Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 460

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 460
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 SAFE Circular 36, which launched a pilot reform of the administration
of the settlement of the foreign exchange capitals of foreign-invested enterprises in certain designated areas from August 4, 2014. However,
SAFE Circular 36 continues to prohibit foreign-invested enterprises from directly or indirectly using the Renminbi converted from their
foreign exchange capital for purposes beyond their business scope. On March 30, 2015, SAFE promulgated Circular 19 to expand the reform
nationwide. Circular 19 came into force and replaced both Circular 142 and Circular 36 on June 1, 2015. Circular 36 allowed enterprises
established within the pilot areas to use their foreign exchange capital to make equity investments and removed certain other restrictions
provided under Circular 142 for these enterprises. Circular 19 removed those restrictions for all foreign-invested enterprises established
in the PRC. However, both Circular 36 and Circular 19 continue to prohibit foreign-invested enterprises from, among other things, using
the Renminbi funds converted from their foreign exchange capital for expenditures beyond their business scope, providing entrusted loans,
or repaying loans between non-financial enterprises.

On
June 9, 2016, SAFE promulgated Circular 16, which provides an integrated standard for converting foreign exchange under capital account
items (including but not limited to foreign exchange capital and foreign debts) on a discretionary basis which applies to all enterprises
registered in the PRC. Circular 16 reiterates the principle that Renminbi converted from foreign currency-denominated capital of a company
may not be directly or indirectly used for purposes beyond its business scope or prohibited by PRC laws or regulations, and such converted
Renminbi shall not be provided as loans to its non-affiliated entities, except where it is expressly permitted in the company’s
business license.

Trial
Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies

On
February 17, 2023, the China Securities Regulatory Commission (the “CSRC”) released the Trial Administrative Measures of
Overseas Securities Offering and Listing by Domestic Companies, or the Trial Measures, which came into effect on March 31, 2023. On the
same date of the issuance of the Trial Measures, the CSRC circulated No. 1 to No. 5 Supporting Guidance Rules, the Notes on the Trial
Measures, the Notice on Administration Arrangements for the Filing of Overseas Listings by Domestic Enterprises