Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 375

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 8
Chunk 375
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with changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company’s
current corporate structure or the VIE Arrangements is remote based on current facts and circumstances.

Foreign
currency exchange risk

The
value of the RMB against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in political
and economic conditions and the foreign exchange policy adopted by the PRC government. It is difficult to predict how market forces or
PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. There remains significant
international pressure on the PRC government to adopt a more flexible currency policy, which could result in greater fluctuation of the
RMB against the U.S. dollar. The Company is a holding company and it relies on dividends paid by the Company’s operating subsidiaries
in China for its cash needs. Any significant revaluation of the RMB may materially and adversely affect its liquidity and cash flows.
To the extent that the Company needs to convert U.S. dollars into RMB for its operations, appreciation of the RMB against the U.S. dollar
would have an adverse effect on the RMB amount the Company would receive. Conversely, if the Company decides to convert RMB into U.S.
dollars for other business purposes, appreciation of the U.S. dollar against the RMB would have a negative effect on the U.S. dollar
amount the Company would receive.

Liquidity
risk

Liquidity
risk is the risk that the Company will encounter difficulty raising liquid funds to meet commitments as they fall due. See our
commitments and contingencies in Note 13 under Item 8, Financial Statements and Supplementary Data. In meeting its liquidity
requirements, the Company focus on increasing its revenue through the sale of health care products and equipment service from
card-operated health screening equipments on its new online platform, Kun Zhi Jian and Kun Zhi Jian Mini Program, and promoting its own brand of preventive
health care related products to reduce its costs of goods sold, streamlining its overhead costs, or
obtaining financing from its stockholders or directors.

Concentration
of customers and vendors

For the year ended September 30, 2024, one major customer accounted for
35% of the total revenue.

There
was no revenue from customers that individually represent greater than 10% of the total revenues for