Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 74

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 74
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,530, or 69.1%, and $1,170,081, or 73.2%, respectively.

For
the nine months ended June 30, 2025 and 2024, the gross profit and margin for our retail business amounted to $212,372, or 84.2%,
and $734,687, or 74.7%, respectively. The decrease in our gross profit and margin for our retail business for the nine months ended
June 30, 2025 as compared to the same period in 2024 was primarily due to the termination of two subsidiaries’ businesses. For the nine
months ended June 30, 2025 and 2024, the gross profit and margin for our equipment-based services business amounted to $529,158 or
64.4%, and $381,463, or 70.7%, respectively. The increase in our gross profit and margin for our equipment-based services business
for the nine months ended June 30, 2025 as compared to the same period in 2024 was primarily due to  promotions on
our equipment-based services.

Operating
Expenses

Our
operating expenses consist of general and administrative expenses and selling expenses. For the nine months ended June 30, 2025 and 2024,
our total operating expenses were $2,190,192 and $2,604,771, respectively. The decrease in operating expenses for the nine months ended
June 30, 2025 compared to the same period in 2024 was primarily due to a decrease of $233,495 in general and administrative expenses
and a decrease of $181,084 in selling expenses.

General
and administrative expenses

General
and administrative expenses for the nine months ended June 30, 2025 and 2024 were $1,196,450 and $1,429,945, respectively. The
decrease in general and administrative expenses during the nine months ended June 30, 2025 by $233,495 was chiefly due to a decrease
in office rent and building management of $100,759, a decrease in meals and entertainment of $121,014, and a decrease in travel,
transportation, and gasoline of $41,636. These expenses declined as a result of the deregistration of two subsidiaries during the
nine months ended June 30, 2025.

43

Our
general and administrative expenses for the nine months ended June 30, 2025 and