Company: KMRK
Filing Date: 2025-09-02
Form Type: DRS
Source: 0001213900-25-082986
Chunk: 55

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-02
Form: DRS
Chunk 55
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 does not grow as fast as we anticipate or even shrinks, or our customer demand otherwise decreases, our
business and results of operation could be materially and adversely affected.

We generally do not enter into long- term contracts with our customers and purchase order we receive may fluctuate from period to period

As our sales are
normally made on purchase orders, we do not have long-term contracts with our customers. Accordingly, we may have limited visibility as
to our future revenue streams and there is no assurance that we will maintain or increase the level of our business with existing or potential
customers. Our customers may cancel or defer purchase orders. Our customers’ purchase orders may vary from period to period, and
it is difficult to forecast future order quantities. Should our customers decide to reallocate their budgets and choose our competitors
due to the market conditions or we fail to provide attractive toy products to attract or retain customers or any other factors, the demand
for our products may not grow or even decline and our business, results of operations and financial condition may be materially and adversely
affected. As a result, our results of operations may vary from period to period and may fluctuate significantly in the future.

Developments adverse to our major customers could have an adverse effect on us

We expect that future
sales will continue to depend on the success of our customers. In turn, the success of our customers depends on several factors, including
but not limited to the consumer preference and market acceptance of our toy products, the level of discretionary consumer spending in
countries in which our customers do business, as well as the distribution channels of our customers. Developments adverse to our major
customers or our products could have an adverse effect on us. If there are any other developments adverse to our major customers such
as any significant changes in the operations or financial condition of our major customers, including consolidation or change of ownership,
restructuring or liquidation, we may experience a material adverse effect on our business, operating results and financial condition.
Any significant changes in the operations or financial condition of our major customers, including liquidity problems or restructuring,
could cause us to limit or discontinue business with such customers, or require us to assume more credit risk relating to receivables
from such customers, which could have a material adverse effect on our business, financial condition and results of operation.

Fluctuation in foreign currencies could have an impact on our sales

We
believe that the fluctuations in currencies have a direct impact on our customers’ demand of our toy products,