Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 536

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 536
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 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
situation closely and evaluate its potential exposure.

Recent
Regulatory Developments in China

Under
current Chinese laws and regulations, the Company believes that the VIE Agreements are not subject to any government approval. The shareholders
of King Eagle (Tianjin) were required to register with SAFE when they established offshore vehicles to hold KP International. Such SAFE
registration was effected on May 14, 2021. These shareholders of King Eagle (Tianjin) were also required to register their equity pledge
arrangement by the Equity Pledge Agreement with King Eagle (China). However, the Company faces uncertainty with respect to future actions
by the PRC