Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 38

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 38
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 exist with respect
to the interpretation and implementation of the newly enacted PRC Foreign Investment Law and how it may impact the viability of our current
corporate structure, corporate governance, business operations and financial results.

On March 15, 2019, the National People’s Congress
approved the Foreign Investment Law, which came into effect on January 1, 2020 and replaced the trio of existing laws regulating foreign
investment in China, namely, the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint Venture Enterprise
Law and the Wholly Foreign-invested Enterprise Law, together with their implementation rules and ancillary regulations. The Foreign Investment
Law embodies an expected PRC regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international
practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments. However, since
it is relatively new, uncertainties still exist in relation to its interpretation and implementation and how it may impact the viability
of our current corporate governance and business operations in China and financial results of the Company.

Any change of regulations and rules by Chinese
government including the limitations on usage of power, additional environmental protection requirements, moving technology in and out
of the PRC or restriction on cash transfer out of PRC may intervene or influence our operations in China at any time and any additional
control over offerings conducted overseas and/or foreign investment in issuers with Chinese operations could result in a material change
in our business operations and/or the value of our ordinary shares and could also significantly limit or completely hinder our ability
to offer our ordinary shares to investors and cause the value of such securities to significantly decline or be worthless.

Our manufacturing facility and operation in China
may be intervened or influenced by the new regulations and policies by Chinese government. For example, between July 2 and July 6, 2021,
Cyberspace Administration of China, or the CAC, announced cybersecurity investigations of the business operations of certain U. S.-listed
Chinese companies. On July 6, 2021, the General Office of the Central Committee of the Communist Party of China and the General Office
of the State Council jointly issued “ The Opinions on Severely Cracking Down on Illegal Securities Activities According to Law”,
or “the Opinions”. The Opinions emphasized the needs to strengthen the administration over illegal securities activities and
the supervision over overseas listings by Chinese companies. According to the Opinions, Measures, including promoting the construction
of relevant