Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 483

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 483
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 and planned operations, personnel, systems, internal procedures, and controls may not be
adequate to support our future growth. If we are unable to manage our growth effectively, we may not be able to take advantage of market
opportunities, execute our business strategies, or respond to competitive pressures.

50

A
recurrence of COVID-19 may cause delays or limit our ability to expand our business.

The
COVID-19 pandemic resulted in quarantines, travel restrictions, limitations on social or public gatherings, and the temporary closure
of business venues and facilities around the world. Due to restrictions, quarantines, and closures in certain affected areas and government
agencies in the PRC, the approval process of our applications for construction permits for Smart Kiosks was delayed by the local governmental
agencies and our Smart Kiosk project has been abandoned, which impacts our plan of enhancing our face-to-face customer services and increasing
our market share. The Company continues to focus its business on its online platform, King Eagle Mall, and to promote its own brand of
consumer health care and health-related household products on its new online platform, Kun Zhi Jian, which was introduced and implemented
in October 2022, to mitigate the adverse impacts of COVID-19. The Company has also launched the Kun Zhi Jian Mini Program, which consists
of three components: physiotherapy equipment, a customer service center, and a shopping mall.

Therefore,
we do not expect that the virus will have a material adverse effect on our business or financial results at this time. However, it is
not possible to predict the unanticipated consequence of the pandemic on our future business performance and liquidity if it should arise
again in Asia. The Company continues to monitor and assess the evolving situation closely and evaluate its potential exposure.

We
will rely on dividends and other distributions on equity paid by our subsidiaries to fund our cash and financing requirements, and any
limitation on the ability of our subsidiaries to make payments to us could have a material adverse effect on our ability to conduct our
business.

Our
Company is a holding company, and we will rely on dividends and other distributions on equity paid by our subsidiaries for our cash and
financing requirements. Within our direct holding structure, the cross-border transfer of funds within our corporate group is legal and
compliant with the laws and regulations of the BVI, the PRC, Hong Kong, and the State of Nevada. Our subsidiaries in the PRC and Hong
Kong are