Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 41

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 41
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 air emissions, wastewater treatment
and solid waste management and disposal which could restrict or limit our operations and expose us to liability and penalties for non-compliance.
The new rules or regulations may also impose additional restrictions on us for moving technology in and out of the PRC or restriction
on our cash transfer out of PRC from current accounts. Such new rules or actions taken by the PRC government authorities may intervene
or influence our operations at any time, which may adversely affect our operations and significantly limit or hinder our ability to offer
or continue to offer securities to you and reduce the value of our securities.

Uncertainties regarding the enforcement of laws and
the fact that rules and regulations in China can change quickly with little advance notice, along with the risk that the Chinese government
may intervene or influence our operations at any time, or may exert more control over offerings conducted overseas and/or foreign investment
in China-based issuers could result in a material change in our operations, financial performance and/or the value of our ordinary shares
or impair our ability to raise money.

If we become subject to additional scrutiny,
criticism and negative publicity involving U. S.-listed China-based companies, we may have to expend significant resources to investigate
and resolve the matter which could harm our business operations, securities offering and our reputation and could result in a loss of
your investment in our ordinary shares, especially if such matter cannot be addressed and resolved favorably.

Recently, U. S. public companies that have substantial
operations in China have been the subject of intense scrutiny, criticism and negative publicity by investors, financial commentators and
regulatory agencies. Much of the scrutiny, criticism and negative publicity has centered around financial and accounting irregularities,
a lack of effective internal controls over financial accounting, inadequate corporate governance policies or a lack of adherence thereto
and, in some cases, allegations of fraud. As a result of the scrutiny, criticism and negative publicity, the publicly traded stock of
many U. S.-listed China-based companies has decreased in value and, in some cases, has become virtually worthless. Some of these companies
have been subject to shareholder lawsuits and SEC enforcement actions and have conducted internal and external investigations into the
allegations. It is not clear what effect this sector-wide scrutiny, criticism and negative publicity will have on us, our business and
securities offering. If we become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue,
we will have to expend significant resources to investigate such allegations and/or