Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 197

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 197
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Key Operating Metrics
 
Our management regularly reviews a number of metrics to evaluate our business, measure our performance, identify trends, formulate financial projections and make strategic decisions. The main metrics we consider are the results for the years ended December 31, 2024, 2023 and 2022, as set forth in the table below.

                                                                For the years ended December 31,                      
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                                         2024                      2023                        2022                   
Revenues                                        $7,506,551                  $6,443,357                 $12,158,102    
Profit margin                                         17.5     %                   9.8     %                  18.1   %
Net loss                                       $(3,690,287     )           $(3,501,518     )           $(1,655,903   )
Inventory turnover (in days)                           292                         294                         174    
Accounts receivable turnover (in days)                  14                          58                          41    
 
We project our revenue based on purchase orders from our customers, the current principal driver of our business. Then, we will estimate the expected gross profit based on our in-house standard material and cost table to determine what our profit margin should be. If there will be a downtrend of revenue, we try to lower our costs such as raw materials and direct labor. Normally, when there is no disruption on logistics such as the ones caused by COVID-19 or significant increase on tariff of products to the United States, raw materials and packaging consumables will be kept at a safe level that may sustain potential production needs for about two months. Potential production needs include quantities from purchase orders received and projected sales. Taking into account production time, inventory turnover and accounts receivable turnover and our cash position, we then project our working capital needs and also identify potential sales sources.
 

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 The number of purchase orders from our customers for 2024 were higher than those in 2023. Units of product shipped during 2024 were approximately 1.6 million units (including approximately 0.2 million units of spare parts) compared to approximately 1.3 million units (including approximately 0.1 million units of spare parts) in 2023.

Starting in 2020, we are studying and hope to improve our sales mix, namely more ODM and more self-branded products, geographic market mix, namely the US, South-east