Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 98

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 7
Chunk 98
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 continuously entered into certain loan arrangements with Ming-Chao Huang
who provided loans to MKD Taiwan with annual interest rate ranging from 6% to 6.5%. In December 2022, Ming-Chao Huang converted US$1,627,729
loan balance as non-controlling interests contribution in exchange of 42% share interest of MKD Jiaxing, with the remaining balance being
paid off. In November 2020, MKD Taiwan entered into loan arrangement with Chih-Hsiang Tang who provided loans to MKD Taiwan with annual
interest rate at 3.5%. In May 2022, Chih-Hsiang Tang converted US$33,602 loan balance in exchange for 100,000 ordinary shares of MKD
Taiwan, with the remaining balance being paid off.

During the year
ended December 31, 2023, MKD Taiwan entered into certain loan arrangements with Ming-Chia Huang obtaining loans in the total amount
of US$277,596 with annual interest rate at 3.5%. In July 2023, Ming-Chao Huang and MKD BVI entered into a share transfer agreement
to transfer the 42% share interest of MKD Jiaxing to MKD BVI with a total consideration of US$1,627,729, which was offset by the
consideration of shares issued to Ming-Chao Huang by MKD BVI. On November 1, 2023, MKD BVI lent US$575,000 to Cetus Sponsor LLC with
an annual interest of 6.5%. The loan is used to pay the application fee for the extension of business combination between the
Company and Cetus Capital and shall be repaid on the earlier of i) the date on which the Cetus Capital consummates an initial
business combination with a target business, and ii) May 2, 2024. On March 13, 2025, Cetus Sponsor LLC, AWinner Limited, and MKD BVI
entered into a debt transfer agreement, pursuant to which the debt of US$875,000 (including US$300,000 lent to Cetus Sponsor LLC by
MKD BVI in 2024) owed to MKD BVI by Cetus Sponsor LLC was transferred to and will be borne by AWinner Limited. Meanwhile, on March
13, 2025, AWinner Limited issued an interest-free promissory note with an amount of US$875,000