Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 682

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 682
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 of administrative court proceedings and the level of law enforcement that we would receive in more developed
legal systems. Such uncertainties, including the inability to enforce our contracts, could affect our business and operations. In addition,
confidentiality protections in China may not be as effective as in the United States or other countries. Accordingly, we cannot predict
the effect of future developments in the PRC legal system, particularly with regard to our business, including the promulgation of new
laws. This may include changes to existing laws or the interpretation or enforcement thereof, or the preemption of local regulations
by national laws. These uncertainties could limit the availability of law enforcement, including our ability to enforce our agreements.

65

To
the extent that our independent registered public accounting firm’s audit documentation related to their audit reports for the
Company may, in the future, be located in China or in Hong Kong, our securities could be delisted and prohibited from trading on a U.S.
exchange.

The
Holding Foreign Companies Accountable Act (the “HFCAA”), as originally passed, prohibited foreign companies from listing
their securities on U.S. exchanges if the company’s auditor has been unavailable for PCAOB inspection or investigation for three
consecutive years beginning in 2021. On December 29, 2022, as part of the Consolidated Appropriations Act, 2023, the time period for
the delisting of foreign companies under the HFCAA was reduced from three consecutive years to two consecutive years.

On
December 16, 2021, the PCAOB issued the Determination Report, which found that the PCAOB is unable to inspect or investigate completely
registered public accounting firms headquartered in (i) mainland China of the People’s Republic of China because of a position
taken by one or more authorities in mainland China; and (ii) Hong Kong, a Special Administrative Region and dependency of the PRC, because
of a position taken by one or more authorities in Hong Kong. In addition, the Determination Report identified specific registered public
accounting firms subject to these determinations.

On
August 26, 2022, the PCAOB signed a Statement of Protocol with the China Securities Regulatory Commission and the Ministry of Finance
of the PRC (the “SOP”). Pursuant to the SOP, the PCAOB has independent discretion to select any issuer audits for inspection
or investigation and has the unfettered ability to transfer information to the SEC. The determinations as to mainland China and Hong
K