Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 20

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 20
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     7.0176 

    Hong Kong Dollar (HKD)  
    Chinese Renminbi (RMB) 

    For the nine months ended June 30, 2024 (Average Rate) 

    United States dollar ($1) 
     7.8174  
     7.2181 

Cash
and Cash Equivalents

Cash
and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions
and a certain amount of cash kept in electronic wallets, “e-wallets.”

We
consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain
accounts with various financial institutions in the PRC, and also e-wallets. As of June 30, 2025 and 2024, cash balances held in PRC
banks are uninsured. Monies that are held in e-wallets are deemed equivalent to cash, are highly liquid, and are relatively unsafe compared
to cash in banks. We have not experienced any losses in bank accounts or e-wallets and believe that we are not exposed to significant
risks with respect to our cash in bank accounts and that we are exposed to low risk with respect to our cash kept in e-wallets.

Inventory

Inventory
consists of finished goods, which include wines, gel and essence for beauty, ointment for health, prepaid cards, and detection kits.
Inventory is measured at the lower of cost or net realizable value on a first-in, first-out basis. When evidence exists that the net
realizable value of inventory is lower than its cost, provisions shall be made to write inventory down and a loss shall be recognized
in earnings in the period in which it occurs. That loss may be required, for example, due to damage, physical deterioration, obsolescence,
changes in price levels, or other reasons. As of June 30, 2025, there was no inventory located at third-party warehouses.

Financial
Instruments

The
carrying amounts reported in the balance sheet for cash, other receivables, accrued liabilities, and other payables approximate fair
value because of the immediate or short-term maturities of these financial instruments.

Property
and Equipment

Property
and equipment are stated at cost less accumulated depreciation and impairment losses. Gains and losses on dispositions of property and
equipment are included in operating income (loss). Major