Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 0

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 0
---
Item
3. Key Information— D. Risk Factors

.

Risks Related to Our Business

  Tariffs, trade war and changes in U. S. trade policies have and could continue                                                          
  to significantly reduce the volume of exporting our products into the United States, which may materially reduce our profit margin and  
  our sales in the United States.                                                                                                         
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

  We may not be able to successfully introduce smart lock and security and internet of things (IoT) products that are in research and development.  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

  We incurred net losses for the year ended December 31, 202 4                                                                                                                                          
  and the past two years and may not be able to generate sufficient operating cash flows and working capital to continue as a going concern                                                             
  over the next 12 months. Failure to manage our liquidity and cash flows may materially and adversely affect our financial condition and results of operations. As a result, we may need additiona...  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

  Fluctuations in the price, availability or quality of raw materials used in our products could cause manufacturing delays, adversely affecting our ability to provide goods to our customers or i...  

  Xingfa may experience material disruptions to its manufacturing operations in China that could result in material delays, quality control issues, increased costs and loss of business opportunit...  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

  We face risks related to health epidemics and other outbreaks, including                                                                
  the coronavirus (COVID-19), which has caused and may continue to cause business disruptions, resulting in a material adverse impact to  
  our financial condition and results of operations.                                                                                      
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

  Environmental regulations impose substantial costs and limitations on our operations and violation of environmental regulations might subject us to fines, penalties or suspension of production ...  

  We are obligated to develop and maintain proper and effective internal control over financial reporting. We may not complete our analysis of our internal control over financial reporting in a t...  
 ─────────────────