Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 487

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 487
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 (ii) the right to receive economic benefits from the VIE.

52

However,
there are risks associated with this structure as the PRC has not yet ruled on its legality. As such, the VIE structure involves unique
risks to our investors in the Nevada holding company, including:

(i)
Our contractual arrangements may not be as effective in providing us with operational control, and shareholders of the VIE may fail to
perform their obligations under the contractual arrangements.

(ii)
We may incur substantial costs to enforce the terms of the arrangements with the VIE.

(iii)
The legality and enforceability of the contractual arrangements by and among our PRC subsidiaries and the VIE have not been tested in
a court of law in China.

(iv)
The equity holders, directors and executive officers of the VIE as well as our employees who execute other strategic initiatives may
have potential conflicts of interest with our company

(v)
There are substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations and rules
regarding the status of our Nevada holding company with respect to the contractual arrangements with the VIE.

(vi)
It is uncertain whether any new PRC laws or regulations relating to VIE structures will be adopted or, if adopted, what they would provide.

(vii)
If we or our VIE is found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of
the required licenses, permits, registrations, or approvals, the relevant PRC regulatory authorities would have broad discretion to take
action in dealing with such violations or failures.

(viii)
If the PRC government finds that the agreements that establish the VIE structure for operating our business do not comply with PRC laws
and regulations, or if these regulations or their interpretations change in the future, we would be subject to severe penalties or be
forced to relinquish our interest in those operations.

(ix)
If the PRC government deems that our contractual arrangements with the VIE do not comply with PRC regulatory restrictions on foreign
investment in the relevant industries, or if these regulations or the interpretation of existing regulations change or any interpreted
differently in the future, we could be subject to severe penalties or be forced to relinquish our interests in these operations.

(x)
The Company, King Eagle (China), King Eagle VIE, and our investors face uncertainty with respect to potential future actions by the PRC
government that could affect the enforceability of the contractual arrangements with the