Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 69

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 5
Chunk 69
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ITEM
5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

  Operating  
  Results    
 ─────────────

You
should read the following discussion and analysis of our financial condition and results of operations of the Company in conjunction
with our audited consolidated financial statements and the related notes included elsewhere in this annual report. This discussion contains
forward-looking statements that involve risks and uncertainties. Our actual results and the timing of events could differ materially
from those anticipated in these forward-looking statements as a result of various factors detailed in our filings with the U. S. Securities
and Exchange Commission (the “ SEC”).

Unless
the context otherwise requires, all references in this section to the “ Company,” “we,” “us,” and
“our” refer to MKDWELL Tech Inc. and its consolidated subsidiaries.

Business
Overview

Through
the operating subsidiaries, we are a manufacturer and supplier of automotive electronics for passenger cars, modified commercial vehicles,
camper vans and logistics vehicles. Our business coverage extends from research and development, design, and production to sales of automotive
electronic products. Our main products are intelligent camper vans control systems, LiDAR sensors, intelligent container control systems
for logistics vehicles, vehicle seat control system, and we provide customers with ODM and OEM customized services. We design, manufacture
and supply our products to our customers through our design center located in Hsinchu Science Park, Taiwan and our manufacturing plant
in Jiaxing Science and Technology City, Jiaxing City, Zhejiang Province, China. Our customers are mainly based in Mainland China and
Taiwan.

Major
Factors Affecting Our Results of Operations

Market
demand and supply

The
automotive industry market we are in is continuing to incorporate electronics into motor vehicles. From traditional automotive electronics,
gasoline-electric hybrid vehicles to new energy vehicles, most automotives these days are inseparable from automotive electronics. For
both new automotives or current in-use automotives, both the pre-installation market and the after-market can offer immense market opportunities
and development potential. However, the competition in the automotive electronics industry has intensified, with the emergence of homogeneous
suppliers and the participation of automobile factory joint ventures. Chip supply and component shortages have also disrupted the global
supply chain and cost of raw materials has risen to cause great difficulty in satisfying the demand for automotive products. Our sales
performance may thus be affected due to the above-mentioned trends.

While
supply chains