Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 419

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 419
---
”). Although
we believe that the Holding Foreign Companies Accountable Act and the related regulations do not currently affect us, we cannot assure
you that there will not be any further implementations and interpretations of or amendments to the Holding Foreign Companies Accountable
Act or the related regulations, which might pose regulatory risks to and impose restrictions on us because of our operations in mainland
China. A potential consequence is that our securities are delisted by the exchange on which our securities are listed.. See “Item
1A. Risk Factors - Risks Related to Doing Business in China - To the extent that our independent registered public accounting firm’s
audit documentation related to their audit reports for the Company may, in the future, be located in China or in Hong Kong, our securities
could be delisted and prohibited from trading on a U.S. exchange” on page 66.

Implications
of Being a Holding Company - Transfers of Cash to and from Our Subsidiaries

As
a holding company, we will rely on dividends and other distributions on equity paid by our subsidiaries for our cash and financing requirements.
Neither the Company nor any of its subsidiaries maintain cash management policies or procedures that dictate how funds are transferred.
The Company is permitted under the laws of the State of Nevada and its articles of incorporation (as amended from time to time) to provide
funding to its subsidiaries through loans or capital contributions. Our subsidiaries are permitted under the respective laws of China
and Hong Kong to provide funding to us through dividends without restrictions on the amount of the funds, other than as limited by the
amount of their distributable earnings. However, to the extent that cash is in our PRC or Hong Kong subsidiaries, there is a possibility
that the funds may not be available to fund our operations or for other uses outside of the PRC or Hong Kong due to interventions or
the imposition of restrictions and limitations by the PRC or the Hong Kong government on their ability to transfer cash. In addition,
if any of our subsidiaries incur debt on their own behalf in the future, the instruments governing such debt may restrict their ability
to pay dividends to us.

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 has paid any dividends or other distributions or transferred assets to the Company as of the
date of this Annual Report.