Company: KMRK
Filing Date: 2025-05-19
Form Type: F-1
Source: 0001213900-25-045262
Chunk: 121

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-05-19
Form: F-1
Chunk 121
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 quality products and services in a timely manner and to adhere to the requirements of drawings or other technical or quality documents, confirmed by both parties; —Fully Starise shall ensure the product provided does not bring any negative effect on the Group’s sales activities and Fully Starise shall be liable for all compensations in case of any damage to the toy products due to its fault. —Intellectual property of product design, drawing, sample, standard or format design, etc., provided by the Group shall belong to the Group, and Fully Starise may not use it for purposes other than the production of our toy products. —Fully Starise shall not provide other companies with any toy product of the same type or brand as those provided to us. The supply agreement has an initial term of four years unless terminated by either party by serving written notice prior to the expiration of the initial term. CREDIT MANAGEMENT Credit terms to customers We assess the credit risk of new customers by conducting online searches, credit checks with industry peers, and site visit. For existing customers, we conduct an annual credit evaluation to review their credit limits and terms, taking into account (i) their repayment history; (ii) historical transaction amount; and (iii) future economic conditions. Our credit terms to customers range from 0 days to 60 days. We also accept bill receivables which generally have maturity period ranging from 1 to 2 months.

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The average trade receivable turnover days are 93.71 and 98.17 days for the six months ended September30, 2024 and 2023, respectively. The average trade receivable turnover days are 26.11 and 38.57 days for the years ended March 31, 2024 and 2023, respectively. It is calculated based on the average trade receivables balance divided by the sales revenue, and multiplied by 365 days. SEASONALITY We believe that there is a seasonal pattern in the spending behavior of customers, in particular overseas customers. Our shipment peak season takes place between June and August of each year in which we achieve significant higher sales than other months to meet the Christmas and New Year holiday seasons. We would increase our inventory level in order to get prepared for our shipment peak season. QUALITY MANAGEMENT Our project manager will ensure the quality of our products. We have technical staff who has been certified as Electrical Engineering. Once a project has commenced, our project managers will monitor the progress of the project in all respects to ensure that it satisfies our customers’ requirements and