Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 75

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 5
Chunk 75
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 the year ended December 31, 2024, which was primarily attributable to the increase of US$0.23 million in interest expense due to
the newly borrowed loans from related parties, and offset by the increase of US$0.07 in interest income due to the newly lent loans to
Cetus Sponsor LLC.

Other
income, net

Other
income, net consists of government subsidies, building repair income, foreign currency exchange gain or loss, and others.

Other
income, net increased by US$0.05 million, or 301.5% from US$0.02 million for the year ended December 31, 2023 to US$0.07 million for
the year ended December 31, 2024, which was primarily attributable to an increase of US$0.06 in government subsidies.

Taxation

British
Virgin Islands (“ BVI”)

The
Company is incorporated in the BVI. Under the current laws of the BVI, the Company is not subject to income or capital gains taxes. Additionally,
dividend payments are not subject to withholdings tax in the BVI.

Taiwan

We
are subject to a tax rate of 20% for entities under R. O. C. Income Tax Law.

Samoa

One
of our subsidiaries was incorporated in Samoa and, under the current laws of Samoa, is not subject to tax on its income or capital gains.
Additionally, dividend payments are not subject to withholdings tax in Samoa.

Mainland
China

Generally,
our subsidiaries, which are considered PRC resident enterprises under PRC tax law, are subject to enterprise income tax on their worldwide
taxable income as determined under PRC tax laws and accounting standards at a rate of 25%.

Net
loss

As
a result of the foregoing, our net loss increased by US$1.09 million, or 52.7% from US$2.07 million for the year ended December 31, 2023
to US$3.16 million for the year ended December 31, 2024.

  46  

Comparison
of Results of Operations for the years ended December 31, 2022 and 2023

The
following table sets forth a summary of audited consolidated results of operations for the years indicated. This information should be
read together with audited consolidated financial statements and related notes included elsewhere in this Annual Report. The operating
results in any period are not necessarily indicative of the results that may