Company: MKDWW
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001641172-25-002610
Chunk: 121

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: F-1
Chunk 121
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 of sales of manufactured electronic products and commissioned processing service.

Revenues from our sales of manufactured electronic products decreased by US$1.01 million, or 43.4%, from US$2.33 million for the year ended December 31, 2023 to US$1.32 million for the year ended December 31, 2024, which was mainly contributed to the decrease of orders and customers.

Revenues from our commissioned processing service decreased by US$0.56 million, or 59.5%, from US$0.94 million for the year ended December 31, 2023 to US$0.38 million for the year ended December 31, 2024, which was mainly contributed to the termination of cooperation with a major customer. The commissioned processing revenue from this major customer accounted for 22.2% of the total revenue in FY2023, while in FY2024 its revenue contribution was negligible. The Company is actively seeking new customers and has established cooperation with new customers. In 2024, the Company has developed five new customers of commissioned processing service, whose revenue contributions accounted for 10.2% of the total revenue of 2024.

Rental income decreased by US$0.09 million, or 33.6%, from US$0.27 million for the year ended December 31, 2023 to US$0.18 million for the year ended December 31, 2024, which was mainly due to the decrease in leasehold area resulting from the expiration of several lease contracts in the first half of 2024.

Revenues from others decreased by US$0.01 million, or 7.9%, from US$0.13 million for the year ended December 31, 2023 to US$0.12 million for the year ended December 31, 2024, which was mainly due to reduced electricity demand from lessees, which is in related to the reduction in leasehold area in the first half of 2024.

Cost of revenues

Cost of revenues primarily consists of (i) direct materials, labor costs and manufacturing overheads associated with manufactured electronic products, (ii) direct labor costs and manufacturing overheads associated with commissioned processing service, (iii) depreciation of company-owned and leased property, (iv) inventories write-down and (v) other cost related to the business operation.

Our cost of revenues decreased by US$1.17 million, or 38.8% from US$3