Company: KMRK
Filing Date: 2025-06-05
Form Type: F-1/A
Source: 0001213900-25-051459
Chunk: 106

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-06-05
Form: F-1/A
Chunk 106
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 and approximately US$0.9million and US$0.4million, respectively, over one year. The bank loans bore effective interest rates between 7.56% and 9.22%. Our exposure to interest rate risk primarily relates to the interest rate on our outstanding short -termloans which are payable within one year. Our deposited cash raised by this offering can earn income, on the other hand. We have not been exposed to material risks due to changes in interest rates. An increase, however, may raise the cost of any debt we incur presently and, in the future, and result in an adverse impact on our income. Foreign Exchange Risk Foreign exchange risk is the risk that the value of financial assets or liabilities will fluctuate due to changes in foreign exchange rates. We are exposed to foreign exchange risk from our business which is denominated in currencies other than US$ (i.e., HK$). Consequently, the exchange rate to our currency relative to other foreign currencies may change in a manner that has an adverse effect on the value of that portion of our assets or liabilities denominated in currencies other than US$. Our currency exposure is measured and monitored on a regular basis by the manager. 65 INDUSTRY The information contained in this section and elsewhere in the prospectus have been derived from various official government and other publications generally believed to be reliable and the market research report prepared by Migo Corporation Limited (“MIGO”) and commissioned by the Company . All information and data presented in this section is derived from MIGO’s industry report, unless otherwise noted. The following discussion includes projections for future growth, which may not occur at the rates that are projected or at all. Overview of the Toys Industry in Hong Kong Hong Kong exporters have a reputation for producing high -qualitytoys. Contract manufacturing with overseas manufacturers and license holders generates a significant share of the industry’s revenues. To reduce operating costs and remain competitive, the majority of toy brand owners have established production facilities offshore, particularly in the PRC and Southeast Asia. The role of Hong Kong toy exporters has shifted towards quality control, management, marketing, product design, and production planning. In 2023, Hong Kong ranked as the world’s ninth -largesttoy exporter. Amid growing concerns in overseas markets regarding product safety and environmental protection, toy safety standards and regulations have become increasingly stringent. Hong Kong toy exporters are advised to stay informed about regulatory changes in different markets and ensure compliance with new requirements. Production on the PRC is facilitated by an efficient network of supporting industries and