Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 1

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 2
Chunk 1
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 Kun Zhi Jian Mini Program, which
is composed of three main areas: physiotherapy cabin, a customer service center, and an online shopping mall (Kun Zhi Jian). We coordinate
with local health service providers and leverage their health care expertise and technology to provide health screening and consulting
services to our customers and members at the Kun Zhi Jian customer service center. Based on their health conditions, we provide nutritional
consulting services and offer suggestions for our preventive health care products. As of February 10, 2025 and December 31, 2024, our
new online platform had approximately 2,422 and 2,394 members, respectively.

38

COVID-19

Businesses
and markets in mainland China have reopened and mainland China relaxed its policies and controls relating to COVID-19 in early December
2022. In addition, in July 2023, the PRC government fully opened its border to foreigners without requirements of quarantine or application
for a health code upon arrival in the PRC. Although respiratory illness, especially among children, surged in China and some parts of
the world in November 2023, this is a treatable disease and is containable according to the medical experts in China.

The
Company continues to focus its business on its online platform, King Eagle Mall, and to promote its own brand of consumer health care
and health related household products on its new online platform, Kun Zhi Jian, which was introduced and implemented in October 2022
to mitigate the adverse impacts of COVID-19. In November 2023, the Company also launched Kun Zhi Jian Mini Program to expand its customer
services and preventive health care products.

Recent
Regulatory Developments in China

Under
current Chinese laws and regulations, the Company believes that the VIE Agreements are not subject to any government approval. The shareholders
of King Eagle (Tianjin) were required to register with SAFE when they established offshore vehicles to hold KP International. Such SAFE
registration was effected on May 14, 2021. These shareholders of King Eagle (Tianjin) were also required to register their equity pledge
arrangement by the Equity Pledge Agreement with King Eagle (China). However, the Company faces uncertainty with respect to future actions
by the PRC government that could significantly affect King Eagle (Tianjin)’s financial performance and the enforceability of the
VIE Agreements.

On
July 6, 2021, the PRC