Company: KMRK
Filing Date: 2025-09-24
Form Type: 424B3
Source: 0001213900-25-091102
Chunk: 33

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-24
Form: 424B3
Chunk 33
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PRC authorities obstruct or otherwise fail to facilitate the PCAOB’s access in the future, the PCAOB Board will consider the need
to issue a new determination.

The lack of access
to the PCAOB inspection in mainland China and Hong Kong prevents the PCAOB from fully evaluating audits and quality control procedures
of the auditors based in the mainland China and Hong Kong. As a result, the investors may be deprived of the benefits of such PCAOB
inspections. The inability of the PCAOB to conduct inspections of auditors in the mainland China and Hong Kong makes it more difficult
to evaluate the effectiveness of these accounting firms’ audit procedures or quality control procedures as compared to auditors
outside of the mainland China and Hong Kong that are subject to the PCAOB inspections, which could cause existing and potential investors
in our Class A Shares to lose confidence in our audit procedures and reported financial information and the quality of our financial statements.

On December 29,
2022, the AHFCA Act was enacted, which amended the HFCA Act by requiring the SEC to prohibit an issuer’s securities from trading
on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three,
and thus, reduced the time before our Class A Shares may be prohibited from trading or delisted.

The SEC is assessing
how to implement other requirements of the HFCA Act, including the listing and trading prohibition requirements described above. Future
developments in respect of increasing U.S. regulatory access to audit information are uncertain, as the legislative developments
are subject to the legislative process and the regulatory developments are subject to the rule-making process and other administrative
procedures.

While we understand
there has been dialogue among the CSRC, the SEC, and the PCAOB regarding the inspection of PCAOB registered accounting firms in mainland
China and Hong Kong, there can be no assurance that we will be able to comply with requirements imposed by U.S. regulators
if there is significant change to current political arrangements between mainland China and Hong Kong or if any component of our
auditor’s work papers become located in mainland China in the future. Delisting of our Class A Shares would force holders of our
Class A Shares to sell their Class A Shares. The market price of our Class A Shares could be adversely affected as a result of anticipated
negative impacts of these executive or legislative actions, regardless of whether these executive or legislative actions are implemented
and regardless of our actual operating performance.

Recent joint statement by the