Company: KMRK
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087627
Chunk: 57

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-15
Form: F-1
Chunk 57
---
 countries where our customers are located. The countries
which our products are imported into may from time to time impose additional quotas, duties or tariffs. Any changes to international trade
regulations, quotas, tariffs and duties may in turn affect the prices of and demand for our products. We cannot assure you that future
international trade regulations, quotas, tariffs and duties will not increase our costs or provide our competitors with an advantage over
us. As such, any of the above may have a material adverse effect on the business, financial condition and performance of our Group.

We are exposed to risks relating to our suppliers that manufacture our products, and we may not be able to successfully establish and operate manufacturing operations.

We have developed a nimble and low-fixed cost business model whereby
our products are mostly manufactured and supplied by Fully Starise Limited (“Fully Starise”) which represents approximately
85.34% of our cost of revenue. Fully Starise is an independent third party supplier that operates a factory in the PRC. We consider
Fully Starise a reliable partner and strong back up of production capability to us whereby we have entered into long term supply agreement
with Fully Starise and will expiry on December 31, 2028 to secure stable and quality supply of toy products. Due to the reliance on our
business relationship with Fully Starise, any interruption of its operations, any failure of Fully Starise to accommodate our growing
business demands, any termination or suspension of our cooperation terms, or any deterioration of cooperative relationships with Fully
Starise may materially and adversely affect our operation. Failure by Fully Starise to provide us satisfactory products and/or services
in a timely manner is likely to have material adverse effect on our business, financial condition and results of operations. There is
a risk in relying on third-party supplier in that we are dependent on the supplier’s ability to produce a product which meets our
quality standards and delivery requirements as well as being dependent upon the supplier’s production priorities. We do not presently
have any plans to engage another supplier since Fully Starise is familiar with our products, and we are devoting our efforts to establishing
our own production facilities with no assurance that we can successfully establish manufacturing facilities.

Additionally, we
rely on the ability and efficiency of Fully Starise to supply products to us. As we have no ownership or managerial control over Fully
Starise, we cannot assure you that Fully Starise will constantly provide us products with desired quality and in sufficient quantities
as required in a timely manner or at