Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 498

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 498
---

and complex as that between the United States and China. It is difficult to predict the full impact of the Hong Kong National Security
Law and HKAA on Hong Kong and companies located in Hong Kong like our Hong Kong subsidiaries. If we or our Hong Kong or PRC subsidiaries
are determined to be in violation of the Hong Kong National Security Law or the HKAA by competent authorities, our business operations,
financial position, and results of operations could be materially and adversely affected. Furthermore, legislative or administrative
actions in respect of Sino-U.S. relations could cause investor uncertainty for affected issuers, including us, and the market price of
our shares could be adversely affected.

58

The
Chinese government may choose to exercise significant oversight and discretion over the conduct of our and our VIE’s business operations
in China.

The
Chinese government may choose to exercise significant oversight and discretion over the conduct of our and our VIE’s business operations
in China. Such governmental actions:

    ●
    could
    result in a material change in our VIE’s operations;

    ●
    could
    significantly limit or completely hinder our and our VIE’s ability to continue our operations in China;

    ●
    could
    significantly limit or completely hinder our ability to offer or continue to offer our shares to investors; and

    ●
    may
    cause our shares to significantly decline in value or become worthless.

Recently,
the PRC government initiated a series of regulatory actions and new policies to regulate business operations in certain areas in China
with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based
companies listed overseas using a VIE structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding the
efforts in anti-monopoly enforcement. Since these statements and regulatory actions are new, it is highly uncertain how soon the legislative
or administrative regulation-making bodies will respond and what existing or new laws or regulations or detailed implementations and
interpretations will be modified or promulgated, if any. It is also highly uncertain what the potential impact of any such modified or
new laws and regulations will be on our daily business operations, our ability to accept foreign investments, and the continued listing
of our shares in the U.S. markets. These actions could result in a material change in our operations and/could cause the value of our
shares to significantly decline or become worthless.

The
Chinese government has also exercised, and continues to exercise, substantial control