Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 36

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 36
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 respectively, in the PRC. King Eagle (Tianjin) is the controlling shareholder under the company laws of the PRC. The
binding rights over the VIE’s subsidiaries in the contractual arrangements between King Eagle (China) and King Eagle (Tianjin) are
implicit and indirect and the company laws and regulations in the PRC governing the business operations of the VIE’s subsidiaries
are uncertain.

Pursuant to the VIE Agreements,
the shareholders of King Eagle (Tianjin) have agreed to transfer any dividends, distributions, or other profits that they receive to King
Eagle (China). King Eagle (Tianjin) pays service fees equal to all of its net profit after tax to King Eagle (China). The VIE Agreements
are designed so that King Eagle (Tianjin) operates for the benefit of King Eagle (China) and ultimately the Company.

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Moreover, King Eagle (Tianjin)
has agreed to subject the operations and management of its business to the full control of King Eagle (China) and King Eagle (Tianjin)
will take King Eagle (China)’s advice on the appointment or dismissal of directors and employment, regular operation, and financial
management. Accordingly, the Company consolidates the accounts of King Eagle (Tianjin) and its subsidiaries for the periods presented
herein, in accordance with Accounting Standards Codification, or ASC, 810-10, “Consolidation.”

VIE Financial Information

Set forth below is the consolidated
balance sheet information as of March 31, 2025 and September 30, 2024, and the consolidated statements of operations and cash flows for
the six months ended March 31, 2025 and 2024, showing financial information for the parent company, Kun Peng International Limited, the
non-VIE subsidiaries (as defined below), and the VIE (as defined below), eliminating entries, and consolidated information (in dollars).
In the tables below, the column headings correspond to the following entities:

“Parent entity” refers to Kun
Peng International Limited;

“Non-VIE and Non-WFOE subsidiaries”
refers to the following entities:

    ●
    Kun Peng International Holding Limited (“KP International Holding”)

    ●
    Kun Peng (Hong Kong) Industrial Development Limited (“KP (Hong Kong)”)

    ●
    Kun Peng Tian Yu Health Technology Co., Ltd. (“KP Tian Yu”) until March 3, 202