Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 435

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 435
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 term of the Pledge Agreement, the pledged equity interests
cannot be transferred without King Eagle (China)’s prior written consent. The Pledge Agreement is valid until all the obligations
due under the Agreements have been fulfilled.

The
foregoing summary of the Equity Pledge Agreement does not purport to be complete and is subject to, and qualified in its entirety by,
the Equity Pledge Agreement, which was filed as Exhibit 10.5 to our Form 8-K dated May 17, 2021.

Cash
Flows

Our
Company is a holding company, and we will rely on dividends and other distributions on equity paid by our Hong Kong and China subsidiaries
for our cash and financing requirements. Any funds we may transfer to King Eagle (China), either as a loan or as an increase in registered
capital, are subject to approval by or registration with relevant government authorities in China, regardless of the amount of the transfer.
According to the relevant PRC regulations, capital contributions to our PRC subsidiary are subject to the submission of reports of changes
through the enterprise registration system and registration with a local bank authorized by SAFE. In addition, any foreign loan procured
by our PRC subsidiary is required to be registered with SAFE, and such loan is required to be registered with the NDRC. We may not be
able to complete such registrations or obtain necessary approvals on a timely basis with respect to future capital contributions or foreign
loans by us to our PRC subsidiaries. If we fail to complete such registration or other procedures, our ability to maintain our corporate
structure while capitalizing our PRC subsidiaries’ operations may be negatively affected, which could adversely affect our liquidity
and our ability to fund and expand our business.

19

To
date, substantially all of our sales have been earned by our PRC subsidiary, King Eagle (China), and King Eagle VIE. Neither we nor King
Eagle (China) own any equity interest in King Eagle VIE. In accordance with the terms of the Consulting Service Agreement, King Eagle
(China) is entitled to receive payments from King Eagle VIE in the form of a service fee which, in turn, may be distributed to us as
dividends. As a holding company, we will rely on dividends and other distributions on equity paid by our BVI, Hong Kong, and PRC subsidiaries
for our cash and financing requirements. Our Hong Kong and PRC subsidiaries are permitted under the respective laws of Hong Kong and
China and