Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 418

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 418
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 the Enterprise Income Tax Law, we may be classified as a “resident enterprise”
    of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC stockholders” on page
    69.

    ●
    A
    downturn in the Chinese or global economy or a change in economic and political policies of China could materially and adversely
    affect our VIE’s business and financial condition. Any deterioration in our VIE’s business could have a negative impact
    on the Company’s financial position and, in turn, on the value of its common stock. See “Item 1A. Risk Factors - Risks
    Related to Doing Business in China - A downturn in the Chinese or global economy, or a change in economic and political policies
    of China, could materially and adversely affect our VIE’s business and financial condition” on page 67.

    ●
    Our
    business operations are conducted in China through our VIE and its subsidiaries. If we should become subject to the recent scrutiny,
    criticism, and negative publicity involving U.S. listed China-based companies, we may have to expend significant resources to investigate
    and/or defend negative allegations. If such allegations cannot be addressed and resolved favorably, it could result in a material
    change in the business operations of our PRC subsidiaries, significantly limit our ability to obtain financing through the sale of
    additional securities, and cause our securities to significantly decline in value or be worthless. See “Item 1A. Risk Factors
    - Risks Related to Doing Business in China - If we become directly subject to the recent scrutiny, criticism and negative publicity
    involving U.S.-listed Chinese companies, we may have to expend significant resources to investigate and resolve the matter, which
    could harm our business operations, stock price, and reputation and could result in a loss of your investment in our stock, especially
    if such matter cannot be addressed and resolved favorably” on page 72.

    ●
    There
    are political risks associated with conducting business in Hong Kong and China. See “Item 1A. Risk Factors - Risks Related
    to Doing Business in China - There are political risks associated with conducting business in China” on page 67.

9

    ●
    Our current auditor, J&S, an independent registered public accounting firm that is headquartered in Malaysia,
is a firm registered with the U.S. Public Company Accounting Oversight Board (the “PCAOB