Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 55

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 55
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 of the forward stock split. After the forward
stock split, the Company has 400,000,000 shares of common stock outstanding. The par value of the common stock remained unchanged at
0.0001 per share after the stock split.

Preferred
stock

The
Company’s authorized shares of preferred stock are 10,000,000 shares, with a par value of $0.0001. The preferred stock may be issued
in series and with such voting powers, designations, preferences, limitations, restrictions, and relative rights as the board of directors
shall determine in its sole discretion. No shares of preferred stock were issued and outstanding as of June 30, 2025 and September 30,
2024.

Common
stock

The
Company’s authorized shares of common stock were 1,000,000,000 and 1,000,000,000 shares with a par value of $0.0001, as of June
30, 2025 and September 30, 2024, respectively. The issued and outstanding shares of common stock were 400,000,000 as of June 30, 2025
and September 30, 2024, respectively.

Restricted
net assets

Our
ability to pay dividends is primarily dependent on us receiving distributions of funds from our VIE. Relevant PRC statutory laws and
regulations permit payments of dividends by our VIE and its subsidiaries only out of their retained earnings, if any, as determined in
accordance with PRC accounting standards and regulations and after they have met the PRC requirements for appropriation to statutory
reserves. Share capital of our PRC subsidiaries and VIE included in the Company’s consolidated net assets are also non-distributable
for dividend purposes. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance
with U.S. GAAP differ from those reflected in the statutory financial statements of KP Tian Yu, the foreign-invested enterprise, King
Eagle (China), King Eagle (Tianjin), the VIE, and its subsidiaries. The Company is required to set aside at least 10% of its after-tax
profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition,
the Company may allocate a portion of its after-tax profits based on PRC accounting standards to an enterprise expansion fund and a staff
bonus and welfare fund at its discretion. The statutory reserve funds and