Company: KMRK
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087627
Chunk: 59

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-15
Form: F-1
Chunk 59
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 affect our financial condition and results
of operations. In the event that we fail to properly assess our need and maintain an appropriate inventory level, we may build up excessive
inventories. As a result, this may have an adverse impact on our financial conditions and results of operations.

Our cash flows may deteriorate due to potential mismatch in time between receipt of payments from our customers and payments to our suppliers, which could adversely affect our business, financial condition and results of operation.

In the procurement
and sales of our products, there are often time lag between making payments to our suppliers and receiving payments from our customers,
resulting in potential cash flows mismatch. If we choose to pay our suppliers only after receiving payments from our customers, we will
risk our reputation being harmed as not being able to make payments on a timely manner, which could harm our ability to engage capable
and quality suppliers for our business in the future.

Fluctuations in prices of raw materials could negatively impact the production cost of finished products. Full Starise may transfer any increase in cost of production to us by increasing the unit price of finished products purchased by us. If we are unable to transfer such costs to our customers by raising the selling price, our operations and profitability may be adversely affected

In order to control
the quality of our products and ensure that finished products adhere to original design, we would designate raw materials and components
suppliers to Full Starise and closely manage the production process. We are subject to the price fluctuation in raw materials used by
suppliers in the production of our products. If the supply of raw materials is substantially interrupted or reduced or if there are significant
increases in the prices fluctuation pay for raw materials or if there are unfavorable fluctuations in the quality of these raw materials,
the increase in cost of production may be priced in the ex-factory price of the finished products and transferred to us through the increase
in unit price of finished products purchased by us. If we cannot identify alternative sources of raw materials or transfer such costs
to our customers by raising the selling price, our operations and profitability may be adversely affected.

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Our sales may be affected by seasonality.

We believe that
there is a seasonal pattern in the spending behavior of customers, in particular overseas customers, which may affect the results of our
operation. Our shipment peak season takes place between June and August of each year in which we achieve significant higher sales than
other months to meet the Christmas and New Year holiday seasons