Company: KMRK
Filing Date: 2025-04-07
Form Type: DRS/A
Source: 0001213900-25-029283
Chunk: 56

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-04-07
Form: DRS/A
Chunk 56
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ables from such customers, which could have a material adverse effect on our business, financial condition and results of operation. Fluctuation in foreign currencies could have an impact on our sales We believe that the fluctuations in currencies have a direct impact on our customers’ demand of our toy products, which would in turn affect our sales performance and results of operations. Our sales were mainly denominated in US dollars. As such, as a result of the depreciation of the domestic currency of our targeted markets against USD, our products may become relatively more expensive and our customers may reduce their purchase of our products, which in turn adversely affected our sales. Fluctuations in the domestic currency of our customers is beyond our control. If there is material fluctuations in the domestic currency of our targeted markets and we cannot mitigate such impact by enhancing our sales and marketing and stimulating demand for our toy products in other regions, our business, financial condition and results of operations may be adversely affected. 29 Our business is dependent on the strength of our design capability and product quality, and market perception of our reputation. If we fail to maintain and enhance our reputation, our business, results of operation and prospects may be materially and adversely affected. We believe that our toy product development solution is well received by our customers, and our business and financial performance are substantially dependent on the strength and the market perception of our reputation. We offer one stop solution in design and development of toy products. Our Directors believe that the notable awareness of our capabilities in product innovation and quality control contributes to higher recognition amongst customers, thus lower marketing costs. Therefore, we believe that maintaining and enhancing our reputation as a one stop toy design solution house are critical to expand and retain our customer base. Many factors, some of which are beyond our control, may negatively impact our brand image and reputation, such as: •any customer complaints or negative publicity relating to our products quality, delivery times, product returns procedures, customer data handling and security practices; •alleged misconduct or other improper activities committed by our employees; and •any fraudulent, false or misleading information relating to our products. We cannot guarantee that negative reports about our business or our brand will not occur in the future and serious damage to our brand, public image, reputation and business may follow as a result. If we are unable to maintain or enhance our brand image, or our brand image is negatively damaged, our business, financial condition and results of operation may be adversely and materially affected. Any changes to international trade regulations, quotas, tariffs and duties may affect prices of and