Hong Kong, January 3, 2023 (GLOBE NEWSWIRE) — 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 ordindary 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 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!
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/.
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.
For more information, please contact:
Intelligent Living Application Group Inc.
Phone: +852 2481 7938