Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 26

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 26
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 if MKD is required to take actions that are time-consuming or costly, MKD’s business, financial condition
and results of operations may be materially and adversely affected.

MKD’s
business operations in the PRC obliges MKD to obtain and maintain applicable licenses and approvals from Chinese regulatory authorities
in order to provide MKD’s current services.

MKD’s
current business activities are subject to the PRC laws and regulations which may change in the future. While it is believed that MKD’s
PRC operations have obtained and maintained all applicable licenses and approvals from the applicable regulatory authorities to provide
the current services, it cannot be assured that MKD will not be found in violation of any law and regulations currently in effect, due
to the relevant authorities’ implementation or interpretation of these laws and regulations, or any future laws and regulations.
If MKD fails to complete, obtain or maintain any of the required licenses or approvals or make the necessary filings, or otherwise fail
to comply with the laws and regulations, MKD may be subject to various penalties, such as the imposition of fines and the discontinuation
or restriction of MKD’s operations, as well as proceedings and actions. Any such penalties, proceedings or actions may disrupt
MKD’s business operations and materially and adversely affect MKD’s reputation, business, financial condition and results
of operations.

  15  

Risks
Related to Doing Business in Taiwan

Any
lack of requisite approvals, licenses, permits or filings or failure to comply with any requirements of Taiwan laws, regulations and
policies may materially and adversely affect MKD’s daily operations.

In
accordance with the relevant Taiwan laws and regulations, MKD is required to maintain various approvals, licenses, permits and filings
to operate its business. Whether such approvals, licenses, permits and filings are obtained is subject to satisfactory compliance with,
among other things, the applicable laws and regulations. If MKD is unable to obtain any of such licenses and permits or extend or renew
any of their current licenses or permits upon their expirations, or if it is required to incur significant additional costs to obtain
or renew these licenses, permits and approvals, its daily operations could be materially and adversely affected.

Cross-Straits
relationship imposes macroeconomic risks which could negatively affect MKD’s business.

MKD
maintains a manufacturing facility, office and conducts a portion of its sales in Taiwan, and a substantial portion of its revenues is
derived from operations in Taiwan. MKD’s business