Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 707

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 707
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 to obtain the necessary approvals and both parties agreed to abandon the Smart Kiosk project and
to terminate the related agreement between Guoxin and the Company.

79

Recent
Developments

Kun
Zhi Jian and Kun Zhi Jian Mini Program 

In
October 2022, we introduced and implemented a new online platform, Kun Zhi Jian. In its initial phase of operation, we focused on selling
a thermal therapy cabin to wholesalers. Currently, we promote and sell physiotherapy equipment products and our own brand, as well as
other popular brands, of preventive health care related products. In November 2023 we also launched the Kun Zhi Jian Mini Program, which
is composed of three main areas: physiotherapy cabin, a customer service center, and an online shopping mall (Kun Zhi Jian). We coordinate
with local health service providers and leverage their health care expertise and technology to provide health screening and consulting
services to our customers and members at the Kun Zhi Jian customer service center. Based on their health condition, we provide nutritional
consulting services and offer suggestions for our preventive health care products. As of January 10, 2024 and September 30, 2023, our
new online platform had approximately 2,129 and 1,987 members, respectively.

COVID-19

Businesses
and markets in mainland China have reopened and mainland China relaxed its policies and controls relating to COVID-19 in early December
2022. In addition, in July 2023, the PRC government fully opened its border to foreigners without requirements of quarantine or application
for a health code upon arrival in the PRC. The Company continues to focus its business on its online platform, King Eagle Mall, and to
promote its own brand of consumer health care and health-related household products on its new online platform, Kun Zhi Jian, which was
introduced and implemented in October 2022, to mitigate the adverse impacts of COVID-19. In November 2023, the Company also launched
the Kun Zhi Jian Mini Program to expand its customer services and preventive health care.

We
do not expect that the virus and the ensuing respiratory illness will have a material adverse effect on our business or financial results
at this time. However, it is not possible to predict the unanticipated consequences of the COVID-19 virus, which continues to mutate
and remains highly contagious, on our future business performance and liquidity. The Company continues to monitor and assess the evolving