Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 17

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 17
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 recruit, train and retain qualified personnel. In addition, although we have entered into confidentiality
and non-competition agreements with our management, there is no assurance that any member of our management team will not join our competitors
or form a competing business. If any dispute arises between our current or former officers and us, we may have to incur substantial costs
and expenses in order to enforce such agreements in China or we may be unable to enforce them at all.

The relative lack of public company experience
of our management team may put us at a competitive disadvantage.

Our management team lacks public company experience,
which could impair our ability to comply with legal and regulatory requirements such as those imposed by the Sarbanes-Oxley Act of 2002,
(“ Sarbanes-Oxley”). Our senior management does not have much experience managing a publicly traded company. Such responsibilities
include complying with federal securities laws and making required disclosures on a timely basis. Our senior management may be unable
to implement programs and policies in an effective and timely manner or that adequately respond to the increased legal, regulatory and
reporting requirements associated with being a publicly traded company. Our failure to comply with all applicable requirements could lead
to the imposition of fines and penalties, distract our management from attending to the management and growth of our business, result
in a loss of investor confidence in our financial reports and have an adverse effect on our business and stock price.

  15  

We lease our facilities from third parties and
there is no assurance that we will be able to renew our leased facilities on favorable terms, or at all.

We currently lease all of the properties we use to
operate our business. Our headquarters are located in Hong Kong comprising office premises of approximately 300 m2. Our production
facilities are located in Dongguan, Guangdong Province of China, where Xingfa leases a total floor area of approximately 17,560 m2.
The lease terms on these premises expire on February 28, 2026. In October 2022, Xingfa acquired an electroplating production line which
is on a 2,033 m2floor area premise in an environmental protection industrial park in Dongguan, which is specially approved
for infrastructures such as electroplating and other high pollution productions. The lease term on this premise expires on October 31,
2026. If we are unable to renew these leases on favorable terms, or at all, we would be required to find new leased space, which space