HONG
KONG, Jan. 3, 2023 /PRNewswire/
-- Intelligent Living Application Group Inc. (Nasdaq: ILAG)
("Intelligent Living" or the "Company"), a premium lockset
manufacturer in Hong Kong,
announced today, the following open letter to its
shareholders from Chairman and Chief Executive Officer Mr.
Bong Lau.
To Our Valued Shareholders:
First and foremost, we would like to express our gratitude to
all of our shareholders for their continued support of Intelligent
Living. The leadership team at the Company endeavour to communicate
important Company events and activities, and we welcome this
opportunity to share our thoughts and insights as to the year past
and our plans going forward.
The year 2022 marked the beginning of a new chapter for
Intelligent Living as we completed our initial public offering
(IPO) in July 2022. Our ordinary
shares are now listed on the Nasdaq Capital Market under the ticker
symbol "ILAG". The gross proceeds from the IPO were approximately
$20.24 million, the net proceeds of
which will be used to broaden our business operations and enhance
our operating efficiencies.
Our revenues from the sales of door locksets was approximately
$7.3 million for the six months ended
June 30, 2022, an increase of
approximately $2.1 million or 41.4%
as compared to the same period of 2021. This was mainly due to an
increase in the quantity of products sold and an increased sales
price for the six month period ending June
30, 2022 as compared to the same period of 2021. Our gross
margin was 14.4% for the six months ended June 30, 2022, an increase from gross profit of
3.8% for the same period in 2021. This was a result of measures
taken by the Company to lower the cost of goods sold during the
period. We believe we can further enhance our gross margin and
reduce our net loss as we (i) negotiate for volume rebates that
would reduce our cost of raw materials, and (ii) optimize our
product mix to focus our marketing efforts on our higher margin
products.
Following the recent announcement of an easing in control
measures for COVID-19 by Mainland
China and Hong Kong governments, we believe that a
better sourcing of raw materials, supply chain and a greater
availability of workers will improve the production of our finished
products.
During October 2022, as part of
our efforts to control our operating cost and enhance the quality
of our locksets, we acquired an electro-plating production
line. We believe that this acquisition will also help us to
upgrade our existing production line and strengthen our ability to
comply with stricter environmental protection laws and regulations
in China. In addition, we plan to
accelerate our plan to develop smart home products and are
exploring the development of products that complement our know-how
in the design and production of affordable high-quality
locksets.
We are also committed to expanding our footprint into new home
security markets. We have already conducted business visits to
North America to strengthen our
relationship with existing customers and to develop new
distributors and volume buyers for our products. Our plan is to
identify and penetrate markets that are a good fit for our products
including, but not limited to, North
America, Southeast Asia and
Australia.
On behalf of our dedicated management team and employees, I
would like to thank you for your trust and support over this past
year. We are excited by our business prospects in 2023 and look
forward to your continued support!
Sincerely,
Mr. Bong Lau
Chairman and Chief Executive Officer
About Intelligent Living Application Group Inc.
Intelligent Living Application Group Inc. ("ILAG")is a premium
lockset manufacturer in Hong Kong.
It manufactures and sells high quality mechanical locksets to
customers mainly in the United
States and Canada and has
continued to diversify and refine its product offerings in the past
40 years to meet its customers' needs. ILAG has obtained the
ISO9001 quality assurance certificate and various accredited
quality and safety certificates including American National
Standards Institute (ANSI) Grade 2 and Grade 3 standards that are
developed by the Builders Hardware Manufacturing Association (BHMA)
for ANSI. ILAG keeps investing in self-designed automated product
lines, new craftsmanship and developing new products including
smart locks. For more information, visit the Company's website at
http://www.i-l-a-g.com/.
Forward-Looking Statements
Certain statements in this announcement are forward-looking
statements. These forward-looking statements involve known and
unknown risks and uncertainties and are based on the Company's
current expectations and projections about future events that the
Company believes may affect its financial condition, results of
operations, business strategy and financial needs. Investors can
identify these forward-looking statements by words or phrases such
as "may," "will," "expect," "anticipate," "aim," "estimate,"
"intend," "plan," "believe," "is/are likely to," "potential,"
"continue" or other similar expressions. The Company undertakes no
obligation to update or revise publicly any forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and the
Company cautions investors that actual results may differ
materially from the anticipated results and encourages investors to
review other factors that may affect its future results in the
Company's registration statement and other filings with the SEC,
which are available for review at www.sec.gov.
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SOURCE Intelligent Living Application Group, Inc.