Company: KMRK
Filing Date: 2025-07-16
Form Type: 424B4
Source: 0001213900-25-064537
Chunk: 54

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-07-16
Form: 424B4
Chunk 54
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 and quality control contributes to higher recognition amongst customers, thus lower marketing costs. Therefore, we believe that maintaining and enhancing our reputation as a one stop toy design solution house are critical to expand and retain our customer base. Many factors, some of which are beyond our control, may negatively impact our brand image and reputation, such as: •any customer complaints or negative publicity relating to our products quality, delivery times, product returns procedures, customer data handling and security practices; •alleged misconduct or other improper activities committed by our employees; and •any fraudulent, false or misleading information relating to our products. We cannot guarantee that negative reports about our business or our brand will not occur in the future and serious damage to our brand, public image, reputation and business may follow as a result. If we are unable to maintain or enhance our brand image, or our brand image is negatively damaged, our business, financial condition and results of operation may be adversely and materially affected. Any changes to international trade regulations, quotas, tariffs and duties may affect prices of and demand for our products Our customers are mainly located in North America and Europe. Therefore, our results of operations are largely affected by the level of demand for our products from our customers in North America and Europe which is in turn influenced by a number of factors which are beyond our control, including, amongst others, the economic conditions, customer preferences and trade policies in countries where our customers are located. The countries which our products are imported into may from time to time impose additional quotas, duties or tariffs. Any changes to international trade regulations, quotas, tariffs and duties may in turn affect the prices of and demand for our products. We cannot assure you that future international trade regulations, quotas, tariffs and duties will not increase our costs or provide our competitors with an advantage over us. As such, any of the above may have a material adverse effect on the business, financial condition and performance of our Group. We are exposed to risks relating to our suppliers that manufacture our products, and we may not be able to successfully establish and operate manufacturing operations. We have developed a nimble and low -fixedcost business model whereby our products are mostly manufactured and supplied by Fully Starise Limited (“ Fully Starise”) which represents approximately 85% of our cost of revenue. Fully Starise is an independent third party supplier that operates a factory in the PRC. We consider Fully Starise a reliable partner and strong back up of production capability to us whereby we have entered into long term supply agreement with Fully Starise and will expiry