Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 75

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 5
Chunk 75
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Item
5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The
following discussion of our financial condition and results of operations is based upon and should be read in conjunction with our consolidated
and combined financial statements and their related notes included in this annual report. This report contains forward-looking statements.
In evaluating our business, you should carefully consider the information provided under the caption “ Item 3. Key Information-D.
Risk Factors” in this annual report. We caution you that our businesses and financial performance are subject to substantial risks
and uncertainties.

Overview

We are principally engaged
in the design, development, testing and sale of a diverse portfolio of toy products ranging from simple plastic toy products to more complex
electromechanical toy products. Our solution services span across the entire development stage of toy products from design, prototype
testing, production management, quality control to after-sales services. We specialize in the development of infant and pre-school educational
toys and learning kits.

  Operating Results  

For the years ended March 31,
2025 and 2024, our total revenue was US$18,612,534 and US$17,123,778, respectively. Our gross profit and net income were US$2,448,195
and US$487,957, respectively, for the year ended March 31, 2025, as compared to our gross profit and net income of US$2,174,522 and
US$928,529, respectively, for the year ended March 31, 2024.

Key factors affecting operating results

We believe the following key
factors may affect our results of operations:

Economic conditions in Hong Kong

Majority of our operations
is located in Hong Kong. Accordingly, our business, prospects, financial condition and results of operations may be influenced to
a significant degree by political, economic and social conditions in China generally and by continued economic growth in Hong Kong.

Ability to secure new projects and maintain
our backlog

We generated the majority of
our revenue from projects which are on contract basis and non-recurring in nature. We generally secure our government and non-government
projects through tenders and/or quotation. Our future growth and success will then depend on our ability to maintain a stable and sustainable
project backlog. Our results of operations will be adversely affected if we are unable to secure sufficient number and sizeable contracts
in the future.

Ability to complete our projects with quality
on a timely basis

If there is any quality problem