Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 72

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 72
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    Commission revenue 
     -  
     2,948 
  
    Training revenue 
     -  
     34,337 
  
    Total 
    $1,073,606  
    $1,598,728 

We
recognize our revenue on a gross basis, net of sub-charges and value-added tax (“VAT”) on gross sales.

In
addition to revenue from retail and wholesale sales, we have developed the following sources of revenue: (i) equipment-based service
revenue, generated through providing cards for online medical consultation services and selling prepaid cards to our customers for
use with card-operated health screening equipment located at the Kun Zhi Jian Customer Service Center; (ii) technical service
revenue, generated through promoting vendors’ products or businesses on our online platform; (iii) commission revenue,
generated through the Mini Program by selling health care instruments on behalf of third parties on a commission basis; and (iv)
training revenue, generated through offering training programs provided by a local health care service team.

We
recognize equipment-based service revenue upon the completion of medical consultation services and consuming the prepaid cards. We recognize
technical service revenue upon the completion of promoting vendors’ products or businesses on our platform. We recognize commission
revenue upon the completion of delivery of the sales order to the end customer. We recognize training revenue upon the completion of
training sessions by our customers.

We
generated $525,122, or 32.8%, lower revenue for the nine months ended June 30, 2025 compared to the same period in 2024 due to the
substantially sharp decrease in retail. We had not revenue from technical service revenue, commission revenue, and training revenue,
resulting from the termination of two subsidiaries’ businesses
and related business streams suspended during the nine months ended June 30, 2025.  However, our equipment-based service
revenue increased as a result of market promotions on equipment-based services during the nine months ended June 30,
2025.

Cost
of revenue

We
disaggregated our cost of revenue for the nine months ended June 30, 2025 and 2024 as follows:

    Nine
months ended
                                                                               June 30, 

    2025  
    2024 

    Retail 
    $39,995  
    $249,007 
  
    Wholesale 
     -  
     1,150