Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 669

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 669
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 on eleven individuals, including HKSAR chief executive Carrie Lam. On October
14, 2020, the U.S. State Department submitted to relevant committees of Congress the report required under the HKAA, identifying persons
materially contributing to “the failure of the Government of China to meet its obligations under the Joint Declaration or the Basic
Law.” The HKAA further authorizes secondary sanctions, including the imposition of blocking sanctions, against foreign financial
institutions that knowingly conduct a significant transaction with foreign persons sanctioned under this authority. The imposition of
sanctions such as those provided in the HKAA is in practice discretionary and highly political, especially in a relationship as extensive
and complex as that between the United States and China. It is difficult to predict the full impact of the Hong Kong National Security
Law and HKAA on Hong Kong and companies located in Hong Kong like our Hong Kong subsidiaries. If we or our Hong Kong or PRC subsidiaries
are determined to be in violation of the Hong Kong National Security Law or the HKAA by competent authorities, our business operations,
financial position, and results of operations could be materially and adversely affected. Furthermore, legislative or administrative
actions in respect of Sino-U.S. relations could cause investor uncertainty for affected issuers, including us, and the market price of
our shares could be adversely affected.

58

The
Chinese government may choose to exercise significant oversight and discretion over the conduct of our and our VIE’s business operations
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. Such governmental actions:

    ●
    could
    result in a material change in our VIE’s operations;

    ●
    could
    significantly limit or completely hinder our and our VIE’s ability to continue our operations in China;

    ●
    could
    significantly limit or completely hinder our ability to offer or continue to offer our shares to investors; and

    ●
    may
    cause our shares to significantly decline in value or become worthless.

Recently,
the PRC government initiated a series of regulatory actions and new policies to regulate business operations in certain areas in China
with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based
companies listed overseas using a VIE structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding the
efforts in anti-monopoly enforcement. Since these statements and regulatory actions are new