Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 33

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 33
---
 in particular if such matter cannot be addressed and resolved favorably.

During
the last several years, U. S.-listed companies that have substantially all of their operations in China have been the subject of
intense scrutiny by investors, financial commentators, and regulatory agencies. Much of the scrutiny has centered on financial and accounting
irregularities and mistakes, lack of effective internal controls over financial reporting, and, in many cases, allegations of fraud.
As a result of the scrutiny, the stocks of many U. S.-listed Chinese companies that have been the subject of such scrutiny have sharply
decreased in value. Many of these companies are now subject to shareholder lawsuits and/or SEC enforcement actions that are conducting
internal and/or external investigations into the allegations.

If
we become the subject of any such scrutiny, whether any allegations are true or not, we may have to expend significant resources to investigate
such allegations and/or defend the Company. Such investigations or allegations would be costly and time consuming and likely would distract
our management from our normal business and could result in our reputation being harmed. Our stock price could decline because of such
allegations, even if the allegations are false.

A
downturn in the Hong Kong, mainland China, or the global economy, or a change in the economic and political policies of China, could
materially and adversely affect our business and financial condition.

Our
business may be influenced to a significant degree by political, economic, and social conditions in Hong Kong and mainland China
generally. The Chinese economy differs from the economies of most developed countries in many respects, including the amount of government
involvement, level of development, growth rate, control of foreign exchange, and allocation of resources. While the Chinese economy has
experienced significant growth over the past decades, growth has been uneven, both geographically and among various sectors of the economy.
The PRC government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these
measures may benefit the overall Chinese economy, but they may have a negative effect on us.

Economic
conditions in Hong Kong and mainland China are sensitive to global economic conditions. Any prolonged slowdown in the global or
Chinese economy may affect potential clients’ confidence in financial market as a whole and have a negative impact on our business,
results of operations, and financial condition. Additionally, continued turbulence in the international markets may adversely affect
our ability to access the capital markets to meet liquidity needs.

Fluctuations
in exchange