Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 86

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 86
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 adjust its registered capital and subscription period during the transition period and
makes actual payments according to the adjusted registered capital and subscription period, it may face penalties from administrative
authorities, including fines, revocation of business license, etc. Enterprises may be included in the abnormal credit system list, and
their legal representatives may also be subject to corresponding restrictions.

Hong Kong Regulations

As we conduct business in Hong Kong through our wholly
subsidiaries Kambo Locksets, Kambo Hardware, Bamberg and Hing Fat, our business operations are subject to various regulations and rules
promulgated by the Hong Kong government. The following is a brief summary of the Hong Kong laws and regulations that currently and materially
affect our business. This section does not purport to be a comprehensive summary of all present and proposed regulations and legislation
relating to the industries in which we operate.

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Hong Kong Laws and Regulations relating to Trade Description

Trade Descriptions Ordinance(Chapter 362 of
the Laws of Hong Kong) (“ TDO”), which came into full effect in Hong Kong on 1 April 1981 aims to prohibit false or misleading
trade description and statements to goods and services provided to the customers during or after a commercial transaction. Pursuant to
the TDO, any person in the course of any trade or business applies a false trade description to any goods or supply or offers to supply
them commits an offence and a person also commits the same offence if he/she is in possession for sale or for any purpose of trade or
manufacture of any goods with a false description. The TDO also provides that traders may commit an offence if they engage in a commercial
practice that has a misleading omission of material information of the goods, an aggressive commercial practice, involves bait advertising,
bait and switch or wrong acceptance of payment.

Hong Kong Laws and Regulations relating to Sales of Goods

Pursuant to Sale of Goods Ordinance(Chapter
26 of the Laws of Hong Kong) (“ SOGO”), which came into full effect in Hong Kong on August 1, 1896, in every contract of sale,
there is an implied warranty that the goods are free, and will remain free until the time when the property is to pass, from any charge
or encumbrance not disclosed or known to the buyer before the contract is made and that the buyer will enjoy quiet possession of the goods
except so far as it may be disturbed by the owner or other person entitled to the benefit of any charge