Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 24

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 24
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 consultations on its treatment of no-vote and multi-class structures and temporarily barred new multi-class
listings from certain of its indices; however, in October 2018, MSCI announced its decision to include equity securities “with unequal
voting structures” in its indices and to launch a new index that specifically includes voting rights in its eligibility criteria.
Under such announced and implemented policies, the dual-class structure of our ordinary shares would make us ineligible for inclusion
in certain indices and, as a result, mutual funds, exchange-traded funds and other investment vehicles that attempt to passively track
those indices would not invest in our Class A Shares. These policies are relatively new and it is unclear what effect, if any, they will
have on the valuations of publicly-traded companies excluded from such indices, but it is possible that they may adversely affect valuations,
as compared to similar companies that are included. Due to the dual-class structure of our ordinary shares, we will likely be excluded
from certain indices and we cannot assure you that other stock indices will not take similar actions. Given the sustained flow of investment
funds into passive strategies that seek to track certain indices, exclusion from certain stock indices would likely preclude investment
by many of these funds and could make our Class A Shares less attractive to other investors. As a result, the market price of our Class
A Shares could be adversely affected.

The future sales of Class A Shares by existing
shareholders may adversely affect the market price of our Class A Share.

As a relatively small-capitalization
company with relatively small public float we may experience greater stock price volatility, extreme price run-ups, lower trading volume
and less liquidity than large-capitalization companies. Sales of a substantial number of our Class A Shares in the public market could
occur at any time. The sales of a substantial number of registered shares could result in a significant decline in the public trading
price of our Class A Shares and could impair our ability to raise capital through the sale or issuance of additional Class A Shares. We
are unable to predict the effect that such sales may have on the prevailing market price of our Class A Shares. Despite such a decline
in the public trading price, certain selling shareholders may still experience a positive rate of return on the Class A Shares due to
the lower price that they purchased the Class A Shares compared to other public investors and may be incentivized to sell their Class
A Shares when others are not.

Risks Related to Our Ordinary Shares

Volatility