Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 513

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 513
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 and the lack of clarity with respect to their implementation and potential
penalties and fines, it is uncertain how they will impact our current employment policies and practices. In particular, compliance with
the Labor Contract Law and its implementation rules and regulations may increase our operating expenses. In the event that we decide
to terminate some of our employees or otherwise change our employment or labor practices, the Labor Contract Law and its implementation
rules and regulations may also limit our ability to effect those changes in a manner that we believe to be cost-effective or desirable
and could result in a material decrease in our profitability.

66

A
downturn in the Chinese or global economy, or a change in economic and political policies of China, could materially and adversely affect
our VIE’s business and financial condition.

Our
VIE’s business, prospects, financial condition, and results of operations may be influenced to a significant degree by political,
economic, and social conditions in China generally. The Chinese economy differs from the economies of most developed countries in many
respects, including the amount of government involvement, level of development, growth rate, control of foreign exchange and allocation
of resources. While the Chinese economy has experienced significant growth over the past decades, growth has been uneven, both geographically
and among various sectors of the economy. The Chinese government has implemented various measures to encourage economic growth and guide
the allocation of resources. Some of these measures may benefit the overall Chinese economy but may have a negative effect on our VIE.

Economic
conditions in China are sensitive to global economic conditions. Any prolonged slowdown in the global or Chinese economy may affect our
current customers’ and potential customers’ businesses and have a negative impact on our VIE’s business, results of
operations, and financial condition. Additionally, continued turbulence in the international markets may adversely affect our ability
to access the capital markets to meet liquidity needs.

There
are political risks associated with conducting business in China.

Any
adverse economic, social, and/or political conditions, material social unrest, strike, riot, civil disturbance, or disobedience, as well
as significant natural disasters, may affect the market and adversely affect our business operations as the operations of our VIE and
its subsidiaries are based in China. Any negative event may pose an immediate threat to the stability of the economy in China, thereby
directly and adversely affecting our VIE’s and our VIE’s subsidiaries’ results of operations and financial position.
Furthermore, legislative or administrative actions in respect of China-U