Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 8

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 3
Chunk 8
---
, or declines in issuer growth
or engagement as a result of these laws and policies.

80

Cash
Transfers Within our Organization

As
between the Company and its subsidiaries, cash will generally be transferred by means of capital contributions and/or interest-free intercompany
loans. Cash to be transferred or settled between the Company and its subsidiaries, on the one hand, and the consolidated VIE and its
subsidiaries, on the other hand, will typically be transferred through payments for fees under our contractual arrangements with the
VIE, expense reimbursements, or intercompany borrowings between the Company or one of its subsidiaries and the consolidated VIE. Any
such loans will be interest-free, unsecured and payable on demand. For more information regarding these contractual arrangements, see
“Item 1. Business - Corporate History and Structure - Contractual Arrangements.” The enforceability and treatment of the
intercompany agreements within our organization, including intercompany borrowings and the contractual arrangements with our VIE, have
not been tested in court. To the extent cash and/or assets in the business are in the PRC and/or Hong Kong or our PRC and/or Hong Kong
entities, such funds and/or assets may not be available to fund operations or for other use outside of the PRC and/or Hong Kong due to
interventions in or the imposition of restrictions and limitations imposed by the PRC government on the ability of the Company or its
subsidiaries to transfer cash and/or assets. There are no tax consequences for intercompany borrowings or the payment for intercompany
services, except for the standard value added taxes and/or income taxes for the revenues and/or profits generated from such services.

The
proceeds of any transactions within our organization, including with the VIE and its subsidiaries, are eliminated in our consolidated
financial statements. For more details, please refer to the principles of consolidation set forth in the notes to our Consolidated Financial
Statements for the fiscal year ended September 30, 2024 included in this Annual Report.

As
of the date of this Annual Report, there have been no distributions or dividends by any of our direct or indirect subsidiaries to the
Company. The Company has not declared any dividends or made any distributions to its shareholders, and we do not anticipate declaring
a dividend in the foreseeable future. No assets other than cash are transferred within our organization. For more details, please see
our “Consolidated Financial Statements” and the “Condensed Consolidating