Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 679

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 679
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 entities and individuals carrying out
data activities, prohibits entities and individuals in China from providing any foreign judicial or law enforcement authority with any
data stored in China without approval from a competent PRC authority, and sets forth the legal liabilities of entities and individuals
found to be in violation of their data protection obligations, including rectification order, warning, fines of up to RMB10 million,
suspension of relevant business, and revocation of business permits or licenses.

On
August 20, 2021, the Standing Committee of the National People’s Congress of China promulgated the Personal Information Protection
Law which took effect on November 1, 2021. In addition to other rules and principles of personal information processing, the Personal
Information Protection Law specifically provides rules for processing sensitive personal information. Sensitive personal information
refers to personal information that, once leaked or illegally used, could easily lead to the infringement of human dignity or harm to
the personal or property safety of an individual, including biometric recognition, religious belief, specific identity, medical and health,
financial account, personal whereabouts, and other information of an individual, as well as any personal information of a minor under
the age of 14. Only where there is a specific purpose and sufficient necessity, and under circumstances where strict protection measures
are taken, may personal information processors process sensitive personal information. 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.

Compliance
with the PRC Cybersecurity Law, the PRC National Security 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