Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 35

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 35
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 (Tianjin)’s performance of its obligations under the Business Operation
Agreement, the Consulting Service Agreement and the Equity Disposal Agreement (each, an “Agreement,” collectively, the “Agreements”).
If King Eagle (Tianjin) or its shareholders breach their respective contractual obligations under any Agreement, or cause to occur one
of the events regarded as an event of default under any Agreement, King Eagle (China), as pledgee, will be entitled to certain rights,
including the right to dispose of the pledged equity interest in King Eagle (Tianjin). During the term of the Pledge Agreement, the pledged
equity interests cannot be transferred without King Eagle (China)’s prior written consent. The Pledge Agreement is valid until all
the obligations due under the Agreements have been fulfilled.

A VIE is an entity that has either
a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial
support, or whose equity investors lack the characteristics of a controlling financial interest, such as voting rights and the right to
receive the expected residual returns of the entity or the obligation to absorb the expected losses of the entity. The variable interest
holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE.
King Eagle (China) is deemed to have a controlling financial interest and be the primary beneficiary of King Eagle (Tianjin) because it
has both of the following characteristics:

    (1)
    The power to direct the activities of King Eagle (Tianjin) that most significantly impact such entity’s economic performance, and

    (2)
    The obligation to absorb losses of, or the right to receive benefits from, King Eagle (Tianjin) that could potentially be significant to such entity.

As of the date of this Quarterly
Report, King Eagle (Tianjin) has established five subsidiaries: King Eagle (Beijing) Technology Co., Ltd, King Eagle (Huai’an) Health
Management Co., Ltd., Kun Zhi Jian (Huai’an) Technology Co., Ltd., Kun Zhi Jian (Shandong) Health Management Co., Ltd. and
Chengdu Wenjiang Pengrun Internet Healthcare Co., Ltd., on December 1, 2022, September 19, 2023, October 26, 2023, January 31, 2024 and
February 1, 2024,