Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 712

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 712
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 through providing cards for medical consultation service online and selling prepaid cards to our customers for the use of card-operated
health screening equipment located at the Kun Zhi Jian Customer Service Center; (iii) training revenue, generating through offering training program provided by a local health care service team;
and (iv) technical service
revenue, generating through promoting vendors’ products or businesses on online platform.

We recognized
commision revenue upon the completion of delivery of the sales order to the end customer. We recognized the equipment service revenue
upon the completion of medical consultation service and consuming the prepaid cards. We recognized training revenue upon completion of
training sessions by our customers. We recognized technical service revenue upon the completion of promoting vendors’ products or
businesses on our platform.

Compared
to the year ended September 30, 2023, we generated $1,838,594 or 46.93% lower revenue for the same period in 2024 due to the substantially
sharp decrease in Wholesale.
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. 

82

Cost
of revenue

Our
cost of revenue for the year ended September 30, 2024 was $612,326, $179,105 or 41.34% increase over our cost of revenue for the year
ended September 30, 2023 of $433,221. This primarily included the purchase of consumer health care and health related household products
from our suppliers and payments of training fees to our third-party trainers.

The
following table presents our cost of revenue disaggregated by customer type, retail and wholesale, for the years ended September 30,
2024 and 2023:

    For the years ended September 30, 

    2024  
    2023 

    Retail 
    $324,770  
    $51,337 
  
    Wholesale 
     1,152  
     381,884 
  
    Equipment service 
     259,353  
     - 
  
    Technical service 
     -  
     - 
  
    Commission 
     -  
     - 
  
    Training 
     20,363  
     - 
  
    Total 
    $605,638  
    $433,221 

During
the year ended September