Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 43

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 43
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 demonstrations in
Hong Kong that has adversely affected the business volume and operations of local businesses, airports and public transportation systems.
On July 14, 2020, the President of U. S. signed an executive order to end the special status enjoyed by Hong Kong under the United States-Hong
Kong Policy Act of 1992. Hong Kong’s position and reputation as an international financial and trade center may be further damaged,
and our business may be materially and adversely affected.

We may be affected by the recently effect by the Basic Law Article 23:
Safeguarding National Security Ordinance

On March 23, 2024, the Basic Law Article 23: Safeguarding
National Security Ordinance took effect. We have accessed the content and believe our business
operations in Hong Kong will not be adversely affected by this new law. However, our customers in U. S. and investors may have different
point of view on the impact of this new law which could in turn adversely affect our business operations and financial results.

We may be affected by the currency peg system in
Hong Kong.

Since 1983, Hong Kong dollars have been pegged to
the US dollars at the rate of approximately HK$7.80 to US$1.00. We cannot assure you that this policy will not change in the future.
If the pegging system collapses and Hong Kong dollars suffer devaluation, the Hong Kong dollar cost of our expenditures denominated in
foreign currency may increase. This would in turn adversely affect the operations and profitability of our business.

It will be difficult to acquire jurisdiction
and enforce liabilities against us, our officers, directors and assets based in Hong Kong and China.

Almost all of our assets are located in Hong Kong
and China and our officers and directors currently reside outside of the United States and most of them are in Hong Kong. There are currently
no treaties or other arrangements providing for reciprocal enforcement of foreign judgments between Hong Kong and the United States.
In a common law action for enforcement of a foreign judgment in Hong Kong, the enforcement is subject to various conditions, including
but not limited to, that the foreign judgment is a final judgment conclusive upon the merits of the claim, the judgment is for a liquidated
amount in a civil matter and not in respect of taxes, fines, penalties, or similar charges, the proceedings in which the judgment was
obtained were not contrary to natural justice, and the enforcement of the judgment is not contrary to public policy of Hong Kong. China