Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 91

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 91
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cks. If the government disallows outsourcing or if our business demand outpaces the capacity of the outsourcing factory in the future, it could severely restrict our growth. To improve production efficiency and increase our manufacturing capacity, we plan to invest and establish a manufacture center, which can optimize our production processes, upgrade our automated production lines, and establish stricter quality management systems. Simultaneously, we aim to independently apply for specialized vehicle qualifications to ensure the long-term stability of our business.

Competition from Established Competitors -The traditional oilfield equipment industry is highly competitive, with strong and well-established competitors. Without effective differentiation, cost control, and the maintenance of technological innovation advantages, we may lose market share and incur losses. We intend to continuously innovate and introduce new products and services to enhance our market competitiveness and customer loyalty.

Innovated New Business Model to Meet the Market Demand (Supply Chain Financing) -Advanced heavy-duty automation equipment is expensive, and small oilfield service companies have limited purchasing power. To address this challenge, we intend to introduce third-party supply chain finance companies to enhance our customers’ purchasing power. However, this requires the Company to have strong credibility and resource integration capabilities.

These are some of the challenges, risks, and uncertainties we face, among others. For more information, please refer to the “ Risk Factors” section in this prospectus for discussions on these and other risks and uncertainties.

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Our Growth Strategy

As an emerging company in the field of oilfield automation machinery services, we consider growth our top priority. Given the competitive market environment and our strengths and weaknesses, our strategic goal is to become a leading provider of oilfield-specialized vehicles and equipment within the industry over the next decade.

Our strategies to achieve this goal include:

Investing in production facilities and obtaining relevant qualifications.Currently, we face challenges in our light-asset production model, including capacity constraints, procurement and outsourcing support, and the self-production capacity of key components. To enhance production efficiency and product quality, we intend to build our own production facilities, optimize production processes, introduce automated production lines, and establish a more rigorous quality management system. Simultaneously, while maintaining the outsourcing model for specialized vehicle production, we will apply for manufacture qualifications for specialized vehicle production to ensure the long-term stability of its business operations. If we are unable to obtain qualifications independently in a timely manner, we may consider obtaining production qualifications through mergers and acquisitions in the future. However, we currently do not have any merger or acquisition targets. Please refer to “ Regulations on