Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 670

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 670
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, it is highly uncertain how soon the legislative
or administrative regulation-making bodies will respond and what existing or new laws or regulations or detailed implementations and
interpretations will be modified or promulgated, if any. It is also highly uncertain what the potential impact of any such modified or
new laws and regulations will be on our daily business operations, our ability to accept foreign investments, and the continued listing
of our shares in the U.S. markets. These actions could result in a material change in our operations and/could cause the value of our
shares to significantly decline or become worthless.

The
Chinese government has also exercised, and continues to exercise, substantial control over virtually every sector of the Chinese economy
through regulation and state ownership, including those relating to regulation of the health product industry, taxation, import and export
tariffs, environmental regulations, land use rights, property ownership and other matters. We believe that the business operations of
our VIE and its subsidiaries in China are in material compliance with all applicable legal and regulatory requirements. However, the
central or local governments of the jurisdictions in which it operates may impose new, stricter regulations or interpretations of existing
regulations that would require additional expenditures and efforts on our VIE’s part to ensure its compliance with such regulations
or interpretations. Accordingly, government actions in the future could have a significant effect on our VIE and our VIE’s subsidiaries
and on their businesses which, in turn, could have a negative effect on the value of our shares.

The
new Overseas Listing Rules and other relevant rules promulgated by the CSRC may subject us to additional compliance requirements in the
future.

On
February 17, 2023, the China Securities Regulatory Commission (the “CSRC”) released the Trial Administrative Measures of
Overseas Securities Offering and Listing by Domestic Companies, or the Trial Measures, which came into effect on March 31, 2023. On the
same date as the issuance of the Trial Measures, the CSRC circulated No. 1 to No. 5 Supporting Guidance Rules, the Notes on the Trial
Measures, the Notice on Administration Arrangements for the Filing of Overseas Listings by Domestic Enterprises, and the relevant CSRC
Answers to Reporter Questions on the official website of the CSRC, or collectively, the Guidance Rules and Notice. The Trial Measures,
together with the Guidance Rules and Notice, reiterate the basic supervision principles as reflected in the Overseas Listing Regulations
by providing substantially the