Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 15

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 15
---
 into and could materially and adversely affect MKD’s business and results of operations.

The
enforcement of laws and that rules and regulations in China can change quickly with little advance notice. The PRC government has significant
oversight over the conduct of MKD’s business and it has recently indicated an intent to exert more oversight over offerings that
are conducted overseas, including listings on a U. S. stock exchange and/or foreign investment in China-based issuers. Any such action
could result in a material change in MKD’s operations and/or the value of the Company’s or the Company’s securities
and may limit the Company’s ability to offer or continue to offer securities to investors and cause the value of such securities
to significantly decline or be worthless.

The
Company’s securities may be prohibited from trading in the United States under the HFCAA in the future if the PCAOB is unable to
inspect or investigate completely the Company’s auditor.

Pursuant
to the Holding Foreign Companies Accountable Act (“ HFCAA”), if the SEC determines that the Company has filed audit reports
issued by a registered public accounting firm that has not been subject to inspections by the PCAOB for two consecutive years, the SEC
will prohibit the Company’s securities from being traded on a national securities exchange or in the over-the-counter trading market
in the United States.

On
December 16, 2021, the PCAOB issued a report to notify the SEC of its determination that the PCAOB was unable to inspect or investigate
completely registered public accounting firms headquartered in mainland China and Hong Kong and the auditor that issued the audit reports
included in the financial statements for the fiscal year ended December 31, 2021 was subject to that determination. On December 15, 2022,
the PCAOB removed mainland China and Hong Kong from the list of jurisdictions where it is unable to inspect or investigate completely
registered public accounting firms.

The
Company’s consolidated financial statements are currently audited by Guangdong Prouden CPAs GP, which is registered with and subject
to regular inspection by PCAOB. Each year, the PCAOB will determine whether it can inspect and investigate completely audit firms in
mainland China and Hong Kong, among other jurisdictions. If the PCAOB determines in the future that it no longer has full access to inspect
and investigate completely accounting firms in mainland China and Hong Kong and the Company uses an accounting firm headquartered in
one of these jurisdictions to issue an audit report on the Company’s financial statements filed with the