Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 87

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 87
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ans were guaranteed by a shareholder.

NOTE
16 - COMMITMENTS AND CONTINGENCIES

Purchase
and service commitments

We
entered into multiple purchase and service commitments. As of December 31, 2024 and September 30, 2024, we had purchase and service commitments
in an amount of $56,101 and $4,987, respectively.

NOTE
17 - SUBSEQUENT EVENT

In
January 2025, King Eagle (Tianjin) entered into an agreement to transfer 55%
of the outstanding shares of King Eagle (Hangzhou). The transaction, which was completed on January 17, 2025, resulted in King Eagle (Hangzhou) becoming an
associate instead of a subsidiary of King Eagle (Tianjin).

As
of December 31, 2024, the Company evaluated and concluded that there are no subsequent events that would require recognition or disclosure
in the financial statements, other than as disclosed above.

37

ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview
of the Business

Due
to global health issues and the COVID-19 pandemic, people have increased their health and nutrition consciousness. We believe preventive
care is the most effective investment in health.

To
promote awareness of preventive care among the people in the PRC, we developed and launched our mobile platform, King Eagle Mall, in
July 2020, an online platform, Kun Zhi Jian, in October 2022, and Kun Zhi Jian Mini Program in November 2023.

King
Eagle Mall

King
Eagle Mall is a mobile social e-commerce platform launched in July 2020 that promotes preventive health care products and services. It
adopts the S2B2C business model and integrates many major health care products and services. King Eagle Mall is 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