Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 678

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 678
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 data processing activities affect or may affect national security.
We do not believe that our Company constitutes a critical information infrastructure operator and we have less than one million registered
users on our digital platform. The PRC National Security Law defines various types of national security, including technology security
and information security.

On
November 14, 2021, the Cyberspace Administration of China released the Regulations on Network Data Security. The final version took
effect on January 1, 2025. The Regulations on Network Data Security provide that data processors refers to individuals or
organizations that autonomously determine the purpose and the manner of processing data. If a data processor that processes personal
data of more than one million users intends to list overseas, it shall apply for a cybersecurity review. In addition, data
processors that process important data or are listed overseas shall carry out an annual data security assessment on their own or by
engaging a data security services institution, and the data security assessment report for the prior year should be submitted to the
local cyberspace affairs administration department before January 31 of each year.

63

We
currently have less than one million registered users on our digital platform and only require and obtain user information after users
register with it. Given that we sell and service products through our digital platform, we may constitute a “data processor,”
but the number of our online registered users is far less than one million. As a result, we would not be required to apply for a cybersecurity
review under the Measures for Cybersecurity Review or the Regulations on Network Data Security. Nevertheless, the Measures for Cybersecurity
Review or the Regulations on Network Data Security may be subject to further changes Although we believe we currently are not required
to obtain clearance from the Cyberspace Administration of China under the Measures for Cybersecurity Review, the Regulations on Network
Data Security, or the Opinions on Strictly Cracking Down on Illegal Securities Activities, we face uncertainties as to the interpretation
or implementation of such regulations or rules and we may in the future be required to perform a data security assessment annually either
by ourselves or by retaining a third party data security service provider and submitting such data security assessment report to the
local agency every year under the Regulations on Network Data Security

On
June 10, 2021, the Standing Committee of the National People’s Congress of China promulgated the Data Security Law which took effect
on September 1, 2021. The Data Security Law provides for data security and privacy obligations of