Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 447

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 447
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 of pregnant women consume health food products, particularly folic acid, milk power and multi-vitamin tablets, during pregnancy.
Further, HKTDC cited a study from iiMedia Research that the maternal and baby health food markets increased by 8.2% between 2020 and
2021 to over RMB70.41 billion (US$9.89 billion) in 2021 and represented 26% of the total market share of health food in mainland China.

According
to the above-mentioned article published by Hong Kong Trade Development Council in September 2022, the government of the People’s
Republic of China has progressively encouraged its civilians to lead healthy lifestyles and minimize diseases so as to lengthen life
expectancy for its people and it introduced the “Healthy China Initiative 2019-2030” in 2019. Intelligence Research Group
indicated that sales of health food in mainland China rose by 8.2% in 2021, and that the health food market in mainland China represented
17.8% of global sales in that year and was the second largest health food market in the world. It indicates that sales of health food
in mainland China rose by 3.0% in 2022 to RMB394.7 billion. iiMedia Research projects that sales
will reach RMB423.7 billion by 2027. (Source: https://research.hktdc.com/en/article/MzA4NzQ3NzUw)

26

Since
the global health issue and the COVID-19 pandemic, people have increased their health and nutrition consciousness. King Eagle (China)
believes preventive care is the most effective investment in health. Based on the statistics compiled by Euromonitor, the market size
of health care products in China was as follows:

Monteloeder
S.L. analyzed that the demand for healthy food in the PRC has increased since the outbreak of COVID-19. It cited data announced by Suning
that shows that 2020 Lunar New Year sales volume of health foods increased by 128% compared to 2019.

E-commerce
has developed rapidly in the PRC. Management of the Company believes that we are in a new era of e-commerce and that additional characteristics
of sharing economy, offline support and social interaction are evolving. We believe the rise of social e-commerce will positively impact
the development of our health care business. GMA has stated “Chinese customers are highly active on social media platforms such
as