Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 437

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 437
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 businesses to our Company and U.S.
investors and amounts owed. Under the current practice of the Inland Revenue Department of Hong Kong, no tax is payable in Hong Kong
in respect of dividends.

Under
PRC laws, rules, and regulations, our PRC subsidiaries are allowed to pay dividends only out of their accumulated after-tax profits,
if any, determined in accordance with PRC accounting standards and regulations, and only after setting aside at least 10% of their after-tax
profits each year after making up for previous years’ accumulated losses, if any, to fund certain statutory reserves, until the
aggregate amount of such fund reaches 50% of their registered capital. Allocations to these statutory reserve funds can only be used
for specific purposes and are not transferable to us in the form of loans, advances, or cash dividends. However, there can be no assurance
that the PRC government will not intervene or impose restrictions on their ability to transfer or distribute cash within our organization
or to foreign investors, which could result in an inability or prohibition on making transfers or distributions outside of China and
may adversely affect our business, financial condition, and results of operations.

As
of the date of this Annual Report, our subsidiaries have not experienced any difficulties or limitations on their ability to transfer
cash between each other; nor do they maintain cash management policies or procedures dictating the amount of such funding or how funds
are transferred. None of our subsidiaries have paid any dividends, other distributions or transferred assets to our holding company as
of the date of this Annual Report. In the future, cash proceeds raised from overseas financing activities may be transferred by us to
our Hong Kong or PRC subsidiaries via capital contribution or shareholder loans, as the case may be. As of the date of this Annual Report,
we have not made any transfers, paid any dividends, or made any distributions to U.S. investors.

20

Neither
the Company nor any of its Hong Kong subsidiaries or its PRC subsidiary has paid dividends or made distributions to U.S. investors. No
funds have been transferred by the holding companies to the Hong Kong subsidiaries, the PRC subsidiary, or the VIE for the fiscal years
ended September 30, 2024 or 2023 and through the date of this Annual Report, to fund their business operations. In the future, any cash
proceeds raised from overseas financing activities may be transferred by us to our Hong Kong or PRC subsidiaries via capital contribution
or shareholder loans