Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 35

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 35
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) Technology Co., Ltd., Kun Zhi Jian (Shandong)
Health Management Co., Ltd. and Chengdu Wenjiang Pengrun Internet Healthcare Co., Ltd., which were established by King Eagle
(Tianjin) on December 1, 2022, September 19, 2023, October 26, 2023, January 31, 2024 and February 1, 2024, respectively, in the PRC
and Kun Pin Hui (Shandong) Trading Co., Ltd., which was established in the PRC on November 23, 2023 and acquired
by King Eagle (Tianjin) on April 7, 2024. King Eagle (Tianjin) is the controlling shareholder under the company laws of the PRC. The binding rights over the VIE’s
subsidiaries in the contractual arrangements between King Eagle (China) and King Eagle (Tianjin) are implicit and indirect and the
company laws and regulations in the PRC governing the business operations of the VIE’s subsidiaries are uncertain.

Pursuant
to the VIE Agreements, the shareholders of King Eagle (Tianjin) have agreed to transfer any dividends, distributions, or other profits
that they receive to King Eagle (China). King Eagle (Tianjin) pays service fees equal to all of its net profit after tax to King Eagle
(China). The VIE Agreements are designed so that King Eagle (Tianjin) operates for the benefit of King Eagle (China) and ultimately the
Company.

    22

Moreover,
King Eagle (Tianjin) has agreed to subject the operations and management of its business to the full control of King Eagle (China) and
King Eagle (Tianjin) will take King Eagle (China)’s advice on the appointment or dismissal of directors and employment, regular
operation, and financial management. Accordingly, the Company consolidates the accounts of King Eagle (Tianjin) and its subsidiaries
for the periods presented herein, in accordance with Accounting Standards Codification, or ASC, 810-10, “Consolidation.”

VIE
Financial Information

Set
forth below is the consolidated balance sheet information as of June 30, 2025 and September 30, 2024, and the consolidated statements
of operations and cash flows for the nine months ended June 30, 2025 and 2024, showing financial information for the parent company,
Kun Peng