Company: KMRK
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087627
Chunk: 35

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-15
Form: F-1
Chunk 35
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 Shares to lose confidence in our audit procedures and reported financial information and the quality of our financial statements.

On December 29,
2022, the AHFCA Act was enacted, which amended the HFCA Act by requiring the SEC to prohibit an issuer’s securities from trading
on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three,
and thus, reduced the time before our Class A Shares may be prohibited from trading or delisted.

The SEC is assessing
how to implement other requirements of the HFCA Act, including the listing and trading prohibition requirements described above. Future
developments in respect of increasing U.S. regulatory access to audit information are uncertain, as the legislative developments
are subject to the legislative process and the regulatory developments are subject to the rule-making process and other administrative
procedures.

While we understand
there has been dialogue among the CSRC, the SEC, and the PCAOB regarding the inspection of PCAOB registered accounting firms in mainland
China and Hong Kong, there can be no assurance that we will be able to comply with requirements imposed by U.S. regulators
if there is significant change to current political arrangements between mainland China and Hong Kong or if any component of our
auditor’s work papers become located in mainland China in the future. Delisting of our Class A Shares would force holders of our
Class A Shares to sell their Class A Shares. The market price of our Class A Shares could be adversely affected as a result of anticipated
negative impacts of these executive or legislative actions, regardless of whether these executive or legislative actions are implemented
and regardless of our actual operating performance.

Recent joint statement by the SEC and PCAOB, and the HFCA Act all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB.

The
AHFCA Act was enacted on December 29, 2022. On December 29, 2022, the “Consolidated Appropriations Act was signed
into law, which contained, among other things, an identical provision to the AHFCA Act and amended the HFCA Act by requiring the SEC
to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB
inspections for two consecutive years instead of three years. The AHFCA Act states that if the SEC determines that an
issuer has