Company: KPEA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023821
Chunk: 87

Company: Kun Peng International Ltd.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 87
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37

Corporate
Structure

The
Company is a Nevada holding company with no operations of its own. It conducts its operations through its PRC subsidiary, King Eagle
(China), which conducts its operations through contractual arrangements with a variable interest entity (“VIE”), King Eagle
(Tianjin), and its subsidiaries (i) King Eagle (Beijing) Technology Co., Ltd., incorporated on December 1, 2022; (ii) King Eagle (Huai’an)
Health Management Co., Ltd., incorporated on September 19, 2023; (iii) Kun Zhi Jian (Huai’an) Technology Co., Ltd., incorporated
on October 26, 2023; (iv) Kun Zhi Jian (Shandong) Health Management Co., Ltd., incorporated on January 30, 2024; (v) Chengdu Wenjiang
Pengrun Internet Healthcare Co., Ltd., incorporated on February 1, 2024; and (vi) Kun Pin Hui (Shandong) Trading Co. Ltd., acquired
on April 7, 2024.

As
a result of such contractual arrangements, King Eagle (China) is the primary beneficiary of the VIE for accounting purposes and the VIE
is a PRC consolidated entity under U.S. GAAP. The Company consolidates the financial results of the VIE and its subsidiaries in its consolidated
financial statements in accordance with U.S. GAAP.

Results
of Operations for the three months ended June 30, 2025 and 2024

    Three Months Ended June 30, 

    2025  
    2024 

    Amount  
    %
                                                                               of revenue  
    Amount  
    %
of revenue 

    Revenues 
    $107,802  
     100.0% 
    $672,062  
     100%
  
    Cost of revenues 
     84,007  
     77.9  
     180,265  
     26.8 
  
    Gross profit 
     23,795  
     22.1  
     491,797  
     73.2 
  
    Operating expenses: 

    General and administrative expenses 
     231,403  
     214.7  
     353,669  
     52.6 
  
    Selling expense 
     228,126  
     211.