Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 706

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 706
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2020 that promotes preventive health care products and services. It
adopts the S2B2C business model and integrates many major health care products and services. We focus on health-related products and
services. Kun Zhi Jian and Kun Zhi Jian Mini Program are designed to enable health-related products to be sold by us and by third parties. King Eagle Mall’s
products are divided into two sectors: self-operated products and selected products which promote preventive health care. Our team screens
and examines products that are and will be offered both by us and by affiliated merchants. Our major products include health care products
such as dietary supplements, nutritional health foods, beauty cosmeceuticals, and other categories of health foods (for instance, milk
powder, dried fruits) for supporting the cardiovascular system and bone joint health. We also offer collagen peptides, probiotics, and
health foods for improving blood circulation and vein health, as well as household products that can promote and improve a healthier
lifestyle for our members. We receive customer orders and may arrange fulfillment through our merchants who are responsible for delivery
or we may fulfill customer orders through our outsourced networks. As of January 10, 2024, September 30, 2023, and September 30, 2022,
King Eagle Mall had approximately 5,669, 5,669, and 15,077 members, respectively. King Eagle Mall’s membership declined during
the year ended September 30, 2023 because the Company focused on promoting and selling products on Kun Zhi Jian, the new online platform,
and some of the members of King Eagle Mall switched to Kun Zhi Jian and Kun Zhi Jian Mini Program.

We
also operate customer service centers with whom our members can communicate directly for any assistance related to product purchases,
suggestions for health care products and services, and delivery logistics.

Smart
Kiosks

We
introduced the “Smart Kiosk” concept with the support of Guoxin Star Network Co., Ltd. (“Guoxin”) and its subsidiaries
or affiliates, which would have initiated and originally administered the construction of the Smart Kiosks. Integrated with the King
Eagle Mall, the Smart Kiosk was intended to be a physical store which would focus on developing a “small shop economy.”

As
a result of extensive delays in obtaining government approval to construct the Smart Kiosks, in the last quarter of fiscal year 2023,
Guoxin determined that it was unable