Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 94

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 94
---
 Months Ended December 31, 

    2024  
    2023 

    Retail product sales 
    $66,370  
     84.6% 
     383,198  
     75.7%
  
    Wholesale product sales 
     -  
     -  
     886  
     49.1 
  
    Commissions 
     -  
     -  
     11,046  
     100.0 
  
    Equipment service 
     234,466  
     84.3  
     3,681  
     42.5 
  
    Training 
     -  
     -  
     14,000  
     40.8 
  
    Total 
    $300,836  
     84.4% 
     412,811  
     73.4%

For
the three months ended December 31, 2024 and 2023, our overall gross profit and margin was $300,836 or 84.4%, and $412,811 or 73.4%,
respectively. Our gross profit or margin for the equipment service for the three months ended December 31, 2024 was significantly higher
than that for the same period in 2023. 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 which have higher profit margins.

The
gross margins for our commission, equipment service, and training for the three months ended December 31, 2024 were nil, 84.3%, and nil,
respectively. As we introduced these four additional revenue streams in or after November 2023, the gross margins for these revenue streams
were 100.0%, 42.5%, and 40.8%, respectively, for the same period in 2023.

Operating
expenses

Our
operating expenses consist of general and administrative expenses and selling expense. For the three months ended December 31, 2024
and 2023, our total operating expenses were $998,922 and $979,807, respectively. The slight increase in operating expenses for the
three months ended December 31, 2024 compared to the three months ended December 31, 2023 was primarily due