Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 81

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 81
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4 and latest amended on February 6, 2016, and other laws and regulations
governing the foreign invested enterprises and company registrations, the establishment of a foreign invested enterprise and any capital
increase and other major changes in a foreign invested enterprise shall be registered with the SAMR, or its local counterparts, and investment
information shall be submitted to the competent commerce authorities through the enterprise registration system and the National Enterprise
Credit Information Publicity System, if such foreign invested enterprise does not involve special access administrative measures prescribed
by the PRC government.

Based on the forgoing, if we intend to provide funding
to our wholly foreign owned subsidiaries through a capital injection at or after their establishment, we must register the establishment
thereof and any follow-on capital increase in our wholly foreign owned subsidiaries with the SAMR or its local counterparts, submit such
information via the enterprise registration system and the National Enterprise Credit Information Publicity System and register such with
the local banks for the foreign exchange related matters.

  50  

Offshore Investment

Under the Circular of the State Administration of
Foreign Exchange on Issues Concerning the Foreign Exchange Administration over the Overseas Investment and Financing and Round-trip Investment
by Domestic Residents via Special Purpose Vehicles, or the SAFE Circular 37, issued by the SAFE and effective on July 4, 2014, PRC residents
are required to register with the local SAFE branch prior to contributing assets or equity interests in an offshore special purpose vehicle,
or SPV, which is defined as offshore enterprises directly established or indirectly controlled by PRC residents for investment and financing
purposes, with the enterprise assets or interests they hold in China or overseas. The term “control” means obtain the operation
rights, right to proceeds or decision-making power of a SPV through acquisition, trust, holding shares on behalf of others, voting rights,
repurchase, convertible bonds or other means. An amendment to registration or subsequent filing with the local SAFE branch by such PRC
resident is also required if there is any change in basic information of the offshore company or any material change with respect to the
capital of the offshore company. At the same time, the SAFE has issued the Operation Guidance for the Issues Concerning Foreign Exchange
Administration over Round-trip Investment regarding the procedures for SAFE registration under the SAFE Circular 37, which became effective
on July 4, 2014 as an attachment of Circular 37.

Under the relevant rules, failure to comply with the
registration procedures set forth in the SAFE