Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 520

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 520
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 are non-PRC resident enterprises, our PRC subsidiaries may be requested to assist in the filing under SAT Bulletin 7 and/or SAT Bulletin
37. As a result, we may be required to expend valuable resources to comply with SAT Bulletin 7 and/or SAT Bulletin 37 or to request the
relevant transferors from whom we purchase taxable assets to comply with these circulars, or to establish that our company should not
be taxed under these circulars, which may have a material adverse effect on our financial condition and results of operations.

PRC
regulations relating to the establishment of offshore special purpose companies by PRC residents may subject our PRC resident shareholders
to penalties and limit our ability to inject capital into our PRC subsidiaries, limit our PRC subsidiaries’ ability to distribute
profits to us, or otherwise adversely affect us.

The
SAFE promulgated the notice on relevant issues relating to domestic resident’s investment and financing and roundtrip investment
through special purpose vehicles (“SPV(s)”), or Notice 37, in July 2014 that requires PRC residents or entities to register
with SAFE or its local branch in connection with their establishment or control of an offshore entity established for the purpose of
overseas investment or financing. In addition, such PRC residents or entities must update their SAFE registrations when the offshore
SPV undergoes material events relating to material change of capitalization or structure of the PRC resident itself (such as capital
increase, capital reduction, share transfer or exchange, merger or spin off).On February 28, 2015, SAFE issued a notice according to
which the aforesaid PRC residents or entities are no longer required to register with SAFE or its local branch, instead the aforesaid
PRC residents or entities need to register with local banks. We have notified substantial beneficial owners of our ordinary shares who
we know are PRC residents of their filing obligation, and to the best of our knowledge, most of those shareholders whom we know are PRC
residents have completed the registration. However, we may not be aware of the identities of all our beneficial owners who are PRC residents.
In addition, we do not have control over our beneficial owners and cannot assure you that all of our PRC resident beneficial owners will
comply with SAFE Circular 37. Failure by an individual to comply with the required SAFE registration and updating requirements described
above may result in penalties up to RMB50, 000 imposed on such individual and