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

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 3
Chunk 25
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audit work for us can be inspected by the PCAOB, and we have no operations in mainland China. However, if there is significant change
to current political arrangements between mainland China and Hong Kong, companies operated in Hong Kong like us may face similar
regulatory risks as those operated in the PRC, and we cannot assure you that our auditor’s audit work for us will continue to be
able to be inspected by the PCAOB. If it is later determined that the PCAOB is unable to inspect or investigate our auditor completely,
investors may be deprived of the benefits of such inspection. Any audit reports not issued by auditors that are completely inspected
by the PCAOB could result in a lack of assurance that our financial statements and disclosures are adequate and accurate.

Inspections
of other auditors conducted by the PCAOB outside mainland China have at times identified deficiencies in those auditors’ audit
procedures and quality control procedures, which may be addressed as part of the inspection process to improve future audit quality.
The lack of PCAOB inspections of audit work undertaken in mainland China prevents the PCAOB from regularly evaluating auditors’
audits and their quality control procedures. As a result, if any component of our auditor’s work papers become located in mainland
China in the future, such work papers will not be subject to inspection by the PCAOB. As a result, investors would be deprived of
such PCAOB inspections, which could result in limitations or restrictions to our access of the U. S. capital markets.

As
part of a continued regulatory focus in the United States on access to audit and other information currently protected by national
law, in particular mainland China’s, in June 2019, a bipartisan group of lawmakers introduced bills in both houses of the
U. S. Congress that, if passed, would require the SEC to maintain a list of issuers for which PCAOB is not able to inspect or investigate
the audit work performed by a foreign public accounting firm for such issuers completely. The proposed Ensuring Quality Information and
Transparency for Abroad-Based Listings on our Exchanges Act prescribes increased disclosure requirements for these issuers and, beginning
in 2025, the delisting from U. S. national securities exchanges such as the Nasdaq of issuers included on the SEC’s list for
three consecutive years. It is unclear if this proposed legislation will be enacted. Furthermore, there have been recent deliberations
within the U. S. government regarding potentially limiting or restricting China-based