Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 1

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 1
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D may not be successful in competing in this industry.

The
automobile industry is highly competitive, and MKD will be competing for sales with both electric vehicle manufacturers and traditional
automotive companies, including those who have announced consumer and commercial vehicles that may contain products which could be directly
competitive to MKD. Many of MKD’s current and potential competitors may have significantly greater financial, technical, manufacturing,
marketing, or other resources than MKD and may be able to devote greater resources to the design, development, manufacturing, distribution,
promotion, sale, and support of their products than MKD.

Factors
affecting competition include product performance and quality, technological innovation, customer experience, brand differentiation,
product design, pricing and total cost of ownership, and manufacturing scale and efficiency. Increased competition may lead to lower
unit sales and increased inventory, which may result in downward price pressure and adversely affect MKD’s business, prospects,
financial condition, results of operations, and cash flows.

MKD
is dependent on suppliers. Timely delivery of orders is needed to meet the requirements of MKD’s customers, and a shortage of materials
or components can disrupt the production of MKD’s equipment.

As
a manufacturer, MKD will be subject to the same vagaries as the rest of the automotive industry. There were significant disruptions to
capacity and reallocations of supply capacity during the COVID-19 pandemic. Furthermore, prior to the COVID-19 pandemic, microprocessor
manufacturers were already seeing increasing demand and that demand has further increased based on labor shortages and the need for greater
automation. A shortage of microprocessors or other materials or components can cause a significant disruption to MKD’s production
schedule and have a substantial adverse effect on MKD’s financial condition or results of operations. Given MKD’s weaker
relative bargaining power, there is a real risk that MKD will experience significant difficulties in obtaining supplies of materials
for production. If this occurs, MKD may experience significant production delays and will not meet MKD’s production goals. Lack
of production will have a direct impact on sales and would likely cause us to miss MKD’s earnings estimates.

Natural
resource scarcity may cause delays in the development and manufacturing of MKD’s products.

Recent
global political and economic tensions could contribute to natural resource scarcity. For example, Russia is a major exporter of natural
resources. With the imposition of economic sanctions and import restrictions, there will be a loss of supply in global markets. Restricted
supply is likely to result in