Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 54

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 54
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2019, a “relevant entity” is
required to satisfy the economic substance test set out in the ES Act. A “relevant entity” includes an exempted company incorporated
in the Cayman Islands as is our Company. Based on the current interpretation of the ES Act, we believe that our Company, Intelligent Living
Applicant Group Inc., is a pure equity holding company since it only holds equity participation in other entities and only earns dividends
and capital gains. Accordingly, for so long as our Company, Intelligent Living Applicant Group Inc., is a “pure equity holding company”,
it is only subject to the minimum substance requirements, which require us to (i) comply with all applicable filing requirements under
the Companies Act; and (ii) has adequate human resources and adequate premises in the Cayman Islands for holding and managing equity participations
in other entities. However, there can be no assurance that we will not be subject to more requirements under the ES Law. Uncertainties
over the interpretation and implementation of the ES Act may have an adverse impact on our business and operations.

  35  

  ITEM 4.      INFORMATION ON THE COMPANY  
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A. History and
Development of the Company

For 40 years, we have manufactured and sold high quality
mechanical locksets to customers mainly in the United States and Canada, and we continue to diversify and refine our product offerings
to meet our customers’ needs. The predecessor of Hing Fat commenced our business of selling door locksets in 1981. In 1983, we started
a small manufacturing workshop in China to produce door locksets with imported materials to fulfill for our customer orders, which becomes
our current manufacturing subsidiary, Xingfa. Our mission was “dedicated to manufacture high quality lockset products at affordable
prices.”

Since 2000, we have offered our products with the
American National Standards Institute (ANSI) Grade 2 and Grade 3 standards, which are developed by Builders Hardware Manufacturing Association
(BHMA) for ANSI. Our focus is producing mechanical locksets, including locksets for outdoor uses, such as main entrances and gates, and
indoor uses, to promote sustainable growth in our business and competitiveness in the market. To continue driving growth, we have designed
our products to go beyond a basic lockset for security purposes; we offer a wide range of ODM door locksets to various customer segments
from “ Premium Series” to “ Economy