Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 492

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 492
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 our variable interest entity, and our ability to conduct our business, as well as our financial condition and results of operations,
may be materially and adversely affected.

55

Risks
Related to Doing Business in China

Changes
in international trade or investment policies and barriers to trade or investment and the ongoing geopolitical conflict may have an adverse
effect on our business and expansion plans and could lead to the delisting of our securities from U.S. exchanges and/or other restrictions
or prohibitions on investing in our securities.

In
recent years, international market conditions and the international regulatory environment have been increasingly affected by competition
among countries and geopolitical frictions. In particular, the U.S. administration has advocated for and taken steps toward restricting
trade in certain goods, particularly from China. From 2018 to late 2019, the United States announced several tariff increases that applied
to products imported from China, totaling over US$550 billion. By the end of 2019, the two countries had reached a phase one trade deal
to roll back tariffs and suspend certain tariff increases by the United States that were scheduled to take effect from December 2019,
and in January 2020, the two sides entered into a formal phase one agreement on trade. The progress of trade talks between China and
the United States is subject to uncertainties, and there can be no assurance as to whether the United States will maintain or reduce
tariffs or impose additional tariffs on Chinese products in the near future. Furthermore, in August 2019, the U.S. Treasury Department
labeled China as a currency manipulator, which label was officially dropped by the U.S. Treasury Department in January 2020. However,
it is uncertain whether the U.S. government may issue any similar announcements in the future. As a result of such announcement, the
United States may take further actions to eliminate perceived unfair competitive advantages created by alleged manipulating actions.
Changes to national trade or investment policies, treaties and tariffs, fluctuations in exchange rates, or the perception that these
changes could occur could adversely affect the financial and economic conditions in China, as well as our future international and cross-border
operations, our financial condition, and our results of operations.

Our
business is dependent on King Eagle VIE and operations in China, and marketing and selling health-related products, and any inability
to obtain products or market and sell such products could have a material adverse effect on our business, operating results and financial
condition.

We
focus on health-related products and services.