Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 9

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 9
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 incorporate components for which there are two or more substitutes, and multiple product lines have interchangeable
components, and hence such disruptions have had minimal impact on MKD.

MKD’s
business is impacted by general economic conditions in its markets, and ongoing economic and financial uncertainties may cause a decline
in consumer spending that may adversely affect its business, financial condition and results of operations.

MKD
depends on consumer discretionary spending and, accordingly, MKD may be adversely affected if customers reduce, delay or forego their
purchases of MKD’s direct or indirect products as a result of, including but not limited to, job loss, bankruptcy, higher consumer
debt and interest rates, reduced access to credit, higher energy and fuel costs, relative or perceived cost, availability and comfort
of camper vans use versus other modes of travel, such as air travel and rail (including as a result of consumer tastes in response to
climate change), falling home prices, lower consumer confidence, uncertain or changes or uncertainty in tax policies, uncertainty due
to national or international security or health concerns, volatility in the stock market, or epidemics.

   6  

In
particular, China’s recovery from the Covid pandemic has been slow, in part as a result of unresolved real estate problems and
associated debt restructuring. The U. S. Federal Reserve’s interest rate policies, the slowdown in the Chinese economy, and youth
unemployment in China have all contributed to negatively affect the macroeconomic environment in which MKD operates. MKD’s management
believes that such macro-economic trends have contributed to the slowdown in demand for its products in China and the financial underperformance
of MKD in 2023 and 2024.

Decreases
in the number of customers, average spend per customer, or retention and renewal rates for MKD’s products would negatively affect
MKD’s financial performance. A prolonged period of depressed consumer spending could have a material adverse effect on MKD’s
business. In addition, adverse economic conditions may result in an increase in the MKD’s operating expenses due to, among other
things, higher costs of labor, energy, equipment and facilities. Any of the foregoing factors could have a material adverse effect on
the MKD’s business, financial condition and results of operations.

The
nature of MKD’s business which is tied to demand for camper vans could result in operating losses during downturns.

The
RV and camper van industry is cyclical and is influenced by many national and regional economic and demographic factors