Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 97

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 97
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 If the idle capacity impact was removed, our profit margin decreased to 15.2% in 2023. The decrease in margin during 2023
was mainly due to the increase of labor costs and raw materials such as zinc alloy and iron.

Our revenues from sales of door locksets increased by $1,063,194, or 16.5%
for the year ended December 31, 2024 to $7,506,551 from $6,443,357 for the year ended December 31, 2023. The increase was mainly due to
increase in units sold in 2024. We renegotiated bank borrowings with lower interest rate to sustain our operation cash
needs. Our bank borrowings outstanding as of December 31, 2024 was approximately $0.4 million as compared to approximately $0.5 million
as of December 31, 2023. Selling and marketing expenses increased to $1,102,778 in 2024 from $59,841 for 2023 because
of increase in market research expenses. Our general and administrative expenses decreased to approximately $3.4 million for 2024 from approximately $4.4 million for 2023 because of decrease in compensation to directors and
executive officers and professional fees as a public company. Finance costs were decreased to $25,834 for 2024 from $26,935 for 2023. The combination of all above factors, along with decrease in other income and increase
of provision for income tax, have resulted in an increase of our net loss of $188,769 to $3,690,287 for 2024
from $3,501,518 for 2023.

  59  

Currently, our customer and geographical market concentration
are high. To mitigate the issues of concentration of customers and geographical markets, we are contacting property and hotel/service
apartment developers in China and South-east Asia to diversify our customer base and reduce our market concentration. The
following table shows revenues from customers that accounted for more than 10% of our total operating revenues:

                  For the years ended                                                                              
                  December 31,                                                                                     
                  2024                                                                                             
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Customer A      $                        2,823,568      37.6      1,786,656      27.5       5,654,248      46.5  
  Customer