6-K 1 ea0202674-6k_jlonggroup.htm REPORT OF FOREIGN PRIVATE ISSUER

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16

OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

March 27, 2024.

Commission File Number 001-41901

 

J-Long Group Limited

(Registrant’s Name)

 

Flat F, 8/F, Houston Industrial Building
32-40 Wang Lung Street, Tsuen Wan
New Territories, Hong Kong

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒      Form 40-F ☐

 

 

 

 

 

 

INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K

 

Press Release

 

On March 25, 2024, J-Long Group Limited announced its interim financial results as of and for the six-month period ended September 30, 2023 (“Interim Results”).

 

The information disclosed under on this Form 6-K is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as expressly set forth in such filing.

 

A copy of the press release announcing the Interim Results is included as Exhibit 99.1 to this Form 6-K.

 

Interim Financial Report

 

REPORT ON FORM 6-K FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2023

 

    Page
Unaudited Consolidated Balance Sheet as of September 30, 2023 and Audited Consolidated Balance Sheet as of March 31, 2023   2
Unaudited Consolidated Statements of Income and Comprehensive Income for the Six-Month Periods Ended September 30, 2023 and 2022   3

 

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J-LONG GROUP LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS

 

   As of 
   March 31,   September 30, 
   2023   2023 
   USD   USD 
   (Audited)   (Unaudited) 
Assets        
Current assets:        
Cash and cash equivalents   5,959,927    768,159 
Accounts receivable, net   2,085,776    1,905,455 
Accounts receivable, net – related parties   17,562    66,298 
Investment in marketable debt securities   243,284    44,070 
Inventories   5,785,616    6,676,754 
Notes receivable   393,442    - 
Prepaid expenses and other current assets, net   126,208    248,219 
Due from related parties   2,109,768    7,309,404 
Total current assets   16,721,583    17,018,359 
Property, plant and equipment, net   2,367,136    2,313,122 
Right-of-use assets – Operating lease   447,475    262,831 
Deferred cost   989,793    1,079,762 
Deferred tax assets   79,626    79,626 
Total non-current assets   3,884,030    3,735,341 
TOTAL ASSETS   20,605,613    20,753,700 
           
Liabilities          
Current liabilities:          
Bank loans – current   626,657    626,657 
Operating lease liabilities – current   7,151    - 
Operating lease liabilities – current – related parties   359,658    258,322 
Accounts payable, accruals and other current liabilities   3,167,676    3,169,449 
Accounts payable – related parties   2,382,072    1,625,969 
Contract liabilities   231,475    - 
Due to related parties   240,375    158,182 
Income taxes payable   140,236    420,731 
Total current liabilities   7,155,300    6,259,310 
           
Non-current liabilities          
Bank loans – non-current   2,014,375    1,715,472 
Operating lease liabilities – non-current – related parties   88,139    11,646 
Total non-current liabilities   2,102,514    1,727,118 
TOTAL LIABILITIES   9,257,814    7,986,428 
           
Commitments and contingencies   —    — 
           
Shareholders’ equity          
Ordinary shares US$0.0000375 par value each; 1,360,000,000 shares authorized; 30,000,000 shares issued and outstanding   1,125    1,125 
Additional Paid-in Capital   256,410    256,410 
Accumulated other comprehensive income/(loss)   (414)   (414)
Retained earnings   11,090,678    12,510,151 
Total shareholders’ equity   11,347,799    12,767,272 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   20,605,613    20,753,700 

 

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J-LONG GROUP LIMITED 

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

 

   For the six months ended
September 30,		 
   2022   2023 
   USD   USD 
   (Unaudited)   (Unaudited) 
Revenues   22,384,724    14,571,703 
Cost of sales   16,579,568    10,589,566 
Gross profit   5,805,156    3,982,137 
           
Operating expenses:          
Selling and marketing expenses   1,040,775    1,037,531 
General and administrative expenses   966,350    1,411,237 
Total operating expenses   2,007,125    2,448,768 
           
Income from operations   3,798,031    1,533,369 
           
Other income (expenses):          
Other income (expenses)   183,497    25,816 
Currency exchange gain   124,306    222,203 
Interest (expenses) income, net   (45,255)   (81,420)
Total other income (expense)   262,548    166,599 
           
Income before tax expense   4,060,579    1,699,968 
Income tax expense   670,013    280,495 
Net income   3,390,566    1,419,473 
           
Other comprehensive income/(loss)          
Unrealized gain (losses) on investment in marketable debt securities, net of tax   -    - 
Total comprehensive income   3,390,566    1,419,473 
           
Net income per share attributable to ordinary shareholders          
Basic and diluted   0.11    0.05 
Weighted average number of ordinary shares used in computing net income per share          
Basic and diluted   30,000,000    30,000,000 

 

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Management’s Discussion and Analysis of Results of Operations and Liquidity and Capital Resources

 

Overview:

 

●Revenue was approximately US$14.6 million for the six months ended September 30, 2023, representing a decrease of approximately 34.9% from the same period in 2022.

 

●Net income was approximately US$1.4 million for the six months ended September 30, 2023 (2022: approximately US$3.4 million).

 

Six Month Financial Results Ended September 30, 2023

 

Revenue. Revenue decreased by approximately 34.9% from approximately US$22.4 million for the six months ended September 30, 2022, to approximately US$14.6 million for the six months ended September 30, 2023. During the six months ended September 30, 2023, revenue decreased mainly due to a decrease in the sales of heat transfers of approximately US$11.8 million from the same period in 2022 that was set off by an increase in the sales of the other products of approximately US$4 million.

 

Selling, general and administrative expenses. Selling, general and administrative expenses increased by approximately 22% from approximately US$2.0 million for the six months ended September 30, 2022 to approximately US$2.4 million for the six months ended September 30, 2023, which was mainly due to (i) an increase in payroll to our staff and fees to our directors; (ii) increase in depreciation of right-of-use due to an increase of rental fee for the warehouses and offices.

 

Other income, net. Other net income decreased by approximately US$0.1 million from approximately US$0.3 million for the six months ended September 30, 2022 to approximately US$0.2 million for the six months ended September 30, 2023, which was mainly due to the subsidy from the Employment Support Scheme launched by the Hong Kong government received during 30 September 2022.

 

Income tax expense. Income tax expense decreased to US$0.3 million for the for the six months ended September 30, 2023 (six months ended September 30, 2022: approximately US$0.7 million) which was mainly due to the decrease in net income.

 

Net income. Net income decreased by approximately US$2.0 million to approximately US$1.4 million, which was mainly due to the decrease in revenue.

 

Basic and diluted EPS. Basic and diluted EPS were approximately US$0.05 per ordinary share for the six months ended September 30, 2023, as compared to US$0.11 per ordinary share for the six months ended September 30, 2022, respectively.

 

Liquidity and Capital Resources

 

As of September 30, 2023, the Company had cash of US$768,159, total current assets of $17,018,359, and total current liabilities of US$6,259,310. Net current assets were US$10,759,049 and working capital ratio was 0.36. As of September 30, 2023, the Company’s total assets and total liabilities amounted to US$20,753,700 and US$7,986,428, respectively. As of September 30, 2023, the Company’s total stockholder’s equity amounted to US$12,767,272 and its gearing ratio (bank loan divided by stockholder’s equity) was 18.3%.

 

Off-Balance Sheet Arrangements

 

The Company does not have any off-balance sheet arrangements, including arrangements that would affect its liquidity, capital resources, market risk support, credit risk support, or other benefits.

 

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EXHIBIT INDEX

 

Exhibit No.   Description
99.1   Press Release, dated March 25, 2024

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  J-Long Group Limited
     
  By: /s/ Edwin Wong
  Name:  Edwin Wong
  Title: Chief Executive Officer and Director

 

Date: March 27, 2024

 

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