Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 12

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 12
---
 at any time, which could result in a material change in our operations and cause the value of our securities
to decrease significantly or become worthless. The PRC government may intervene or impose restrictions on our ability to move money out
of Hong Kong to distribute earnings and pay dividends or to reinvest in our business outside of Hong Kong. Changes in the policies, regulations
and rules, and the enforcement of laws of the PRC government may also be quick with little advance notice and our assertions and beliefs
of the risk imposed by the PRC legal and regulatory system cannot be certain.

The Company is not an operating
company but a holding company. We conduct our operations in Hong Kong and Vietnam through our Operating Subsidiaries, JLHK and
JLVN. Our Ordinary Shares are securities of the Company and not those of our HK Operating Subsidiary, JLHK. Therefore, investors in our
Company are not acquiring equity interests in an operating company but instead of acquiring interests in a Cayman Islands holding company.

Although
the holding company structure may be used to provide investors with exposure to foreign investment in China-based companies where Chinese
law prohibits direct foreign investment in the operating companies, that purpose does not apply to our Company. We are engaged in the
distribution in Hong Kong of reflective and non-reflective garment trims, which is neither a prohibited nor a restricted industry on
the Negative List (2024) as promulgated by the National Development and Reform Commission (the “ NDRC”) and the Ministry of
Commerce pursuant to the Foreign Investment Law. Therefore, our holding company structure is not used to provide investors with exposure
to foreign investment in China-based companies where Chinese law prohibits direct foreign investment in the operating companies. However,
the PRC government may implement changes to the existing laws and regulations in the future, which may result in the prohibition or restriction
of foreign investors from owning equity interests in our PRC operating subsidiary.

The holding company
structure involves unique risks to investors. As a holding company, we may rely on dividends from our HK Operating Subsidiary, JLHK,
for cash requirements, including any payment of dividends to our shareholders. The ability of our HK Operating Subsidiary to pay dividends
or make distributions to us may be restricted by laws and regulations applicable to it. In addition, if our HK Operating Subsidiary incurs
debt on its own behalf, the instruments governing its debt may restrict its ability to pay dividends to us.

Further,
we are subject