Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 46

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 46
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 capital commitments;  

  addition or departure of key personnel;  

  fluctuations of exchange rates among RMB, HK dollar and the U. S. dollar; and  
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  Tariffs, trade war, general economic, health or political conditions in Hong Kong, China and  

  31  

In addition, the securities market has from time-to-time
experienced significant price and volume fluctuations that are not related to the operating performance of particular companies. These
market fluctuations may also materially and adversely affect the market price of our ordinary shares.

Volatility in our ordinary shares price may
subject us to securities litigation.

The market for our ordinary shares may have, when
compared to seasoned issuers, significant price volatility and we expect that our share price may continue to be more volatile than that
of a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action litigation against
a company following periods of volatility in the market price of its securities. We may, in the future, be the target of similar litigation.
Securities litigation could result in substantial costs and liabilities and could divert management’s attention and resources.

In order to raise sufficient funds to enhance
operations, we may have to issue additional securities at prices which may result in substantial dilution to our shareholders.

If we raise additional funds through the sale of equity
or convertible debt, our current shareholders’ percentage ownership will be reduced. In addition, these transactions may dilute
the value of ordinary shares outstanding. We may have to issue securities that may have rights, preferences and privileges senior to our
ordinary shares. We cannot provide assurance that we will be able to raise additional funds on terms acceptable to us, if at all. If future
financing is not available or is not available on acceptable terms, we may not be able to fund our future needs, which would have a material
adverse effect on our business plans, prospects, results of operations and financial condition.

We are not likely to pay cash dividends in
the foreseeable future.

We currently intend to retain any future earnings
for use in the operation and expansion of our business. Accordingly, we do not expect to pay any cash dividends in the foreseeable future
but will review this policy as circumstances dictate. Should we determine to pay dividends in the future, our ability to do so will depend
upon the receipt of dividends or other payments from our subsidiaries. Our subsidiaries may, from time to time, be subject to restrictions