Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 40

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 40
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 PCAOB issued a report on its determinations that it was unable to inspect or investigate completely PCAOB-registered public accounting
firms headquartered in mainland China and in Hong Kong, because of positions taken by PRC authorities in those jurisdictions. In
addition, the PCAOB’s report identified the specific registered public accounting firms which are subject to these determinations.
Our registered public accounting firm, Audit Alliance LLP is not headquartered in mainland China or Hong Kong and was not identified
in this report as a firm subject to the PCAOB’s determination.

The SEC is assessing how to
implement other requirements of the HFCA Act, including the listing and trading prohibition requirements described above. Future developments
in respect to increasing U. S. regulatory access to audit information are uncertain, as the legislative developments are subject to
the legislative process and the regulatory developments are subject to the rule-making process and other administrative procedures.

On August 26, 2022, CSRC,
the Ministry of Finance of the PRC and the PCAOB signed the Protocol, governing inspections and investigations of audit firms based in
China and Hong Kong. The Protocol remains unpublished and is subject to further explanation and implementation. Pursuant to the fact
sheet with respect to the Protocol disclosed by the SEC, the PCAOB shall have independent discretion to select any issuer audits for inspection
or investigation and has the unfettered ability to transfer information to the SEC. There can be no assurance that we will be able
to comply with requirements imposed by U. S. regulators if there is significant change to current political arrangements between mainland
China and Hong Kong or if any component of our auditor’s work papers become located in mainland China in the future. Delisting
of our Class A Shares would force holders of our Class A Shares to sell their Class A Shares. The market price of our Class A Shares could
be adversely affected as a result of anticipated negative impacts of these executive or legislative actions, regardless of whether these
executive or legislative actions are implemented and regardless of our actual operating performance. On December 15, 2022, the PCAOB
Board determined the PCAOB was able to secure complete access to inspect and investigate registered public accounting firms headquartered
in mainland China and Hong Kong and voted to vacate its previous determinations to the contrary. However, should PRC authorities
obstruct or otherwise fail to facilitate the PCAOB’s access in the future, the PCAOB Board will consider the need to issue a new
determination.

The lack of access to the PCA