Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 455

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 455
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We
purchase the consumer preventive health food and health related household products sold on our platforms from our suppliers; we did not
develop, design, or manufacture those products. Moreover, although we have built our online platform and mobile commerce in-house, the
compensation costs for our in-house technology team were not significant. Accordingly, instead of presenting the compensation costs of
our in-house technology team as research and development expenses, we included these amounts in employee compensation and benefit expenses
within general and administrative expenses for the years ended September 30, 2024 and 2023.

Environmental,
Social, and Governance Standards

The
concept of environmental, social, and corporate governance standards or metrics (“ESG”) is an emerging global trend. Management
believes the PRC is at the forefront of this global trend, as evidenced by the PRC’s desire to reach peak carbon by 2030 and become
carbon neutral by 2060. These goals require companies to start transitioning to a lower-carbon business model. Moreover, corporate reporting
on a complete set of ESG metrics will assist regulators to timely adjust their policies and will enable investors and customers to make
informed decisions. Our management is actively addressing environmental and social responsibility as part of its strategy and goals for
the Company. The steps taken include identifying and setting goals in line with the Company’s environmental and social responsibility
goals.

ESG
represents the three main criteria for investors and customers to evaluate a company’s level of sustainability. Specifically, environmental
criteria take into account a company’s performance in protecting the environment; social criteria examine how it manages relationships
with employees, suppliers, customers, and communities; and governance criteria deal with a company’s leadership, executive pay,
audits, internal controls, and shareholder rights.

35

Our
ESG mission includes working to advance the needs of a broad group of stakeholders, namely our employees and the community in which we
live and operate while staying conscious of the environmental impact of our growing operations. Our management is actively addressing
environmental and social responsibility as part of its strategy and goals for the Company.

Environment.
As part of our Company’s environmental strategy, we work to mitigate our carbon footprint by carefully considering how we consume
resources and integrating the best environmentally-focused technology into our business. Our Company has been implementing the concept
of environmental protection by utilizing capital resources for enhancing product quality, reviewing the practices of manufacturers, including
the sourcing and sustainability of packaging materials, such as single-use plastics, identifying a growing demand