Company: KMRK
Filing Date: 2025-09-24
Form Type: 424B3
Source: 0001213900-25-091102
Chunk: 57

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-24
Form: 424B3
Chunk 57
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 participants in our supply chain. Any delays, interruption or
increased costs in the supply of toy products could have an adverse effect on our ability to meet customer demand for our products and
result in lower net sales and income from operations, both in the short and long term. During the two years ended March 31, 2025, we did
not encounter any supply disruption due to such reliance on a limited number of third- party suppliers.

We are subject to the risk of increase in inventories and inventory turnover days and a sudden decrease in market demand for our products may lead to obsolete inventories

As we operate in
an industry that is subject to changing market trends, a sudden decrease in the market demand for our products and the corresponding unanticipated
drop in the sales of our products could cause our inventory to accumulate and may adversely affect our financial condition and results
of operations. In the event that we fail to properly assess our need and maintain an appropriate inventory level, we may build up excessive
inventories. As a result, this may have an adverse impact on our financial conditions and results of operations.

Our cash flows may deteriorate due to potential mismatch in time between receipt of payments from our customers and payments to our suppliers, which could adversely affect our business, financial condition and results of operation.

In the procurement
and sales of our products, there are often time lag between making payments to our suppliers and receiving payments from our customers,
resulting in potential cash flows mismatch. If we choose to pay our suppliers only after receiving payments from our customers, we will
risk our reputation being harmed as not being able to make payments on a timely manner, which could harm our ability to engage capable
and quality suppliers for our business in the future.

Fluctuations in prices of raw materials could negatively impact the production cost of finished products. Full Starise may transfer any increase in cost of production to us by increasing the unit price of finished products purchased by us. If we are unable to transfer such costs to our customers by raising the selling price, our operations and profitability may be adversely affected

In order to control
the quality of our products and ensure that finished products adhere to original design, we would designate raw materials and components
suppliers to Full Starise and closely manage the production process. We are subject to the price fluctuation in raw materials used by
suppliers in the production of our products. If the supply of raw materials is substantially interrupted or reduced or if there are significant
increases in the prices fluct