Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 7

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 7
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 and competition for personnel with these skills is intense. MKD may not
be able to retain existing key technical, sales, marketing and managerial employees or be successful in attracting, assimilating or retaining
other highly qualified technical, sales, marketing and managerial personnel in the future. If MKD is unable to retain existing key employees
or are unsuccessful in attracting new highly qualified employees, MKD’s business, financial condition and results of operations
could be materially and adversely affected.

MKD’s
business may be adversely affected by obsolete inventories as a result of changes in demand for MKD’s products and change in life
cycles of MKD’s products.

The
life cycles of some of MKD’s products depend heavily upon the life cycles of the end products into which devices are designed.
These types of end-market products with short life cycles require MKD to manage closely its production and inventory levels. Inventory
may also become obsolete because of adverse changes in end-market demand. MKD may in the future be adversely affected by obsolete or
excess inventories which may result from unanticipated changes in the estimated total demand for MKD’s products or the estimated
life cycles of the end products into which MKD’s products are designed. In addition, some customers restrict how far back the date
of manufacture for MKD’s products can be, and therefore some of MKD’s products inventory may become obsolete, and thus, adversely
affect MKD’s results of operations.

   5  

MKD
is subject to foreign currency risk as a result of its operations.

MKD
face exposure to adverse movements in foreign currency exchange rates, primarily to the New Taiwan Dollar and the Renminbi. MKD’s
foreign currency risk may change over time as the level of activity in foreign markets grows and could have an adverse impact upon MKD’s
financial results. MKD does not usually employ hedging techniques designed to mitigate foreign currency exposures and, therefore, it
could experience currency losses as these currencies fluctuate against other currencies.

Disruptions
in the supply of raw materials and other supplies that MKD’s customers use in MKD’s products may adversely affect MKD’s
profitability.

MKD’s
customers use a broad range of materials and supplies. A significant disruption in the supply of these materials for any reason could
decrease MKD’s production and shipping levels, which could materially increase MKD’s operating costs and materially decrease
MKD’s profit margins.

MKD
and other component manufacturers in the