Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 468

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 468
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A personal information processor shall inform the individual of the necessity of processing such sensitive personal information and the
impact thereof on the individual’s rights and interests. As uncertainties remain regarding the interpretation and implementation
of the Personal Information Protection Law, we cannot assure you that we will comply with the Personal Information Protection Law in
all respects and regulatory authorities may order us to rectify or terminate our current practice of collecting and processing sensitive
personal information.

Summary.
Compliance with the PRC Cybersecurity Law, the Data Security Law, the Cybersecurity Review Measures, and the Personal Information Protection
Law, as well as additional laws and regulations that PRC regulatory bodies may enact in the future, may result in additional expenses
to us and subject us to negative publicity, which could harm our reputation among users and negatively affect the trading price of our
common stock in the future. PRC regulators, including the Department of Public Security, the Ministry of Industry and Information Technology,
the State Administration for Market Regulation, and the CAC, have been increasingly focused on regulation in the areas of data security
and data protection, and are enhancing the protection of privacy and data security by rulemaking and enforcement actions at central and
local levels. We expect that these areas will receive greater and continued attention and scrutiny from regulators and the public going
forward, which could increase our compliance costs and subject us to heightened risks and challenges associated with data security and
protection. We cannot assure you that we will be compliant with these new laws and regulations described above in all respects, and we
may become subject to penalties, including fines, suspension of business, prohibition against new user registration (even for a short
period of time) and revocation of required licenses, and our reputation and results of operations could be materially and adversely affected,
all of which could materially and adversely affect our business, financial condition, and results of operations.

The
PRC government has broad discretion in determining rectifiable or punitive measures for non-compliance with or violations of PRC laws
and regulations. If the PRC government determines that we, our Hong Kong or PRC subsidiaries, or our VIE do not comply with applicable
law, it could revoke the VIE’s and our PRC subsidiaries’ business and operating licenses, require the VIE to discontinue
or restrict its operations, restrict the VIE’s right to collect revenues, require the VIE to restructure its operations, impose
additional conditions or requirements with which the VIE may not be able to comply, impose restrictions on