Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 65

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 4
Chunk 65
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 ability
for business expansion.

  37  

Mastering
the relevant IoT technical capabilities and cloud applications and promoting our products in non-Asian regions, such as North America,
Europe, and the Middle East will effectively enable us to supplant the competitive landscape of Asia, thereby increasing product sales
and profitability.

Our
Customers

Our
customers primarily include (i) recreational vehicle (RV) manufacturers; (ii) logistics vehicle team management and logistics cloud management
platform companies; (iii) automobile manufacturers, and (iv) industrial and consumer electronics manufacturers. For the year ended December
31, 2024, we had approximately 32 customers and the revenues generated from our ten largest customers represented approximately 85%
of our revenues for the same period. For the year ended December 31, 2023, we had approximately 13 customers and the revenues generated
from our ten largest customers represented approximately 95% of our revenues for the same period.

Given
that we operate in the automotive electronics industry, automotive manufacturers are our primary sales targets. Hence, our imperative
is to understand our clients’ product needs and quantities through customer visits. After gaining the customer’s trust and
understanding, we may be assigned evaluations for new product initiatives, design modifications and cost-reducing assessments for existing
products. After completing the assessment, we provide quotations in the format required by the customer and offer corresponding technical
specifications. After officially bidding and once the client approves our design specifications and quote, we commence product design
and prepare materials for production based on the client’s estimated quantity.

For
marketing mature products, we leverage our promotional capability to earn customers’ recognition and understanding. We offer mature
and stable product samples for customer testing. Through testing, we encourage customers to accept and place orders. Furthermore, we
enhance and multiply our usage rate among clients by adopting products from different departments of the same client.

ODM/OEM
customers are distinct from our automotive electronics clients. We approach them with customer visits and word-of-mouth marketing, promoting
and allowing understanding the Company’s technology and production capacity. We ensure customers are fully aware that, beyond our
production capability, we can also offer design suggestions. Thus, by providing differentiated customer service, we gain their trust
and secure their product orders.

Our
Suppliers

We
mainly procure integrated circuits, passive components, inductors, coils, choke, screws, plastic and steel materials from third party
suppliers for our manufacturing processes. Our suppliers are mainly