Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 27

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 27
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, SAFE regulations. Failure by such shareholders or beneficial owners to comply with SAFE regulations, or failure by us to
amend the foreign exchange registrations of our PRC subsidiary, could subject us to fines or legal sanctions, restrict our overseas or
cross-border investment activities, limit our PRC subsidiary’s ability to make distributions or pay dividends to us or affect our
ownership structure, which could adversely affect our business and prospects.

Fluctuations in exchange rates could have a
material adverse effect on our results of operations and the value of your investment.

Substantially all of our manufacturing and expenditures
are denominated in RMB, whereas our reporting currency is the U. S. dollar. As a result, fluctuations in the exchange rate between the
U. S. dollar and RMB will affect the relative purchasing power in RMB terms of our U. S. dollar assets and the proceeds from any offering.
Our reporting currency is the U. S. dollar while the functional currency for our PRC subsidiary is RMB. Gains and losses from the remeasurement
of assets and liabilities that are receivable or payable in RMB are included in our consolidated statements of operations. The remeasurement
has caused the U. S. dollar value of our results of operations to vary with exchange rate fluctuations, and the U. S. dollar value of our
results of operations will continue to vary with exchange rate fluctuations. A fluctuation in the value of RMB relative to the U. S. dollar
could reduce our profits from operations and the translated value of our net assets when reported in U. S. dollars in our financial statements.
This could have a negative impact on our business, financial condition or results of operations as reported in U. S. dollars. If we decide
to convert our RMB into U. S. dollars for the purpose of making payments for dividends on our ordinary shares or for other business purposes,
appreciation of the U. S. dollar against the RMB would have a negative effect on the U. S. dollar amount available to us. In addition, fluctuations
in currencies relative to the periods in which the earnings are generated may make it more difficult to perform period-to-period comparisons
of our reported results of operations.

There remains international pressure on
the PRC government to adopt a flexible currency policy. Any significant appreciation or depreciation of the RMB may materially and adversely
affect our revenues, earnings and financial position, and the value of, and any dividends payable on, our ordinary