Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 8

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 8
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 are critical to expand and retain our customer base. Many factors, some of which are beyond our control, may negatively impact our
brand image and reputation, such as:

  any customer complaints or negative publicity relating to our products quality, delivery times, product  

  alleged misconduct or other improper activities committed by our employees; and  

  any fraudulent, false or misleading information relating to our products.  

We cannot guarantee that negative
reports about our business or our brand will not occur in the future and serious damage to our brand, public image, reputation and business
may follow as a result. If we are unable to maintain or enhance our brand image, or our brand image is negatively damaged, our business,
financial condition and results of operation may be adversely and materially affected.

Any changes to international trade regulations,
quotas, tariffs and duties may affect prices of and demand for our products

Our customers are mainly located
in North America and Europe. Therefore, our results of operations are largely affected by the level of demand for our products from our
customers in North America and Europe which is in turn influenced by a number of factors which are beyond our control, including, amongst
others, the economic conditions, customer preferences and trade policies in 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