Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 675

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 675
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 tax regulations that are applicable to us. In addition,
the PRC government has implemented in the past certain measures, including interest rate increases, to control the pace of economic growth.
These measures may cause decreased economic activity.

61

We
cannot assure you that the PRC’s economy will continue to grow, or that if there is growth, such growth will be steady and uniform,
or that if there is a slowdown, such slowdown will not have a negative effect on its business and results of operations.

In
July 2021, the Chinese government provided new guidance on China-based companies raising capital outside of China, including through
VIE arrangements. In light of such developments, the SEC has imposed enhanced disclosure requirements on China-based companies seeking
to register securities with the SEC. As substantially all of our operations are based in China, any future Chinese, U.S., or other rules
and regulations that place restrictions on capital raising or other activities by China based companies could adversely affect our business
and results of operations. If the business environment in China deteriorates from the perspective of domestic or international investment,
or if relations between China and the United States or other governments deteriorate, the Chinese government may intervene with our operations
and our business in China and in the United States.

Uncertainties
with respect to the PRC legal system could limit the legal protections available to you and us.

We
conduct substantially all of business through our operating subsidiary in the PRC. Our PRC subsidiary, the VIE, and the VIE’s subsidiaries
are subject to laws and regulations applicable to foreign investments in China and, in particular, laws applicable to FIEs as well as
various PRC laws and regulations generally applicable to companies incorporated in China. The PRC legal system is based on written statutes,
and prior court decisions may be cited for reference but have limited precedential value. Since 1979, a series of new PRC laws and regulations
have significantly enhanced the protections afforded to various forms of foreign investments in China. However, since these laws and
regulations are relatively new and the PRC legal system continues to evolve rapidly, the interpretations of many laws, regulations, and
rules are not always uniform, and enforcement of these laws, regulations, and rules involve uncertainties, which may limit legal protections
available to you and us.

From
time to time, we may have to resort to administrative and court proceedings to enforce our legal rights. Any administrative and court
proceedings in China may be protracted,