Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 84

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 84
---
 false statement or misleading information or material
omissions, which may result in a fine ranging from RMB 1 million to RMB 10 million, and in cases of severe violations, the relevant responsible
persons may also be warned and each imposed a fine of between RMB500,000 and RMB5,000,000. The new rules provide that the
determination as to whether a domestic company is indirectly offering and listing securities on an overseas market shall be made on a
substance over form basis, and if the issuer meets the following conditions, the offering and listing shall be determined as an indirect
overseas offering and listing by a Chinese domestic company: (i) any of the revenue, profit, total assets or net assets of the Chinese
domestic entity is more than 50% of the related financials in the issuer’s audited consolidated financial statements for the most
recent fiscal year; (ii) the senior managers in charge of business operation and management of the issuer are mostly Chinese citizens
or with regular domicile in China, the main locations of its business operations are in China or main business activities are conducted
in China. We are headquartered in Hong Kong with all our executive officers and directors based in Hong Kong who are not Chinese citizens
and most of our revenues and profits are generated by our subsidiaries in Hong Kong. We don’t believe we are subject to the New Overseas Listing Rules.

PRC Laws and Regulations Related to Data Cross-border Transfer and personal
information protection

Measures for the Security Assessment of Data Cross-border Transfer

On July 7, 2022, CAC promulgated the Measures for
the Security Assessment of Data Cross-border Transfer, effective on September 1, 2022, which requires the data processors to apply for
data cross-border security assessment coordinated by the CAC under the following circumstances: (i) any data processor transfers important
data to overseas; (ii) any critical information infrastructure operator or data processor who processes personal information of over 1
million people provides personal information to overseas; (iii) any data processor who provides personal information to overseas and has
already provided personal information of more than 100,000 people or sensitive personal information of more than 10,000 people to overseas
since January 1st of the previous year and; and (iv) other circumstances under which the data cross-border transfer security assessment
is required as prescribed by the CAC.

Personal Information Protection Law of the PRC

On August 20,