Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 69

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 69
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 208,996 
  
    Technical service revenue 
     -  
     36,018 
  
    Commission revenue 
     -  
     (8,093)
  
    Training revenue 
     -  
     36 
  
    Total 
    $510,680  
    $265,052 

For the three months ended March
31, 2025 and 2024, our overall gross profit and margin was $510,680 or 83.8% and $265,052, or 72.7%, respectively.

For the three months ended March
31, 2025 and 2024, the gross profit and gross profit margin for our retail business amounted to $131,622, or 86.2%, and $27,969, or 75.4%,
respectively. The increase in our gross profit or margin for our retail business for the three months ended March 31, 2025 as compared
to the same period in 2024 was primarily due to our promotions and our updated products.

Since our new online platform,
Kun Zhi Jian, was launched in October 2022, we have been phasing out our wholesale business and have refocused on selling dietary supplements,
prepaid health screening cards, and the sale of physiotherapy equipment to our retail customers. Therefore, gross profit or margin for
our equipment-based services increased for the three months ended March 31, 2025.

Operating expenses

Our operating expenses consist
of general and administrative expenses and selling expenses. For the three months ended March 31, 2025 and 2024, total operating expenses
were $825,522 and $848,683, respectively. The decrease in operating expenses for the three months ended March 31, 2025 compared to the
same period in 2024 was primarily due to a decrease of $215,843 in general and administrative
expenses, which was offset by an increase of $192,682 in selling expenses.

General and administrative
expenses

General and
administrative expenses for the three months ended March 31, 2025 and 2024 were $312,614 and $528,457, respectively. The decrease in
general and administrative expenses of $215,843 between the two periods was chiefly due to decreases in employee compensation and
benefits of $21,419, decreases in office rent and building management of $39,902, decreases in professional service fees of $