Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 47

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 47
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 other government
actions may delay or impede our development. This may result in negative publicity or increase our operating costs; require significant
management time and attention; and/or subject us to remedies, administrative penalties and even criminal liabilities that may harm our
business, including fines assessed for our current or historical operations, or demands or orders that we modify or even cease our business
practices.

The PRC government initiated
a series of regulatory actions and statements to regulate business operations in certain areas in China with little advance notice, including
cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas using a
VIE structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement.
These regulatory actions and statements emphasize the need to strengthen the administration over illegal securities activities and the
supervision of China-based companies seeking overseas listings. Additionally, companies are required to undergo a cybersecurity review
if they hold large amounts of data related to issues of national security, economic development or public interest before carrying out
mergers, restructuring or splits that affect or may affect national security. These statements were recently issued and their official
guidance and interpretation remain unclear at this time. While we believe that our Hong Kong operating subsidiary’s operations
are not currently being affected, they may be subject to additional and stricter compliance requirements in the near term. Compliance
with new regulatory requirements or any future implementation rules may present a range of new challenges which may create uncertainties
and increase our Hong Kong operating subsidiary’s cost of operations.

The Chinese government may
intervene or influence our Hong Kong operating subsidiary’s operations at any time and may exert more control over offerings
conducted overseas and foreign investment in Hong Kong-based issuers. Any future action by the PRC government expanding the categories
of industries and companies whose foreign securities offerings are subject to review by the CSRC could significantly limit or completely
hinder our ability to continue to offer securities to investors and could cause the value of such securities to significantly decline
or be worthless. Any legal or regulatory changes that restrict or otherwise unfavorably impact our Hong Kong operating subsidiary’s
ability to conduct their business could decrease demand for their services, reduce revenues, increase costs, require them to obtain more
licenses, permits, approvals or certificates, or subject them to additional liabilities. To the extent any new or more stringent measures
are implemented, our business, financial condition and results of operations could be adversely affected, and the value of our Class