Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 505

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 505
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 a result, we may not be aware of our violation of any of these policies and rules until sometime
after the violation. Such unpredictability towards our contractual, property (including intellectual property) and procedural rights
could adversely affect our business and impede our ability to continue our operations.

We
may face obstacles from the communist system in the PRC.

Foreign
companies conducting operations in the PRC face significant political, economic, and legal risks. The communist regime in the PRC may
hinder Western investment in the Company.

We
may have difficulty establishing adequate management, legal and financial controls in the PRC.

The
PRC historically has been deficient in Western style management and financial reporting concepts and practices, as well as in modern
banking, computer, and other control systems. We may have difficulty in hiring and retaining a sufficient number of qualified employees
to work in the PRC. As a result of these factors, we may experience difficulty in establishing management, legal and financial controls,
collecting financial data and preparing financial statements, books of account and corporate records and instituting business practices
that meet Western standards.

62

Our
business is subject to complex and evolving laws and regulations regarding privacy and data protection. These laws and regulations can
be complex and stringent, and many are subject to change and uncertain interpretation, which could result in claims, changes to our data
and other business practices, regulatory investigations, penalties, increased cost of operations, or declines in user growth or engagement,
or otherwise affect our business. Although we believe we currently are not required to obtain clearance from the Cyberspace Administration
of China under the recently enacted or proposed regulations or rules, we face uncertainties as to the interpretation or implementation
of such regulations or rules, and if required, whether such clearance can be timely obtained, or at all.

Regulatory
authorities in China have implemented and are considering further legislative and regulatory proposals concerning data protection. New
laws and regulations that govern new areas of data protection or impose more stringent requirements may be introduced in China. In addition,
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.

The
PRC regulatory and enforcement regime with regard to privacy and data security is evolving. The PRC government is increasingly focused
on data security, recently launching cybersecurity review against a number of mobile apps operated by several US-listed Chinese companies
and prohibiting these apps from registering new