Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 98

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 98
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 B                               1,442,988      19.2        888,595      13.7       1,871,116      15.4  
  Customer C                               2,213,651      29.5      1,723,506      26.5       1,586,681      13.1  
  Customer D                                       —         —      1,332,746      20.5       1,306,755      10.7  
                  $                        6,480,207      86.3      5,731,503      88.2      10,418,800      85.7  

The following table sets forth the Company’s
revenues from customers by geographical areas based on the location of the customers:

              For the years ended                                                                    
              December 31,                                                                           
              2024                                    2023                     2022                  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────
  US          $                        7,393,736      $         6,364,773      $         11,717,347  
  Canada                                 112,815                   78,584                   440,755  
  Total       $                        7,506,551      $         6,443,357      $         12,158,102  

Our profit margin was approximately 6.8% due to the
tariff war between US and China started in 2018. To mitigate the impact of tariff war, we have launched a series of procurement actions
to reduce the costs, and we managed to gradually improve our profit margins, which was 17.5% for 2024, 9.8% for 2023 and 18.1% for 2022. In addition,
once tariff war is settled and inflation is under control along with our continuous efforts in expanding product selections and varieties,
better procurement of raw materials, ability to improve production efficiency, attracting new customers and initiatives to reduce our
overhead costs, we hope to return to profitability. As the permit for electro-plating production is more stringently regulated in China,
we acquired an electro-plating production line in 2022 in an industrial park near our Xingfa factory to reduce outsourced electro-plating
costs. However, the high interest rate and tariff war between China and U. S. have made our customers more cautious in