Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 975

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1C
Chunk 975
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MB against the U.S. dollar. The Company is a holding company and it relies on dividends paid by the Company’s operating subsidiaries
in China for its cash needs. Any significant revaluation of the RMB may materially and adversely affect its liquidity and cash flows.
To the extent that the Company needs to convert U.S. dollars into RMB for its operations, appreciation of the RMB against the U.S. dollar
would have an adverse effect on the RMB amount the Company would receive. Conversely, if the Company decides to convert RMB into U.S.
dollars for other business purposes, appreciation of the U.S. dollar against the RMB would have a negative effect on the U.S. dollar
amount the Company would receive.

Liquidity
risk

Liquidity
risk is the risk that the Company will encounter difficulty raising liquid funds to meet commitments as they fall due. See our
commitments and contingencies in Note 13 under Item 8, Financial Statements and Supplementary Data. In meeting its liquidity
requirements, the Company focus on increasing its revenue through the sale of health care products and equipment service from
card-operated health screening equipments on its new online platform, Kun Zhi Jian and Kun Zhi Jian Mini Program, and promoting its own brand of preventive
health care related products to reduce its costs of goods sold, streamlining its overhead costs, or
obtaining financing from its stockholders or directors.

Concentration
of customers and vendors

There
was no revenue from customers that individually represent greater than 10% of the total revenues for the years ended September 30, 2024,
and 2023.

For
the year ended September 30, 2024, four vendors accounted for 34%, 14%, 14% and 10% of the Company’s total cost of sales.

For
the year ended September 30, 2023, three vendors accounted for 35%, 25%, and 12% of the Company’s total cost of sales.

Income
Taxes

We
account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the
difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in
the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if,
based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of