Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 107

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 5
Chunk 107
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 We have been an authorized distributor of 3M™ Scotchlite™
reflective materials since 2000. We are a long-standing channel partner and a converter of 3M™ Scotchlite™ reflective materials,
serving a range of global brands. As a converter for 3M™ Scotchlite™ reflective materials, it involves providing adhesive
solutions by offering custom shaped parts designed to the specification requirements of the customer.

TRANSFERS
OF CASH TO AND FROM OUR SUBSIDIARIES

We are a holding company
incorporated in the Cayman Islands with no material operations of our own, and we conduct our operations mainly through our Operating
Subsidiaries in Hong Kong and Vietnam, J-Long Limited (“ JLHK”) and J-Long Trims Vietnam Co. (“ JLVN”) respectively.
As a result of our corporate structure, our ability to pay dividends may depend upon dividends paid by JLHK or JLVN. If our JLHK, JLVN,
or any newly formed ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability
to pay dividends to us.

Our
management monitors the cash position of the Company and our Operating Subsidiary regularly and prepares budgets on a monthly basis to
ensure it has the necessary funds to fulfill its obligations for the foreseeable future and to ensure adequate liquidity. In the event
that there is a need for cash or a potential liquidity issue, it will be reported to our Chief Financial Officer and subject to approval
by our board of directors.

The
ability of the Company to transfer cash to its subsidiaries is subject to the following: The Company is permitted under the laws of
the Cayman Islands and its memorandum and articles of association (as amended from time to time) to provide funding to our
subsidiaries incorporated in the BVI and Hong Kong through loans or capital contributions. The Company’s subsidiaries
formed under the laws of the BVI, Stratum Star and Alpine Eagle, are permitted under the laws of the BVI to provide funding to our
Hong Kong Operating Subsidiary The HK Operating Subsidiary is subject to certain restrictions laid down in the BVI Business
Companies Act 2004 (as amended) and memorandum and articles of association of the relevant Company’s subsidiaries
incorporated under the laws of the BVI.

The
ability of Stratum Star and Alpine Eagle, the direct subsidiaries of the Company, to transfer cash to the Company