Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 122

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 6
Chunk 122
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 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. In November 2023, the Company also launched
the Kun Zhi Jian Mini Program to expand its customer services and preventive health care.

We
do not expect that the virus and the ensuing respiratory illness will have a material adverse effect on our business or financial results
at this time. However, it is not possible to predict the unanticipated consequences of the COVID-19 virus, which continues to mutate
and remains highly contagious, on our future business performance and liquidity. The Company continues to monitor and assess the evolving
situation closely and evaluate its potential exposure.

Recent
Regulatory Developments in China

Under
current Chinese laws and regulations, the Company believes that the VIE Agreements are not subject to any government approval. The shareholders
of King Eagle (Tianjin) were required to register with SAFE when they established offshore vehicles to hold KP International. Such SAFE
registration was effected on May 14, 2021. These shareholders of King Eagle (Tianjin) were also required to register their equity pledge
arrangement by the Equity Pledge Agreement with King Eagle (China). However, the Company faces uncertainty with respect to future actions
by the PRC government that could significantly affect King Eagle (Tianjin)’s financial performance and the enforceability of the
VIE Agreements.

On
July 6, 2021, the PRC government issued the Opinions on Strictly Cracking Down on Illegal Securities Activities, calling for: (i) tightening
oversight of data security, cross-border data flow and administration of classified information, as well as amendments to relevant regulations
to specify responsibilities of overseas listed Chinese companies with respect to data security and information security; (ii) enhanced
oversight of overseas listed companies as well as overseas equity fundraising and listing by Chinese companies; and (iii) extraterritorial
application of China’s securities laws. As the Opinions on Strictly Cracking Down on Illegal Securities Activities were recently
issued, there is great uncertainty with respect to the interpretation and implementation thereof. We will closely monitor further developments.

In
addition, on July 10, 2021, the Cyberspace Administration of China (the “CAC”) issued the Measures for Cybersecurity Review,
or the Measures, which proposed to authorize the