Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 4

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 4
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7  

The growth of our business depends on our ability
to accurately predict consumer trends and demand and successfully introduce new products and product line extensions and improve existing
products.

Our growth depends, in part, on our ability to successfully
introduce new products and product line extensions and improve and reposition our existing products to meet the requirements of property
owners and builders. This, in turn, depends on our ability to predict and respond to evolving consumer trends, demands and preferences.
The development and introduction of innovative new products and product line extensions involve considerable costs. In addition, it may
be difficult to establish new supplier relationships and determine appropriate product selections when developing a new product or product
line extension. Any new product or product line extension may not generate sufficient customer interest and sales to become a profitable
product or to cover the costs of its development and promotion and may negatively affect our operating results and damage our reputation.
If we are not able to anticipate, identify or develop and market products to respond to the changes in the requirements and preferences
of property owners and builders, or if our new product introductions or repositioned products fail to gain consumer acceptance, we may
not grow our business as anticipated, our sales may decline and our business, financial condition and results of operations may be materially
adversely affected.

Our new smart lock and security and internet of things (IoT) products that
we have researched and developed might not be successful and might not generate the revenues and net incomes that we expect.

We have invested our efforts, time and resources
in the research and development of smart locks in the past couple years and the outcome is uncertain whether such development will
be successful. We have picked certain smart lock designs for production and launch of our Competitive Smart Lock in March 2025. We
will continue to invest in the smart locks and software, equipment and machineries to manufacture parts and assembly line to produce
smart locks. In early 2023, we engaged a Hong Kong based technology company to conduct research and development
(“ R& D”) in a series of smart home products and devices as a part of our smart lock, security and IoT products
development strategy. Having considered the availability of talents and cost-benefit efficiency, we will continue to incur costs to
outsource information technology developer(s) to develop software application and support functions of new smart lock products. In
additional, we will incur marketing costs to generate customer interest and sales of such products in enough volume to make it a
profitable