Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 33

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 33
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, the securities regulatory authority of the State
Council may establish a regulatory cooperation mechanism with the securities regulatory authorities of another country or region, to implement
cross-border supervision and administration and no overseas securities regulator is allowed to directly conduct an investigation or evidence
collection activities within the territory of the PRC. Accordingly, without the consent of the competent PRC securities regulators and
relevant authorities, no organization or individual may provide the documents and materials relating to securities business activities
to overseas parties.

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The Holding Foreign Companies Accountable Act,
or the HFCA Act, and the related regulations are evolving quickly. Further implementations and interpretations of or amendments to the
HFCA Act or the related regulations, or a PCOAB’s determination of its lack of sufficient access to inspect our auditor, might pose
regulatory risks to and impose restrictions on us because of our operations in mainland China. A potential consequence is that our ordinary
shares may be delisted by the exchange. The delisting of our ordinary shares, or the threat of our ordinary shares being delisted, may
materially and adversely affect the value of your investment. Additionally, the inability of the PCAOB to conduct full inspections of
our auditor deprives our investors of the benefits of such inspections

The Holding Foreign Companies Accountable Act, or
the HFCA Act, was enacted on December 18, 2020. In accordance with the HFCA Act, trading in securities of any registrant on a national
securities exchange or in the over-the-counter trading market in the United States may be prohibited if the PCAOB determines it cannot
inspect or fully investigate the registrant’s auditor for three consecutive years beginning in 2021, and, as a result, an exchange
may determine to delist the securities of such registrant. On June 22, 2021, the U. S. Senate passed the Accelerating Holding Foreign Companies
Accountable Act, which, would amend the HFCA Act and require the SEC to prohibit an issuer’s securities from trading on any U. S.
stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time
period before our securities may be prohibited from trading or delisted if our auditor is unable to meet the PCAOB inspection requirement.
On December 29, 2022, a legislation entitled “ Consolidated Appropriations Act, 2023” (the “ Consolidated Appropriations
Act”), was signed into law by President Biden. The Consolid