Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 89

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 89
---
 platform, Kun Zhi Jian, which was introduced and implemented in October 2022
to mitigate the adverse impacts of COVID-19. In November 2023, the Company also launched Kun Zhi Jian Mini Program to expand its customer
services and preventive health care products.

Recent
Regulatory Developments in China

Under
current Chinese laws and regulations, the Company believes that the VIE Agreements are not subject to any government approval. The shareholders
of King Eagle (Tianjin) were required to register with SAFE when they established offshore vehicles to hold KP International. Such SAFE
registration was effected on May 14, 2021. These shareholders of King Eagle (Tianjin) were also required to register their equity pledge
arrangement by the Equity Pledge Agreement with King Eagle (China). However, the Company faces uncertainty with respect to future actions
by the PRC government that could significantly affect King Eagle (Tianjin)’s financial performance and the enforceability of the
VIE Agreements.

On
July 6, 2021, the PRC government issued the Opinions on Strictly Cracking Down on Illegal Securities Activities, calling for: (i) tightening
oversight of data security, cross-border data flow and administration of classified information, as well as amendments to relevant regulations
to specify responsibilities of overseas listed Chinese companies with respect to data security and information security; (ii) enhanced
oversight of overseas listed companies as well as overseas equity fundraising and listing by Chinese companies; and (iii) extraterritorial
application of China’s securities laws. As the Opinions on Strictly Cracking Down on Illegal Securities Activities were recently
issued, there is great uncertainty with respect to the interpretation and implementation thereof. We will closely monitor further developments.

In
addition, on July 10, 2021, the Cyberspace Administration of China (the “CAC”) issued the Measures for Cybersecurity Review,
or the Measures, which proposed to authorize the relevant government authorities to conduct cybersecurity review on a range of activities
that affect or may affect national security, including listings in foreign countries by companies that possess the personal data of more
than one million users. On January 4, 2022, the CAC issued the New Measures for Cybersecurity Review (the “New Measures”),
which amended the Measures for Cybersecurity Review (Draft Revisions) released on July 10, 2021. As our VIE has less than one million
customers,