Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 673

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 673
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 fully comply
with the new regulatory requirements, including but not limited to the failure to complete the filing procedures with the CSRC, if required,
may significantly limit or completely hinder our ability to offer or continue to offer our common stock on a US exchange, cause significant
disruption to our business operations, and severely damage our reputation, which would materially and adversely affect our financial
condition and results of operations and cause our securities to significantly decline in value or become worthless.

60

Changes
in the policies, regulations and rules, and the enforcement of laws of the PRC government may be implemented quickly with little advance
notice and could have a significant impact upon our VIE’s and our VIE’s subsidiaries’ ability to operate profitably
in the PRC. The PRC legal system also embodies uncertainties, which could limit law enforcement availability. Therefore, our assertions
and beliefs of the risk imposed by the PRC legal and regulatory system cannot be certain.

The
PRC legal system is a civil law system based on written statutes. Unlike common law systems, decided legal cases have little precedence.
In 1979, the PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general.
The overall effect of legislation over the past several decades has significantly enhanced the protections afforded to various forms
of foreign investment in China. The Company’s PRC subsidiaries, its VIE, and its VIE’s subsidiary are subject to PRC laws
and regulations. However, these laws and regulations change frequently, and the interpretation and enforcement thereof involve uncertainties.
For instance, we may have to resort to administrative and court proceedings to enforce the legal protections to which we are entitled
to by law or contract. However, since PRC administrative and court authorities have significant discretion in interpreting statutory
and contractual terms, it may be difficult to evaluate the outcome of administrative court proceedings and the level of law enforcement
that we would receive in more developed legal systems. Such uncertainties, including the inability of our PRC subsidiaries to enforce
their contracts, could affect our business and operation. In addition, confidentiality protections in China may not be as effective as
in the United States or other countries. Accordingly, we cannot predict the effect of future developments in the PRC legal system, particularly
with regard to our business, including the promulgation of new laws. This may include changes to existing laws or the interpretation
or enforcement thereof, or the preemption of local regulations by national laws. These uncertainties could limit the availability of