Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 196

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 196
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 entity that discharges pollutants detrimental to the public welfare. We engaged an independent laboratory to conduct review of the compliance with environmental laws and regulations by Xingfa. We believe Xingfa has established sufficient measures and systems to implement and comply with the requirements of such laws and regulations. We and Xingfa may incur additional costs to ensure compliance with environmental and worker safety and health protection requirements in the PRC. To cope with the green requirements as well as our mission of ESQ achievement, we decided to enhance our production line.
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●                                           Relations Between the US and China. At various times during                                        
                recent years, the US and China have had disagreements over political and economic issues. Controversies may arise in           
        the future between these two countries. These controversies also could make it more difficult for us to provide our products to our    
         customers in the US. The international trade policies of China and the US could adversely affect our business, and the imposition     
         of trade sanctions and tariffs relating to imports, taxes, import duties and other charges on imports from China, including those     
       applied specifically to our products, or the imposition of taxes, import duties or other charges on exports to the U.S. could increase  
                 our costs and affect our operating results negatively. Starting in January 2021, we stopped absorbing tariffs cost            
       from 2018 for our U.S. customers and U.S.. Since February 1, 2025, President Trump has increased tariff levied on products from China   
    to 145% which has made export of our products to the United State impossible. We must develop markets in Asia and other regions to mitigate
                                                   the natively impact caused by this tariff war.                                              
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●   Competition: To continue to compete effectively, we must maintain our reputation for innovation and high-quality products and be flexible and innovative in responding to rapidly changing market demands. The number of our direct competitors and the intensity of competition may increase as we expand into other product lines such as smart locksets. Our competitors may enter into business combinations or alliances that strengthen their competitive positions or prevent us from taking advantage of such combinations or alliances. Our competitors also may be able to respond more quickly and effectively than we can to new or changing opportunities, standards or consumer preferences. Our results of operations and market position may be adversely impacted by our competitors and the competitive pressures in the lockset industries.