Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 836

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1B
Chunk 836
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 up the retail price for our products and lauched Kun Zhi Jia Mini Program in November
2023.

The gross profit and margin for our wholesale business of Kun Zhi Jian
for the year ended September 30, 2024 and 2023 was $1,012, or 46.8%, and $3,412,739, or 89.9%, respectively. When our online platform,
Kun Zhi Jian and Kun Zhi Jian Mini Program, was launched in October 2022 and November 2023, we refocused on selling dietary supplements,
prepaid health screening cards, and physiotherapy equipment to our retail customers. Accordingly, the gross margin of our wholesale business
line shrank during the year ended September 30, 2024.

The
gross margins for our commission, equipment service, technical service, and training for year ended September 30, 2024 were 100%, 58.8%,
100.0%, and 40.8%, respectively. As we introduced these four additional revenue streams in or after November 2023, the gross margins
for these four revenue streams were nil for the same period in 2023.

83

Operating
Expenses

Our
operating expenses consist of general and administrative expenses and selling expenses. For the years ended September 30, 2024 and
2023, our total operating expenses were $3,473,901 and $5,733,003, respectively. The
reduction in operating expenses for the year ended September 30, 2024 compared to the year ended September 30, 2023 was primarily
due to the reductions in both selling expenses and in general and administrative expenses

General
and administrative expenses

General
and administrative expenses for the years ended September 30, 2024 and 2023 were $1,818,877
and $2,416,372, respectively. Our general and administrative expenses for the years ended September 30, 2024 and 2023 were comprised
of the following:

    For the years ended September 30,

    2024 
    2023

    Employee compensation and benefit 
    $634,873  
    $578,490 
  
    Rent fee and building management 
     309,832  
     317,887 
  
    Office supplies and meeting 
     41,312  
     43,179 
  
    Professional services fee 
     429