Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 7

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 7
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not limited to the consumer preference and market acceptance of our toy products, the level of discretionary consumer spending in countries
in which our customers do business, as well as the distribution channels of our customers. Developments adverse to our major customers
or our products could have an adverse effect on us. If there are any other developments adverse to our major customers such as any significant
changes in the operations or financial condition of our major customers, including consolidation or change of ownership, restructuring
or liquidation, we may experience a material adverse effect on our business, operating results and financial condition. Any significant
changes in the operations or financial condition of our major customers, including liquidity problems or restructuring, could cause us
to limit or discontinue business with such customers, or require us to assume more credit risk relating to receivables from such customers,
which could have a material adverse effect on our business, financial condition and results of operation.

Fluctuation in foreign currencies could have
an impact on our sales

We believe that the fluctuations
in currencies have a direct impact on our customers’ demand of our toy products, which would in turn affect our sales performance
and results of operations. Our sales were mainly denominated in US dollars. As such, as a result of the depreciation of the domestic currency
of our targeted markets against US$, our products may become relatively more expensive and our customers may reduce their purchase of
our products, which in turn adversely affected our sales. Fluctuations in the domestic currency of our customers is beyond our control.
If there is material fluctuations in the domestic currency of our targeted markets and we cannot mitigate such impact by enhancing our
sales and marketing and stimulating demand for our toy products in other regions, our business, financial condition and results of operations
may be adversely affected.

Our business is dependent on the strength of
our design capability and product quality, and market perception of our reputation. If we fail to maintain and enhance our reputation,
our business, results of operation and prospects may be materially and adversely affected.

We believe that our toy product
development solution is well received by our customers, and our business and financial performance are substantially dependent on the
strength and the market perception of our reputation. We offer one stop solution in design and development of toy products. Our Directors
believe that the notable awareness of our capabilities in product innovation and quality control contributes to higher recognition amongst
customers, thus lower marketing costs. Therefore, we believe that maintaining and enhancing our reputation as a one stop toy design solution
house