Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 32

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 32
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 position, results of operations, or cash flows.

NOTE 3 - VARIABLE INTEREST ENTITIES (“VIE”) ARRANGEMENTS

On May 15, 2021, King Eagle (China)
entered into a series of contractual arrangements with King Eagle (Tianjin) and its shareholders. As a result of the contractual arrangements,
the Company classified King Eagle (Tianjin) as a Variable Interest Entity (“VIE”).

King Eagle (Tianjin) Technology
Co., Ltd. (“King Eagle (Tianjin)”) was incorporated as a limited liability company in Tianjin Pilot Free Trade Zone in the
People’s Republic of China on September 2, 2020, with a registered capital of approximately $1.5 million (RMB 10 million). It is
owned by multiple individuals: Chengyuan Li (approximately 45.5%), Xiujin Wang (approximately 10.5%), Yuanyuan Zhang (approximately 10%),
Jinjing Zhang, Wanfeng Hu, Cuilian Liu, and Zhizhong Wang (each of whom owns approximately 6%), Zhandong Fan, and Hui Teng (each of whom
owns approximately 5%). Those shareholders also indirectly owned KP International Holding prior to its acquisition by the Company through
two British Virgin Islands entities: Kunpeng Tech Limited and Kunpeng TJ Limited. Additionally, Chengyuan Li is a director and Yuanyuan
Zhang is Chief Financial Officer of the Company.

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The VIE Agreements are as follows:

    (1)
    Consulting Service Agreement

    (2)
    Business Operation Agreement

    (3)
    Proxy Agreement

    (4)
    Equity Disposal Agreement

    (5)
    Equity Pledge Agreement

Consulting Service Agreement

Pursuant to the terms of a certain
Exclusive Consulting Service Agreement dated May 15, 2021, between King Eagle (China) and King Eagle (Tianjin) (the “Consulting
Service Agreement”), King Eagle (China) is the exclusive consulting service provider to King Eagle (Tianjin) to provide business-related
software research and development services; design, installation, and testing services; network equipment support, upgrade, maintenance,
monitor, and problem-solving services; employees technical training services; technology development and sublicensing services; public
relations services; market investigation, research, and consultation services; short to medium term marketing plan-making services; compliance
consultation services; marketing