Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 11

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 11
---
 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 fluctuation pay for raw materials or if there are unfavorable fluctuations in the quality of these raw materials,
the increase in cost of production may be priced in the ex-factory price of the finished products and transferred to us through the increase
in unit price of finished products purchased by us. If we cannot identify alternative sources of raw materials or transfer such costs
to our customers by raising the selling price, our operations and profitability may be adversely affected.

Our sales may be affected by seasonality.

We believe that there is a
seasonal pattern in the spending behavior of customers, in particular overseas customers, which may affect the results of our operation.
Our shipment peak season takes place between June and August of each year in which we achieve significant higher sales than other months
to meet the Christmas and New Year holiday seasons. On the other hand, our ability to accept more purchase orders of our products from
our customers during the peak seasons may be restricted by limited production capacity of Full Starise that manufacture our toy products.
Any reduction in the sales of our toy products during the peak season may have an adverse material impact on our sales and performance.
Furthermore, comparisons of sales and operating results between different periods within a single financial year may not be meaningful
and should not be relied upon as indicators of our performance. Due to these seasonal consumption patterns (most of which are outside
our control), our operating results and financial condition may fluctuate from period to period.

We may face possible claims over our products
which may be defective

Our products may contain latent
defects or flaws, any flaws or defects discovered in our products after delivery could result in loss of revenue or delay in revenue recognition,
damage to our reputation and our relationship with customers and increased service cost. Any of such occurrence could adversely affect
our business, operating results and financial conditions. If our products proved to be defective, we may be subject to claims for compensation
and may incur significant legal costs regardless of the outcome of any claims of alleged defect. Although we may have legal recourse against
the suppliers or some other manufacturers of our toy products pursuant to applicable laws, attempts to enforce our rights against these
suppliers