Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 97

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 97
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 March 31, 

    2025  
    2024 

    Retail 
    $197,992  
    $411,167 
  
    Wholesale 
     -  
     1,012 
  
    Equipment-based service revenue 
     613,524  
     213,097 
  
    Technical service revenue 
     -  
     36,018 
  
    Commission revenue 
     -  
     2,953 
  
    Training revenue 
     -  
     14,036 
  
    Total 
    $811,516  
    $678,283 

For the six months ended March
31, 2025 and 2024, our overall gross profit and margin was $811,516, or 84.0%, and $678,283, or 73.2%, respectively.

For the six months ended March
31, 2025 and 2024, the gross profit and margin for our retail business amounted to $197,992, or 85.7%, and $411,167, or 75.7% , respectively.
The increase in our gross profit or margin for our retail business for the six months ended March 31, 2025 as compared to the same period
in 2024 was primarily due to our promotions and updated products.

Since our new online platform,
Kun Zhi Jian, was launched in October 2022, we have been phasing out our wholesale business and have refocused on selling dietary supplements,
prepaid health screening cards, and the sale of physiotherapy equipment to our retail customers. Therefore, gross profit or margin for
our equipment-based services increased for the six months ended March 31, 2025.

Operating expenses

Our operating expenses consist of general and administrative expenses and
selling expenses. For the six months ended March 31, 2025 and 2024, our total operating expenses were $1,824,444 and $1,828,490, respectively.
The decrease in operating expenses for the six months ended March 31, 2025 compared to the same period in 2024 was primarily due to a decrease of $111,229 in general and administrative expenses, which was offset by an increase of $107,183 in selling expenses.

General and administrative expenses

General and administrative expenses for the six months ended March 31,
2025 and 2024 were $965,047 and $1