Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 12

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 12
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 the Company’s securities may decline in value or become worthless.
In addition, implementation of industry-wide regulations directly targeting our operations could cause the value of our securities to
significantly decline. Therefore, investors of the Company and our business face potential uncertainty from actions taken by the PRC
government affecting our business.

Also,
the PRC government has recently indicated that it may exert more oversight and control over offerings that are conducted overseas by
or foreign investment in China-based issuers. For example, on November 14, 2021, the CAC released the Administrative Regulation on Network
Data Security for public comments through December 13, 2021, or the Draft Administrative Regulation on Network Data Security, for public
comments, which stipulates, among others, that a prior cybersecurity review is required for the overseas listing of data processors who
process over one million users’ personal information, and the overseas listing of data processors which affects or may affect national
security. On December 28, 2021, the Chinese government promulgated the 2022 Cybersecurity Review Measures, which came into effect on
February 15, 2022. According to the 2022 Cybersecurity Review Measures, (i) critical information infrastructure operators that purchase
network products and services and internet platform operators that conduct data processing activities shall be subject to cybersecurity
review in accordance with the 2022 Cybersecurity Review Measures if such activities affect or may affect national security; and (ii)
internet platform operators holding personal information of more than one million users and seeking to have their securities listed on
a stock exchange in a foreign country are required to file for cybersecurity review with the Cybersecurity Review Office.

Given
the nature of MKD’s business, wherein its customers are largely comprised of automobile manufacturers, MKD does not have access
to large volumes of personal data of individuals. As advised by MKD’s PRC legal counsel, MKD believes it will not be subject to
cybersecurity review with the Cyberspace Administration of China, or the “ CAC,” after the Measures for Cybersecurity Review
(the “ Cybersecurity Review Measures”) became effective on February 15, 2022, considering that (i) it currently do not have
personal information of more than one million people and does not anticipate that it will be collecting over one million people’s
personal information in the foreseeable future, (ii) it has not been identified as a “critical information infrastructure operator”
by any government authorities, and (iii) it has not