Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 436

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 436
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 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 Hong Kong or PRC subsidiaries, there is a possibility that
the funds may not be available to fund our operations or for other uses outside of Hong Kong or the PRC or due to interventions or the
imposition of restrictions and limitations by the PRC or the Hong Kong government on the ability to transfer cash. In addition,
if any of our subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt may restrict their ability
to pay dividends to us.

After
investors’ funds enter the Company, the funds can be directly transferred to KP International in accordance with the laws of the
State of Nevada, which will then directly transfer the funds to KP (Hong Kong). KP Hong Kong can then transfer the funds to KP Tian Yu,
which can then transfer the funds to King Eagle (China). King Eagle (China) can subsequently transfer funds to King Eagle VIE in accordance
with the VIE Agreements.

If
the Company intends to distribute dividends, King Eagle (China) will transfer funds received as dividends from King Eagle VIE to KP Tian
Yu in accordance with the laws and regulations of China. KP Tian Yu will then transfer the funds to KP Hong Kong in accordance with the
laws of China, KP Hong Kong will transfer the funds to KP International in accordance with the laws of Hong Kong, and KP International
will then transfer the funds to the Company in accordance with the laws of the BVI. The Company will then distribute the dividends to
all of its shareholders respectively in proportion to the shares they hold in accordance with the laws and regulations of the State of
Nevada, regardless of whether the shareholders are U.S. investors or investors in other countries or regions.

Under
the Companies Ordinance of Hong Kong, dividends may only be paid out of distributable profits (that is, accumulated realized profits
less accumulated realized losses) or other distributable reserves. Dividends cannot be paid out of share capital. There are no restrictions
or limitation under the laws of Hong Kong imposed on the conversion of HK dollars into foreign currencies and the remittance of currencies
out of Hong Kong, nor is there any restriction on foreign exchange to transfer cash between our Company and its subsidiaries, across
borders and to U.S investors, nor on distributing earnings from our Hong Kong subsidiaries’