Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 49

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 49
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 information and documents requested by non-Hong Kong regulators, and section 378 of the SFO which
allows the SFC to share confidential information and documents in its possession with such regulators. However, there is no assurance
that such cooperation will be maintained, or if it is, whether it will adequately address any efforts to investigate or collect evidence
to the extent that may be sought by U. S. regulators.

Although we are based in Hong Kong, if
we should become subject to the recent scrutiny, criticism and negative publicity involving U. S.-listed China-based companies, we may
have to expend significant resources to investigate and/or defend the allegations, which could harm our Hong Kong operating subsidiary’s
business operations and our reputation, and could result in a loss of your investment in our Class A Shares if such allegations cannot
be addressed and resolved favorably.

During the last several years,
U. S. listed public companies that have substantially all of their operations in China have been the subject of intense scrutiny by
investors, financial commentators and regulatory agencies. Much of the scrutiny has centered on financial and accounting irregularities
and mistakes, lack of effective internal controls over financial reporting and, in many cases, allegations of fraud. As a result of this
scrutiny, the publicly traded stock of many U. S.-listed Chinese companies that have been the subject of such scrutiny has sharply decreased
in value. Many of these companies are now subject to shareholder lawsuits and/or SEC enforcement actions that are conducting internal
and/or external investigations into the allegations.

Although we are based in Hong Kong,
if we should become the subject of any such scrutiny, whether any allegations are true or not, we may have to expend significant resources
to investigate such allegations and/or defend the Company. Such investigations or allegations would be costly and time-consuming and likely
would distract our management from our normal business and could result in our reputation being harmed. The price of our Class A Shares
could decline because of such allegations, even if the allegations are false.

Adverse regulatory developments in China may
subject us to additional regulatory review, and additional disclosure requirements and regulatory scrutiny to be adopted by the SEC in
response to risks related to recent regulatory developments in China may impose additional compliance requirements for companies like
us with Hong Kong-based operations, all of which could increase our compliance costs and subject us to additional disclosure requirements.

Currently, Hong Kong has
a separate legal system from mainland China, and it has its legislative framework and judiciary independent of that of the P