Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 681

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 681
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. In addition, according to the PRC Civil Procedures
Law, courts in the PRC will not enforce a foreign judgment against us or our directors and officers if they decide that the judgment
violates basic principles of PRC law or national sovereignty, security, or the public interest. So, it is uncertain whether a PRC court
would enforce a judgment rendered by a court in the United States.

The
PRC government exerts substantial influence over the manner in which we must conduct our business activities.

The
PRC government has exercised and continues to exercise substantial control over virtually every sector of the Chinese economy through
regulation and state ownership. Our ability to operate in China may be harmed by changes in its laws and regulations, including those
relating to taxation, import and export tariffs, environmental regulations, land use rights, property, and other matters. We believe
that our operations in China are in material compliance with all applicable legal and regulatory requirements. However, the central or
local governments of the jurisdictions in which we operate may impose new, stricter regulations or interpretations of existing regulations
that would require additional expenditures and efforts on our part to ensure our compliance with such regulations or interpretations.

Accordingly,
government actions in the future, including any decision not to continue to support recent economic reforms and to return to a more centrally
planned economy or regional or local variations in the implementation of economic policies, could have a significant effect on economic
conditions in China or particular regions thereof and could require us to divest ourselves of any interest we then hold in Chinese properties
or joint ventures.

The
PRC legal system embodies uncertainties, which could limit law enforcement availability.

The
PRC legal system is a civil law system based on written statutes. Unlike common law systems, decided legal cases have little precedence.
In 1979, the PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general.
The overall effect of legislation over the past several decades has significantly enhanced the protections afforded to various forms
of foreign investment in China. Our PRC operating subsidiary and affiliate is subject to PRC laws and regulations. However, these laws
and regulations change frequently, and the interpretation and enforcement involve uncertainties. For instance, we may have to resort
to administrative and court proceedings to enforce the legal protection that we are entitled to by law or contract. However, since PRC
administrative and court authorities have significant discretion in interpreting statutory and contractual terms, it may be difficult
to evaluate the outcome