Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 70

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 5
Chunk 70
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 relating to certain industries, especially the semiconductor and chip-making sector, have been disrupted in recent years
due to the COVID pandemic and the Russo-Ukraine war, MKD has not been directly affected by supply chain disruptions brought about by
such factors, or by the restrictions under the Uyghur Forced Labor Prevention Act. MKD’s operations do not require industrial input
from Russian, Ukraine or Uyghur suppliers. MKD has not experienced significant supply chain disruptions that have materially affected
its business operations in the past two years and does not expect any such disruptions in the short term. Nevertheless, MKD’s management
believes that if such disruptions do arise in the future, especially as it pertains to the supply of integrated circuits, passive components
and metals, which are used in MKD’s production processes, such developments may have a material adverse impact on MKD’s operations.
As such, MKD is mindful of the need to mitigate the impact of any such disruptions, including to maintain a wide network of current and
potential suppliers to whom MKD can look to in the event alternative sources are required.

Our
ability to attract and retain customers

We
use product innovation technology and application scenarios to attract and retain customers. Hence, if we no longer invest in the research
and development of innovative technologies and broad product application scenarios, this may lead to decline in the attractiveness of
our products and the loss of customers, which will result in a decline of sale performance and profits. Therefore, continuous and diversified
product innovation, technology research and development and diversification of product applications are important key factors for attracting
and retaining customers.

  41  

We
rely on regular new product releases and technical exchanges with customers so that customers can continue to understand our innovation
capabilities. If we are unable to communicate with customers regularly and continuously on product technologies and product releases,
this may lead to a drop in confidence in MKD’s technical capabilities, which may result in customer loss and a decline in sales
and profits.

Pricing
of our products and services

Our
products are used in automotive electronics, smart campers, smart logistics systems and ODM/OEM services, and our business performance
may be affected by various factors across these different fields. Our automotive electronics and intelligent campers business may be
affected by the following factors.

  We                                                                                                                                         
  may be affected by the long development cycle of new cars, the failure of new automotive development or the poor sales of new cars,        
  resulting in a