Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 66

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 66
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RC laws. The NDRC
and the MOFCOM promulgated the Special Administrative Measures (Negative List) for Foreign Investment Access (2021 Edition) (the “2021
National Negative List”) and the Special Administrative Measures (Negative List) for Foreign Investment Access in Pilot Free Trade
Zones (2021 Edition) (the “2021 FTZ Negative List”) (collectively the “2021 Negative Lists”) on December 27, 2021,
which took effect on January 1, 2022. Industries listed on the 2021 Negative Lists are divided into two categories: restricted and prohibited.
Industries not listed on the 2021 Negative Lists are generally deemed as constituting a third “permitted” category. The establishment
of wholly foreign-owned enterprises is generally allowed in permitted industries. Some restricted industries are limited to equity or
contractual joint ventures, while in some cases, Chinese partners are required to hold the majority interests in such joint ventures.
In addition, projects falling under the restricted category are subject to higher-level government approvals. Foreign investors are not
allowed to invest in industries in the prohibited category. Industries not listed in the Negative List are generally open to foreign investment
unless specifically restricted by other PRC regulations. Any domestic enterprise engaging in businesses prohibited by the 2021 Negative
Lists that lists, issues securities and trades shares overseas must obtain pre-approval consent from relevant competent regulator; overseas
investors must not engage in the operation and management of the enterprise, and the percentage of foreign shareholding is subject to
the relevant provisions in the administrative measures for domestic securities investments by foreign investors.

To comply with PRC laws and regulations, we rely on
equity investment with our WFOE subsidiary to operate our business in China. See “ Risk Factors - Risks Related to Our Corporate
Structure - PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control
of currency conversion may delay or prevent us from using the proceeds of securities offering to make loans to or make additional capital
contributions to our PRC subsidiary, which could materially and adversely affect our liquidity and our ability to fund and expand our
business.”

Foreign Investment Law

On March 15, 2019, the National People’s Congress
approved the Foreign Investment Law, which became effective on January 1, 2020 and replace three existing laws on foreign investments
in China, namely, the PRC Equity Joint Venture Law, the PRC Cooperative Joint Venture