Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 19

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 19
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 shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average
number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents
are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive,
such as in a period in which a net loss is recorded.

Foreign
Currency Translation

The
reporting currency of the Company is the U.S. Dollar. Our entity in the British Virgin Islands uses U.S. dollar. Our entities in the
PRC and Hong Kong use the local currencies, Renminbi (RMB) and the Hong Kong Dollar (HKD), as their functional currencies as determined
based on the criteria of ASC 830, “Foreign Currency Translation.”

Assets
and liabilities are translated at the unified exchange rate as quoted by www.xe.com at the end of the period. Income and expense accounts
are translated at the average translation rates and equity accounts are translated at historical rates. Translation adjustments resulting
from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that
arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the
results of operations as incurred.

Translation
adjustments included in accumulated other comprehensive gain amounted to $337,610 and $200,368 for the quarter ended June 30, 2025 and
the fiscal year ended September 30, 2024, respectively.

    13

The
following table shows the foreign exchange rates set forth in the H.10 statistical release of the Federal Reserve Board used for translation:

SCHEDULE
OF FOREIGN EXCHANGE RATES

    Hong Kong Dollar (HKD)  
    Chinese Renminbi (RMB) 
  
    As of June 30, 2025 (Closing Rate) 

    United States dollar ($1) 
     7.8499  
     7.1636 

    For the nine months ended June 30, 2025 (Average Rate) 

    United States dollar ($1) 
     7.7859  
     7.2316 

    Hong Kong Dollar (HKD)  
    Chinese Renminbi (RMB) 
  
    As of September 30, 2024 (Closing Rate) 

    United States dollar ($1) 
     7.7693