Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 493

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 493
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 Kun Zhi Jian and Kun Zhi Jian Mini Program are designed to enable health-related products to be sold by us and by
third parties. Substantially all of our current and future operations are expected to be located in China.. This concentration exposes
us to risks associated with doing business globally. The political, legal and cultural environment in China is rapidly evolving, and
any change that impairs our ability to obtain products from manufacturers in that region, or to obtain products at marketable rates,
could have a material adverse effect on our business, operating results and financial condition.

There
are quotas and trade restrictions on certain categories of goods and apparel from China and countries that are not subject to the World
Trade Organization Agreement, which could have a significant impact on our sourcing patterns in the future. In addition, political uncertainty,
including the election of President Trump, in the United States may result in significant changes to U.S. trade policies, treaties and
tariffs, potentially involving trade policies and tariffs regarding China, including the potential disallowance of tax deductions for
imported merchandise or the imposition of unilateral tariffs on imported products.

These
developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the
stability of global financial markets, and may significantly reduce global trade and, in particular, trade between these nations and
the United States. Any of these factors could depress economic activity, restrict our sourcing from suppliers and have a material adverse
effect on our business, financial condition and results of operations and affect our strategy in Asia and elsewhere around the world.
We cannot predict whether any of our health related products will be subject to additional trade restrictions imposed by the United States
and foreign governments, nor can we predict the likelihood, type or effect of any such restrictions. Future trade restrictions, including
increased tariffs imposed by the Trump administration, or quotas, embargoes, safeguards and customs restrictions against apparel items
could increase the cost, delay shipping or reduce the supply of apparel available to us or may require us to modify our current business
practices, any of which could have a material adverse effect on our business, financial condition and results of operations.

Moreover,
the potential for a second wave of the coronavirus pandemic breaking out in China, and the uncertainty in relation to same, could impair
our ability to obtain our health-related products in that region or to obtain such products at marketable rates, particularly if additional
quarantine and travel restrictions result in the closure of