Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 198

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 198
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 Asia and China, cost structure and procurement options in order to further optimize our profit performance. However, as the combined effect of slow recovery post COVID-19 and the amortization of our electroplating production line, we have incurred a lower profit margin during the fiscal year 2023. We continue to promote higher value products to our customers and develop smart lock product series in 2024. Despite our efforts to optimize our product mix and cost structure, purchase orders from our customers were slowed down as the reasons discussed above. As we have to keep our factory running and employees working, we have stocked up to achieve the expected short delivery time to meet potential new customers demand, therefore, our inventory turnover in days was negatively affected. We believe that we can further reduce our cost of raw materials with new processing techniques, to maintain volume rebates of raw materials and enhance our gross margin as we optimize our product-mix to focus our marketing efforts on higher margin products and new products. To better manage our profit margin in light of rising cost of raw materials, we leverage extensive product quality testing to identify alternative raw materials mix that are designed to lower our production costs. Since the second half of 2021, we have used stainless steel to substitute brass. Since February 1, 2025, President Trump has increased tariff levied on products from China to 145% which has made export of our products to the United State impossible. We must develop markets in Asia and other regions to mitigate the natively impact caused by this tariff war. We have started research in Thailand and Southern East Asia markets.
 
Results of Operations
 
The following table summarizes our consolidated statements of operations for the periods indicated. This information should be read together with our CFS and related notes included elsewhere in this report. The operating results in any period are not necessarily of the results that may be expected for any future period.

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For the years ended December 31, 2024 and 2023
 

                                                                                                  For the years ended                                                                  
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                                                                                  December 31,                                                                              Change     
                                                                              2024                           2023                           Change                               %     
                                                                                  USD                              USD                      USD                                        
Selected Consolidated Statements of Operations and Comprehensive Loss Data:                                                                                                            
Revenues                                                                          $7,506,551                       $6,443,357               $1,063,194                        16.5    %
Cost of goods sold                                                                        (5,831,949     )                 (5,464,591   )             (367,359