Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 59

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 59
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 expenditures.

B. Business Overview

Our mission is to make life safer and smarter by designing
and producing affordable, high-quality locksets and smart security systems.

Headquartered in Hong Kong, we manufacture and sell
high quality mechanical locksets to customers mainly in the United States (US) and Canada and have continued to diversify and refine our
product offerings in the past 40 years to meet our customers’ needs. We believe Xingfa is one of the pioneers of mechanical lockset
manufacturing in China. Since inception, to cope with our development and increase customer satisfaction in quality, we keep investing
in self-designed automated product lines, new craftsmanship and developing new products including smart locks. In order to obtain the
confidence of our customers, Xingfa has obtained the ISO9001quality assurance certificate.

Starting in 2000, we offer products
that comply with the American National Standards Institute (ANSI) Grade 2 and Grade 3 standards that are developed by the Builders Hardware
Manufacturing Association (BHMA) for ANSI. Our focus in producing mechanical locksets - including locksets for outdoors (such as main
entrances and gates) and indoors - has resulted in sustainable growth in our business and raised our competitiveness. To maintain our
growth, our products are beyond a simple lockset for security purposes, we offer a wide range of Original Design Manufacturer (“ ODM”)
door locksets to various customer segments from “ Premium Series” to “ Economy-oriented Series” with classic to
contemporary looks, functions and colors.

To meet increasing consumer needs for smart locks
and smart home products, Hing Fat has been researching and developing smart locks in the past couple
years. Most of our research and development on smart locks have been done internally by our technician and engineers, except that Hing
Fat hired outside services for approximately $25,000 in 2017. Because of tariff war and outbreak of COVID-19, we did not further progress
on the software for our smart locks until early 2023. Since then, we have reinitiated the process to develop devices and software applications
for our smart locks. On March 6, 2025, the Company announced the launch of its Competitive Smart Lock and the first batch of new smart
locks has been shipped to the United States and will be available in its online store at Amazon. com soon.

Currently, approximately 99% of our revenues are from
products sold to the US market, and the remaining products are sold to Canadian