Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 506

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 506
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 users during the review period. Although we believe that we are compliant with the regulations
and policies that have been issued to date and we do not believe that we are required to obtain any permissions and approvals under the
regulations discussed below, if we have inadvertently concluded that such permissions or approvals are not required or if applicable
laws, regulations, or interpretations change and we are required to obtain such permissions or approvals in the future, the Company or
its VIE could be subject to increased compliance costs, as well as, among other things, administrative penalties, rectification orders,
fines, suspension of relevant business, or revocation of business permits or licenses, and the Company’s securities could become
ineligible for listing on a US exchange.

The
PRC Cybersecurity Law, which took effect in June 2017, provides that personal information and important data collected and generated
by operators of critical information infrastructure in the course of their operations in the PRC should be stored in the PRC, and the
law imposes heightened regulation and additional security obligations on operators of critical information infrastructure.

In
January 2022, the Cyberspace Administration of China and several other administrations jointly promulgated amended Cybersecurity Review
Measures, which became effective on February 15, 2022. Pursuant to the Cybersecurity Review Measures, a “critical information infrastructure
operator,” or a CIIO, that purchases network products and services or conducts data processing activities that affect or may affect
national security will be subject to cybersecurity review. The Cybersecurity Review Measures also expands the cybersecurity review to
“internet platform operators” in possession of personal information of over one million users if such operators intend to
list their securities in a foreign country. Alternatively, relevant governmental authorities in the PRC may initiate cybersecurity review
if they determine an operator’s network products or services or data processing activities affect or may affect national security.
We do not believe that our Company constitutes a critical information infrastructure operator and we have less than one million registered
users on our digital platform. The PRC National Security Law defines various types of national security, including technology security
and information security.

On
November 14, 2021, the Cyberspace Administration of China released the Regulations on Network Data Security. The final version took
effect on January 1, 2025. The Regulations on Network Data Security provide that data processors refers to individuals or
organizations that autonomously determine the purpose and the manner of processing data. If a data processor that processes personal