Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 495

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 495
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 a result of a number of factors, including, but not limited to, banking instability, global
conflict, including the war in Ukraine and the Israel-Hamas war, inflation, changes in interest rates, and volatile markets. There is
a risk that as a result of these macroeconomic factors, we could experience declines in all, or in portions, of our business. Economic
uncertainty may cause some of our current or potential customers to curtail spending in our marketplace and may ultimately result in
cost challenges to our operations. Any resulting adverse effects to our customers’ liquidity or financial performance could reduce
the demand for our products or affect our allowance for collectability of accounts receivable. These adverse conditions could result
in reductions in revenue, increased operating expenses, longer sales cycles, slower adoption of new technologies, and increased competition.
We cannot predict the timing, strength, or duration of any economic slowdown or any subsequent recovery generally. If general economic
conditions significantly deviate from present levels, our business, financial condition, and operating results could be adversely affected.

In
addition, the United States is considering ways to limit U.S. investment portfolio flows into China. Under pressure from U.S. administration
officials, including the upcoming Trump administration,. China-based companies, including us, may become subject to executive orders
or other regulatory actions that may, among other things, prohibit U.S. investors from investing in these companies and delist the securities
of these companies from U.S. exchanges. As a result, U.S. and certain other persons may be prohibited from investing in the securities
of our Company, whether or not they are listed on U.S. exchanges. For example, in November 2020, the U.S. administration issued U.S.
Executive Order 13959, prohibiting investments by any U.S. person in publicly traded securities of certain Chinese companies that are
deemed owned or controlled by the Chinese military. In May 2021, the American depositary shares of China Telecom, China Mobile, and China
Unicom were delisted from the NYSE to comply with this executive order. In June 2021, the U.S. administration expanded the scope of the
executive order to Chinese defense and surveillance technology companies. Geopolitical tensions between China and the United States may
intensify and the United States may adopt even more drastic measures in the future.

57

China
and other countries have retaliated and may further retaliate in response to new trade policies, treaties and tariffs