Company: MKDWW
Filing Date: 2025-03-13
Form Type: 424B4
Source: 0001493152-25-010187
Chunk: 211

Company: MKDWELL Tech Inc.
Filing Date: 2025-03-13
Form: 424B4
Chunk 211
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 Company issued totaled 2,500,001ordinary shares to certain new investors at a price ranging from US$ 0.33to US$ 0.35per share, for a total consideration of US$ 882,000.

As of December 31, 2023, the authorized number of ordinary shares was 50,000,000shares without par value, and the Company’s total issued and outstanding ordinary shares were 24,443,989.

15. NON-CONTROLLING INTERESTS

In December 2022, MKD Samoa entered into an equity transfer agreement with Ming-Chao Huang, a director and a shareholder of the Company, to transfer 42% equity interests of MKD Jiaxing to Ming-Chao Huang at US$ 1,627,729, which all amount converted from the loan from related party balance (Note 18). The capital contribution from Ming-Chao Huang was accounted for as non-controlling interests as of December 31, 2022. The 42% equity interests in MKD Jiaxing were acquired by the Company in July 2023 (Note 14) and reclassified as additional paid-in capital in the consolidated financial statements during 2023.

As a result of the recapitalization (Note 1), the shareholders of MKD Taiwan who did not participate in the Taiwan Reorganization and will continue to directly own 37.64% shares in MKD Taiwan. The remaining 37.64% shares in MKD Taiwan were accounted for as non-controlling interests on the consolidated financial statements.

16. RESTRICTED NET ASSETS

A significant portion of the Company’s operations are conducted through its mainland China subsidiaries, the Company’s ability to pay dividends is primarily dependent on receiving distributions of funds from subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations, and after it has met the PRC requirements for appropriation to statutory reserves. The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the surplus