Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 10

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 10
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, including: (a)
the terms and availability of financing for retailers and consumers; (b) overall consumer confidence and the level of discretionary consumer
spending; (c) population and employment trends; and (d) income levels and general economic conditions, such as inflation, including as
a result of tariffs, deflation, increasing interest rates and recessions. As a result of these factors, MKD’s sales and results
of operations may fluctuate in the future.

Failure
to protect personal or confidential information against cybersecurity breaches could subject MKD to significant reputational, financial
and legal consequences and substantially harm its business and results of operations.

Ensuring
the safeguarding of customer, employee, supplier, working partners, and other personal data is important for MKD’s business. A
substantial breach in any of these areas could draw significant media attention, harm relationships with consumers, tarnish MKD’s
reputation, and result in financial losses, fines, or legal actions. Non-compliance with relevant cybersecurity and personal data and
privacy laws and regulations may expose us to civil or regulatory liabilities and challenges, potentially leading to significant legal,
financial, and operational consequences.

Although
MKD is not a retail consumer-facing business, certain aspects of MKD’s operations rely on the secure transmission of confidential
information over networks. Despite deploying a layered approach to address information security threats, a compromise in MKD’s
data security systems or those of MKD’s business partners could result in unauthorized access, damage, or misuse of confidential
information. Such incidents could damage MKD’s reputation and subject MKD to regulatory actions and consumer claims, adversely
affecting MKD’s business, financial position, and operational results. Addressing a security breach may also necessitate substantial
additional resources related to information system security, causing disruptions to MKD’s business.

MKD
has adopted security policies and measures largely in line with industry norms to protect proprietary data and consumer information,
and the Company’s senior management and directors (including Mr. Ming-Chia Huang, Ms. Min-Jie Cui, Mr. Ming-Chao Huang and Mr.
Chih-Hsiang Tang) oversee the strategic processes in place to safeguard data and comply with relevant regulations and has overall responsibility
for evaluating cybersecurity risks, as well as related policies and risks in connection with MKD’s supply chain/suppliers/service
providers. Prior to the Business Combination, MKD was a business with operations in Mainland China and Taiwan and is not subject to