Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 476

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 476
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excluding drugs and medical devices); Internet sales (except sales of goods that
require a license); Organizing cultural and artistic exchange activities; Internet equipment sales; Internet data services;
Single-use commercial prepaid card agent sales. (Except for the projects subject to approval according to law, independently carry
out business activities according to law with the business license) Permitted projects: Category I value-added telecommunications
business; The second type of value-added telecommunication services; The third type of medical device management; Pharmaceutical
retail; Food Internet sales; Internet information services; Internet live broadcasting technology services. (In accordance with the
law to be approved by the project, after the approval of the relevant departments can carry out business activities, specific
business projects in the relevant departments of the approval documents or license shall prevail) Kun Zhijian (Shandong) Health
Management Co., Ltd. has one branch office in Hangzhou.

46

Dividend
Distributions

Under
applicable PRC regulations, FIEs in China may pay dividends only out of their accumulated profits, if any, determined in accordance with
PRC accounting standards and regulations. In addition, a FIE in China is required to set aside at least 10% of its after-tax profit based
on PRC accounting standards each year to its general reserves until the accumulative amount of such reserves reach 50% of its registered
capital. These reserves are not distributable as cash dividends. The Board of Directors of a FIE has the discretion to allocate a portion
of its after-tax profits to staff welfare and bonus funds, which may not be distributed to equity owners except in the event of liquidation.

After-tax
profits/losses with respect to the payment of dividends out of accumulated profits and the annual appropriation of after-tax profits
as calculated pursuant to PRC accounting standards and regulations do not result in significant differences as compared to after-tax
earnings as presented in our financial statements. However, there are certain differences between PRC accounting standards and regulations
and U.S. generally accepted accounting principles, arising from different treatment of items such as amortization of intangible assets
and change in fair value of contingent consideration rising from business combinations.

In
addition, under the EIT Law, the Notice of the State Administration of Taxation on Negotiated Reduction of Dividends and Interest Rates,
which was issued on January 29, 2008, the Arrangement between the PRC and the Hong Kong Special Administrative Region on the Avoidance