Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 541

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 541
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 technical service revenue upon the completion of promoting vendors’ products or
businesses on our platform.

Compared
to the year ended September 30, 2023, we generated $1,838,594 or 46.93% lower revenue for the same period in 2024 due to the substantially
sharp decrease in Wholesale.
When our new online platform, Kun Zhi Jian, was launched in October 2022, we refocused on selling dietary supplements, prepaid health
screening cards, and physiotherapy equipment to our retail customers. 

82

Cost
of revenue

Our
cost of revenue for the year ended September 30, 2024 was $612,326, $179,105 or 41.34% increase over our cost of revenue for the year
ended September 30, 2023 of $433,221. This primarily included the purchase of consumer health care and health related household products
from our suppliers and payments of training fees to our third-party trainers.

The
following table presents our cost of revenue disaggregated by customer type, retail and wholesale, for the years ended September 30,
2024 and 2023:

    For the years ended September 30, 

    2024  
    2023 

    Retail 
    $324,770  
    $51,337 
  
    Wholesale 
     1,152  
     381,884 
  
    Equipment service 
     259,353  
     - 
  
    Technical service 
     -  
     - 
  
    Commission 
     -  
     - 
  
    Training 
     20,363  
     - 
  
    Total 
    $605,638  
    $433,221 

During
the year ended September 30, 2024, we made our retail product sales through our King Eagle Mall and Kun Zhi Jian Mini Program. We also
offered equipment service and training through the Kun Zhi Jian Mini Program. We pay an equipment service fee that includes a prepaid
card activation fee and a technical support fee. Our costs of training revenue consist of training fees, accommodations, and transportation
of the third-party trainers.

We
incurred a higher cost of revenue related to our retail revenue and equipment
service revenue for the year ended September 30, 2024 compared to the same period in 2023 because
we generated significantly retail revenue volume and amount from