Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 89

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 89
---

termination of two subsidiaries’ businesses, which caused both our retail and our equipment-based service revenue
to decline.

38

Cost
of revenue

Our
cost of revenue for the three months ended June 30, 2025 and 2024 was $84,007 and $180,265, respectively.

We
disaggregated our cost of revenue by customer type, retail and wholesale, for the three months ended June 30, 2025 and 2024:

    Three
months ended
                                                                               June 30, 

    2025  
    2024 

    Retail 
    $6,859  
    $116,723 
  
    Equipment-based service revenue 
     77,148  
     63,542 
  
    Total 
    $84,007  
    $180,265 

Our
cost of revenue for the three months ended June 30, 2025 of $84,007 constituted a $96,258, or 53.4%, decrease from our cost of
revenue for the three months ended June 30, 2024 of $180,265. Our cost of revenue primarily consisted of the costs of purchasing
consumer health care and health related household products from our suppliers and payments related to maintaining health screening
equipment. We made our retail product sales through our King Eagle Mall and our Kun Zhi Jian Mini Program. We also offered
equipment-based services through the Kun Zhi Jian Mini Program. We pay an equipment-based service fee that includes a prepaid card
activation fee and a technical support fee.

During
the three months ended June 30, 2025, our cost of retail decreased in line with our decrease in revenue and our cost for equipment-based
services decreased as a result of the termination of two subsidiaries business.

Gross
profit

    Three
months ended
                                                                               June 30, 

    2025  
    2024 

    Retail 
    $14,380  
    $323,520 
  
    Equipment-based service revenue 
     9,415  
     168,277 
  
    Total 
    $23,795  
    $491,797 

For
the three months ended June 30, 2025 and 2024, our overall gross profit and margin was $23,795, or 22.1%, and $491,797, or 73.2%, respectively.

For
the three