Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 65

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 65
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To comply with stringent requirements of U. S. standards,
Xingfa has obtained ISO9000 certificate, and its manufacturing facility has been reviewed and audited by U. S. customers from time to time
for compliance of social responsibility about labor welfare and safety, environmental protection and other requirements from such customers.
To serve our customers better, Xingfa has equipped with professional keying machineries which is a very niche service being provided by
lockset manufacturers in China and Asia Pacific region. In Asia, we only have a few peer competitors in China and South-east Asia due
to high capital expense requirement for the manufacturing facility and professional know-hows of the products and industry.

We have launched research in smart locks functions,
communication protocols, available designs and suppliers of electronic parts in the market as a part of our R & D process of smart
lock products. Our in-depth knowledge in lockset mechanics makes it easier for us to enter into smart locks market by incorporating relevant
electronic parts into our locksets after we develop the software system. We launched our first smart lock product in March 2025. In additional,
our long relationship with our customers makes it quicker for us to introduce new products including future smart locks to the market.

With our years of operational history, Xingfa has
built a loyal and experienced work force and manufacturing management, which can drive manufacturing facility expansion without additional
talent. Along with long-term relationships with reputable customers and recent access to e-commerce channels, we believe we are able to
attract customers with our new products.

Regulations

Regulations of People’s Republic of China

This section sets forth a summary of the most significant
rules and regulations that affect our business activities in China through our wholly owned subsidiary Xingfa.

  42  

Regulations Relating to Foreign Investment

Negative List of Industries for Foreign Investment

Investment activities in the PRC by foreign investors
were principally governed by the Guidance Catalogue of Industries for Foreign Investment, or the Guidance Catalog, which was promulgated
and is amended from time to time by the Ministry of Commerce, or MOFCOM, and the National Development and Reform Commission, or NDRC.
The Guidance Catalog lays out the basic framework for foreign investment in China, classifying businesses into three categories with regard
to foreign investment: “encouraged,” “restricted” and “prohibited.” Industries not listed in the catalog
are generally deemed as falling into a fourth category “permitted” unless specifically restricted by other P