Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 45

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 45
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 contributed by our Hong Kong
subsidiary. On March 31, 2023, KMT paid a dividend of HK$1,500,000 (equivalent to approximately US$191,352) to Kwok Yiu Keung and Kwok
Yiu Fai, the Controlling Shareholders. We may consider paying further dividends in the near future. See “ Dividend Policy. ”

Our ability to pay dividends
to our shareholders is primarily dependent upon the earnings of our Hong Kong subsidiary and its distribution of funds to us, primarily
in the form of dividends. The ability of our Hong Kong subsidiary to make distributions to us depends upon, among others, their distributable
earnings. The amounts of distributions that any of the Company’s subsidiary declared and made in the past are not indicative of
the dividends that we may pay in the future. There is no assurance that we will be able to declare or distribute any dividend in the future.

A downturn in the Hong Kong or global
economy, or a change in economic and political policies of the PRC, could materially and adversely affect our Hong Kong operating
subsidiary’s business and financial condition.

Our Hong Kong operating
subsidiary’s business, prospects, financial condition and results of operations may be influenced to a significant degree by political,
economic and social conditions in Hong Kong and China generally. The Chinese economy differs from the economies of most developed
countries in many respects, including the amount of government involvement, level of development, growth rate, control of foreign exchange
and allocation of resources. While the Chinese economy has experienced significant growth over the past decades, growth has been uneven,
both geographically and among various sectors of the economy. The Chinese government has implemented various measures to encourage economic
growth and guide the allocation of resources. Some of these measures may benefit the overall Chinese economy, but may have a negative
effect on our Hong Kong operating subsidiary.

Economic conditions in Hong Kong
and China are sensitive to global economic conditions. Any prolonged slowdown in the global or Chinese economy may affect our current
customers’ and potential customers’ businesses, and have a negative impact on our Hong Kong operating subsidiary’s
business, results of operations and financial condition. Additionally, continued turbulence in the international markets may adversely
affect our ability to access the capital markets to meet liquidity needs.

Substantially all of our operations are in
Hong Kong. However, due to the long arm provisions under the current PRC laws and regulations, the Chinese government may exercise