Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 74

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 74
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 vendors’ products or businesses on our platform. We recognize commission revenue upon the completion
of delivery of the sales order to the end customer. We recognize training revenue upon the completion of training sessions by our customers.

We generated
$39,138, or 4.2%, higher revenue during the six months ended March 31, 2025 compared to the six months ended March 31, 2024 due to
increases in equipment-based services. For the six months ended March 31, 2025, we focused our business on our equipment-based
services as we believe that the market for health care equipment usage has potential growth in the future as more and more people
are looking for professional health care assistance after COVID-19.

Cost of revenue

We disaggregated our cost of revenue
for the six months ended March 31, 2025 and 2024 as follows:

    Six Months Ended March 31, 

    2025  
    2024 

    Retail 
    $33,136  
     132,284 
  
    Wholesale 
     -  
     1,152 
  
    Equipment-based service revenue 
     121,152  
     94,590 
  
    Technical service revenue 
     -  
     - 
  
    Commission revenue 
     -  
     - 
  
    Training revenue 
     -  
     20,357 
  
    Total 
    $154,288  
     248,383 

Our cost of
revenue for the six months ended March 31, 2025 was $154,288, a $94,095, or 37.9%, decrease over our cost of revenue for the six
months ended March 31, 2024 of $248,383. Our cost of revenue primarily consisted of the purchase of consumer health care and health
related household products from our suppliers, payments related to maintaining health screening equipment, and payments of training
fees to our third-party trainers. We made our retail product sales through our King Eagle Mall and our Kun Zhi Jian Mini Program. We
also offered equipment-based services and training through the Kun Zhi Jian Mini Program. We pay an equipment service fee that includes a
prepaid card activation fee and a technical support fee. Our costs of training revenue consist of training fees, accommodations, and
transportation of the third-party trainers.

 43 

During the six