Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 653

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 653
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 ISPs, our ability to reach potential members through
online advertising may be restricted. Any of these competitors could cause us difficulty in attracting and retaining members and in converting
members into paying subscribers and could jeopardize our existing affiliate program and relationships with portals, search engines, ISPs,
and other online properties.

If
we fail to stay current with new technologies and trends in social e-commerce platforms and preventive health care and household products
and services, our applications could become obsolete.

We
incur compensation costs for our internal technology support team not only for the creation of new applications, but also for ensuring
that our current applications will be compatible with new technologies. If our technology support team fails to upgrade our applications
to stay current with new technologies or to add new features that are popular for preventative healthcare and household uses, our applications
could become obsolete, which could result in a material adverse impact on our business and results of operations.

We
depend heavily on key personnel, and turnover of key employees and senior management could harm our business.

Our
future business and results of operations depend in significant part upon the continued contributions of our management, marketing, and
technical personnel. They also depend in significant part upon our ability to attract and retain additional qualified management, technical,
marketing, and sales and support personnel for our operations. As China is building its powerful technology industry and enhancing its
market-oriented economic system, competition for talent becomes increasingly fierce. Many of our potential competitors have greater financial,
personnel, technical, manufacturing, marketing, sales, and other resources than we do. If we lose a key employee or if a key employee
fails to perform in his or her current position, or if we are not able to attract and retain skilled employees as needed, our business
could suffer. We depend on the skills and abilities of these key employees in managing the technical, marketing, and sales aspects of
our business, any part of which could be harmed by significant turnover.

We
may not be able to manage the expansion of our operations effectively.

We
are in the process of developing our business in order to meet the potentially increasing demand for our products, as well as to capture
new market opportunities. Our current business operations are small with a short history. We may be unable to achieve our performance
targets, which will impact our operating results. As we continue to grow, we must continue to improve our operational and financial systems,
procedures, and controls, increase service capacity and output, and expand, train, and manage our growing employee base.