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
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 | |
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 | |
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.
EXHIBIT INDEX
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
