Company: KMRK
Filing Date: 2025-09-24
Form Type: 424B3
Source: 0001213900-25-091102
Chunk: 53

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-24
Form: 424B3
Chunk 53
---
 the demand for educational toys does not achieve anticipated growth or even decrease, our business and results of operation would be materially and adversely affected.

We principally design,
develop, manufacture and sell high quality infant and pre- school educational toys and learning kits. As a result, the sustainable growth
of our business and our success depend on the overall demand for educational toys in general. We have historically benefited from the
demand in this market. However, we cannot assure that the educational toy market and our customer demand will achieve the expected growth,
or even sustain. If the industry does not grow as fast as we anticipate or even shrinks, or our customer demand otherwise decreases, our
business and results of operation could be materially and adversely affected.

We generally do not enter into long- term contracts with our customers and purchase order we receive may fluctuate from period to period

As our sales are
normally made on purchase orders, we do not have long-term contracts with our customers. Accordingly, we may have limited visibility as
to our future revenue streams and there is no assurance that we will maintain or increase the level of our business with existing or potential
customers. Our customers may cancel or defer purchase orders. Our customers’ purchase orders may vary from period to period, and
it is difficult to forecast future order quantities. Should our customers decide to reallocate their budgets and choose our competitors
due to the market conditions or we fail to provide attractive toy products to attract or retain customers or any other factors, the demand
for our products may not grow or even decline and our business, results of operations and financial condition may be materially and adversely
affected. As a result, our results of operations may vary from period to period and may fluctuate significantly in the future.

Developments adverse to our major customers could have an adverse effect on us

We expect that future
sales will continue to depend on the success of our customers. In turn, the success of our customers depends on several factors, including
but not limited to the consumer preference and market acceptance of our toy products, the level of discretionary consumer spending in
countries in which our customers do business, as well as the distribution channels of our customers. Developments adverse to our major
customers or our products could have an adverse effect on us. If there are any other developments adverse to our major customers such
as any significant changes in the operations or financial condition of our major customers, including consolidation or change of ownership,
restructuring or liquidation, we may experience a material adverse effect on our business