Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 82

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 5
Chunk 82
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 on cash                                           10,402           7,477        (8,247  
  Net change in cash and cash equivalents                                       (1,012,280       3,048,458      (847,914  

Cash
(used in)/generated from operating activities

Our cash flow from operating
activities was principally receipt of payments for our design, development, testing and sales of diverse portfolio of toy products, whereas
our outflow from operating activities is principally for materials payable to suppliers, payment of salaries and employee benefits, rental
expenses and general and administrative expenses.

Net cash provided by (used
in) operating activities reflects our net income adjusted for non-cash items, including non-cash operating lease expense, depreciation,
deferred tax expenses, reversal of credit loss, and changes in working capital items including accounts receivable, prepayment and other
deposits, accounts payable, accrued expenses and other payables, income taxes payable.

For the year ended March 31,
2025, net cash used in operating activities was approximately US$1.30 million, reflecting a temporary strain on liquidity despite positive
net income of approximately US$0.54 million. Operating cash flows benefited from a decrease in accounts receivable of approximately US$0.43
million, driven by improved collection efforts and lower sales volume in the latter part of the year, which reduced outstanding customer
balances. Additionally, an increase in accounts payable of approximately US$0.73 million provided a modest source of cash, as the company
strategically managed payment terms with suppliers. However, these inflows were outweighed by other working capital needs, resulting in
a net cash outflow from operations.

For the year ended March 31,
2024, net cash provided by operating activities was approximately US$5.44 million, reflecting the company’s ability to generate
positive cash flow despite working capital fluctuations. Operating cash flows benefited from net income of approximately US$0.93 million,
supported by an increase in accounts payable of approximately US$2.0 million, which was primarily driven by extended payment terms with
key suppliers to optimize liquidity. Additionally, an increase in amounts due to related parties of approximately US$1.8 million contributed
to cash inflows, reflecting higher short-term financing from affiliated entities. However, these positive factors were partially offset
by an increase in accounts receivable of approximately US$0.54 million, largely due to higher sales in the latter part of the fiscal year,
resulting in a temporary