Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 118

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 11
Chunk 118
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ITEM
11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

Foreign
exchange risk

Substantially
all of MKD’s revenues and costs are denominated in Renminbi or in New Taiwan Dollars. We do not believe that we currently have
any significant direct foreign exchange risk and have not hedged exposures denominated in foreign currencies or any other derivative
financial instruments. Although our exposure to foreign exchange risks is limited, the value of your investment in the Ordinary Shares
will be affected by the foreign exchange rate between U. S. dollars and Renminbi or New Taiwan Dollars because the value of our business
is effectively denominated in Renminbi or New Taiwan Dollars, while the Ordinary Shares will trade in U. S. dollars.

The
value of Renminbi against U. S. dollars is subject to changes by the central government policies and to international economic and political
developments, among other things. It remains unclear what fluctuations may occur in the future. With the development of the foreign exchange
market and progress towards interest rate liberalization and Renminbi internationalization, the PRC government may in the future announce
further changes to the exchange rate system, and the Renminbi may appreciate or depreciate significantly against the U. S. dollar in the
future.

If
we need to convert the U. S. dollars for our operations, appreciation of the Renminbi against the U. S. dollar would adversely affect the
Renminbi amount we receive from the conversion. Conversely, if we were to convert Renminbi generated from our operations into U. S. dollars
to pay dividends on the Ordinary Shares or for other purposes, appreciation of the Renminbi against the U. S. dollar would increase the
U. S. dollar amount we receive from the conversion.

Interest
Rate Risk

We
have not been exposed to material risks due to changes in market interest rates, and we have not used derivative financial instruments
to manage its interest risk exposure. However, we could be exposed to material risks due to changes in market interest rate in the future.

We
may invest in interest-earning instruments. Investments in both fixed rate and floating rate interest earning instruments carry a degree
of interest rate risk. The fair market value of fixed-rate securities may decrease due to a rise in interest rates, while floating rate
securities may produce less income than expected if interest rates fall.

ITEM
12. DESCRIPTION OF SECURITIES