Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 674

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 674
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law enforcement.

The
legal system in China, it laws and regulation changing frequently and the uncertainty in interpretation and enforcement of those laws
could result in a material change in our operations, and further significantly limit or completely hinder our ability to offer or continue
to offer securities to investors and cause the value of such securities to significantly decline or be worthless.

Changes
in China’s economic, political, or social conditions or government policies could have a material adverse effect on our business
and results of operations and could significantly limit or completely hinder our ability to offer or continue to offer securities to
investors and cause the value of such securities to significantly decline or be worthless.

Substantially
all of our operations are conducted in the PRC. Accordingly, our financial condition and results of operations are affected to a significant
extent by economic, political, and legal developments in the PRC or changes in government relations between China and the United States
or other governments. There is significant uncertainty about the future relationship between the United States and China with respect
to trade policies, treaties, government regulations and tariffs.

The
PRC economy differs from the economies of most developed countries in many respects, including the extent of government involvement,
level of development, growth rate, control of foreign exchange and allocation of resources. Although the PRC government has implemented
measures emphasizing the utilization of market forces for economic reform, the reduction of state ownership of productive assets, and
the establishment of improved corporate governance in business enterprises, a substantial portion of productive assets in China is still
owned by the government. In addition, the PRC government continues to play a significant role in regulating industry development by imposing
industrial policies.

The
PRC government also exercises significant control over China’s economic growth by allocating resources, controlling payment of
foreign currency-denominated obligations, setting monetary policy, regulating financial services and institutions, and providing preferential
treatment to particular industries or companies.

While
the PRC economy has experienced significant growth in the past four decades, growth has been uneven, both geographically and among various
sectors of the economy. Since 2020 due to the global pandemic, growth of the Chinese economy has slowed down. The PRC government has
implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit the
overall PRC economy but may also have a negative effect on us. Our financial condition and results of operation could be materially and
adversely affected by government control over capital investments or changes in