Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 11

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 11
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 the
laws and regulations of the U. S., especially with regards to cybersecurity risks, and MKD’s senior management and directors have
limited experience with the compliance requirements of publicly traded companies in the U. S.

   7  

Following
the Business Combination and its listing on Nasdaq, the Company is subject to all applicable U. S. law and regulation and the listing
rules of Nasdaq. In particular, the Company is required to promptly and publicly disclose material cybersecurity incidents in reports
on Form 6-K, and will be required to disclose in its annual report on Form 20-F its processes for assessing, identifying, and managing
risks from cybersecurity threats, whether risks from cybersecurity threats have materially affected `or are reasonably likely to materially
affect the Company, and to describe the role of its board and management in overseeing and managing cybersecurity risks.

Advances
in technology, the expertise of hackers, improper use or sharing of data, new discoveries in the field of cryptography or other events
or developments could result in a compromise or breach of the technology that it uses to protect confidential information. MKD’s
security measures may be undermined due to the actions of outside parties, employee error, malfeasance, or otherwise, and, as a result,
an unauthorized party may obtain access to data systems and misappropriate business and personal information. Because the techniques
used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and may not immediately produce
signs of intrusion, MKD may be unable to anticipate these techniques or to implement adequate preventative measures. Any such breach
or unauthorized access could result in significant legal and financial exposure, damage to reputation, and potentially have an adverse
effect on MKD’s business.

Risks
Related to Doing Business in China

The
Chinese government may intervene or influence our operations at any time, which could result in a material change in our operations and/or
the value of our securities.

The
PRC government has oversight over business operations conducted in China, and the PRC government may influence MKD’s operations,
which could result in a material adverse change in MKD’s operation and the value of the Company’s securities. MKD conducts
a substantial portion of its business through its PRC subsidiaries. Our operations in China are governed by PRC laws and regulations.
The PRC government has significant oversight and discretion over the conduct of our business, and it may influence our operations, which
could result in a material adverse change in our operations, and