Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 22

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 22
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 currency-denominated
obligations, setting monetary policy, and providing preferential treatment to particular industries or companies.

While the Chinese economy has experienced significant
growth over the past four decades, growth has been uneven, both geographically and among various sectors of the economy. The Chinese government
has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit
the overall Chinese economy but may have a negative effect on us. For example, our financial condition and results of operations may be
adversely affected by government control over capital investments or changes in tax regulations. Since the outbreak of COVID-19, China’s
economic growth has slowed down significantly, and the recovery has been slow. Any prolonged slowdown in the Chinese economy may reduce
the demand for our products and materially and adversely affect our business and results of operations.

Uncertainties and quick change in the interpretation
and enforcement of Chinese laws and regulations with little advance notice could result in a material and negative impact our business
operation, decrease the value of our ordinary shares and limit the legal protections available to us.

The PRC legal system is based on written statutes,
and prior court decisions have limited value as precedents. Since these laws and regulations are relatively new and the PRC legal system
continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws,
regulations and rules involves uncertainties. The enforcement of laws and that rules and regulations in China can change quickly with
little advance notice and the risk that the Chinese government may intervene or influence our operations at any time, or may exert more
control over offerings conducted overseas and/or foreign investment in China- based issuers, could result in a material change in our
operations and/or the value of our ordinary shares.

We cannot rule out the possibility that the PRC government
will institute a licensing regime or pre-approval requirement covering our industry at some point in the future. If such a licensing regime
or approval requirement were introduced, we cannot assure you that we would be able to obtain any newly required license in a timely manner,
or at all, which could materially and adversely affect our business and impede our ability to continue our operations.

From time to time, we may have to resort to administrative
and court proceedings to enforce our legal rights. However, since PRC administrative and court authorities have significant discretion
in interpreting and implementing statutory and contractual terms, it may be more difficult to evaluate the outcome of administrative and