Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 127

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 127
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4 by function:

                                       Hong Kong                PRC  
  Department                           Headquarters      Production  
  Management                   10      7                          3  
  Finance and accounting        8      5                          3  
  Sales and Marketing           4      4                          —  
  Purchasing                    2      —                          2  
  Warehouse                    11      —                         11  
  Production                  181      —                        181  
  Quality Control               3      —                          3  
  Administration               14      3                         11  
  Technical                     5      —                          5  
  Total                       238      19                       219  

*including one employee, our vice president of finance based in Beijing.

As of December 31, 2024, 18 employees are based in
Hong Kong, where our principal executive offices are located, one vice president of finance was based in Beijing, and the remaining employees
were located in Dongguan, China.

As required by PRC regulations, Xingfa participates
in various government statutory employee benefit plans, including social insurance funds, namely a pension contribution plan, a medical
insurance plan, an unemployment insurance plan, a work-related injury insurance plan and a maternity insurance plan, and a housing provident
fund. Xingfa is required under PRC law to make contributions to employee benefit plans at specified percentages of the salaries, bonuses
and certain allowances of its employees, up to a maximum amount specified by the local government from time to time. As of the date of
this report, we believe Xingfa has made employee benefit payments in material aspects. However, if Xingfa were found by the relevant authorities
that it failed to make adequate payments, it may be required to make up the contributions for these plans as well as to pay late fees
and fines. See “ Risk Factors - Risks Related to Doing Business in China - Failure to make adequate contributions to various
employee benefit plans as required by PRC regulations may subject us to penalties.”

We enter into standard labor and confidentiality agreements
with our employees. We believe that we maintain a good working relationship with our employees, and we have not experienced any major
labor disputes.

We understand that our success depends on our ability
to attract, train and retain our employees. Therefore, as part of our human resources strategy, we offer employees competitive salaries,
stock awards, performance-based cash bonuses and promotions, engagement activities, various welfare as well as other incentives. We