Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 10

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 10
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 a number of risks inherent in doing business in China, including the following: unfavorable political or
economic factors; fluctuations in foreign currency exchange rates; potentially adverse tax consequences; unexpected legal or regulatory
changes; lack of sufficient protection for intellectual property rights; difficulties in recruiting and retaining personnel, and managing
international operations; and less developed infrastructure. Furthermore, changes in the political, economic and social conditions in
China from which these risks are derived could make it more difficult to provide products to our customers. Our inability to manage these
risks successfully could adversely affect our business and manufacturing operations and could significantly limit or completely hinder
our ability to offer our ordinary shares to investors and cause the value of such securities to significantly decline or be worthless.

We face risks related to health epidemics and
other outbreaks, including the coronavirus (COVID-19), which has caused and may continue to cause business disruptions, resulting in a
material, adverse impact to our financial condition and results of operations.

In recent years, there have been outbreaks of epidemics in various countries.
The outbreak of COVID-19 spread throughout the world, especially in China, the United States and Europe. On March 11, 2020, the World
Health Organization declared the outbreak of COVID-19 a global pandemic. The pandemic has resulted in quarantines, travel restrictions,
and the temporary closure of office buildings and facilities in China and in the U. S. Our results of operations were materially adversely
affected by the outbreak of COVID-19.

In 2022, there were outbreaks of the Omicron variant of the COVID-19 in
Hong Kong where our headquarters are located and other cities in China, including Shenzhen, Shanghai, Guangzhou, Taiyuan, Changchun as
well as Dongguan city where Xingfa is located, and travel restrictions, mandatory COVID-19 tests, quarantine requirements and/or temporary
closure of office buildings and facilities were imposed by local governments. China eased the strict lockdown procedures in early December
2022, which led to surge in COVID infections in December 2022 and January 2023 and caused disruption our business operations as our migrant
workers from other provinces in the manufacturing factory had to leave and go home early for the new year holidays and did not come back
until March 2023. Although our operations have resumed to normal since March 2023, the government authorities may issue new orders of
office closure, travel and transportation restrictions in China if there is any new variants or resurgence of the COVID