Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 24

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 24
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 proceeds from offerings to fund our PRC subsidiary by making loans to or additional capital contributions to our PRC subsidiary,
subject to applicable government registration and approval requirements.

Any loans to our PRC subsidiary, which are treated
as foreign-invested enterprises under PRC laws, are subject to PRC regulations and foreign exchange loan registrations. For example, loans
by us to our PRC subsidiary to finance its activities cannot exceed statutory limits and must be registered with the local counterpart
of the State Administration of Foreign Exchange, or SAFE. The statutory limit for the total amount of foreign debts of a foreign-invested
company is the difference between the amount of total investment as approved by China’s Ministry of Commerce (“ MOFCOM”)
or its local counterpart and the amount of registered capital of such foreign-invested company.

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We may also decide to finance our PRC subsidiary by
means of capital contributions. These capital contributions must be filed with the MOFCOM or its local counterpart. In addition, SAFE
issued a circular in September 2008, SAFE Circular 142, regulating the conversion by a foreign-invested enterprise of foreign currency
registered capital into RMB by restricting how the converted RMB may be used. SAFE Circular 142 provides that the RMB capital converted
from foreign currency registered capital of a foreign-invested enterprise may only be used for purposes within the business scope approved
by the applicable government authority and unless otherwise provided by law, may not be used for equity investments within the PRC. Although
on July 4, 2014, SAFE issued the Circular of the SAFE on Relevant Issues Concerning the Pilot Reform in Certain Areas of the Administrative
Method of the Conversion of Foreign Exchange Funds by Foreign-invested Enterprises, or SAFE Circular 36, which launched a pilot reform
of the administration of the settlement of the foreign exchange capitals of foreign-invested enterprises in certain designated areas from
August 4, 2014 and some of the restrictions under SAFE Circular 142 will not apply to the settlement of the foreign exchange capitals
of the foreign-invested enterprises established within the designate areas and such enterprises mainly engaging in investment are allowed
to use its RMB capital converted from foreign exchange capitals to make equity investment, our PRC subsidiary is not established within
the designated areas. On March 30, 2015, SAFE promulgated Circular 19, to expand the reform nationwide. Circular 19 came into force and
replaced both Circular 142