Company: KMRK
Filing Date: 2025-09-02
Form Type: DRS
Source: 0001213900-25-082986
Chunk: 45

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-02
Form: DRS
Chunk 45
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 internal affairs and
external relations, while the government of the PRC is responsible for its foreign affairs and defense. As a separate customs territory,
Hong Kong maintains and develops relations with foreign states and regions. Based on certain recent developments, including the
Law of the PRC on Safeguarding National Security in the Hong Kong Special Administrative Region (the “Hong Kong National
Security Law”) issued by the Standing Committee of the PRC National People’s Congress in June 2020, the U.S. State
Department has indicated the U.S. no longer considers Hong Kong to have significant autonomy from China and at the time President
Trump signed an executive order and Hong Kong Autonomy Act, or HKAA, to remove Hong Kong’s preferential trade status
and to authorize the U.S. administration to impose blocking sanctions against individuals and entities who are determined to have
materially contributed to the erosion of Hong Kong’s autonomy. The U.S. may impose the same tariffs and other trade
restrictions on exports from Hong Kong that it places on goods from mainland China. These and other recent actions may represent
an escalation in political and trade tensions involving the U.S, China and Hong Kong, which could potentially harm our business.

The HKAA further
authorizes secondary sanctions, including the imposition of blocking sanctions, against foreign financial institutions that knowingly
conduct a significant transaction with foreign persons sanctioned under this authority. The imposition of sanctions may directly affect
the foreign financial institutions as well as any third parties or customers dealing with any foreign financial institution that are targeted.
It is difficult to predict the full impact of the Hong Kong National Security Law and HKAA on Hong Kong and companies located
in Hong Kong. If a competent authority determines that we are in violation of the Hong Kong National Security Law or the HKAA,
our business operations could be materially and adversely affected.

We may become subject to a variety of PRC laws and other regulations regarding data security or securities offerings that are conducted overseas and/or other foreign investment in China- based issuers, and any failure to comply with applicable laws and regulations could have a material and adverse effect on our business, financial condition and results of operations and may hinder our ability to offer or continue to offer Class A Shares to investors and cause the value of our Class A Shares to significantly decline or be worthless.

On
June 10, 2021, the Standing Committee of the National People’s Congress enacted the PRC Data Security Law, which took effect
on September 1, 2021. The law