Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 655

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 655
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 distributions on equity paid by our subsidiaries to fund our cash and financing requirements, and any
limitation on the ability of our subsidiaries to make payments to us could have a material adverse effect on our ability to conduct our
business.

Our
Company is a holding company, and we will rely on dividends and other distributions on equity paid by our subsidiaries for our cash and
financing requirements. Within our direct holding structure, the cross-border transfer of funds within our corporate group is legal and
compliant with the laws and regulations of the BVI, the PRC, Hong Kong, and the State of Nevada. Our subsidiaries in the PRC and Hong
Kong are permitted under the respective laws of China and Hong Kong to provide funding to us through dividends without restrictions on
the amount of the funds, other than as limited by the amount of their distributable earnings. However, to the extent cash is in our Hong
Kong or China subsidiaries, there is a possibility that the funds may not be available to fund our operations or for other uses outside
of either Hong Kong or China due to interventions or the imposition of restrictions and limitations by the Hong Kong or the PRC government
on the ability to transfer cash. In addition, if any of our subsidiaries incur debt on their own behalf in the future, the instruments
governing such debt may restrict their ability to pay dividends to their parent companies.

Moreover,
to the extent that cash is in our PRC or Hong Kong subsidiaries, there is a possibility that the funds may not be available to fund our
operations or for other uses outside of the PRC or Hong Kong due to interventions or the imposition of restrictions and limitations by
the PRC or Hong Kong government on the ability to transfer cash. Any limitation on the ability of our PRC or Hong Kong subsidiaries
or our VIE to pay dividends or make other distributions to us could materially and adversely affect our financial position and the value
of our Ordinary Shares.

Risks
Relating to our Commercial Relationship with our VIE

PRC
laws and regulations governing our business and the validity of certain of our contractual arrangements are uncertain. If we are found
to be in violation of such PRC laws and regulations, our business may be negatively affected, and we may be forced to relinquish our
interests in those operations.

PRC
laws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, value added telecommunications,
and certain other businesses in which we are engaged or could be deemed to