Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 63

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 4
Chunk 63
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 set up our own factory and manufacturing operations
primarily to assemble components that we purchase from other companies. Although we plan to commence manufacturing operations, we cannot
assure you that we will be able to materialize such plan and operations.

COMPETITION

The Hong Kong toy industry
is fragmented with large number of players mainly categorized into three roles namely OBM, OEM and ODM. Our Group, as a toy development
solution provider serving customers that process renowned brands and intellectual properties in toy products, is competing with other
OEM and ODM across the globe which are similar to us in terms of product range, supplier management, pricing, sales network coverage and
quality of products. The toy market is influenced by a combination of consumer preferences, regulatory changes, technological advancements,
and market dynamics. To succeed, toy exporters must remain adaptable and responsive to these drivers, focusing on innovation, safety,
sustainability, and fostering strong relationships within the supply chain. With the highly fragmented market, we may face increasing
number of competitors in our target markets and these competitors may have stronger financial resources, lower pricing and better business
reputation than we do.

Despite fierce competition, we believe that we
are able to stay competitive through our strong innovation and design capabilities, established customer base and solid back up of production
facilities of our suppliers. We believe we possess competitive advantages over our competitors.

OPERATION

The diagram below set forth
the typical workflow of our services:

The operation typically involves
the following major steps:

Business identification. We identify business opportunities either by direct approach from recurring customers/new customers, or with our sales consultants
solicit potential customers in trade show.

Project assessment. Our
customers generally approach us with information on product specification for us to prepare our fee quotation. Based on the product
specifications and other requirements from our clients, we perform technical assessment and preliminarily analyze the specifications
and requirements of the projects and commence preliminary work such as preparing three-dimensional designs, formulating the relevant
hardware and/or software to be procured, as well as suppliers to be lined up. Based on the result of the assessment, after
considering design cost, production cost, inspection cost and testing charges, we calculate the unit cost of the product and prepare
the total fee package to the clients.

Design stage.

During the design phase, our
design team adopts a thorough and systematic approach to ensure the successful creation of high-quality toy products. We initiate this
process by meticulously analyzing product requirements. This involves collecting detailed