Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 64

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 64
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 locksets. In Asia, there are only a few manufacturers in China and South-east Asia that are capable of
competing with us on such products.

Mechanical lockset companies have been consolidating
in the last decade (see table: Competitive Landscaping, below). Sizable multinational companies keep expanding by acquiring or merging
with other lockset companies. Currently, the major player in the world is ASSA Abloy AB (ASSA B: STO), a Swedish conglomerate that sells
cover products and services ranging from locks, doors, gates and entrance automation, which owns brands such as Abloy, Yale Mul-T-Lock
and Medeco. Other well-known brands including Kwikset by the Hardware and Home Improvement (HHI), division of ASSA ABLOY (STO: AAY. ST),
Schlage by Allegion PLC (NYSE: ALLE), Defiant by Home Depot (NYSE: HD), and Delaney Hardware in Cumming, USA. The PRC market is fragmented
because various international lockset standards are all applicable in China. Thus, various brands of locksets all compete in PRC which
makes the Chinese lockset market highly competitive.

We mostly compete with manufacturing subsidiaries
and factories of those worldwide brands on product quality as well as the manufacturers in China on price. The key for our sustainability
is to maintain high quality, fine craftsmanship and procurement at affordable prices. In additional, high capital expense for building
a new locket manufacturing facility and our longtime created reputation set up barriers of entry by new players.

Our Competitive Strengths

We have four decades of experience in mechanical lockset
manufacturing. This gave us the ability to design our own automated production lines to meet our customers’ needs effectively and
efficiently. Xingfa is few of manufacturers who is able to finish complicated stamping and casting with few machineries by optimizing
production progresses. We are currently offering 108 basic designs of various locksets in our product catalogue (see “ Our Products”
for sample images) and we also have many other designs stored in the library of engineering department of Hing Fat, all of which enable
us to provide our customers with products of many varieties with different functions, outlooks and colors. We have accumulated extensive
design and production know-hows of our lock core in the past thirty years. Our experience and expertise in the design of mechanical locksets
helps us expand our product lines and quickly respond to the changes of market trends and demands of our customers.