Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 93

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 93
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 by our customers. We recognized technical service revenue upon the completion of promoting vendors’ products
or businesses on our platform.

Compared
to the three months ended December 31, 2023, we generated $356,519 or 36.6% lower revenue for the same period in 2024 due to the substantially
sharp decrease in Retail. For the three months ended December 31, 2024, we focused our business on equipment services. The market for
health care equipment has potential growth in the future as more and more people looking for professional health care assistance after
COVID-19.

Cost
of revenue

Our
cost of revenue for the three months ended December 31, 2024 was $55,683 or 62.72% decrease over our cost of revenue for the three month
period ended December 31, 2023 of $149,347. This primarily included the purchase of consumer health care and health related household
products from our suppliers and payments of maintaining health screening equipment and training fees to our third-party trainers. During
the quarter ended December 31, 2024, we made our retail product sales through our King Eagle Mall and Kun Zhi Jian Mini Program. We also
offered equipment service 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.

41

We
incurred a higher cost of revenue related to our equipment service revenue for the three months ended December 31, 2024 compared to the
same period in 2023 because we generated significantly equipment service revenue from selling prepaid cards during the three months ended
December 31, 2024 as discussed above.

We
disaggregated our cost of revenue for the three months ended December 31, 2024 and 2023 as follows:

    Three Months Ended December 31, 

    2024  
    2023 

    Retail 
    $12,087  
    $123,135 
  
    Wholesale 
     -  
     919 
  
    Equipment service fee 
     43,596  
     4,987 
  
    Training fee 
     -  
     20,306 
  
    Total 
    $55,683  
    $149,347 

Gross
profit

    Three