Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 617

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 617
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 is permitted. The Company is currently evaluating the impact that adoption
of this accounting standard will have on its consolidated financial statements and disclosures.

There
were other updates recently issued. The management does not believe that other than the disclosed above, accounting pronouncements the
recently issued but not yet adopted will have a material impact on its financial position results of operations or cash flows.

NOTE
3 - VARIABLE INTEREST ENTITIES “VIE” ARRANGEMENTS

On
May 15, 2021, King Eagle (China) entered into a series of contractual arrangements with King Eagle (Tianjin) and its shareholders. As
a result of the contractual arrangements, the Company classified King Eagle (Tianjin) as a Variable Interest Entity “VIE.”

    F-24

King
Eagle (Tianjin) Technology Co., Ltd. (“King Eagle (Tianjin)”) was incorporated as a limited liability company in Tianjin
Pilot Free Trade Zone in the People’s Republic of China on September 2, 2020, with a registered capital of approximately $1.5 million
(RMB 10 million). It is owned by multiple individuals: It is owned by multiple individuals: Chengyuan Li (approximately 45.5%), Xiujin
Wang (approximately 10.5%), Yuanyuan Zhang (approximately 10%), Jinjing Zhang, Wanfeng Hu, Cuilian Liu, and Zhizhong Wang (each of whom
owns approximately 6%), Zhandong Fan and Hui Teng (each of whom owns approximately 5%). Those shareholders also indirectly owned KP International
Holding prior to its acquisition by the Company through two British Virgin Islands entities: Kunpeng Tech Limited and Kunpeng TJ Limited.
Additionally, Chengyuan Li is a director and Yuanyuan Zhang is Chief Financial Officer of the Company.

The
VIE Agreements are as follows:

    (1)
    Consulting
    Service Agreement

    (2)
    Business
    Operation Agreement

    (3)
    Proxy
    Agreement

    (4)
    Equity
    Disposal Agreement

    (5)
    Equity
    Pledge Agreement

Consulting
Service Agreement

Pursuant
to the terms of certain Exclusive Consulting Service Agreement dated May 15, 2021, between King Eagle (China) and King Eagle (Tianjin)
(the “Consulting Service Agreement”), King Eagle (China) is the exclusive consulting service provider to King Eagle