Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 3

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 3
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 or more of MKD’s major suppliers could harm MKD’s profitability.

MKD
obtains components and other products and services from numerous suppliers and other vendors. In certain instances, it would be difficult
and expensive for MKD to change suppliers of products and services that are critical to MKD’s business. Certain of MKD’s
suppliers may become financially distressed. Any significant disruption in MKD’s supplier relationships, including certain relationships
with sole-source suppliers, could harm MKD’s profitability, thereby making it more difficult to grow and achieve MKD’s business
goals.

A
significant product liability lawsuit, warranty claim or product recall involving MKD or one of MKD’s major customers could harm
MKD’s profitability.

In
the event that MKD’s products fail to perform as expected and such failure results in, or is alleged to result in, bodily injury
and/or property damage or other losses, MKD may be subject to product liability lawsuits and other claims. These customers may seek contribution
or indemnification from MKD for all or a portion of the costs associated with product liability and warranty claims, recalls or other
corrective actions involving MKD’s products. These types of claims could significantly harm MKD’s profitability, thereby
making it more difficult to grow MKD’s business and achieve MKD’s goals.

MKD
is involved from time to time in legal proceedings and commercial or contractual disputes, which could have an adverse impact on MKD’s
profitability and consolidated financial position.

MKD
is involved in legal proceedings and commercial or contractual disputes that, from time to time, are significant. These are typically
claims that arise in the normal course of business including, without limitation, commercial or contractual disputes, including disputes
with MKD’s suppliers, intellectual property matters, personal injury claims and employment matters. No assurances can be given
that such proceedings and claims will not have a material adverse effect on MKD’s profitability and consolidated financial position.

Downturns
or volatility in general economic conditions could have a material adverse effect on MKD’s business and results of operations.

In
recent years, worldwide semiconductor industry sales have tracked the impact of the financial crisis, subsequent recovery and persistent
economic uncertainty. Volatile and/or uncertain economic conditions, including inflation and interest rate fluctuations, can adversely
impact sales and profitability and make it difficult to plan MKD’s future business activities. The rapid spread of COVID-19 in
China dampened growth in 2022, but the gradual