Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 415

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 415
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China) maintains contractual arrangements. There are risks associated with this structure as the PRC has not yet ruled
on its legality” on page 52.

For
additional risks related to our VIE structure, see “Item 1A. Risk Factors - Risks Related to our Commercial Relationship with our
VIE” starting on page 51.

7

Risks
Related to Doing Business in China

    ●
    The
    Chinese government may choose to exercise significant oversight and discretion over the conduct of our business operations in China
    and may intervene in or influence our operations at any time, which could result in a material change in our and our VIE’s
    operations and/or the value of your shares. See “Item 1A. Risk Factors - Risks Related to Doing Business in China - The Chinese
    government may choose to exercise significant oversight and discretion over the conduct of our and our VIE’s business operations
    in China” on page 59.

    ●
    Regulatory
    authorities in China have recently implemented regulations concerning privacy and data protection and more stringent laws and regulations
    may be introduced in China. The PRC Cybersecurity Law provides that personal information and important data collected and generated
    by operators of critical information infrastructure in the course of their operations in the PRC should be stored in the PRC, and
    the law imposes heightened regulation and additional security obligations on operators of critical information infrastructure. The
    Measures for Cybersecurity Review (2021) stipulate that operators of critical information infrastructure purchasing network products
    and services and online platform operators (together with the operators of critical information infrastructure, the “Operators”)
    carrying out data processing activities that affect or may affect national security shall conduct a cybersecurity review, and any
    online platform operator who controls more than one million users’ personal information must go through a cybersecurity review
    by the cybersecurity review office if it seeks to be listed in a foreign country. We do not believe that our Company constitutes
    an Operator pursuant to the Cybersecurity Review (2021) that became effective in February 2022 nor do we control more than one million
    users’ personal information. However, the interpretation and application of consumer and data protection laws in China are
    often uncertain, in flux, and complicated, including differentiated requirements for different groups of people or different types
    of data, and there can be no assurance that in the future our operations may not be subject to these regulations which could have