Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 24

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 24
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 we may not be able
to pay dividends in foreign currencies to our shareholders, including holders of the Company’s securities.

Failure
to make adequate contributions to various employee benefit plans as required by PRC regulations may subject MKD to penalties.

Companies
operating in China are required to participate in various government sponsored employee benefit plans, including certain social insurance,
housing funds and other welfare-oriented payment obligations, and contribute to these plans based on the salaries, including bonuses
and allowances, of the relevant employees subject to any maximum amount of contribution specified by local authorities. If MKD does not
make adequate employee benefit payments, it may be required to make up for the contributions due and to pay late fees and fines.

You
may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions against us or our
management named in the prospectus based on China laws.

The
Company is a company incorporated under the laws of the BVI, but MKD generates substantially all of its revenues from Mainland China
and Taiwan and substantially all of its assets are located in Mainland China and Taiwan. In addition, Ms. Min-Jie Cui resides within
China for a significant portion of the time and is a PRC national. As a result, it may be difficult for you to effect service of process
upon us or those persons inside mainland China. It may also be difficult for you to enforce in U. S. courts judgments obtained in U. S.
courts based on the civil liability provisions of the U. S. federal securities laws against us and our officers and directors as none
of them currently resides in the U. S. or has substantial assets located in the U. S.

The
recognition and enforcement of foreign judgments are provided for under the PRC Civil Procedures Law. Mainland PRC courts may recognize
and enforce foreign judgments in accordance with the requirements of the PRC Civil Procedures Law based either on treaties between China
and the country where the judgment is made or on principles of reciprocity between jurisdictions. Unless certain required conditions
are fulfilled, claimants may face difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions
against us or our management named in the prospectus based on China laws.

  14  

It
may be difficult for overseas regulators to conduct investigation or collect evidence.

The
difficulty of cross-border supervision and administration is a problem in many countries, as well as in China. For example, in China,
there may be legal and other obstacles