Company: KMRK
Filing Date: 2025-01-02
Form Type: DRS
Source: 0001213900-25-000267
Chunk: 112

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-01-02
Form: DRS
Chunk 112
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 -establishedtoy brands that specialize in kid educational toys and learning kits. We often undertake projects to develop toy products which involve advanced designs and integration of hardware and software to achieve the desired outcome. Our Directors believe that we have built reputation through consistently meeting the high standards of our customers which enables us to maintain stable business relationships with them. Strong back up of production facilities to ensure stable supply of quality products Our products are mostly manufactured and supplied by Fully Starise which represents approximately 85% of our cost of goods sold. Fully Starise is an independent third party supplier that operates a factory in the PRC. Pursuant to supply agreement dated 1 January 2021, between the Company and Full Starise, we are entitled to designate raw materials and components suppliers for the production of our toy products and participate in the production management and quality control procedures. We purchase our toy products form at predetermined contract unit prices, delivery schedules, warranty and other terms that correspond with terms agreed with our end customers that are brand owners. We believe that the support of production facilities coupled with the supply agreement allow the Company to closely monitor the entire production process and ensure stable and quality supply of toy products that adhere to our original design. 67

OUR STRATEGIES AND FUTURE PLAN Our business strategies and future plans for our expansion are as follows: Enhance research and development and design capabilities Our specialty as a toy design house is to translate the results of our market research, product design and development initiatives into successful commercialized products in our target markets. To strengthen this service, we intend to strengthen our product development capability to cater for different preferences, needs and behavior patterns of end customers of our toy products in the various target markets by way of (i) devoting more resources in market research to enhance product knowledge; (ii) enhancing our engineering and quality control functions by employing additional engineers and quality assurance personnel as well as strengthening quality standards and procedures; and (iii) deploying further resources in product design and development, including employing product designers and thus boosting profitability. Diversify our product offerings through continuous development of new products and global licensing strategy We intend to develop our own branded product offerings and exploit new opportunities through obtaining licensed rights from internationally renowned intellectual properties licensors such as Disney and Pixar for co -brandedinfant and pre -schooltoy products category. We consider that popular characters appearing on television programs or animated motion pictures are well received by children. The development of co -brandedtoy products featured with evergreen and popular cartoon characters could solidify our market position and establish