Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 79

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 79
---
ifying and Improving
the Foreign Currency Management Policy on Direct Investment, or the SAFE Circular 13, effective from June 1, 2015, cancels the administrative
approvals of foreign exchange registration of direct domestic investment and direct overseas investment and simplifies the procedure of
foreign exchange-related registration. Pursuant to the SAFE Circular 13, the investors shall register with banks for direct domestic investment
and direct overseas investment.

  49  

The Circular on Reforming the Management Approach
regarding the Settlement of Foreign Capital of Foreign-invested Enterprise, or the SAFE Circular 19, which was promulgated by the SAFE
on March 30, 2015 and became effective on June 1, 2015, provides that a foreign-invested enterprise may, according to its actual business
needs, settle with a bank the portion of the foreign exchange capital in its capital account for which the relevant foreign exchange administration
has confirmed monetary capital contribution rights and interests (or for which the bank has registered the injection of the monetary capital
contribution into the account). Pursuant to the SAFE Circular 19, for the time being, foreign-invested enterprises are allowed to settle
100% of their foreign exchange capital on a discretionary basis; a foreign-invested enterprise shall truthfully use its capital for its
own operational purposes within the scope of business; where an ordinary foreign-invested enterprise makes domestic equity investment
with the amount of foreign exchanges settled, the invested enterprise must first go through domestic re-investment registration and open
a corresponding account for foreign exchange settlement pending payment with the foreign exchange administration or the bank at the place
where it is registered.

The Circular on Reforming and Regulating Policies
on the Control over Foreign Exchange Settlement of Capital Accounts, or the SAFE Circular 16, which was promulgated by the SAFE and became
effective on June 9, 2016, provides that enterprises registered in the PRC may also convert their foreign debts from foreign currency
into Renminbi on self-discretionary basis. The SAFE Circular 16 also provides an integrated standard for conversion of foreign exchange
under capital account items (including but not limited to foreign currency capital and foreign debts) on self-discretionary basis, which
applies to all enterprises registered in the PRC.

In January 2017, SAFE promulgated the Circular on
Further Improving Reform of Foreign Exchange Administration and Optimizing Genuineness and Compliance Verification, or Circular 3, which