Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 663

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 663
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 interest
entity should be interpreted or enforced under PRC law, and as a result it may be difficult to predict how an arbitration panel or court
would view such contractual arrangements. As a result, uncertainties in the PRC legal system could limit our ability to enforce the contractual
arrangements. Under PRC law, if the losing parties fail to carry out the arbitration awards or court judgments within a prescribed time
limit, the prevailing parties may only enforce the arbitration awards or court judgments in PRC courts, which would require additional
expense and delay. In the event we are unable to enforce the contractual arrangements, we may not be able to exert effective control
over our variable interest entity, and our ability to conduct our business, as well as our financial condition and results of operations,
may be materially and adversely affected.

55

Risks
Related to Doing Business in China

Changes
in international trade or investment policies and barriers to trade or investment and the ongoing geopolitical conflict may have an adverse
effect on our business and expansion plans and could lead to the delisting of our securities from U.S. exchanges and/or other restrictions
or prohibitions on investing in our securities.

In
recent years, international market conditions and the international regulatory environment have been increasingly affected by competition
among countries and geopolitical frictions. In particular, the U.S. administration has advocated for and taken steps toward restricting
trade in certain goods, particularly from China. From 2018 to late 2019, the United States announced several tariff increases that applied
to products imported from China, totaling over US$550 billion. By the end of 2019, the two countries had reached a phase one trade deal
to roll back tariffs and suspend certain tariff increases by the United States that were scheduled to take effect from December 2019,
and in January 2020, the two sides entered into a formal phase one agreement on trade. The progress of trade talks between China and
the United States is subject to uncertainties, and there can be no assurance as to whether the United States will maintain or reduce
tariffs or impose additional tariffs on Chinese products in the near future. Furthermore, in August 2019, the U.S. Treasury Department
labeled China as a currency manipulator, which label was officially dropped by the U.S. Treasury Department in January 2020. However,
it is uncertain whether the U.S. government may issue any similar announcements in the future. As a result of such announcement, the
United States may take further