment details.

The
following sets forth the salient terms of the distribution agreements we enter into with our U. S. licensor and its group companies for
our licensed U. S. branded products:

  Term:                           Typically                                                                                                                                 
  Geographical                    The                                                                                                                                       
  Inventory                       During                                                                                                                                    
  Credit                          Generally                                                                                                                                 
  Product                         Our                                                                                                                                       
  Quality                         The                                                                                                                                       
  Termination:                    Either                                                                                                                                    

We
engage only suppliers that are on our approved supplier list. We generally select our suppliers based on the following criteria: (i)
product quality; (ii) price; (iii) production capability and stability of the supply; (iv) logistic arrangements; (v) payment terms offered;
and (vi) after-sale services. Our quality control team will normally conduct a quality assessment on new potential suppliers before they
are selected as our approved suppliers. The quality assessment will involve the inspection of the relevant qualification certificates
of the suppliers and, in some cases, their production sites, to whether they are able to meet our environment sustainability standard
and practices when requested by our customers. After a potential supplier is approved, we will include the supplier to our approved supplier
list. The approved supplier list is reviewed on a regular basis for the suppliers’ performance based on the above criteria. An
internal grading is given to our suppliers following the performance reviews and we adjust our ongoing purchase orders with the suppliers
with reference to such internal grading. Similar criteria are also applied when we select and approve manufacturing services suppliers
which supply us with converted products when requested by our customers.

Procurement
and Inventory Management

Our
products mainly consist of reflective and non-reflective garment trims. For non-branded products, we make procurement based on anticipated
and actual purchase orders, the historical order amount and our storage capacity. We store all our materials and products in our