Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 48

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 48
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 A
Shares could decrease or become worthless.

It may be difficult for overseas and/or regulators
to conduct investigations or collect evidence within the territory of China, including Hong Kong.

Shareholder claims or regulatory investigations
that are common in the U. S. generally are difficult to pursue as a matter of law or practicality in China. For example, in China,
there are significant legal and other obstacles to providing information needed for regulatory investigations or litigation initiated
outside China. Although the authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities
of another country or region to implement cross-border supervision and administration, such cooperation with the securities regulatory
authorities in the U. S. may not be efficient in the absence of mutual and practicable cooperation mechanism. Furthermore, according
to Article 177 of the PRC Securities Law, or Article 177, which became effective in March 2020, no overseas securities
regulator is allowed to directly conduct investigations or evidence collection activities within mainland China. While detailed interpretation
of or implementation rules under Article 177 have yet to be promulgated, the inability for an overseas securities regulator to directly
conduct investigations or evidence collection activities within mainland China may further increase difficulties faced by you in protecting
your interests.

In the event that U. S. regulators
carry out an investigation on us and there is a need to conduct such investigation, or collect evidence in mainland China, U. S. regulators
may not be able to carry out such investigation or evidence collection directly in mainland China under the PRC laws. U. S. regulators
may, in the future, consider cross-border cooperation with a securities regulatory authority of the PRC by way of judicial assistance,
diplomatic channels or regulatory cooperation mechanism established with the securities regulatory authority of the PRC.

All our operations are currently conducted in Hong Kong. Hong Kong
has a legal system separate and apart from mainland China. Our Hong Kong counsel has advised us that the Securities and Futures Commission
of Hong Kong (the “ SFC”) is a signatory to the International Organization of Securities Commissions Multilateral
Memorandum of Understanding (the “MMOU”), which provides for mutual investigatory and other assistance and exchange
of information between securities regulators around the world, including the SEC. This is also reflected in section 186 of the Securities
and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the “SFO”) which empowers the SFC to exercise
its investigatory powers to obtain