# EDGAR Filing Document

**Accession Number:** 0001502557
**File Stem:** 0001493152-26-006743
**Filing Date:** 2026-2
**Character Count:** 187452
**Document Hash:** ef4689bd9d9d73f6576df30210200cf9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-006743.hdr.sgml**: 20260213

**ACCESSION NUMBER**: 0001493152-26-006743

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 96

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260213

**DATE AS OF CHANGE**: 20260213

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Kun Peng International Ltd.
- **CENTRAL INDEX KEY:** 0001502557
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EDUCATIONAL SERVICES [8200]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 320538640
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-169805
- **FILM NUMBER:** 26633917

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** ROOM 2069W, SIHUI BUILDING NO 1008-B
- **STREET 2:** HUIHE SOUTH STREET, BANBIDIAN VILLAGE
- **CITY:** GAOBEIDIAN TOWN,CHAOYANG DIST.
- **NON US STATE TERRITORY:** BEIJING
- **PROVINCE COUNTRY:** F4
- **ZIP:** 100024
- **BUSINESS PHONE:** 8610 87227012

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** ROOM 2069W, SIHUI BUILDING NO 1008-B
- **STREET 2:** HUIHE SOUTH STREET, BANBIDIAN VILLAGE
- **CITY:** GAOBEIDIAN TOWN,CHAOYANG DIST.
- **NON US STATE TERRITORY:** BEIJING
- **PROVINCE COUNTRY:** F4
- **ZIP:** 100024

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CX Network Group, Inc.
- **DATE OF NAME CHANGE:** 20170808

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** mLight Tech, Inc.
- **DATE OF NAME CHANGE:** 20100930

?xml version='1.0' encoding='ASCII'?

**U.S. SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10-Q**

Mark One

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______

Commission File No. 333-169805

**KUN PENG INTERNATIONAL LTD.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Nevada** | **EIN 32-0538640** |
| (State or Other Jurisdiction of | (IRS Employer |
| Incorporation or Organization) | Identification Number) |

---

**Room 2069W, Sihui Building No 1008-B, Huihe South Street**

**Banbidian Village**

**Gaobeidian Town, Chaoyang District Beijing, PRC 100124**

(Address of principal executive offices)

**+86-10-87227012**

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes ☐ No ☒

As of February 13, 2026, the registrant had 400,000,000 shares of Common Stock issued and outstanding.

**FORM 10-Q**

**KUN PENG INTERNATIONAL LTD.**

**INDEX**

---

| | | |
|:---|:---|:---|
|  |  | Page |
| PART I. | [Financial Information](#HK_001) | 2 |
|  | [Item 1. Condensed Consolidated Financial Statements (Unaudited)](#HK_007) | 2 |
|  | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation.](#sp_001) | 41 |
|  | [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](#sp_002) | 49 |
|  | [Item 4. Controls and Procedures.](#sp_003) | 50 |
| PART II. | [Other Information](#sp_004) | 51 |
|  | [Item 6. Exhibits.](#sp_005) | 52 |
|  | [Signatures](#sp_006) | 53 |

---

**PART I**

**Item 1. Financial Statements.**

**KUN PENG INTERNATIONAL LTD**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(UNAUDITED)**

**(In U.S. Dollars, except share data or otherwise stated)**

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Note** | **December 31,**<br>**2025** | **September 30,**<br>**2025** |
| **Assets** |  |  |  |
| **Current assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents |  | $32430 | $26284 |
| &nbsp;&nbsp;&nbsp;Trade receivables |  | 14555 |  |
| &nbsp;&nbsp;&nbsp;Advance and prepayments | 4 | 21334 | 33771 |
| &nbsp;&nbsp;&nbsp;Other receivables | 5 | 114476 | 101687 |
| &nbsp;&nbsp;&nbsp;Inventory | 6 | 2640 | 6086 |
| &nbsp;&nbsp;&nbsp;Amount due from related parties | 11 | 414423 | 331619 |
| **Total current assets** |  | 599858 | 499447 |
| **Noncurrent assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 7 | 83726 | 118508 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 8 | 2200 | 2255 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 15 | 245403 | 89073 |
| &nbsp;&nbsp;&nbsp;Finance lease right-of-use assets | 15 | 63060 | 111931 |
| &nbsp;&nbsp;&nbsp;Investment in associate held for sale |  | 11018 | 19595 |
| **Total noncurrent assets** |  | 405407 | 341362 |
| **Total assets** |  | $1005265 | $840809 |
| **Liabilities** |  |  |  |
| **Current liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Short-term borrowing | 16 | 97525 | 100014 |
| &nbsp;&nbsp;&nbsp;Trade and other payables | 9 | 3798082 | 3642395 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 10 | 335141 | 294618 |
| &nbsp;&nbsp;&nbsp;Payroll payable |  | 169043 | 162534 |
| &nbsp;&nbsp;&nbsp;Tax payable |  | 137241 | 129387 |
| &nbsp;&nbsp;&nbsp;Amounts due to related parties | 11 | 4797182 | 4537914 |
| &nbsp;&nbsp;&nbsp;Operating lease obligations, current portion | 15 | 150289 | 52017 |
| &nbsp;&nbsp;&nbsp;Finance lease obligations, current portion | 15 | 38798 | 75765 |
| **Total current liabilities** |  | 9523301 | 8994644 |
| **Noncurrent liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease obligations, net of current portion | 15 | 86297 | 34006 |
| **Total noncurrent liabilities** |  | 86297 | 34006 |
| **Total liabilities** |  | $9609598 | $9028650 |
| **Commitment and contingencies** |  |  |  |
| **Equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2025 and September 30, 2025 | 12 |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 400,000,000 shares issued and outstanding as of December 31, 2025 and September 30, 2025 | 12 | 40000 | 40000 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 12 | 524942 | 524942 |
| &nbsp;&nbsp;&nbsp;Accumulated deficits |  | (9303561) | (9037984) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income |  | 134286 | 285201 |
| **Total stockholders' equity** |  | (8604333) | (8187841) |
| **Non-controlling interests** |  | - | - |
| **Total equity** |  | (8604333) | (8187841) |
| **Total liabilities and equity** |  | $1005265 | $840809 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

**KUN PENG INTERNATIONAL LTD**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**AND COMPREHENSIVE LOSS**

**(UNAUDITED)**

**(In U.S. Dollars, except share data or otherwise stated)**

---

| | | | |
|:---|:---|:---|:---|
|  | | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  |<br>**Note** | **2025** | **2024** |
| Revenue, net | 13 | $174824 | $356519 |
| Cost of revenue | 13 | (113863) | (55683) |
| Gross profit |  | 60961 | 300836 |
| Operating expenses |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses |  | 228564 | 652433 |
| &nbsp;&nbsp;&nbsp;Selling expense |  | 129310 | 346489 |
| Total operating expenses |  | 357874 | 998922 |
| Loss from operations |  | (296913) | (698086) |
| Other income, net: |  |  |  |
| Interest income |  | 71 | 10 |
| Other income |  | 40075 | 47069 |
| Equity in net losses |  | (8810) | - |
| Total other income, net |  | 31336 | 47079 |
| Loss before income taxes |  | (265577) | (651007) |
| Income tax expense | 14 | - | - |
| Net loss |  | (265577) | (651007) |
| Less: Net loss attributable to non-controlling interest |  | - | (5529) |
| Net loss attributable to Kun Peng International Ltd |  | (265577) | (645478) |
| Foreign currency translation adjustment |  | (150915) | 281895 |
| Comprehensive loss |  | (416492) | (369112) |
| Less: Comprehensive loss attributable to non-controlling interest |  | - | (5295) |
| Comprehensive loss attributable to Kun Peng International Ltd |  | $(416492) | $(363817) |
| Net loss per share attributable to common stockholders |  |  |  |
| Basic and diluted |  | $(0.001) | $(0.002) |
| Weighted average shares used to compute net loss per share attributable to common stockholders |  | 400000000 | 400000000 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

**KUN PENG INTERNATIONAL LTD**

**CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT**

**(UNAUDITED)**

(In U.S. Dollars, except share data or otherwise stated)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | | | |
|  | **Shares** | **Amount** | **Additional**<br> **paid-in**<br>**capital** | **Accumulated**<br>**deficits** | **Accumulated<br> other<br> comprehensive**<br>**income** | **Total**<br> **stockholders'**<br>**equity** | **Non-**<br> **controlling**<br>**interest** | **Total**<br>**equity** |
| **Balance, September 30, 2025** | 400000000 | $40000 | $524942 | $(9037984) | $285201 | $(8187841) | $- | $(8187841) |
| Capital contribution |  |  |  |  |  |  |  |  |
| Net loss attributable to common stockholders |  |  |  | (265577) |  | (265577) |  | (265577) |
| Net loss attributable to noncontrolling interest |  |  |  |  |  |  |  |  |
| Foreign currency translation adjustment | - | - | - | - | (150915) | (150915) | - | (150915) |
| **Balance, December 31, 2025** | 400000000 | $40000 | $524942 | $(9303561) | $134286 | $(8604333) | $- | $(8604333) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | | | |
|  | **Shares** | **Amount** | **Additional**<br> **paid-in**<br>**capital** | **Accumulated**<br>**Deficits** | **Accumulated<br> other<br> comprehensive**<br>**income** | **Total**<br> **stockholders'**<br>**equity** | **Non-**<br> **controlling**<br>**interest** | **Total**<br>**equity** |
| **Balance, September 30, 2024** | 400000000 | $40000 | $349356 | $(7774600) | $200368 | $(7184876) | $(3842) | $(7188718) |
| Capital contribution |  |  | 71250 |  |  | 71250 |  | 71250 |
| Net loss attributable to common stockholders |  |  |  | (645478) |  | (645478) |  | (645478) |
| Net loss attributable to noncontrolling interest |  |  |  |  |  |  | (5529) | (5529) |
| Foreign currency translation adjustment | - | - | - | - | 281661 | 281661 | 234 | 281895 |
| **Balance, December 31, 2024** | 400000000 | $40000 | $420606 | $(8420078) | $482029 | $(7477443) | $(9137) | $(7486580) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

**KUN PENG INTERNATIONAL LTD**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

**(In U.S. Dollars, except share data or otherwise stated)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(265577) | $(651007) |
| **Adjustments to reconcile net loss to net cash provided by operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 19035 | 44339 |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 81647 | 127435 |
| &nbsp;&nbsp;&nbsp;Equity in net losses | 8810 |  |
| &nbsp;&nbsp;&nbsp;Gain on disposal of equipment | (27464) |  |
| **Changes in operating assets and liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Advance and prepayments | 12869 | 125707 |
| &nbsp;&nbsp;&nbsp;Other receivables | 686 | 79040 |
| &nbsp;&nbsp;&nbsp;Inventory | 3506 | (3090) |
| &nbsp;&nbsp;&nbsp;Trade payables | 62619 | 57385 |
| &nbsp;&nbsp;&nbsp;Other payables and accrual | 69163 | 20710 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 20384 | 32913 |
| &nbsp;&nbsp;&nbsp;Payroll payable | 3534 | 54724 |
| &nbsp;&nbsp;&nbsp;Amounts due to related parties | 174957 | 248808 |
| &nbsp;&nbsp;&nbsp;Tax payable | 5450 | (2499) |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | (46140) | (88601) |
| &nbsp;&nbsp;&nbsp;Amounts due from related parties | (87080) | - |
| &nbsp;&nbsp;&nbsp;**Net cash provided by operating activities** | 36399 | 45864 |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment |  | (38811) |
| &nbsp;&nbsp;&nbsp;Acquisition of intangible assets |  | (77) |
| &nbsp;&nbsp;&nbsp;Disposal an associate held for sale | - | 27818 |
| &nbsp;&nbsp;&nbsp;**Net cash used in investing activities** | - | (11070) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Capital contribution |  | 71250 |
| &nbsp;&nbsp;&nbsp;(Repayments to) proceeds from bank borrowings | (4232) | 99033 |
| &nbsp;&nbsp;&nbsp;Payment of finance lease liabilities | (25688) | (57528) |
| &nbsp;&nbsp;&nbsp;**Net cash (used in) provided by financing activities** | (29920) | 112755 |
| &nbsp;&nbsp;&nbsp;Effect of exchange rate changes on cash | (333) | (22342) |
| &nbsp;&nbsp;&nbsp;**Net change in cash and cash equivalents** | 6146 | 125207 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents, beginning balance | 26284 | 82184 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents, ending balance | $32430 | 207391 |
| &nbsp;&nbsp;&nbsp;**Supplementary cash flows information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $975 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for income tax | $- | - |
| **Supplemental disclosures of noncash transactions** |  |  |
| &nbsp;&nbsp;&nbsp;Right-of-use assets acquired with operating lease obligation | $183512 | $- |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

**KUN PENG INTERNATIONAL LTD**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025**

**(UNAUDITED)**

**NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS**

Kun Peng International Limited ("the Company," "KPIL," "KPEA," "we," "us," "our"), a Nevada corporation (formerly known as CX Network Group, Inc.), through its subsidiaries and VIE and its subsidiaries, is currently engaged in the sale of health care and health-related household products through its online platforms, King Eagle Mall and Kun Zhi Jian Mini Program.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Background** | **Ownership** | **Registered capital /**<br> **Authorized shares** | **Principal activities** |
| Kun Peng International Limited | ● A U.S. company<br> ● Incorporated on September 3, 2010 |  | Authorized shares:<br> ● Common stock: 1,000,000,000 with par value $0.0001 per share<br> ● 400,000,000 shares issued and outstanding as of December 31, 2025<br> Preferred stock:<br> ● 10,000,000 with par value $0.0001 per share<br> ● no shares issued and outstanding as of December 31, 2025 | Investment holding |
| Kun Peng International Holding Limited | ● A BVI company<br> ● Incorporated on April 20, 2021 | 100% owned by Kun Peng International Limited | Paid capital: 400 ordinary shares at par value of $0.01 per share | Investment holding |
| Kunpeng (China) Industrial Development Company Limited | ● A Hong Kong company<br> ● Incorporated on August 11, 2017<br> ● Deregistration from Hong Kong Inland Revenue Department and Hong Kong Company Registry, approved on February 2, 2024 | 100% owned by Kun Peng International Holding Limited | Paid share capital: 10,000 ordinary shares at $1,292 (HKD10,000) | Investment holding |
| Kun Peng (Hong Kong) Industrial Development Limited | ● A Hong Kong company<br> ● Incorporated on June 21, 2021 | 100% owned by Kun Peng International Holding Limited | Paid share capital:<br> 1 ordinary share at $0.13 (HK$1) | Investment holding |
| Kun Peng Tian Yu Health Technology (Tianjin) Co., Ltd.<br>| ● a limited liability company incorporated in the People's Republic of China and a wholly foreign owned enterprise ("WFOE") since March 3, 2023<br> ● Incorporated on August 10, 2021 | 100% owned by Kun Peng (Hong Kong) Industrial Development Limited<br>| Registered capital of RMB 5 million (US$0.7 million) | Exploring future business opportunities |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Background** | **Ownership** | **Registered capital /**<br> **Authorized shares** | **Principal activities** |
| King Eagle (China) Co., Ltd | ● a wholly foreign owned enterprise ("WFOE") until March 3, 2023 and a limited liability company incorporated in the People's Republic of China<br> ● Incorporated on March 20, 2019 | 49% owned by Kun Peng (Hong Kong) Industrial Development Limited and 51% owned by Kun Peng Tian Yu | Registered capital: approximately $15 million (RMB100 million) | Providing technical and management support to the VIE |
| King Eagle (Tianjin) Technology Co., Ltd.<br>| ● a limited liability company incorporated in the People's Republic of China<br> ● Incorporated on September 2, 2020<br> ● Became a variable interest entity (VIE) of King Eagle (China) Co., Ltd on May 15, 2021 | Owned by multiple individuals: Yuanyuan Zhang<br> (approximately 32.74%), Zhandong Fan (approximately 27.74%), Xiujin Wang (approximately 10.52%), Jinjing Zhang, Wanfeng Hu, Cuilian Liu, and Zhizhong Wang (each of whom owns approximately 6%), and Hui Teng (approximately 5%) | Registered capital of approximately $1.5 million (RMB 10 million)<br>Paid-in capital approximately $0.2 million (RMB 1.4 million) | Operating King Eagle Mall |
| King Eagle (Beijing) Technology Co., Ltd | ● a limited liability company incorporated in the People's Republic of China<br> ● Incorporated on December 1, 2022 | 100% owned by King Eagle (Tianjin) Technology Co., Ltd. | Registered capital of $0.7 million (RMB 5 million)<br> Paid-in capital approximately $0.7 million (RMB 5 million) | Operates the online platform, Kun Zhi Jian |
| King Eagle (Huai'an) Health Management Co., Ltd. | ● a limited liability company incorporated in the People's Republic of China<br> ● Incorporated on September 19, 2023<br> ● Fully acquired on July 19, 2024<br> ● Deregistered on August 28, 2025 | 100% owned by King Eagle (Tianjin) Technology Co., Ltd.<br>| Registered capital of $0.7 million (RMB 5 million)<br> Paid-in capital approximately $10K (RMB 70,000) | Coordinates with local health care service providers to offer health screening and monitoring |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Background** | **Ownership** | **Registered capital /**<br> **Authorized shares** | **Principal activities** |
| Kun Zhi Jian (Huai'an) Technology Co., Ltd. | ● a limited liability company incorporated in the People's Republic of China<br> ● Incorporated on October 26, 2023<br> ● Deregistered on August 28, 2025 | 100% owned by King Eagle (Tianjin) Technology Co., Ltd. | Registered capital of $0.1 million (RMB 1 million) | Primarily focuses on marketing and selling physiotherapy equipment products |
| Kun Zhi Jian (Shandong) Health Management Co., Ltd | ● a limited liability company incorporated in the People's Republic of China<br> ● Incorporated on January 30, 2024 | 100% owned by King Eagle (Tianjin) Technology Co., Ltd. | Registered capital of $0.4 million (RMB 3 million) | Commenced its operations in February 2024 and focuses on promoting and selling health screening devices |
| Chengdu Wenjiang Pengrun<br> Shangyibang<br> Internet Healthcare Co., Ltd. | ● a limited liability company incorporated in the People's Republic of China<br> ● Incorporated on February 1, 2024 | 100% owned by King Eagle (Tianjin) Technology Co., Ltd. | Registered capital of $0.1 million (RMB 1 million) | Plans to commence operations in late 2026, assuming permits to provide online health care services are obtained |
| Kun Pin Hui (Shandong) Trading Co., Ltd | ●a limited liability company incorporated in the People's Republic of China<br> ● Incorporated on November 23, 2023<br> ● Acquired on April 7, 2024 | 100% owned by King Eagle (Tianjin) Technology Co., Ltd. | Registered capital of $0.4 million (RMB 3 million) | Operates online platform |
| King Eagle (Hangzhou) Health Technology Co., Ltd | ●a limited liability company incorporated in the People's Republic of China<br> ● Incorporated on July 18, 2024 | 40% (95% until January 17, 2025) owned by King Eagle (Tianjin) Technology Co., Ltd. | Registered capital of $0.1 million (RMB 1 million) | Commenced operations in August 2024 |
| Kun Yu (Hainan) Technology Co., Ltd<br>| ●a limited liability company incorporated in the People's Republic of China<br> ● Incorporated on August 20, 2025 | 100% owned by King Eagle (Tianjin) Technology Co., Ltd. | Registered capital of $0.1 million (RMB 1 million) | Plans to commence operations in late 2026 |

---

 

 

*Authorized Shares and Name Change*

Effective as of September 9, 2021, the Company's Articles of Incorporation were amended to change the name of the Company from CX Network Group, Inc. to Kun Peng International Limited. ("KPIL") and to increase the Company's authorized capital to 210,000,000 authorized shares of Capital Stock with 200,000,000 designated as $0.0001 par value common stock, and 10,000,000 designated as $0.0001 par value preferred stock.

Effective October 12, 2022, we increased our authorized common stock from 200,000,000 shares, par value $0.0001, to 1,000,000,000 shares, par value $0.0001, and on October 18, 2022, we effected a 10:1 forward stock split after which we have 400,000,000 shares of common stock issued and outstanding.

On November 8, 2022, the Company's trading symbol was changed to "KPEA."

On November 11, 2022, the Company received an electronic notice that OTC Markets had approved its application for uplisting from OTC Pink to the OTCQB Venture Market (OTCQB). The Company's securities commenced trading on the OTCQB at the market open on November 14, 2022. The Company's shares trade on the OTCQB under the current ticker symbol, "KPEA."

*Kun Peng International Holding Limited*

Kun Peng International Holding Limited ("KP International Holding") was incorporated in the British Virgin Islands on April 20, 2021. KP International Holding is a holding company. On May 3, 2021, KP International Holding purchased all of the issued and outstanding equity securities of Kun Peng (China) Industrial Development Company Limited ("KP (China)"), which was incorporated in Hong Kong on August 11, 2017, at a cash consideration of approximately $0.129 (HK$1). KP (China) was deregistered on February 2, 2024. After the ownership transfer, KP International Holding became the sole shareholder of KP (China).

*Kun Peng (China) Industrial Development Company Limited*

Kun Peng (China) Industrial Development Company Limited ("KP (China)") was incorporated as a limited liability company in Hong Kong under the name of Jing Jin Ji Investment Group Co., Limited ("Jing Jin Ji") on August 11, 2017. The share capital of KP (China) is 10,000 ordinary shares at $1,292 (HKD10,000) and was wholly owned by an individual. On November 9, 2018, Jing Jin Ji changed its name to "Kun Peng (China) Industrial Development Company Limited" and filed a Certificate of Change of Name with the Hong Kong Company Registry on the same day. Although it was incorporated in 2017, it did not commence operations until July 2020 as it focused on exploring business opportunities in its initial phase and developing our online mobile application, King Eagle Mall, through its subsidiary, King Eagle (China) Co., Ltd. It became a wholly owned subsidiary of KP International Holding on May 3, 2021.

On August 24, 2023, we filed an application with the Companies Registry of Hong Kong for deregistration and dissolution of KP (China). The application for deregistration was approved on February 2, 2024 by the Hong Kong Company Registry.

*Kun Peng (Hong Kong) Industrial Development Limited*

Kun Peng (Hong Kong) Industrial Development Limited ("KP (Hong Kong)") was incorporated as a limited liability company in Hong Kong on June 21, 2021. It is a holding company and is wholly owned by Kun Peng International Holding Limited. The share capital of this entity upon formation is $0.13 (HK$1).

*King Eagle (China) Co., Ltd.*

King Eagle (China) Co., Ltd. ("King Eagle (China)") was incorporated as a limited liability company in Beijing Economic Technological Development Zone in the People's Republic of China ("the PRC") on March 20, 2019 with a registered capital of approximately $15 million (RMB100 million). King Eagle (China) was a wholly owned subsidiary of KP (China) at the time of establishment.

On November 1, 2022, KP (China) entered into ownership transfer agreements with Kun Peng (Hong Kong) Industrial Development Limited and Kun Peng Tian Yu Health Technology Co., Ltd. The agreements provided that KP (China) would transfer 49% and 51% of its ownership in King Eagle (China) to Kun Peng (Hong Kong) Industrial Development Limited and Kun Peng Tian Yu Health Technology Co., Ltd., respectively. The ownership transfer was completed on March 3, 2023. King Eagle (China) is no longer a WFOE after the ownership transfer.

As discussed below, King Eagle (China) has entered into agreements (the "VIE Agreements") with King Eagle (Tianjin) Technology Co., Ltd. and its shareholders through which King Eagle (China) controls and receives the economic benefits of King Eagle (Tianjin) Technology Co., Ltd.'s business operations.

*King Eagle (Tianjin) Technology Co., Ltd.*

King Eagle (Tianjin) Technology Co., Ltd. ("King Eagle (Tianjin)") was incorporated as a limited liability company in Tianjin Pilot Free Trade Zone in the People's Republic of China on September 2, 2020, with a registered capital of approximately $1.5 million (RMB 10 million). We do not own any of the equity of King Eagle (Tianjin). As of the date of this Report, it is owned by the following individuals: Yuanyuan Zhang, the Chief Financial Officer of the Company (approximately 32.74%), Zhandong Fan (approximately 27.74%), Xiujin Wang (approximately 10.5%), Jinjing Zhang, Wanfeng Hu, Cuilian Liu, and Zhizhong Wang (each of whom owns approximately 6%), and Hui Teng (approximately 5%). Those shareholders were also indirect owners of KP International Holding, prior to its acquisition by the Company, through two British Virgin Islands entities: Kunpeng Tech Limited and Kunpeng TJ Limited.

Some of the business engaged in by King Eagle (Tianjin) is restricted or prohibited for foreign investment under PRC regulations. Therefore, King Eagle (China) has entered into VIE Agreements with King Eagle (Tianjin) and its shareholders. We do not own any equity interests in King Eagle (Tianjin), but control and receive the economic benefits of its business operations through the VIE Agreements. The VIE Agreements enable us to provide King Eagle (Tianjin) with consulting services on an exclusive basis in exchange for all of its annual profits, if any. In addition, we are able to appoint its senior executives and approve all matters requiring approval of its shareholders. The VIE Agreements are comprised of a Consulting Service Agreement, Business Operation Agreement, Proxy Agreement, Equity Disposal Agreement, and Equity Pledge Agreement.

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 their KPIL shares; such SAFE registration was effected on May 14, 2021. These shareholders of King Eagle (Tianjin) were required to register their equity pledge arrangement as required under the Equity Pledge Agreement with King Eagle (China). The binding rights over the VIE's subsidiaries in the contractual arrangements between King Eagle (China) and King Eagle (Tianjin) are implicit and indirect and the company laws and regulations in the PRC governing the business operations of the VIE's subsidiaries are uncertain. The Company faces uncertainty with respect to future actions by the PRC government that could significantly affect King Eagle (Tianjin)'s financial performance and the enforceability of the VIE Agreements.

*Kun Peng Tian Yu Health Technology (Tianjin) Co., Ltd.*

Kun Peng Tian Yu Health Technology Co., Ltd. ("KP Tian Yu") was incorporated as a limited liability company in Tianjin Pilot Free Trade Zone in the People's Republic of China on August 10, 2021 with a registered capital of approximately $0.7 million (RMB 5 million). It is wholly owned by KP (Hong Kong). On November 1, 2022, KP (China) entered into ownership transfer agreements with Kun Peng (Hong Kong) Industrial Development Limited and Kun Peng Tian Yu Health Technology Co., Ltd. The agreements provided that KP (China) would transfer 49% and 51% of its ownership in King Eagle (China) to Kun Peng (Hong Kong) Industrial Development Limited and Kun Peng Tian Yu Health Technology Co., Ltd., respectively. The ownership transfer was completed on March 3, 2023. ("KP Tian Yu") became a WFOE beginning March 3, 2023.

 

*King Eagle (Beijing) Technology Co., Ltd*

King Eagle (Beijing) Technology Co., Ltd ("King Eagle (Beijing)") was incorporated as a limited liability company in Beijing in the People's Republic of China on December 1, 2022 with a registered capital of $0.7 million (RMB 5 million). It is wholly owned by King Eagle (Tianjin). King Eagle (Beijing) commenced its operation of the online platform called "Kun Zhi Jian" in January 2023. This platform became one of the components in our Kun Zhi Jian Mini Program in November 2023. Since then, King Eagle (Beijing) focuses on wholesaling of health care related products and dietary supplements.

*King Eagle (Huai'an) Health Management Co., Ltd.*

King Eagle (Huai'an) Health Management Co., Ltd. ("King Eagle (Huai'an)") was established on September 19, 2023 under the laws of the People's Republic of China. with a registered capital of approximately $0.69 million (RMB 5 million). It was owned 95% by King Eagle (Tianjin) and 5% by Hunan Ant Doctor Health Service Co., Ltd. On July 19, 2024, King Eagle (Tianjin) acquired the 5% minority stake and King Eagle (Huai'an) is now 100% owned by King Eagle (Tianjin). King Eagle (Huai'an) became fully operational in October 2023 and focused on coordinating with local health care service providers to offer health screening and monitoring to the Company's customers and members. King Eagle (Huai'an) completed its deregistration on August 28, 2025.

*Kun Zhi Jian (Huai'an) Technology Co., Ltd.*

Kun Zhi Jian (Huai'an) Technology Co., Ltd**.** ("Kun Zhi Jian (Huai'an)") was established on October 26, 2023 under the laws of the People's Republic of China. with a registered capital of approximately $0.14 million (RMB 1 million). The entity is located in Jiangsu province, PRC. It is a wholly-owned subsidiary of King Eagle (Tianjin). Kun Zhi Jian (Huai'an) commenced its operations in November 2023 and primarily focused on marketing and selling physiotherapy equipment products. Kun Zhi Jian (Huai'an) completed its deregistration on August 28, 2025.

*Kun Zhi Jian (Shandong) Health Management Co., Ltd*

Kun Zhi Jian (Shandong) Health Management Co., Ltd ("Kun Zhi Jian (Shandong)") was established on January 30, 2024 under the laws of the People's Republic of China. with a registered capital of approximately $0.4 million (RMB 3 million). The entity is located in Shandong province, PRC. It is a wholly-owned subsidiary of King Eagle (Tianjin). Kun Zhi Jian (Shandong) commenced its operations in February 2024 and focuses on promoting and selling health screening devices.

*King Eagle (Hangzhou) Health Technology Co., Ltd*

King Eagle (Hangzhou) Health Technology Co., Ltd ("King Eagle (Hangzhou)") was established on July 18, 2024 under the laws of the People's Republic of China with a registered capital of approximately $0.1 million (RMB 1 million). The entity is located in Zhejiang province, PRC. It was a wholly-owned subsidiary of King Eagle (Tianjin). King Eagle (Hangzhou) commenced its operations of online sales in August 2024.

On August 8, 2024, King Eagle (Hangzhou) entered into certain agreements with Yunnan Linpingkang Pharmaceutical Co., Ltd, pursuant to which it purchased 40% of Shanxi Limei Aosikang Hospital Management Co., Ltd for the aggregate amount of $27,818 (RMB 200,000). On November 13, 2024, King Eagle (Hangzhou) entered into an agreement to transfer all of its shares of Shanxi Limei Aosikang Hospital Management Co., Ltd., for the aggregate amount of $27,818 (RMB 200,000) thereby recouping its investment.

In January 2025, King Eagle (Tianjin) entered into an agreement to transfer 55% of the outstanding shares of King Eagle (Hangzhou). The transaction, which was completed on January 17, 2025, resulted in King Eagle (Hangzhou) no longer being controlled by King Eagle (Tianjin). Upon closing the transaction, King Eagle (Tianjin) retained a 40% noncontrolling interest in King Eagle (Hangzhou) and no longer consolidates the entity. The retained interest is accounted for under the equity method pursuant to ASC 323, as King Eagle (Tianjin) retains significant influence over operating and financial policies. As a result of transfer of 55% interest in King Eagle (Hangzhou), the Company recorded a pre-tax gain on the disposal of $147,579 and equity in net losses of $36,118 in the Consolidated Statements of Operations and Comprehensive Loss for the year ended September 30, 2025.

 

*Kun Pin Hui (Shandong) Trading Co., Ltd.*

Kun Pin Hui (Shandong) Trading Co., Ltd ("Kun Pin Hui (Shandong)") was established on November 23, 2023 under the laws of the People's Republic of China with a registered capital of approximately $0.4 million (RMB 3 million). The entity is located in Shandong province, PRC. It has been a wholly-owned subsidiary of King Eagle (Tianjin) since its acquisition by King Eagle (Tianjin) on April 7, 2024. Kun Pin Hui (Shandong) commenced operations in April 2024 and is engaged in the sale of health care related products and services.

*Chengdu Wenjiang Pengrun Shangyibang Internet Healthcare Co., Ltd*

Chengdu Wenjiang Pengrun Shangyibang Internet Healthcare Co., Ltd ("Chengdu Wenjiang") was established on February 1, 2024 under the laws of the People's Republic of China with a registered capital of approximately $0.14 million (RMB 1 million). The entity is located in Sichuan province, PRC. It is a wholly-owned subsidiary of King Eagle (Tianjin). Chengdu Wenjiang has not commenced operations as of the date of this report and is applying to the relevant authorities for the necessary permits to sell health care and medical services.

*Kun Yu (Hainan) Technology Co., Ltd*

Kun Yu (Hainan) Technology Co., Ltd ("Kun Yu") was established on August 20, 2025 under the laws of the People's Republic of China with a registered capital of approximately $0.14 million (RMB 1 million). The entity is located in Hainan province, PRC. It is a wholly-owned subsidiary of King Eagle (Tianjin). Kun Yu has not commenced operations as of the date of this report.

**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Basis of Presentation*

 

The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") applicable to quarterly financial information and the requirements of Form 10-Q and Rule 8-03 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosure required by accounting principles generally accepted in the United States of America for complete financial statements. Quarterly results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the quarterly periods have been included.

These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended September 30, 2025 included in the Form 10-K filed with the SEC on December 31, 2025.

The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. This basis of accounting involves the application of accrual accounting and, consequently, revenues and gains are recognized when earned and expenses and losses are recognized when incurred. The condensed consolidated financial statements are expressed in U.S. dollars.

*Principles of Consolidation*

 

The condensed consolidated financial statements include the financial statements of the Company, its subsidiaries and its variable interest entity ("VIE"). All significant intercompany transactions and balances within the Company have been eliminated upon consolidation.

*Use of Estimates and Assumptions*

 

The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that impact the presented amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the presented amounts of revenues and expenses during the period. Actual results may differ from those estimates. Significant estimates during the quarters ended December 31, 2025 and 2024 include the collectability of receivables, the useful lives of long-lived assets and intangibles, assumptions used in assessing impairment of long-lived assets, valuation of accruals for expenses, and tax due.

 

*Going Concern*

 

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which contemplate continuation of the Company as a going concern. The going-concern basis assumes that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed on the financial statements. The Company's ability to continue as a going concern depends on the liquidation of its current assets and business developments. In assessing the Company's liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company's liquidity needs are to meet its working capital requirements, operating expenses, and capital expenditure obligations. For the quarter ended December 31, 2025, the Company incurred a substantial accumulated deficit of $9,303,561, a net loss of $265,577, and negative working capital of $8,923,443. For the year ended September 30, 2025, the Company incurred a substantial accumulated deficit of $9,037,984, a net loss of $1,268,913, and negative working capital of $8,495,197. These conditions raise substantial doubt about the ability of the Company to continue as a going concern.

The Company continues to monitor its operations to help improve its financial liquidity. Options under consideration in the review process include, but are not limited to, increase of sales through the Company's online business, reduction of operating costs, fund advance from the Company's stockholders and directors, or financing through the issuance of shares and bank loans. The Company has been focusing on increasing its revenue through its online platform and trimming its operating costs. For example, it explored additional revenue streams and reduced its service agent service fee. In order to continue as a going concern for the next 12 months, the Company continues to explore additional revenue streams, leverage the health care expertise and technology with local health care service providers, promote and sell preventive health care dietary supplements and products, and offer health care equipment-based services at the Kun Zhi Jian Customer Service Center. However, the Company cannot provide any assurance that it will be able to increase revenue, that it will be able to successfully implement its business plan, or that financing will be available to it on commercially acceptable terms, if at all. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. The directors intend to continue to support the group by providing adequate financial assistance to enable the group to continue its business operations for the foreseeable future.

*Earnings (loss) Per Share*

 

Basic income (loss) per share is computed by dividing net income (loss) attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to the holders of ordinary 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.federalreserve.gov 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 income amounted to $134,286 and $285,201 as of December 31, 2025 and September 30, 2025, respectively.

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

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| | | |
|:---|:---|:---|
|  | **Hong Kong Dollar**<br> **(HKD)** | **Chinese Renminbi**<br> **(RMB)** |
| *As of December 31, 2025 (Closing Rate)* |  |  |
| United States dollar ($1) | 7.7833 | 6.9931 |
| *For the three months ended December 31, 2025 (Average Rate)* |  |  |
| United States dollar ($1) | 7.7776 | 7.0889 |

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---

| | | |
|:---|:---|:---|
|  | **Hong Kong Dollar**<br> **(HKD)** | **Chinese Renminbi**<br> **(RMB)** |
| *As of September 30, 2025 (Closing Rate)* |  |  |
| United States dollar ($1) | 7.7809 | 7.1190 |

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| | | |
|:---|:---|:---|
|  | **Hong Kong Dollar**<br> **(HKD)** | **Chinese Renminbi**<br> **(RMB)** |
| *For the three month period ended December 31, 2024 (Average Rate)* |  |  |
| United States dollar ($1) | 7.7744 | 7.1896 |

---

*Cash and Cash Equivalents*

 

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and a certain amount of cash kept in electronic wallets, "e-wallets."

We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain accounts with various financial institutions in the PRC, and also e-wallets. As of December 31, 2025 and September 30, 2025, cash balances held in PRC banks are uninsured. Monies that are held in e-wallets are deemed equivalent to cash, are highly liquid, and are relatively unsafe compared to cash in banks. We have not experienced any losses in bank accounts or e-wallets and believe that we are not exposed to significant risks with respect to our cash in bank accounts and that we are exposed to low risk with respect to our cash kept in e-wallets.

 

*Inventory*

Inventory consists of finished goods, which include wines, gel and essence for beauty, ointment for health, prepaid cards and detection kits.. Inventory is measured at the lower of cost or net realizable value on a first-in, first-out basis. When evidence exists that the net realizable value of inventory is lower than its cost, provisions shall be made to write inventory down and a loss shall be recognized in earnings in the period in which it occurs. That loss may be required, for example, due to damage, physical deterioration, obsolescence, changes in price levels, or other reasons. As of December 31, 2025, there was no inventory located at third-party warehouses. The Company has not recorded impairment of inventory as of December 31, 2025 and September 30, 2025.

 

*Property and Equipment*

 

Property and equipment are stated at cost less accumulated depreciation and impairment losses. Gains and losses on dispositions of property and equipment are included in operating income (loss). Major additions, renewals, and improvements are capitalized, while maintenance and repairs are recognized as expense as incurred.

Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the useful lives of the assets as follows:

---

| | |
|:---|:---|
| Classification | Estimated<br> useful life |
| Leasehold improvements | 1-3 years |
| Furniture and fixtures | 3 years |
| Computer equipment | 3 years |
| Office equipment | 3 years |

---

 

*Intangible Assets*

 

Intangible assets represent the licensing cost for trademark registration. For intangible assets with indefinite lives, the Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. Intangible assets with definite lives are amortized over their estimated useful lives, and are reviewed annually for impairment. The Company has not recorded impairment of intangible assets as of December 31, 2025 and September 30, 2025.

 

*Impairment of Long-lived Assets*

 

Long-lived assets, including buildings and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. We assess the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When we identify an impairment, we reduce the carrying amount of the asset to the estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2025 and September 30, 2025, management determined that there was no impairment.

 

*Investment in associate held for sale*

Pursuant to ASC 323, the associate is accounted for using the equity method of accounting as the Company has the ability to exercise significant influence over operating and financial policies of the investee but does not have a controlling financial interest. Our judgment regarding the level of influence over an equity method investment includes considering key factors such as our ownership interest, representation on the board of directors, participation in policy making decisions and material intercompany transactions. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of the equity method investee and a corresponding increase or decrease to the investment balance. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The Company intends to sell its stake in King Eagle (Hangzhou) and evaluates the sale to be unachievable in the near future.

As of December 31, 2025 and September 30, 2025, the investments in associate held for sale at equity of the Company were $11,018 and $19,595, respectively.

*Fair Value Measurements*

 

The Company applies the provisions of ASC Subtopic 820-10, "Fair Value Measurements," for fair value measurements of financial assets and financial liabilities and for fair value measurements of non-financial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

The Company's financial assets and liabilities include cash, receivables, accounts payable, and accrued expenses.

 

*Related Party Transactions*

 

The Company follows the ASC 850-10, "Related Party Disclosures" for the identification of related parties and disclosure of related party transactions.

Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825-10-15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented; and c) such other information deemed necessary to an understanding of the nature of the related party transactions.

 

*Comprehensive Income (Loss)*

 

Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders' equity. Our other comprehensive loss for the quarters ended December 31, 2025 and 2024 was comprised of foreign currency translation adjustments.

 

 

*Accounts receivables and allowance for doubtful accounts*

Accounts receivable, including other receivables is presented net of allowance for doubtful accounts. Our other receivable consists mainly of deposits and advances. The provision for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of the financial asset, based on historical experience, current conditions and reasonable forecasts of future economic conditions. Further, we evaluate the collectability of our accounts receivable and if there is doubt that we will collect the full amount, we will record a reserve specific to that customer's receivable balance. There was no allowance for expected credit loss as of December 31, 2025 and September 30, 2025.

*Revenue Recognition*

 

Revenue is comprised of sales of goods and represents the amount of consideration the Company is entitled to upon the transfer of goods. Pursuant to FASB ASU No. 2016-08, Revenue from Contracts with Customers (TOPIC 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), the Company recorded revenue on a gross basis, net of surcharges and value added tax ("VAT") of gross sales. The Company recorded revenue on a gross basis because the Company is the primary obligor of the sales arrangements has latitude in establishing prices, has discretion in suppliers' selection and assumes credit risks on receivables on gross sales from customers.

The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:

● identify the contract with a customer;

● identify the performance obligations in the contract;

● determine the transaction price;

● allocate the transaction price to performance obligations in the contract; and

● recognize revenue as the performance obligation is satisfied.

Consistent with the criteria of ASC 606 "Revenue from Contracts with Customers," we recognize revenue when performance obligations are satisfied by transferring control of a promised good or service to a customer. For performance obligations that are satisfied at a point in time, we also consider the following indicators to assess whether control of a promised good or service is transferred to the customer: (i) right to payment, (ii) legal title, (iii) physical possession, (iv) significant risks and rewards of ownership, and (v) acceptance of the good or service. For performance obligations satisfied over time, we recognize revenue over time by measuring the progress toward complete satisfaction of a performance obligation.

The Company recognizes sales of goods as revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been shipped to our customers.

The Company provide health equipment-based services to customers for the use of health equipment. Equipment are either purchased by the Company or displayed in the Company's office by equipment suppliers. Revenue is recognized overtime based on the number of times that the customer use the service. Customer confirms the records after the use of service. Service revenue and cost of the service recognized when the customer uses the equipment. Cost of service includes the depreciation of the equipment purchased recognized on a straight-line basis and cost of technical service fee.

*Contract Liabilities*

Contract liabilities results from transactions where the Company has received the payments from the customers but revenue recognition criteria under the five-step model of ASC Topic 606 have yet to be met. Once all revenue recognition criteria have been satisfied, the revenues will be recognized upon the transfer of risk and rewards to the customers in the consolidated statement of operations. We anticipated the majority of the revenue will be recognized in the fiscal year 2026.

 

*Lease*

 

Under ASC Topic 842, the Company determines if an arrangement is a lease at inception. If so, the lease is classified as either a finance lease or an operating lease at commencement based on the criteria in ASC 842-10-25-2. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Company's incremental borrowing rate based on the information available at the lease commencement date. The Company generally uses the base, non-cancelable lease term in calculating the right-of-use assets and lease liabilities. Finance lease items are presented separately from operating leases.

The Company may recognize the lease payments in the condensed consolidated statements of operation on a straight-line basis over the lease terms and variable lease payments in the periods in which the obligations for those payments are incurred, if any. The lease payments under the lease arrangements are fixed.

The Company elected the package of practical expedients which allow the Company to carryforward its historical lease classification, its assessment on whether a contract is or contains a lease, and its initial direct costs for any lease that exists prior to adoption of the new standard.

The Company also elected to apply the short-term lease exception for lease arrangements with a lease term of 12 months or less at commencement. Lease terms used to compute the present value of lease payments do not include any option to extend, renew, or terminate the lease that the Company is not reasonably certain to exercise upon the lease inception. Accordingly, operating lease right-of-use assets and liabilities do not include leases with a lease term of 12 months or less.

*General and Administrative Expenses*

We purchase the consumer preventive health food and health related household products sold on our platforms from our suppliers and 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 capitalizing the compensation costs of our in-house technology team as research and development on our balance sheet or presenting it as research and development expenses, we included these amounts in employee compensation and benefit expenses within general and administrative expenses for the quarters ended December 31, 2025 and 2024.

 

*Selling Expenses*

 

Selling expenses consist primarily of marketing and promotional service fees to service agents and other costs incurred by our sales and marketing department such as staff costs, office supplies, and other incidental expenses that are incurred directly to attract or retain customers.

Our selling expenses for the quarters ended December 31, 2025 and 2024 were $129,310 and $346,489, respectively. We recognized marketing and promotional service expenses when our service agents performed marketing activities, promotions, and exhibitions for our business and products. For the quarters ended December 31, 2025 and 2024, we recorded marketing and promotional service fees to our service agents in an amount of $44,405 and $161,184, respectively.

 

*Concentration of Risk*

 

Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of domestic cash and cash equivalents, other monetary assets, trade receivables, and other receivables. As of December 31, 2025 and September 30, 2025, $161,461 (RMB1,129,113) and $127,971 (RMB911,026), respectively, were deposited with various major financial institutions located in the PRC. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.

Historically, deposits in Chinese banks are secure due to state policy to protect depositor interests. However, China promulgated a Bankruptcy Law in August 2006 that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures to provide for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the current Bankruptcy Law, a Chinese bank may file bankruptcy if it deems itself to be insolvent. In addition, since China's concession to the World Trade Organization, foreign banks have been gradually permitted to operate in China and have intensified competition in many aspects, especially since the opening of the Renminbi business to foreign banks in late 2006. Therefore, the risk of bankruptcy at the institutions that the Company maintains deposits has increased. In the event of bankruptcy, the Company is unlikely to reclaim its deposits in full since it is unlikely to be classified as a secured creditor under PRC laws.

Risks of variable interest entity structure

In the opinion of management, (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the VIE Arrangements are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the business operations of the foreign-invested enterprise and the VIE are in compliance with existing PRC laws and regulations in all material respects.

However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to the foregoing opinion of its management. If the current corporate structure of the Company or the VIE Arrangements is found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its corporate structure and operations in the PRC to comply with changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company's current corporate structure or the VIE Arrangements is remote based on current facts and circumstances.

Foreign currency exchange risk

The value of the RMB against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions and the foreign exchange policy adopted by the PRC government. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. There remains significant international pressure on the PRC government to adopt a more flexible currency policy, which could result in greater fluctuation of the RMB against the U.S. dollar. The Company is a holding company and it relies on dividends paid by the Company's operating subsidiaries in China for its cash needs. Any significant revaluation of the RMB may materially and adversely affect its liquidity and cash flows. To the extent that the Company needs to convert U.S. dollars into RMB for its operations, appreciation of the RMB against the U.S. dollar would have an adverse effect on the RMB amount the Company would receive. Conversely, if the Company decides to convert RMB into U.S. dollars for other business purposes, appreciation of the U.S. dollar against the RMB would have a negative effect on the U.S. dollar amount the Company would receive.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty raising liquid funds to meet commitments as they fall due. In meeting its liquidity requirements, the Company continues to focus on increasing its revenue through the sale of consumer health care products on its online platform, King Eagle Mall, and promoting its own brand of preventive health care related products on its online platform to reduce its costs of goods sold, streamlining its overhead costs, or obtaining financing from its stockholders or directors or through bank financing. However, the Company cannot provide any assurance that it will be able to increase revenue or successfully implement its business plan, or that financing will be available to it on commercially acceptable terms, or at all. The directors will continue to support the group by providing adequate financial assistance to enable the group to continue its business operations for the foreseeable future.

These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which contemplate continuation of the Company as a going concern. The Company's ability to continue as a going concern is dependent upon generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. For the quarter ended December 31, 2025, the Company incurred a net loss of $265,577, and had negative working capital of $8,923,443. These conditions raise substantial doubt about the ability of the Company to continue as a going concern.

Concentration of customers and vendors

For the quarter ended December 31, 2025, there were no major customers that individually represent greater than 10% of the Company's total revenues.

There was no revenue from customers that individually represent greater than 10% of the total revenue for the quarter ended December 31, 2024.

For the quarter ended December 31, 2025, there were no major vendors that individually represent greater than 10% of the Company's total cost of revenues.

For the quarter ended December 31, 2024, two major vendors accounted for 47.09% and 21.65% of the Company's total cost of revenues.

*Income Taxes*

 

We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date.

We apply ASC 740, *Accounting for Income Taxes*, to account for uncertainty in income taxes and the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met.

*Commitments and Contingencies*

 

The Company follows the ASC 450-20, "Contingencies" to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company's financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company's business, financial position, and results of operations or cash flows.

 

*Segment Reporting*

The Company adopted ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280) since the year ended September 30, 2025. ASC 280 defines that an operating segment is a component of a public entity with a discrete financial information and operating results available for regular review by the entity's Chief Operating Decision Maker ("CODM"). The Company's CODM is the CFO who review financial information presented on a consolidated basis, using single measure of operating profit and a total of expense amount. No disaggregated expense categories are regularly reviewed by the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Under ASC 280, an operating segment is a component of the Company whose operating results are regularly reviewed by the CODM to allocate resources and assess performance. Since the CODM does not review discrete financial information for individual business activities on a regular basis, those activities do not meet the definition of operating segments. As such, one reportable geographic segment is being presented.

*Non-controlling Interest*

For the Company's non-wholly owned subsidiaries, a non-controlling interest is recognized to reflect the portion of equity that is not attributable, directly or indirectly, to the Company. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Company are presented on the consolidated statement of operations as an allocation of the total income or loss for the year between non-controlling interest holders and the shareholders of the Company.

**Recent Accounting Pronouncements**

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income (Topic 220-40): Expense Disaggregation Disclosures ("ASU 2024-03"). This update requires, among other things, more detailed disclosure about types of expenses in commonly presented expense captions such as cost of sales and selling, general, and administrative expenses, and is intended to improve the disclosures about an entity's expenses including purchases of inventory, employee compensation, depreciation and amortization. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact of the ASU 2024-03 on its consolidated financial statements and related disclosures.

In January 2025, the FASB issued ASU 2025-01 Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40). The FASB issued ASU 2024-03 on November 4, 2024. ASU 2024-03 states that the amendments are effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Following the issuance of ASU 2024-03, the FASB was asked to clarify the initial effective date for entities that do not have an annual reporting period that ends on December 31 (referred to as non-calendar year-end entities). Because of how the effective date guidance was written, a non-calendar year-end entity may have concluded that it would be required to initially adopt the disclosure requirements in ASU 2024-03 in an interim reporting period, rather than in an annual reporting period. The FASB's intent in the basis for conclusions of ASU 2024-03 is clear that all public business entities should initially adopt the disclosure requirements in the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets ("ASU 2025-05"). The amendments in ASU 2025-05 provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, Revenue from Contracts with Customers ("ASC 606") by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life of the asset. ASU 2025-05 is effective for the Company for its annual reporting periods beginning July 1, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact ASU 2025-05 will have on its consolidated financial statements.

Other than those disclosed above, management does not believe that any recently issued or recently issued but not yet adopted accounting pronouncements will have a material impact on the Company's financial position, results of operations, or cash flows.

**NOTE 3 - VARIABLE INTEREST ENTITIES "VIE" ARRANGEMENTS**

On May 15, 2021, King Eagle (China) entered into a series of contractual arrangements with King Eagle (Tianjin) and its shareholders. As a result of the contractual arrangements, the Company classified King Eagle (Tianjin) as a Variable Interest Entity "VIE."

King Eagle (Tianjin) was incorporated as a limited liability company in Tianjin Pilot Free Trade Zone in the People's Republic of China on September 2, 2020, with a registered capital of approximately $1.5 million (RMB 10 million). As of December 31, 2025, it is owned by the following individuals: Yuanyuan Zhang (approximately 32.74%), Zhandong Fan (approximately 27.74%), Xiujin Wang (approximately 10.52%), Jinjing Zhang, Wanfeng Hu, Cuilian Liu, and Zhizhong Wang (each of whom owns approximately 6.00%), and Hui Teng (approximately 5.00%). Those shareholders also indirectly owned KP International Holding prior to its acquisition by the Company through two British Virgin Islands entities: Kunpeng Tech Limited and Kunpeng TJ Limited.

The VIE Agreements are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consulting
 Service Agreement

(2) Business
 Operation Agreement

(3) Proxy
 Agreement

(4) Equity
 Disposal Agreement

(5) Equity
 Pledge Agreement

*Consulting Service Agreement*

Pursuant to the terms of a certain Exclusive Consulting Service Agreement dated May 15, 2021, between King Eagle (China) and King Eagle (Tianjin) (the "Consulting Service Agreement"), King Eagle (China) is the exclusive consulting service provider to King Eagle (Tianjin) to provide business-related software research and development services; design, installation, and testing services; network equipment support, upgrade, maintenance, monitor, and problem-solving services; employees technical training services; technology development and sublicensing services; public relations services; market investigation, research, and consultation services; short to medium term marketing plan-making services; compliance consultation services; marketing events and membership related activities organizing services; intellectual property permits; equipment and rental services; and business-related management consulting services. Pursuant to the Consulting Service Agreement, the service fee is the remaining amount after King Eagle (Tianjin)'s profit before tax in the corresponding year deducts King Eagle (Tianjin)'s losses, if any, in the previous year, the necessary costs, expenses, taxes, and fees incurred in the corresponding year, and the withdraws of the statutory provident fund. King Eagle (Tianjin)agreed not to transfer its rights and obligations under the Consulting Service Agreement to any third party without prior written consent from King Eagle (China). In addition, King Eagle (China) may transfer its rights and obligations under the Consulting Service Agreement to King Eagle (China)'s affiliates without King Eagle (Tianjin)'s consent, but King Eagle (China) shall notify King Eagle (Tianjin) of such transfer. This Agreement is valid for a term of 10 years subject to any extension requested by King Eagle (China) unless terminated by King Eagle (China) unilaterally prior to the expiration.

 

*Business Operation Agreement*

Pursuant to the terms of certain Business Operation Agreement dated on May 15, 2021, among King Eagle (China), King Eagle (Tianjin)and the shareholders of King Eagle (Tianjin) (the "Business Operation Agreement"), King Eagle (Tianjin) has agreed to subject the operations and management of its business to the control of King Eagle (China). According to the Business Operation Agreement, King Eagle (Tianjin) is not allowed to conduct any transactions that has substantial impact upon its operations, assets, rights, obligations and personnel without the King Eagle (China)'s written approval. The shareholders of King Eagle (Tianjin) and King Eagle (Tianjin) will take King Eagle (China) 's advice on appointment or dismissal of directors, employment of King Eagle (Tianjin)'s employees, regular operation, and financial management of King Eagle (Tianjin). The shareholders of King Eagle (Tianjin) have agreed to transfer any dividends, distributions or any other profits that they receive as the shareholders of King Eagle (Tianjin) to King Eagle (China) without consideration. The Business Operation Agreement is valid for a term of 10 years or longer upon the request of King Eagle (China) prior to the expiration thereof. The Business Operation Agreement might be terminated earlier by King Eagle (China) with a 30-day written notice.

*Proxy Agreement*

Pursuant to the terms of the Proxy Agreement dated on May 15, 2021, among King Eagle (China), and the shareholders of King Eagle (Tianjin) (the "Proxy Agreement"), the shareholders of King Eagle (Tianjin) have entrusted their voting rights as King Eagle (Tianjin)'s shareholders to King Eagle (China) for the longest duration permitted by PRC law. The Proxy Agreement can be terminated by mutual consent of the King Eagle (Tianjin) shareholders and King Eagle (China) or upon a 30-day notice by King Eagle (China).

*Equity Disposal Agreement*

Pursuant to the terms of the Equity Disposal Agreement dated on May 15, 2021, among King Eagle (China), King Eagle (Tianjin), and the shareholders of King Eagle (Tianjin) (the "Equity Disposal Agreement"), the shareholders of King Eagle (Tianjin) granted King Eagle (China) or its designees an irrevocable and exclusive purchase option (the "Option") to purchase King Eagle (Tianjin)'s all or partial equity interests and/or assets at the lowest purchase price permitted by PRC laws and regulations. The option is exercisable at any time at King Eagle (China)'s discretion in full or in part, to the extent permitted by PRC law. The shareholders of King Eagle (Tianjin) agreed to give King Eagle (Tianjin) the total amount of the exercise price as a gift, or in other methods upon King Eagle (China)'s written consent to transfer the exercise price to King Eagle (Tianjin). The Equity Disposal Agreement is valid for a term of 10 years or longer upon the request of King Eagle (China).

*Equity Pledge Agreement*

Pursuant to the terms of certain Equity Pledge Agreement dated on May 15, 2021, among King Eagle (China) and the shareholders of King Eagle (Tianjin) (the "Pledge Agreement"), the shareholders of King Eagle (Tianjin) pledged all of their equity interests in King Eagle (Tianjin) to King Eagle (China), including the proceeds thereof, to guarantee King Eagle (Tianjin)'s performance of its obligations under the Business Operation Agreement, the Consulting Service Agreement and the Equity Disposal Agreement (each, an "Agreement," collectively, the "Agreements"). If King Eagle (Tianjin) or its shareholders breach their respective contractual obligations under any Agreement, or cause to occur one of the events regarded as an event of default under any Agreement, King Eagle (China), as pledgee, will be entitled to certain rights, including the right to dispose of the pledged equity interest in King Eagle (Tianjin). During the term of the Pledge Agreement, the pledged equity interests cannot be transferred without King Eagle (China)'s prior written consent. The Pledge Agreement is valid until all the obligations due under the Agreements have been fulfilled.

On June 10, 2025, King Eagle China, King Eagle Tianjin, and the shareholders of King Eagle Tianjin, including the transferees of the Original Shareholder who transferred his equity interests, entered into new VIE Agreements (the "New VIE Agreements") consisting of a Business Operation Agreement, an Agency Agreement, an Equity Disposal Agreement, and an Equity Pledge Agreement. The originally executed Exclusive Consultation and Service Agreement, as amended, remains in effect. The New VIE Agreements, along with the Exclusive Consultation and Service Agreement, continue King Eagle Tianjin's status as a variable interest entity and allow King Eagle China to control and receive the economic benefits of King Eagle Tianjin's business operations.

A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as voting rights and the right to receive the expected residual returns of the entity or the obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. King Eagle (China) is deemed to have a controlling financial interest and be the primary beneficiary of King Eagle (Tianjin) because it has both of the following characteristics:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 power to direct the activities of King Eagle (Tianjin) that most significantly impact such entity's economic performance, and

(2) The
 obligation to absorb losses of, or the right to receive benefits from, King Eagle (Tianjin) that could potentially be significant
 to such entity.

As of the date of this Quarterly Report, King Eagle (Tianjin) has five wholly-owned subsidiaries and one 40% owned subsidiary: King Eagle (Beijing) Technology Co., Ltd, Kun Zhi Jian (Shandong) Health Management Co., Ltd, Chengdu Wenjiang Pengrun Shangyibang Internet Healthcare Co., Ltd. and Kun Yu (Hainan) Technology Co., Ltd, which were established by King Eagle (Tianjin) on December 1, 2022, January 30, 2024, February 1, 2024 and August 20, 2025, respectively, in the PRC and Kun Pin Hui (Shandong) Trading Co., Ltd., which was established in the PRC on November 23, 2023 and acquired by King Eagle (Tianjin) on April 7, 2024; 40% shares owned in King Eagle (Hangzhou), incorporated on July 18, 2024 (55% was disposed during the year and as at September 30, 2025). King Eagle (Tianjin) is the controlling shareholder under the company laws of the PRC. The binding rights over the VIE's subsidiaries in the contractual arrangements between King Eagle (China) and King Eagle (Tianjin) are implicit and indirect and the company laws and regulations in the PRC governing the business operations of the VIE's subsidiaries are uncertain.

Pursuant to the VIE Agreements, the shareholders of King Eagle (Tianjin) have agreed to transfer any dividends, distributions, or other profits that they receive to King Eagle (China). King Eagle (Tianjin) pays service fees equal to all of its net profit after tax to King Eagle (China). The VIE Agreements are designed so that King Eagle (Tianjin) operates for the benefit of King Eagle (China) and ultimately the Company.

Moreover, King Eagle (Tianjin) has agreed to subject the operations and management of its business to the full control of King Eagle (China) and King Eagle (Tianjin) will take King Eagle (China)'s advice on the appointment or dismissal of directors and employment, regular operation, and financial management. Accordingly, the Company consolidates the accounts of King Eagle (Tianjin) and its subsidiaries for the periods presented herein, in accordance with Accounting Standards Codification, or ASC, 810-10, "Consolidation."

**VIE Financial Information**

Set forth below is the condensed consolidated balance sheet information as of December 31, 2025 and September 30, 2025, and the condensed consolidated statements of operations and cash flows for the three month periods ended December 31, 2025 and 2024, showing financial information for the parent company, Kun Peng International Limited, the non-VIE subsidiaries (as defined below), and the VIE (as defined below), eliminating entries, and consolidated information (in dollars). In the tables below, the column headings correspond to the following entities:

"Parent entity" refers to Kun Peng International Limited;

"Non-VIE and Non-WFOE subsidiaries" refers to the following entities:

● Kun Peng International Holding Limited ("KP International Holding")

● Kun Peng (Hong Kong) Industrial Development Limited ("KP (Hong Kong)")

● King Eagle (China) Co., Ltd. ("King Eagle (China)")

"WFOE" refers to King Eagle (China) until March 3, 2023 and KP Tian Yu commencing March 3, 2023;

"VIE" refers to King Eagle (Tianjin), King Eagle (Beijing), Kun Zhi Jian (Shandong), Chengdu Wenjiang Kun Pin Hui (Shandong) and Kun Yu.

***Condensed Consolidated Balance Sheet***

As of December 31, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Parent Only | Non-VIE and<br> Non-WFOE Subsidiaries Consolidated | WFOE | VIE and<br> VIE's<br> Subsidiaries Consolidated | Elimination<br> Entries and<br> Reclassification<br> Entries | Consolidated |
| Cash and cash equivalent | $- | $854 | $76 | $31500 | $- | $32430 |
| Intercompany receivables-current | 245821 | 316624 |  | 2507100 | (3069545) |  |
| Total current assets | 245821 | 324265 | 290 | 3099027 | (3069545) | 599858 |
| Intercompany receivables-noncurrent |  | 4 |  |  | (4) |  |
| Total non-current assets | 34160 | 2204 |  | 403207 | (34164) | 405407 |
| Total assets | 279981 | 326469 | 290 | 3502234 | (3103709) | 1005265 |
| Intercompany payables | 1306169 | 1711938 | 1086 | 64296 | (3083489) |  |
| Total current liabilities | 1357334 | 1765384 | 1300 | 9482772 | (3083489) | 9523301 |
| Total non-current liabilities |  |  |  | 86297 |  | 86297 |
| Total liabilities | 1357334 | 1765384 | 1300 | 9569069 | (3083489) | 9609598 |
| Total shareholders' equity | (1077353) | (1438915) | (1010) | (6066835) | (20220) | (8604333) |
| Non-controlling interests |  |  |  |  |  |  |
| Total equity | (1077353) | (1438915) | (1010) | (6066835) | (20220) | (8604333) |
| Total liabilities and equity | $279981 | $326469 | $290 | $3502234 | $(3103709) | $1005265 |

---

As of September 30, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Parent Only | Non-VIE and<br> Non-WFOE Subsidiaries Consolidated | WFOE | VIE and<br> VIE's<br> Subsidiaries Consolidated | Elimination<br> Entries and Reclassification<br> Entries | Consolidated |
| Cash and cash equivalent | $- | $805 | $88 | $25391 | $- | $26284 |
| Intercompany receivables-current | 245821 | 625960 |  | 2732021 | (3603802) |  |
| Total current assets | 245821 | 633797 | 552 | 3223079 | (3603802) | 499447 |
| Intercompany receivables-noncurrent |  | 4 |  |  | (4) |  |
| Total non-current assets | 34160 | 2259 |  | 339107 | (34164) | 341362 |
| Total assets | 279981 | 636056 | 552 | 3562186 | (3637966) | 840809 |
| Intercompany payables | 1223019 | 2012945 | 1236 | 154451 | (3391651) |  |
| Total current liabilities | 1298719 | 2060771 | 1510 | 9025295 | (3391651) | 8994644 |
| Total non-current liabilities |  |  |  | 34006 |  | 34006 |
| Total liabilities | 1298719 | 2060771 | 1510 | 9059301 | (3391651) | 9028650 |
| Total shareholders' equity | (1018738) | (1424715) | (958) | (5497115) | (246315) | (8187841) |
| Non-controlling interests |  |  |  |  |  |  |
| Total equity | (1018738) | (1424715) | (958) | (5497115) | (246315) | (8187841) |
| Total liabilities and equity | $279981 | $636056 | $552 | $3562186 | $(3637966) | $840809 |

---

***Condensed Consolidated Statements of Operations***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** |
|  | **Parent <br> Only** | **Non-VIE<br> and <br> Non-WFOE <br> Subsidiaries <br> Consolidated** | **WFOE** | **VIE and <br> VIE's <br> Subsidiaries <br> Consolidated** | **Eliminating <br> Adjustments** | **Consolidated <br> Totals** |
| Revenue | $- | $- | $- | $174824 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $174824 |
| Intercompany revenue |  |  |  |  |  |  |
| Cost of revenue and related tax |  |  |  | 113863 |  | 113863 |
| Gross profit |  |  |  | 60961 |  | 60961 |
| Total operating expenses | 58615 | 2167 | 14 | 297078 |  | 357874 |
| Intercompany operating expenses |  |  |  |  |  |  |
| Loss from operations | (58615) | (2167) | (14) | (236117) |  | (296913) |
| Other income, net |  | 12926 |  | 18410 |  | 31336 |
| (Loss) income before income taxes | (58615) | 10759 | (14) | (217707) |  | (265577) |
| Income tax expense |  |  |  |  |  |  |
| Net (loss) income | $(58615) | $10759 | $(14) | $(217707) | $- | $(265577) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** |
|  | **Parent <br> Only** | **Non-VIE<br> and <br> Non-WFOE <br> Subsidiaries <br> Consolidated** | **WFOE** | **VIE and <br> VIE's <br> Subsidiaries <br> Consolidated** | **Eliminating <br> Adjustments** | **Consolidated <br> Totals** |
| Revenue | $- | $- | $- | $356519 | $- | $356519 |
| Intercompany revenue |  | 137778 |  |  | (137778) |  |
| Cost of revenue and related tax |  | 225 |  | 55458 |  | 55683 |
| Gross profit |  | 137553 |  | 301061 | (137778) | 300836 |
| Total operating expenses | 135349 | 175744 | 7 | 687822 |  | 998922 |
| Intercompany operating expenses |  |  |  | 137778 | (137778) |  |
| Loss from operations | (135349) | (38191) | (7) | (524539) |  | (698086) |
| Other (expense) income, net |  | (362) |  | 45407 | 2034 | 47079 |
| Loss before income taxes | (135349) | (38553) | (7) | (479132) | 2034 | (651007) |
| Income tax expense |  |  |  |  |  |  |
| Net (loss) income | $(135349) | $(38553) | $(7) | $(479132) | $2034 | $(651007) |

---

***Condensed Consolidated Schedules of Cash Flows***

 ****

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** |
|  | **Parent <br> Only** | **Non-VIE and <br> Non-WFOE <br> Subsidiaries <br> Consolidated** | **WFOE** | **VIE and<br> VIE's<br> Subsidiary<br> Consolidated** | **Eliminating <br> Adjustments** | **Consolidated** |
| Net (loss) income | $(58615) | $10759 | $(14) | $(217707) | $- | $(265577) |
| Intercompany receivables |  | 316273 |  | 286714 | (602987) | - |
| Intercompany payables | 83150 | (332158) | (170) | (354920) | 604098 |  |
| Net cash provided by operating activities |  | 33 | 7 | 35248 | 1111 | 36399 |
| Net cash provided by investing activities |  |  |  |  |  |  |
| Net cash used in financing activities |  |  |  | (29920) |  | (29920) |
| Effect of exchange rate fluctuation on cash | $- | $16 | $(19) | $781 | $(1111) | $(333) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** |
|  | **Parent <br> Only** | **Non-VIE and <br> Non-WFOE <br> Subsidiaries <br> Consolidated** | **WFOE** | **VIE and<br> VIE's<br> Subsidiary<br> Consolidated** | **Eliminating <br> Adjustments** | **Consolidated** |
| Net loss | $(135349) | $(38553) | $(7) | $(479132) | $2034 | $(651007) |
| Intercompany receivables |  | (43042) |  | (340911) | 383953 |  |
| Intercompany payables | 159349 | 34202 |  | 192559 | (386110) |  |
| Net cash provided by (used in) operating activities |  | 1308 | (7) | 44686 | (123) | 45864 |
| Net cash (used in) provided by investing activities |  |  |  | (53507) | 42437 | (11070) |
| Net cash provided by (used in) financing activities |  |  |  | 153487 | (40732) | 112755 |
| Effect of exchange rate fluctuation on cash | $- | $(1557) | $(3) | $(19199) | $(1583) | $(22342) |

---

The Company consolidated its VIE as of December 31, 2025 and September 30, 2025. The carrying amounts and classification of the VIE's assets and liabilities included in the consolidated balance sheets are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **September 30, <br> 2025** |
| Assets |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $31500 | $25391 |
| &nbsp;&nbsp;&nbsp;Trade receivables – third parties | 14555 |  |
| &nbsp;&nbsp;&nbsp;Trade receivables – intercompany | 2507100 | 2732021 |
| &nbsp;&nbsp;&nbsp;Advance and prepayments | 15015 | 26594 |
| &nbsp;&nbsp;&nbsp;Other receivables – third parties | 113794 | 101368 |
| &nbsp;&nbsp;&nbsp;Inventory | 2640 | 6086 |
| &nbsp;&nbsp;&nbsp;Amount due from a related party | 414423 | 331619 |
| Total current assets | 3099027 | 3223079 |
| Noncurrent assets |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 83726 | 118508 |
| &nbsp;&nbsp;&nbsp;Investment in associate held for sale | 11018 | 19595 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 245403 | 89073 |
| &nbsp;&nbsp;&nbsp;Finance lease right-of-use assets | 63060 | 111931 |
| &nbsp;&nbsp;&nbsp;Total noncurrent assets | 403207 | 339107 |
| Total assets | $3502234 | $3562186 |
| Liabilities |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Short-term borrowing | $97525 | $100014 |
| &nbsp;&nbsp;&nbsp;Trade payables | 2013365 | 1961252 |
| &nbsp;&nbsp;&nbsp;Other payables and accrual | 1683675 | 1561206 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 335141 | 294618 |
| &nbsp;&nbsp;&nbsp;Intercompany payables | 64296 | 154451 |
| &nbsp;&nbsp;&nbsp;Payroll payable | 164862 | 158427 |
| &nbsp;&nbsp;&nbsp;Tax payable | 137639 | 129631 |
| &nbsp;&nbsp;&nbsp;Amounts due to related parties | 4797182 | 4537914 |
| &nbsp;&nbsp;&nbsp;Operating lease obligations-current portion | 150289 | 52017 |
| &nbsp;&nbsp;&nbsp;Finance lease obligations-current portion | 38798 | 75765 |
| Total current liabilities | 9482772 | 9025295 |
| Noncurrent liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease obligations-noncurrent portion | 86297 | 34006 |
| Total noncurrent liabilities | 86297 | 34006 |
| Total liabilities | 9569069 | 9059301 |
| Commitment and contingencies |  |  |
| Equity |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 621184 | 621184 |
| &nbsp;&nbsp;&nbsp;Accumulated deficits | (6562117) | (6344410) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | (125902) | 226111 |
| Total stockholders' equity | (6066835) | (5497115) |
| Non-controlling interests |  |  |
| Total equity | (6066835) | (5497115) |
| Total liabilities and equity | $3502234 | $3562186 |

---

The operating results of the VIE were as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| Revenue, net | $174824 | $356519 |
| Cost of revenue | (113863) | (55458) |
| Gross profit | 60961 | 301061 |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 168703 | 363552 |
| &nbsp;&nbsp;&nbsp;Intercompany selling expense |  | 137778 |
| &nbsp;&nbsp;&nbsp;Selling expense | 128375 | 324270 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 297078 | 825600 |
| Loss from operations | (236117) | (524539) |
| Other income, net: |  |  |
| Interest income | 71 | 10 |
| Other income | 27149 | 45397 |
| Equity in net losses | (8810) | - |
| Total other income, net | 18410 | 45407 |
| Loss before income taxes | (217707) | (479132) |
| Income tax expense | - | - |
| Net loss | (217707) | (479132) |
| Less: Net loss attributable to non-controlling interest | - | (5529) |
| Net loss attributable to the VIE | $(217707) | $(473603) |

---

The cash flows of the VIE were as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(217707) | $(479133) |
| **Adjustments to reconcile net loss to net cash provided by operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 18940 | 32774 |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 81647 | 87218 |
| &nbsp;&nbsp;&nbsp;Equity in net losses | 8810 |  |
| &nbsp;&nbsp;&nbsp;Gain on disposal of equipment | (27464) |  |
| **Changes in operating assets and liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Advance and prepayments | 11895 | 119310 |
| &nbsp;&nbsp;&nbsp;Trade receivable - third parties |  |  |
| &nbsp;&nbsp;&nbsp;Trade receivable - intercompany | 55461 | (123715) |
| &nbsp;&nbsp;&nbsp;Other receivables - third parties | (10458) | 44664 |
| &nbsp;&nbsp;&nbsp;Other receivable-related parties | 11285 | 34362 |
| &nbsp;&nbsp;&nbsp;Other receivables - intercompany | 231253 | (217196) |
| &nbsp;&nbsp;&nbsp;Inventory | 3506 | (3090) |
| &nbsp;&nbsp;&nbsp;Trade payable - third parties | 58450 | 54231 |
| &nbsp;&nbsp;&nbsp;Trade payable - intercompany | (118817) | 168588 |
| &nbsp;&nbsp;&nbsp;Other payables and accrual - third parties | 93085 | 44701 |
| &nbsp;&nbsp;&nbsp;Other payables and accrual - intercompany | (236103) | 23971 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 20384 | 32913 |
| &nbsp;&nbsp;&nbsp;Payroll payable | 3534 | 39171 |
| &nbsp;&nbsp;&nbsp;Amounts due to related parties | 175169 | 234899 |
| &nbsp;&nbsp;&nbsp;Amounts due from related parties | (87080) |  |
| &nbsp;&nbsp;&nbsp;Tax payable | 5598 | (2108) |
| &nbsp;&nbsp;&nbsp;Lease liabilities | (46140) | (46874) |
| &nbsp;&nbsp;&nbsp;**Net cash provided by operating activities** | 35248 | 44686 |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Disposal (purchase) of equipment |  | (38811) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of intangible assets |  | (77) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposal of an associate held for sale |  | 27818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in subsidiary | - | (42437) |
| &nbsp;&nbsp;&nbsp;**Net cash used in investing activities** | - | (53507) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Capital contribution |  | 111982 |
| &nbsp;&nbsp;&nbsp;(Repayments to) proceeds from bank borrowings | (4232) | 99033 |
| &nbsp;&nbsp;&nbsp;Payment of finance lease liabilities | (25688) | (57528) |
| &nbsp;&nbsp;&nbsp;**Net cash (used in) provided by financing activities** | (29920) | 153487 |
| &nbsp;&nbsp;&nbsp;Effect of exchange rate changes on cash | 781 | (19199) |
| &nbsp;&nbsp;&nbsp;**Net change in cash and cash equivalents** | 6109 | 125467 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents, beginning balance | 25391 | 81132 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents, ending balance | $31500 | $206599 |

---

**NOTE 4 - ADVANCE AND PREPAYMENTS**

Prepayments consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **September 30,**<br>**2025** |
| Prepaid rent and building management and utilities | $1956 | $2837 |
| Prepaid supplies<sup>(1)</sup> | 11902 | 12579 |
| Prepaid professional services<sup>(2)</sup> |  | 5029 |
| Advance to others | 7476 | 13326 |
| Total Advance and prepayments | $21334 | $33771 |

---

<sup>(1)</sup> The prepayment will be recognized in cost of goods sold in its consolidated statement of operations and comprehensive loss when the corresponding contract liabilities is recognized.

<sup>(2)</sup> As of September 30, 2025, the ending balance of prepaid professional services included $5,029 of advertising and promotion fees for our PRC entities. The advertising and promotion fees were recognized in the Company's consolidated statement of operations and comprehensive loss when the related services were performed.

These amounts are expected to be recoverable within twelve (12) months.

**NOTE 5 - OTHER RECEIVABLES**

Other receivables included the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **September 30,**<br>**2025** |
| Deposits<sup>(1)</sup> | $91249 | $81865 |
| Advance to employees | 716 | 1054 |
| Advance to third-party company | 643 | 211 |
| Deductible value added tax | 21868 | 18557 |
| Total other receivables | $114476 | $101687 |

---

<sup>(1)</sup> Deposits represent payments made to lessors, vendors, or service providers.

**NOTE 6 - INVENTORY**

Inventory consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **September 30,**<br>**2025** |
| Trading goods | $2640 | $6086 |
| Total | $2640 | $6086 |

---

No impairment of inventory recognized as of December 31, 2025 and September 30, 2025.

**NOTE 7 - PROPERTY AND EQUIPMENT, NET**

Property and equipment consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **September 30,**<br>**2025** |
| Leasehold improvements | $132113 | $129776 |
| Furniture and fixtures | 1257 | 1235 |
| Computer equipment | 210453 | 251483 |
| Office equipment | 1506 | 1479 |
| Subtotal | 345329 | 383973 |
| Less: accumulated depreciation | (261603) | (265465) |
| Total property and equipment, net | $83726 | $118508 |

---

Depreciation expense was $18,940 and $44,246 for the three months ended December 31, 2025 and 2024, respectively.

**NOTE 8 - INTANGIBLE ASSETS**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **September 30,**<br>**2025** |
| Trademarks | $3835 | $3766 |
| Subtotal | 3835 | 3766 |
| Less: accumulated amortization | (1635) | (1511) |
| Total intangible assets, net | $2200 | $2255 |

---

The following table presents future amortization as of December 31, 2025:

---

| | |
|:---|:---|
| **Year ended December 31, 2025** | **Amount** |
| 2026 | $383 |
| 2027 | 383 |
| 2028 | 383 |
| 2029 | 383 |
| 2030 and thereafter | 668 |
|  | $2200 |

---

Intangible assets consist of the Company's trademarks of King Eagle Mall with a useful life of ten years. The amount of the Company's trademarks - approximately $1,402, $1,090, $572, $37, $518, $86, and $130 - will expire in April 2031, July 2031, April 2032, September 2032, October 2032, March 2033, and August 2034, respectively.

Amortization expense was $95 and $93 for the three months ended December 31, 2025 and 2024, respectively.

**NOTE 9 - TRADE AND OTHER PAYABLES**

Trade and other payables included the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **September 30,**<br>**2025** |
| Accrued expenses to service agents<sup>(1)</sup> | $2071730 | $2039877 |
| Borrowings from service agents<sup>(2)</sup> | 1423765 | 1307154 |
| Borrowings from third parties<sup>(2)</sup> | 67305 | 67748 |
| Expense reimbursement payable | 5059 | 2186 |
| Deposit payable to suppliers | 107249 | 105351 |
| Others | 122974 | 120079 |
| Total trade and other payables | $3798082 | $3642395 |

---

<sup>(1)</sup> Accrued expenses to service agents mainly included trade payables to third party and other payables to service agents. <br> <sup></sup> <br> <sup>(2)</sup> Borrowings from service agents and third parties are interest free and payable on demand.

**NOTE 10 - CONTRACT LIABILITIES**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **September 30,**<br>**2025** |
| Advance payments from customers | $335141 | $294618 |
| Total contract liabilities | $335141 | $294618 |

---

Contract liabilities results from transactions where the Company has received the payments from the customers but revenue recognition criteria under the five-step model have yet to be met. Once the five-step model criteria have been satisfied, revenues will be recognized upon the transfer of risk and rewards to the customers. Management has agreed that the amount received is non-refundable. However, this term is not bound by any written agreement. Thus, the customers may have the right to challenge and demand that the advances be refunded under relevant commercial laws and regulations.

**NOTE 11 - RELATED PARTY TRANSACTIONS**

*Amounts due from related parties*

Amounts due from related parties mainly represent customer payments for sales collected and processed by a third-party service provider on behalf of the Company and monies advanced to officers or employees for daily operating expenses that are anticipated to be incurred by our officers and employees on behalf of the Company. The advances are required to be repaid in cash within a year.

Amounts due from related parties consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of related party** | **Relationship** | **Nature of transactions** | **December 31,**<br> **2025** | **September 30,**<br> **2025** |
| King Eagle (Hangzhou) Health Technology Co., Ltd | 40% held by King Eagle (Tianjin) | Advanced for operating expenses | $85799 | $84282 |
| Chongbao (Beijing) Auction Co., Ltd. | 100% held by Beijing Paiyue Technology Co., LTD, which is 95% held by Ms. Chengyuan Li, a director of the Company | Account receivable | 328624 | 247337 |
| Total |  |  | $414423 | $331619 |

---

*Amounts due to related parties*

Amounts due to related parties are payables arising from transactions between the Company and related parties, such as payments of agency service charges to a related company, payments of operating expenses by such related parties on behalf of our entities in the PRC, and funding to meet working capital requirements. The payables owed to the related parties are interest free, unsecured, and repayable on demand.

Amounts due to related parties consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of related party** | **Relationship** | **Nature of**<br> **transactions** | **December 31,**<br> **2025** | **September 30,**<br> **2025** |
| Ms. Chengyuan Li | A prior shareholder of King Eagle (Tianjin); a director of the Company; beneficial owner of shares of the Company through her control of Beijing Paiyue Technology Co., LTD, which controls Kun Peng TJ Limited | Operational support to King Eagle (Tianjin) to meet its working capital requirements | $2695657 | $2647984 |
| Ms. Xiujin Wang | One of the shareholders of King Eagle (Tianjin) | Operational support to King Eagle (Tianjin) to meet its working capital requirements | 257397 | 252845 |
| Mr. Richun Zhuang | Chief Executive Officer and a director of the Company | Operational support to King Eagle (Tianjin) to meet its working capital requirements | 456871 | 424108 |
| Ms. Yuanyuan Zhang | One of the shareholders of King Eagle (Tianjin), CFO of the Company | Operational support to King Eagle (Tianjin) to meet its working capital requirements | 42898 |  |
| Ms. Jinjing Zhang | One of the shareholders of King Eagle (Tianjin) | Operational support to King Eagle (Tianjin) to meet its working capital requirements | 2431 | 2388 |
| Mr. Zhandong Fan | One of the shareholders of King Eagle (Tianjin) | Operational support to King Eagle (Tianjin) to meet its working capital requirements | 3861 | 3793 |
| Mr. Jianxin Niu | Legal representative and the director of Chongbao (Beijing) Auction Co., Ltd. | Operational support to King Eagle (Tianjin) to meet its working capital requirements | 34520 | 34097 |
| Tianjin Qianying Technology Co., Ltd. | 100% held by Ms. Jinjing Zhang, one of the shareholders of King Eagle (Tianjin) | Payments of agency service charges | 850640 | 828644 |
| Beijing Paiyue Technology Co., LTD | 95% held by Ms. Chengyuan Li, a director of the Company | Payments of agency service charges | 176441 | 165959 |
| Chongbao (Beijing) Auction Co., Ltd. | 100% held by Beijing Paiyue Technology Co., LTD, which is 95% held by Ms. Chengyuan Li, a director of the Company | Payments of service charges | 276466 | 178096 |
| Total |  |  | $4797182 | $4537914 |

---

*Related parties transactions*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of related party** | **Relationship** | **Nature of transactions** | **December 31,**<br> **2025** | **December 31,**<br> **2024** |
| Chongbao (Beijing) Auction Co., Ltd. | 100% held by Beijing Paiyue Technology Co., LTD, which is 95% held by Ms. Chengyuan Li, a director of the Company | Selling expense — service agents | 29555 |  |
| Tianjin Qianying Technology Co., Ltd. | 100% held by Ms. Jinjing Zhang, one of the shareholders of King Eagle (Tianjin) | Selling expense — service agents | 4058 | 56063 |
| Beijing Paiyue Technology Co., LTD | 95% held by Ms. Chengyuan Li, a director of the Company | General administration expenses —rental expense | 14665 | 14460 |
| Total |  |  | $48278 | $70523 |

---

**NOTE 12 - EQUITY**

Effective as of September 9, 2021, the Company's Articles of Incorporation were amended to increase the Company's authorized capital to 210,000,000 authorized shares of capital stock with 200,000,000 designated as $0.0001 par value common stock and 10,000,000 designated as $0.0001 par value preferred stock.

Effective on October 12, 2022, a Certificate of Amendment was filed with the Nevada Secretary of State to increase the authorized number of shares of the Company's $0.0001 par value common stock from 200,000,000 shares to 1,000,000,000 shares of common stock.

The Company's board of directors approved and declared a 10:1 forward split of its common stock on September 6, 2022. As a result of the stock split, holders of pre-split shares of common stock received post-split shares of common stock at a ratio of ten (10) shares of post-split common stock for every one (1) share of pre-split common stock. The stock split had a record date of September 16, 2022 and an effective date of October 18, 2022. No fractional shares were issuable as a result of the forward stock split. After the forward stock split, the Company has 400,000,000 issued and outstanding shares of common stock. The par value of the common stock remained unchanged at 0.0001 per share after the stock split.

*Preferred stock*

The Company's authorized shares of preferred stock are 10,000,000 shares, with a par value of $0.0001, as of December 31, 2025 and September 30, 2025. The preferred stock may be issued in series and with such voting powers, designations, preferences, limitations, restrictions, and relative rights as the board of directors shall determine in its sole discretion. No shares of preferred stock were issued and outstanding as of December 31, 2025 and September 30, 2025.

*Common stock*

The Company's authorized shares of common stock were 1,000,000,000 and 1,000,000,000 shares with a par value of $0.0001, as of December 31, 2025 and September 30, 2025, respectively. The issued and outstanding shares of common stock were 400,000,000 as of December 31, 2025 and September 30, 2025.

*Restricted net assets*

Our ability to pay dividends is primarily dependent on us receiving distributions of funds from our VIE. Relevant PRC statutory laws and regulations permit payments of dividends by our VIE and its subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations and after they have met the PRC requirements for appropriation to statutory reserves. Share capital of our PRC subsidiaries and VIE included in the Company's consolidated net assets are also non-distributable for dividend purposes. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of KP Tian Yu, the foreign-invested enterprise, King Eagle (China), King Eagle (Tianjin), the VIE, and its subsidiaries. The Company is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, the Company may allocate a portion of its after-tax profits based on PRC accounting standards to an enterprise expansion fund and a staff bonus and welfare fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends.

As a result of the foregoing restrictions, King Eagle (China), King Eagle (Tianjin), and KP Tian Yu are restricted in their ability to transfer their net assets to the Company. Foreign exchange and other regulations in the PRC may further restrict these entities from transferring funds to the Company in the form of dividends, loans, and advances. As of December 31, 2025, King Eagle (China), King Eagle (Tianjin), and KP Tian Yu incurred negative assets in the amount of $1,405,806, $2,804,227 and $1,010, respectively. As of September 30, 2025, King Eagle (China), King Eagle (Tianjin), and KP Tian Yu incurred negative net assets in the amount of $1,391,662, $2,605,498 and $958, respectively. Accordingly, the Company did not accrue statutory reserve funds as of December 31, 2025 and September 30, 2025.

**NOTE 13- REVENUE**

*Revenue:*

The following tables present disaggregated revenues for the three months ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| Retail product sales | $133109 | $78457 |
| Equipment-based service revenue | 41715 | 278062 |
| Total | $174824 | $356519 |

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| Performance obligations satisfied at a point in time | $133109 | $78457 |
| Performance obligations satisfied over time | 41715 | 278062 |
| Total | $174824 | $356519 |

---

*Cost of revenue:*

We disaggregated our cost of revenue for the three months ended December 31, 2025 and 2024 as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| Retail product sales | $52493 | $12087 |
| Equipment-based service revenue | 61370 | 43596 |
| Total | $113863 | $55683 |

---

**NOTE 14- INCOME TAXES**

The Company accounts for income taxes pursuant to the accounting standards that require the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carryforwards. Additionally, the accounting standards require the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. The Company and its subsidiaries file separate income tax returns.

*United States*

Kun Peng International Limited is incorporated in the State of Nevada and is subject to United States federal income tax. No provision for income taxes in the U.S. has been made as the Company has no U.S. taxable income for the three months ended December 31, 2025 and 2024.

*British Virgin Islands*

KP International Holding is a holding company organized as an International Business Company under the laws of the British Virgin Islands ("BVI"), and its principal operating subsidiaries are organized under the laws of Hong Kong and the laws of the PRC. KP International Holding and its subsidiaries are not subject to income taxes in the BVI.

*Hong Kong*

The two-tier profits tax rates system was introduced under the Inland Revenue (Amendment)(No.3) Ordinance 2018 ("the Ordinance") of Hong Kong and became effective for the assessment year 2018/2019. Under the two-tier profits tax rates regime, the profits tax rate for the first $0.26 million (HKD 2 million) of assessable profits of a corporation will be subject to a lowered tax rate of 8.25%, while the remaining assessable profits will be subject to the legacy tax rate of 16.5%.

KP (Hong Kong) did not earn any income that was derived in Hong Kong for the three months ended December 31, 2025 and 2024, and, therefore, KP (Hong Kong) were not subject to Hong Kong profits tax for the periods reported.

Since the two-tier profit tax rates regime is tentative, we applied the original profits tax rate, 16.5%, for the calculation of deferred taxes for our subsidiaries in Hong Kong.

*PRC*

The PRC's statutory income tax rate is 25%. The Company's subsidiaries and VIE registered in the PRC are subject to the income tax rate of 25%, unless otherwise specified.

Income tax expense was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** |
|  | **2025** | **2024** |
| Current |  |  |
| &nbsp;&nbsp;&nbsp;Federal | $- | $- |
| &nbsp;&nbsp;&nbsp;State |  |  |
| &nbsp;&nbsp;&nbsp;Foreign | - | - |
| Total current |  |  |
| Deferred |  |  |
| &nbsp;&nbsp;&nbsp;Federal |  |  |
| &nbsp;&nbsp;&nbsp;State |  |  |
| &nbsp;&nbsp;&nbsp;Foreign | - | - |
| Total deferred |  |  |
| Total income tax expense | $- | $- |

---

A reconciliation between the Company's actual provision for income taxes and the provision at the statutory rate is as follow:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| Loss before income tax expense | $(265577) | $(651007) |
| Computed tax expense (benefit) with statutory tax rate | 21.0% | 21.0% |
| Impact of different tax rates in other jurisdictions | 3.1% | 3.2% |
| Tax effect of non-deductible expenses | (1.2)% | (0.1)% |
| Tax-exempt income | 1.2% |  |
| Change in valuation allowance | (24.1)% | (24.1) |
| Effective tax rate | 0.0% | 0.0% |

---

*Uncertain tax positions*

The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by the respective jurisdictions, where applicable. The statute of limitations for the tax returns varies by jurisdiction.

The statute of limitations for the U.S. Internal Revenue Service to assess the income tax returns of a taxpayer expires three years from the due date of the income tax return or the date on which it was filed, whichever is later.

In accordance with the Hong Kong profits tax regulations, a tax assessment by the IRD may be initiated within six years after the relevant year of assessment, but that period is extendable to 10 years in the case of potential willful underpayment or evasion.

In accordance with the PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to assess underpaid tax plus penalties and interest for PRC entities' tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities remain subject to examination by the tax authorities based on the above.

As of December 31, 2025 and September 30, 2025, the Company did not accrue any liability, interest, or penalties related to uncertain tax positions in the provision for income taxes in its consolidated financial statements. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months.

**NOTE 15 - RIGHT-OF-USE ASSETS AND LEASE**

The Company has operating leases for its office facilities, automobiles and finance lease for equipment for revenue service. The Company classified the equipment for revenue service as finance lease as the lessor will transfer the ownership of equipment for revenue service to the Company by the end of the lease term.

Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognized lease expense on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases, right-of-use assets, and interest on an amortized cost basis.

The following table provides a summary of leases as of December 31, 2025 and September 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
| **Assets/liabilities** | **Classification** | **December 31,<br> 2025** | **September 30,<br> 2025** |
| Assets |  |  |  |
| Operating lease right-of-use assets | Operating lease assets | $245403 | $89073 |
| Finance lease right-of-use assets | Finance lease assets | 63060 | 111931 |
| **Total lease assets** |  | $308463 | $201004 |
| Liabilities |  |  |  |
| Current |  |  |  |
| Operating lease liability - current | Current operating lease liabilities | $150289 | $52017 |
| Finance lease liability - current | Current finance lease liabilities | 38798 | 75765 |
|  |  | 189087 | 127782 |
| Long-term |  |  |  |
| Operating lease liability – net of current portion | Long-term finance lease liabilities | $86297 | $34006 |
| Finance lease liability – net of current portion | Long-term operating lease liabilities | - | - |
| **Total lease liabilities** |  | $275384 | $161788 |

---

The operating lease expense for the three months ended December 31, 2025 and 2024 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| | | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
| <br>**Lease cost** | <br>**Classification** | **2025** | **2024** |
| **Operating lease cost** |  |  |  |
| Lease expenses – short-term | General and administrative | $- | $9299 |
| Lease expenses | General and administrative | 30729 | 82297 |
| **Finance lease cost** |  |  |  |
| Amortization of leased asset | Cost of sales | 50198 | 47300 |
| Interest on lease liabilities | Other expense - other | 720 | 2902 |
| **Total lease cost** |  | $81647 | $141798 |

---

Maturities of operating lease and finance lease liabilities as of December 31, 2025 were as follows:

---

| | | |
|:---|:---|:---|
| **Maturity of Lease Liabilities** | **Operating lease** | **Finance lease** |
| 2026 | $155940 | $39061 |
| 2027 | 87222 |  |
| Thereafter | - | - |
| Total lease payments | 243162 | 39061 |
| Less: Interest | (6576) | (263) |
| **Present value of lease payments** | $236586 | $38798 |

---

Maturities of operating lease and finance lease liabilities as of September 30, 2025, were as follows:

---

| | | |
|:---|:---|:---|
| **Maturity of Lease Liabilities** | **Operating lease** | **Finance lease** |
| 2026 | $58997 | $76739 |
| 2027 | 29499 |  |
| Thereafter | - | - |
| Total lease payments | 88496 | 76739 |
| Less: Interest | (2473) | (974) |
| **Present value of lease payments** | $86023 | $75765 |

---

Supplemental information related to operating leases and finance leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| Cash paid for amounts included in the measurement of lease liabilities | $76699 | $146129 |
| Weighted average remaining operating lease term | 1.65 year | 1.11 year |
| Weighted average remaining finance lease term | 0.31 year | 1.31 year |
| Weighted average discount rate for operating lease | 3.53% | 4.64% |
| Weighted average discount rate for finance lease | 4.75% | 4.75% |

---

Amortization expense was $81,647 and $127,435 for the three months ended December 31, 2025 and 2024, respectively.

**NOTE 16 - SHORT-TERM BORROWING**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Loan period** | **Interest<br> rate** | **December 31, 2025** | **September 30, 2025** |
| China Construction Bank Co., LTD. Beijing Mentougou Branch | December 19, 2024 to December 19, 2026<br>| 3.86% | $97525 | $100014 |
| &nbsp;&nbsp;&nbsp;Short-term borrowing |  |  | $97525 | $100014 |

---

The loans were guaranteed by a shareholder, with interest rate of 3.86%.

**NOTE 17 - COMMITMENTS AND CONTINGENCIES**

*Purchase and service commitments*

We entered into multiple purchase and service commitments. As of December 31, 2025 and September 30, 2025, we had purchase and service commitments in an amount of nil and $24,461, respectively.

**NOTE 18 - SUBSEQUENT EVENT**

On January 20, 2026, our Board of Directors and the holders of approximately 85.4% of our issued and outstanding shares of Common Stock as of such date executed written consents approving a one for ten (1-for-10) reverse split of our outstanding shares of Common Stock and the related amendment to the Company's certificate of incorporation (the "Reverse Split").

On February 3, 2026, King Eagle (Tianjin) transfered 100% of the outstanding shares of Kun Yu (Hainan) to Beijing Paiyue Technology Co., LTD. Kun Yu (Hainan) is no longer a subsidiary.

As of December 31, 2025, the Company evaluated and concluded that there are no subsequent events that would require recognition or disclosure in the financial statements, other than as disclosed above.

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**Recent Developments**

On January 20, 2026, our Board of Directors and the holders of approximately 85.4% of our issued and outstanding shares of Common Stock as of such date executed written consents approving a one for ten (1-for-10) reverse split of our outstanding shares of Common Stock and the related amendment to the Company's certificate of incorporation (the "Reverse Split").

The Reverse Split will result in (i) the reduction of our total issued and outstanding shares of Common Stock from 400,000,000 shares, with a par value of $0.0001 each, to 40,000,000 shares, with a par value of $0.001 each; and (ii) the reduction of our authorized shares of Common Stock from 1,000,000,000 shares to 100,000,000 shares.

**Overview of the Business**

Due to global health issues and the COVID-19 pandemic, people have increased their health and nutrition consciousness. We believe preventive care is the most effective investment in health.

To promote awareness of preventive care among the people in the PRC, we developed and launched our mobile platform, King Eagle Mall, in July 2020, an online platform, Kun Zhi Jian, in October 2022, and Kun Zhi Jian Mini Program in November 2023.

***King Eagle Mall***

King Eagle Mall is a mobile social e-commerce platform launched in July 2020 that promotes preventive health care products and services. It adopts the S2B2C business model and integrates many major health care products and services. We focus on health-related products and services. King Eagle Mall's products are divided into two sectors: self-operated products and selected products which promote preventive health care. Our team screens and examines products that are and will be offered both by us and by affiliated merchants. Our major products include health care products such as dietary supplements, nutritional health foods, beauty cosmeceuticals, and other categories of health foods (for instance, milk powder, dried fruits) for supporting the cardiovascular system and bone joint health. We also offer collagen peptides, probiotics, and health foods for improving blood circulation and vein health, as well as household products that can promote and improve a healthier lifestyle for our members. We receive customer orders and may arrange fulfillment through our merchants who are responsible for delivery or we may fulfill customer orders through our outsourced networks. As of December 31, 2025, King Eagle Mall had approximately 15,863 members.

We also operate customer service centers with whom our members can communicate directly for any assistance related to product purchases, suggestions for health care products and services, and delivery logistics.

***Kun Zhi Jian and Kun Zhi Jian Mini Program***

In October 2022, we introduced and implemented an 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). Kun Zhi Jian and Kun Zhi Jian Mini Program are designed to enable health-related products to be sold by us and by third parties. 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 December 31, 2025, our online platform had approximately 9,198 members.

***Contractual Arrangements***

While we do not have any equity interest in our consolidated affiliated entities, King Eagle (Tianjin) and its subsidiaries, we have been and are expected to continue to be dependent on them to operate our business as long as there is limitation or prohibition in the interpretation and application by local governments of regulations concerning foreign investments in companies such as our consolidated affiliated entities. We rely on our consolidated affiliated entities to maintain or renew their respective qualifications, licenses, or permits necessary for our business in China. We believe that under the variable interest equity ("VIE") Agreements, we have substantial control over our consolidated affiliated entities and their respective shareholders to renew, revise, or enter into new contractual arrangements prior to the expiration of the current arrangements on terms that would enable us to continue to operate our business in China after the expiration of the current arrangements, or pursuant to certain amendments and changes of the current applicable PRC laws, regulations, and rules, on terms that would enable us to continue to operate our business in China legally. While we currently do not anticipate any changes to PRC laws in the near future that may impact our ability to carry out our business in China, no assurances can be made in this regard.

On May 15, 2021, King Eagle (China) and the shareholders of King Eagle (Tianjin) entered into a series of contractual agreements for King Eagle (Tianjin) to qualify as a variable interest entity or VIE (the "VIE Agreements"). On June 10, 2025, King Eagle (China) Co., Ltd. ("King Eagle China"), King Eagle (Tianjin) Technology Co., Ltd. ("King Eagle Tianjin"), and the shareholders of King Eagle Tianjin (the "Original Shareholders") entered into an agreement (the "Termination Agreement") to terminate certain previous agreements consisting of a Business Operation Agreement, a Proxy Agreement, an Equity Disposal Agreement, and an Equity Pledge Agreement (the "Original VIE Agreements"). The Original VIE Agreements, along with an Exclusive Consultation and Service Agreement, which was amended on March 1, 2024, established King Eagle (Tianjin) as a variable interest entity and allowed King Eagle China to control and receive the economic benefits of King Eagle Tianjin's business operations. The Original VIE Agreements were terminated due to the transfers by one of the Original Shareholders of his equity interests in King Eagle Tianjin.

On June 10, 2025, King Eagle China, King Eagle (Tianjin), and the shareholders of King Eagle (Tianjin), including the transferees of the Original Shareholder who transferred his equity interests, entered into new VIE Agreements (the "New VIE Agreements") consisting of a Business Operation Agreement, an Agency Agreement, an Equity Disposal Agreement, and an Equity Pledge Agreement. The originally executed Exclusive Consultation and Service Agreement, as amended, remains in effect. The New VIE Agreements, along with the Exclusive Consultation and Service Agreement, continue King Eagle Tianjin's status as a variable interest entity and allow King Eagle China to control and receive the economic benefits of King Eagle Tianjin's business operations.

For more information regarding these contractual arrangements, see Note 3 - Variable Interest Entities - "VIE" Agreements. The Termination Agreement and the New VIE Agreements are referenced in the Current Report on Form 8-K, which was filed with the Securities and Exchange Commission on July 3, 2025 and may be viewed in their entirety as Exhibits 99.1 through 99.5.

***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 their KPIL shares. 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 government that could significantly affect King Eagle (Tianjin)'s financial performance and the enforceability of the VIE Agreements.

On July 6, 2021, the PRC government issued the Opinions on Strictly Cracking Down on Illegal Securities Activities, calling for: (i) tightening oversight of data security, cross-border data flow and administration of classified information, as well as amendments to relevant regulations to specify responsibilities of overseas listed Chinese companies with respect to data security and information security; (ii) enhanced oversight of overseas listed companies as well as overseas equity fundraising and listing by Chinese companies; and (iii) extraterritorial application of China's securities laws. As the Opinions on Strictly Cracking Down on Illegal Securities Activities were recently issued, there is great uncertainty with respect to the interpretation and implementation thereof. We will closely monitor further developments.

In addition, on July 10, 2021, the Cyberspace Administration of China (the "CAC") issued the Measures for Cybersecurity Review, or the Measures, which proposed to authorize the relevant government authorities to conduct cybersecurity review on a range of activities that affect or may affect national security, including listings in foreign countries by companies that possess the personal data of more than one million users. On January 4, 2022, the CAC issued the New Measures for Cybersecurity Review (the "New Measures"), which amended the Measures for Cybersecurity Review (Draft Revisions) released on July 10, 2021. As our VIE has less than one million customers, we believe that the Measures are not applicable to us in current form. The PRC government is increasingly focused on data security, recently launching cybersecurity review against a number of mobile apps operated by several US-listed Chinese companies and prohibiting these apps from registering new users during the review period. There are great uncertainties regarding the interpretation and enforcement of PRC laws, rules, and regulations regarding data and privacy security. We may be required to change our data and other business practices and be subject to regulatory investigations, penalties, increased cost of operations, or declines in issuer growth or engagement as a result of these laws and policies.

Based on our understanding of currently applicable PRC laws and regulations, the Company and its PRC subsidiary and VIE: (i) are not currently required to obtain permissions from any PRC authorities to operate or to issue securities to foreign investors; (ii) are not subject to permission requirements from the China Securities Regulatory Commission (the "CSRC"), the Cyberspace Administration of China (the "CAC") or any other entity that is required to approve their operations; and (iii) have not been denied any permissions by any PRC authorities. In addition,

***Cash Transfers Within our Organization***

As between the Company and its subsidiaries, cash will generally be transferred by means of capital contributions and/or interest-free intercompany loans. Cash to be transferred or settled between the Company and its subsidiaries, on the one hand, and the consolidated VIE and its subsidiaries, on the other hand, will typically be transferred through payments for fees under our contractual arrangements with the VIE, expense reimbursements, or intercompany borrowings between the Company or one of its subsidiaries and the consolidated VIE. Any such loans will be interest-free, unsecured and payable on demand. For more information regarding these contractual arrangements, see Note 3 - Variable Interest Entities - "VIE" Agreements. The enforceability and treatment of the intercompany agreements within our organization, including intercompany borrowings and the contractual arrangements with our VIE, have not been tested in court. To the extent cash and/or assets in the business are in the PRC and/or Hong Kong or our PRC and/or Hong Kong entities, such funds and/or assets may not be available to fund operations or for other use outside of the PRC and/or Hong Kong due to interventions in or the imposition of restrictions and limitations imposed by the PRC government on the ability of the Company or its subsidiaries to transfer cash and/or assets. There are no tax consequences for intercompany borrowings or the payment for intercompany services, except for the standard value added taxes and/or income taxes for the revenues and/or profits generated from such services.

The proceeds of any transactions within our organization, including with the VIE and its subsidiaries, are eliminated in our consolidated financial statements. For more details, please refer to the principles of consolidation set forth in the notes to our Consolidated Financial Statements for the fiscal year ended September 30, 2025 included in this Annual Report.

As of the date of this Quarterly Report, there have been no distributions or dividends by any of our direct or indirect subsidiaries to the Company. The Company has not declared any dividends or made any distributions to its shareholders, and we do not anticipate declaring a dividend in the foreseeable future. No assets other than cash are transferred within our organization. For more details, please refer to the principles of consolidation set forth in the notes to our Condensed Consolidated Financial Statements for the three months ended December 31, 2025 included in this report.

**Financial Operations Overview**

***Results of operations for the three months ended December 31, 2025 and 2024***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **% of revenue** | **Amount** | **% of revenue** |
| Revenues | $174824 | 100% | $356519 | 100.0% |
| Cost of revenues | 113863 | 65.1 | 55683 | 15.6 |
| Gross profit | 60961 | 34.9 | 300836 | 84.4 |
| Operating expenses: |  |  |  |  |
| General and administrative expenses | 228564 | 130.7 | 652433 | 183.0 |
| Selling expense | 129310 | 74.0 | 346489 | 97.2 |
| Total operating expenses | 357874 | 204.7 | 998922 | 280.2 |
| Loss from operations | (296913) | (169.8) | (698086) | (195.8) |
| Other income | 31336 | 17.9 | 47079 | 13.2 |
| Loss before income taxes | (265577) | (151.9) | (651007) | (182.6) |
| Income tax expense | - |  | - | - |
| Net loss | $(265577) | (151.9)% | $(651007) | (182.6)% |

---

**Revenues**

For the three months ended December 31, 2025 and 2024, revenues amounted to $174,824 and $356,519, respectively.

The following tables present disaggregated revenues for the three months ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| Retail product sales | $133109 | $78457 |
| Equipment-based service revenue | 41715 | 278062 |
| Total | $174824 | $356519 |

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| Performance obligations satisfied at a point in time | $133109 | $78457 |
| Performance obligations satisfied over time | 41715 | 278062 |
| Total | $174824 | $356519 |

---

We recognize our revenue on a gross basis, net of sub-charges and value-added tax ("VAT") on gross sales.

In addition to revenue from retail sales, we have equipment-based service revenue, generated through providing cards for online medical consultation services and selling prepaid cards to our customers for use with card-operated health screening equipment located at the Kun Zhi Jian Customer Service Center.

We recognize equipment-based service revenue upon the completion of medical consultation services and consuming the prepaid cards.

We generated $181,695 or 51.0%, lower revenue for the three month period ended December 31, 2025 compared to the same period in 2024 due to a substantially sharp decrease in equipment-based services. Our equipment-based service revenue decreased by $236,347, or 85%, as compared to the three months ended December 31, 2024 as a result of economic uncertainty and a downward trend in consumption. However, retail product sales increased $54,652, or 69.7%, as compared to the three months ended December 31, 2024 as a result of the Company's renewed focus on retail operations, following substantial investment in new businesses that diverted resources in 2024.

**Cost of revenue**

Our cost of revenue for the three months ended December 31, 2025 was $113,863, a $58,180, or 104.5%, increase over our cost of revenue for the three month period ended December 31, 2024 of $55,683. Our cost of revenue primarily consisted of the purchase of consumer health care and health related household products from our suppliers and payments related to maintaining health screening equipment. We made our retail product sales through our King Eagle Mall, Kun Zhi Jian and our Kun Zhi Jian Mini Program. We also offered equipment-based services through the Kun Zhi Jian Mini Program. We pay an equipment-based service fee that includes a prepaid card activation fee and a technical support fee.

We disaggregated our cost of revenue for the three months ended December 31, 2025 and 2024 as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| Retail product sales | $52493 | $12087 |
| Equipment-based service | 61370 | 43596 |
| Total | $113863 | $55683 |

---

**Gross profit**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Retail product sales | $80616 | 60.6% | 66370 | 84.6% |
| Equipment-based services | (19655) | (47.1) | 234466 | 84.3 |
| Total | $60961 | 34.9% | 300836 | 84.4% |

---

For the three months ended December 31, 2025 and 2024, our overall gross profit and margin was $60,961, or 34.9%, and $300,836, or 84.4%, respectively.

The decrease in our gross profit and margin for our retail business for the three months ended December 31, 2025 as compared to the three months ended December 31, 2024 was primarily due to market instability and weakened consumer confidence. The gross profit for our equipment-based services for the three months ended December 31, 2025 were negative $19,655, mainly due to the Company's strategic transformation, which led to a corresponding drop in the financial performance of the business.

**Operating expenses**

Our operating expenses consist of general and administrative expenses and selling expenses. For the three months ended December 31, 2025 and 2024, our total operating expenses were $357,874 and $998,922, respectively. The decrease in operating expenses for the three months ended December 31, 2025 compared to the same period in 2024 was primarily due to a decrease of $423,869 in general and administrative expenses and a decrease of $217,179 in selling expenses.

***General and administrative expenses***

General and administrative expenses for the three months ended December 31, 2025 and 2024 were $228,564 and $652,433, respectively. Our general and administrative expenses for the three months ended December 31, 2025 and 2024 were comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| Employee compensation and benefits | $107068 | 213023 |
| Office rent and building management | 18798 | 98607 |
| Office supplies and meeting | 8378 | 4072 |
| Professional service fees | 68009 | 279395 |
| Travel, transportation, and gasoline | 19756 | 10184 |
| Meals and entertainment | 1713 | 11930 |
| Depreciation and amortization | 95 | 22850 |
| Others | 4747 | 12372 |
| Total | $228564 | 652433 |

---

The decrease in general and administrative expenses during the three months ended December 31, 2025 by $423,869, or 65.0%, was chiefly due to a decrease in professional service fees of $211,386, a decrease in employee compensation and benefits of $105,955, and a decrease in office rent and building management of $79,809. These expenses declined as a result of our having three fewer subsidiaries in the three-month period ended December 31, 2025 than in the same period in 2024.

***Selling expense***

Selling expenses for the three months ended December 31, 2025 and 2024 were $129,310 and $346,489, respectively. Our selling expenses for the three months ended December 31, 2025 and 2024 were comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** |
| Service agents | $44405 | 161184 |
| Employee compensation and benefits | 44657 | 74949 |
| Equipment rental |  | 54950 |
| Office supplies and meetings | 2597 | 23125 |
| Travel, transportation, and gasoline | 11692 | 5543 |
| Meals and entertainment | 3057 | 1505 |
| Depreciation and amortization | 13590 | 17255 |
| Advertising | 9312 | 7978 |
| Total | $129310 | 346489 |

---

The $217,179 decrease was primarily due to decreases in service agent costs of $116,779, employee compensation and benefits of $30,292, equipment rental of $54,950, and office supplies of $20,528. Service agent costs, employee compensation and benefits, and expenses for office supplies and meetings declined as a result of our having fewer subsidiaries during the period ended December 31, 2025. Equipment rental was recognized as a cost of revenue instead of a selling expense during the period ended December 31, 2025.

 ****

***Other income, net***

Other income primarily included bank interest income, investment income from cooperative enterprise, and others. Our other income for the three months ended December 31, 2025 and 2024 was $31,336 and $47,079, respectively. We recognized a $27,464 gain on the return of equipment and $8,810 equity in net losses for the three month period ended December 31, 2025. We recognized a $36,525 gain on write-offs of long-term payables and a $14,486 gain on the disposal of an associated company for the three-month period ended December 31, 2024.

***Income tax expense***

For both of the three month periods ended December 31, 2025 and 2024, the income tax expense of the Company was nil. Due to the net loss before income tax for the three month periods ended December 31, 2025 and 2024, the Company recognized a full valuation recognition against its deferred tax assets, which mainly included net operating loss carryforwards, as management believed it is more likely than not that the Company will not realize its net operating loss carryforwards in the near future or before they expire.

***Net loss***

As a result of the factors discussed above, for the three months ended December 31, 2025 and 2024, our net loss amounted to $265,577 and $651,007, respectively.

***Foreign currency translation adjustment***

The functional currency of our operations in the PRC is Chinese Yuan or Renminbi ("RMB"), while the functional currency of our operation in Hong Kong is Hong Kong Dollars ("HKD"). The financial statements are translated to U.S. dollars using the period end rates of exchange for assets and liabilities; equity is translated at historical exchange rates; and average rates of exchange (for the period) are used for revenues and expenses and cash flows. Transaction gains and/or 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. As a result of foreign currency translation, which is a noncash adjustment, we reported a foreign currency translation loss of $150,915 for the three months ended December 31, 2025 and a foreign currency translation gain of $281,895 for the three months ended December 31, 2024. This non-cash loss had the effect of decreasing our reported comprehensive loss for the three months ended December 31, 2025.

***Comprehensive loss***

We recognized a comprehensive loss of $416,492 for the three months ended December 31, 2025 compared to a comprehensive loss of $369,112 for the same period in 2024.

**Liquidity and capital resources**

As of December 31, 2025 and September 30, 2025, we had a cash and cash equivalents balance of $32,430 and $26,284, respectively.

The following table sets forth a summary of the Company's cash flows for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Net cash provided by operating activities | $36399 | $45864 |
| Net cash used in investing activities |  | (11070) |
| Net cash (used in) provided by financing activities | (29920) | 112755 |
| Effect of exchange rate on cash | (333) | (22342) |
| Net change in cash and cash equivalents | 6146 | 125207 |
| Cash and cash equivalents at beginning of period | 26284 | 82184 |
| Cash and cash equivalents at end of period | $32430 | $207391 |

---

For the three months ended December 31, 2025, net cash provided by operating activities totaled $36,399. Operating cash inflow was mainly attributable to increases in amounts due to related parties of $174,957, trade payables of $62,619, and other payables and accrual of $69,163, offset by our net loss of $265,577.

For the three months ended December 31, 2024, net cash provided by operating activities totaled $45,864. Operating cash inflow was mainly attributable to an increase in amounts due to related parties of $248,808, amortization of right-of-use assets of $127,435, advance and prepayments of $125,707, other receivables from third parties of $79,040, and trade and other payables of $78,095, offset by a net loss of $651,007 and a decrease in operating lease liabilities of $88,601.

Net cash used in investing activities was nil for the three month period ended December 31, 2025.

Net cash used in investing activities totaled $11,070 and was related to the purchase of property, plant and equipment of $38,811 and the purchase of an intangible asset of $77, offset by the disposal of an associated company of $27,818 during the three months ended December 31, 2024.

Net cash used in financing activities totaled $29,920 and was related to the payment of finance lease liabilities of $25,688 and the repayment of bank borrowings of $4,232 during the three month period ended December 31, 2025.

Net cash provided by financing activities totaled $112,755 and was related to a capital contribution of $71,250 and proceeds from bank borrowings of $99,033, offset by the payment of finance lease liabilities of $57,528 during the three months ended December 31, 2024.

The effect of exchange rate change on cash totaled $333 for the three month period ended December 31, 2025 and $22,342 for the same period in 2024. The resulting change in cash for the period was an increase of $6,146 and $125,207 for the three month periods ended December 31, 2025 and 2024.

The following table sets forth a summary of changes in our working capital as of December 31, 2025 and September 30, 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **September 30,**<br>**2025** |
| Current Assets | $599858 | $499447 |
| Current Liabilities | 9523301 | 8994644 |
|  | $(8923443) | $(8495197) |

---

We require cash of approximately $8.6 million within the next twelve months, primarily related to third-party vendor payables and related-party payables. As of December 31, 2025 and September 30, 2025, we had received customer advances in the amount of approximately $0.3 million and $0.3 million, respectively. We anticipate that the majority of the revenue will be recognized in fiscal year 2026. Management has agreed that the amount received is non-refundable. However, this term is not bound by any agreement. Therefore, the customers may have the right to challenge and demand the advances be refunded under relevant commercial laws or regulations.

In an effort to support and maintain our financial position and operations, to fulfill our contractual commitments, and to meet the demands from our customers for refunds of their advance payments, the Company has focused on increasing its revenue through its online platform. We are also actively seeking loans from banks. Simultaneously, our directors and stakeholders continue to support our operation financially. We believe that such measures will improve our liquidity in the next twelve months. If we are not able to increase revenue or obtain any financing, we may be unable to continue as a going concern.

**Going Concern Consideration**

The financial statements included in this Quarterly Report have been prepared in conformity with accounting principles generally accepted in the United States of America which contemplate continuation of the Company as a going concern. The going-concern basis assumes that assets are realized and liabilities are extinguished in the ordinary course of business at amounts disclosed on the financial statements. The Company's ability to continue as a going concern depends on the liquidation of its current assets. For the three months ended December 31, 2025, the Company incurred a substantial accumulated deficit of $9,303,561, a net loss of $265,577 and had negative working capital of $8,923,443. These conditions raise substantial doubt about the ability of the Company to continue as a going concern.

The Company keeps monitoring its operational activities with a view to enhancing its financial liquidity. Measures under evaluation include, but are not limited to, boosting sales via the Company's online channels, cutting operating expenses, obtaining financial advances from the Company's shareholders and directors, as well as securing financing through share issuances and bank borrowings. The Company has been concentrating on growing its revenue via its online platform and reducing its operational expenses. For instance, it has sought out new revenue sources and lowered its service agent fees. To maintain its status as a going concern over the next 12 months, the Company will keep exploring additional revenue channels, making use of its healthcare expertise and technology in cooperation with local healthcare service providers, marketing and distributing preventive healthcare dietary supplements and related products, and providing healthcare equipment–related services at the Kun Zhi Jian Customer Service Center. Nevertheless, the Company provides no guarantee that it will achieve higher revenue, successfully execute its business strategies, or obtain financing on commercially reasonable terms, if such financing is available at all. The financial statements do not contain any adjustments that would reflect the potential future impact on the recoverability and classification of assets or the amounts and classification of liabilities that might arise if the Company is unable to continue as a going concern. The directors plan to continue supporting the Group by providing sufficient financial support to allow the Group to sustain its business operations in the foreseeable future.

**Contractual Obligations and Other Commitments**

We had the following contractual obligations and commercial commitments as of December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Less Than 1 Year** | **1 to 3 Years** | **3 to 5 Years** | **More Than 5 Years** | **Total** |
| **Contractual Obligations:** |  |  |  |  |  |
| Operating lease obligations | $150289 | $86297 | $- | $- | $236586 |
| Finance lease obligations | 38798 |  |  |  | 38798 |
| Short-term borrowing | 97525 |  |  |  | 97525 |
| Total contractual obligations | $286612 | $86297 | $- | $- | $372909 |

---

**Off-Balance Sheet Arrangements**

We have no off-balance sheet arrangements, including arrangements that would affect our liquidity, capital resources, market risk support, credit risk support, or other benefits.

**Future Financings**

We will continue to rely on loans from our directors and major shareholders and on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of equity securities or arrange for debt or other financing to fund our operations and other activities, or if we are able, there is no guarantee that existing shareholders will not be substantially diluted.

**Critical Accounting Policies**

We regularly evaluate the accounting policies and estimates that we use to make budgetary and financial statement assumptions. A complete summary of these policies is included in the notes to our financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

See Note 2 to the financial statements included herewith and Note 2 to the financial statements in the Company's Form 10-K for the fiscal year ended September 30, 2025 previously filed with the SEC.

**Recent Accounting Pronouncements**

See Note 2 to the financial statements included herewith and Note 2 to the financial statements in the Company's Form 10-K for the fiscal year ended September 30, 2025 previously filed with the SEC.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

As a smaller reporting company, we are not required to respond to this item.

**ITEM 4. CONTROLS AND PROCEDURES**

***(a) Evaluation of Disclosure Controls and Procedures.***

We maintain "disclosure controls and procedures" as such term is defined in Rule 13a-15I under the Securities Exchange Act of 1934, as amended. In designing and evaluating our disclosure controls and procedures, our management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Based on their evaluation as of the end of the quarter ended December 31, 2025, our chief executive officer and our chief financial officer and principal accounting manager concluded that our disclosure controls and procedures were not effective such that the information relating to our Company, required to be disclosed in our Securities and Exchange Commission reports (i) is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms; and (ii) is accumulated and communicated to our management, including our chief executive officer, to allow timely decisions regarding required disclosure as a result of the material weaknesses in our internal control over financial reporting due to the existence of the following material weaknesses:

● A lack of sufficient and adequately trained internal accounting and finance personnel with appropriate understanding of U.S. GAAP and SEC reporting requirements;

● A lack of segregation of duties within significant accounts;

● A lack of a functioning audit committee and a majority of outside directors on the Company's board of directors.

***Management's Report on Internal Control over Financial Reporting***

As of December 31, 2025, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in the 2013 updated Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") and SEC guidance on conducting such assessments. Based on that evaluation, management concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of U.S. GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that are considered to be material weaknesses as described above. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or quarterly financial statements will not be prevented or detected on a timely basis.

Notwithstanding the existence of these material weaknesses in our internal control over financial reporting, our management believes that the financial statements included in its reports fairly present in all material respects the Company's financial condition, results of operations, and cash flows for the periods presented. We continue to evaluate the effectiveness of our internal controls and procedures on an on-going basis. We are currently hiring additional personnel in financial reporting and accounting, and we are providing training to newly hired personnel. In addition, once our cash position improves, we plan to hire an experienced controller and work to build an internal accounting team with sufficient in-house expertise in U.S. GAAP reporting. However, due to the limited cash flow we are currently having, we cannot assure you when we will be able to implement those remediation methods.

Because we are a smaller reporting company, this report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting.

***(b) Changes in internal controls over financial reporting***

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the fiscal quarter ended December 31, 2025 covered by this report that has materially affected, or are reasonably likely to materially affect, our internal control over financial reporting other than the facts disclosed above.

**PART II - OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS.**

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry, or investigation before or by any court, public board, government agency, self-regulatory organization, or body pending or, to the knowledge of the executive officers of our Company, threatened against or affecting our Company or our Common Stock, in which an adverse decision could have a material adverse effect.

**ITEM 1A. RISK FACTORS**

As a smaller reporting company, we are not required to respond to this item.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

None

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable

**ITEM 5. OTHER INFORMATION**

**<u>Changes in our Certifying Accountant</u>.** 

**Resignation of Previous Independent Registered Public Accounting Firm**

On December 31, 2025, we received the resignation of J&S Associate PTL ("J&S") as the Company's independent registered public accounting firm. The resignation of J&S was accepted and approved by our Board of Directors ("Board of Directors") on January 1, 2026.

J&S's audit reports on the Company's financial statements as of and for the fiscal years ended September 30, 2025 and 2024 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles, except that the audit reports on the financial statements of the Company for the fiscal years ended September 30, 2025 and 2024 contained an uncertainty about the Company's ability to continue as a going concern.

During our most recent fiscal year ended September 30, 2025 and through the date of this report, we have had no disagreements with J&S on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of J&S, would have caused it to make reference to the subject matter of such disagreements in its report on our financial statements for such period.

During our most recent fiscal year ended September 30, 2025 and through the date of this report, there have been no reportable events as defined under Item 304(a)(1)(v) of Regulation S-K adopted by the Securities and Exchange Commission (the "SEC").

We provided J&S with a copy of the above disclosure before the related report was made with the SEC. We requested that J&S provide us with a letter addressed to the SEC stating whether or not it agrees with the above statements, and we received a letter from J&S stating that it agrees with the above statements. A copy of such letter, dated January 5, 2026 is filed as Exhibit 16 to the Current Report filed with the Securities and Exchange Commission on January 6, 2026.

**Appointment of New Independent Registered Public Accounting Firm**

We have engaged GGF CPA Ltd. ("GGF") as our new independent registered public accounting firm.

During the two most recent fiscal years and through the date of its engagement, we did not consult with GGF regarding either: (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on our financial statements; or (ii) any matter that was either the subject of a disagreement or a reportable event (as defined in Item 304(a)(1)(v) of Regulation S-K). In approving the selection of GGF as the Company's new independent registered public accounting firm, our Board of Directors considered all relevant factors, including the fact that GGF is registered with the Public Company Accounting Oversight Board (the "PCAOB").

**ITEM 6. EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 31.1 | [Certification of Chief Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act](ex31-1.htm) |
| 31.2 | [Certification of Chief Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act](ex31-2.htm) |
| 32.1 | [Certification of Chief Executive Officer Under Section 1350 as Adopted Pursuant Section 906 of the Sarbanes-Oxley Act](ex32-1.htm) |
| 32.2 | [Certification of Chief Financial Officer Under Section 1350 as Adopted Pursuant Section 906 of the Sarbanes-Oxley Act](ex32-2.htm) |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **KUN PENG INTERNATIONAL LTD** | **KUN PENG INTERNATIONAL LTD** |
| Date: February 13, 2026 | By: | */s/ Zhuang Richun* |
|  |  | Zhuang Richun, President |
| Date: February 13, 2026 | By: | */s/ Zhang Yuanyuan* |
|  |  | Zhang Yuanyuan , Chief Financial Officer |

---

## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, ZHUANG Richun, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of Kun Peng International Ltd. (the "Company");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements and other financial information included in this Quarterly Report fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this Quarterly Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. disclosed in this report any change in the Company's internal control over financial reporting that occurred during the period covered by the Quarterly Report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the Company's auditors and the audit committee of the Company's Board of Directors (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal controls over financial reporting.

---

| | |
|:---|:---|
| Date: February 13, 2026 | */s/ ZHUANG Richun* |
|  | ZHUANG Richun, Chief Executive Officer |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATION PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, ZHANG Yuanyuan, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of Kun Peng International Ltd. (the "Company");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements and other financial information included in this Quarterly Report fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this Quarterly Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. disclosed in this report any change in the Company's internal control over financial reporting that occurred during the period covered by the Quarterly Report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the Company's auditors and the audit committee of the Company's Board of Directors (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal controls over financial reporting.

---

| | |
|:---|:---|
| Date: February 13, 2026 | */s/ Zhang Yuanyuan* |
|  | Zhang Yuanyuan, Chief Financial Officer |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of Kun Peng International Ltd., a Nevada corporation (the "Corporation"), does hereby certify, to such officer's knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2025 (the "Form 10-Q") of the Corporation fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

---

| | |
|:---|:---|
| Date: February 13, 2026 | */s/ Zhuang Richun* |
|  | Zhuang Richun, Chief Executive Officer |

---

## Exhibit 32.2

**EXHIBIT 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of Kun Peng International Ltd., a Nevada corporation (the "Corporation"), does hereby certify, to such officer's knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2025 (the "Form 10-Q") of the Corporation fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

---

| | |
|:---|:---|
| Date: February 13, 2026 | */s/ ZHANG Yuanyuan* |
|  | ZHANG Yuanyuan, Chief Financial Officer |

---