Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 552

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 552
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 (Closing Rate) 
     7.7693  
     7.0176 
  
    United States dollar ($1) 

    For the year ended September 30, 2023 (Average Rate) 
    Hong Kong Dollar (HKD)  
    Chinese Renminbi (RMB) 
  
    United States dollar ($1) 
     7.8310  
     7.0553 

    As of September 30, 2023 (Closing Rate) 
     7.8308  
     7.2960 
  
    United States dollar ($1) 

Cash
and Cash Equivalents

Cash
and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions,
and a certain amount of cash kept in electronic wallets, “e-wallets.”

We
consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain
accounts with various financial institutions in the PRC, and also e-wallets. As of September 30, 2024 and 2023, cash balances held in
PRC banks are uninsured. Monies that are held in e-wallets are deemed equivalent to cash, are highly liquid, and are relatively unsafe
compared to cash in banks. We have not experienced any losses in bank accounts or e-wallets and believe that we are not exposed to significant
risks with respect to our cash in bank accounts and low risk with respect to our cash kept in e-wallets.

Inventory

Inventory
consists of finished goods, which include wines, gel and essence for beauty, ointment for health, prepaid
cards and detection kits. Inventory is measured at the lower of cost or net realizable value on a first-in, first-out basis. When evidence
exists that the net realizable value of inventory is lower than its cost, provisions shall be made to write inventory down and a loss
shall be recognized in earnings in the period in which it occurs. That loss may be required, for example, due to damage, physical deterioration,
obsolescence, changes in price levels, or other reasons. As of September 30, 2024, there was no inventory located at third party warehouse.

Financial
Instrument

The
carrying amounts reported on the balance sheet for cash, other receivables, accrued liabilities, and other payables approximate fair
value because