Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 5

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 5
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 the conversion of HKD into foreign currencies and the remittance of currencies out
of Hong Kong.

A. [Reserved]

B. Capitalization and Indebtedness

Not applicable.

C. Reasons for the Offer and Use of Proceeds

Not applicable.

D. Risk Factors

Risks Related to Our Business

Our international footprint exposes us to a
variety of operational risks

While our physical presence
is in Hong Kong, our products are distributed and sold around the world, and most of our sales are denominated in US$. As the
toy industry is subject to stringent quality and safety standards in jurisdictions where our customers do business, the international
scope of our operations exposes us to several types of complexities that increase the risks associated with our business, including but
not limited to:

  the need to serve our overseas customers with different cultural background and time zones resulting in  

  different local laws and regulations, including relating to consumer protection, data privacy, labor,  

  the potential for unexpected changes in legal, political or economic conditions in the countries from  
  which we source or into which we sell;                                                                 
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  exposure to liabilities under various anti-corruption and anti-money laundering laws; and  

  fluctuations in foreign exchange rates against the US$.  
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If we fail to address the potential
risks above, or if one or more of these risks materializes, this could have a material adverse effect on our reputation, business, financial
condition and results of operations.

We may fail to anticipate and respond to changes
in consumer preference and market trend in a timely manner

Our future growth depends on our ability to retain
existing customers and to continue attracting new potential customers and gaining new purchases for our products. Constantly changing
market trend and consumer preferences have affected and will continue to affect our business. To maintain our attractiveness, our product
design and engineering team is constantly updated to provide latest trend in toy market by visiting and communicating with overseas toy
retailers to understand the latest trend, and maintaining continuous communication with the design teams of the customers end to work
out a desirable design appealing to the retail market. If we fail to update our product design and development regularly, customers may
lose interest in our design solutions and products. We analyses market preference using historical sales data and determine our product
design accordingly. We cannot guarantee that our prediction on consumer behavior could be accurate. To