Kun Peng International Ltd. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company achieved a net revenue of $609,285 for the three months ended March 31, 2025, marking a 67.2% increase from $364,508 in the same period last year. For the six months ending March 31, 2025, total revenue reached $965,804, a slight increase from $926,666 in the prior year. The gross profit for the quarter was $510,680, representing a gross margin of 83.8%, compared to 72.7% in the previous year.
Operating expenses for the quarter totaled $825,522, a decrease from $848,683 in the prior year, primarily due to a significant reduction in general and administrative expenses, which fell from $528,457 to $312,614. However, selling expenses increased to $512,908 from $320,226, reflecting the company's investment in promotional activities to boost sales. The net loss attributable to Kun Peng International Ltd. was $192,877 for the quarter, a notable improvement from a loss of $597,435 in the same quarter of the previous year.
Strategically, Kun Peng has focused on expanding its online platforms, including the King Eagle Mall and the newly launched Kun Zhi Jian, which has contributed to increased customer engagement. As of March 31, 2025, King Eagle Mall had approximately 5,669 members, while the Kun Zhi Jian platform had around 2,869 members. The company has also been exploring additional revenue streams and optimizing its service processes to enhance profitability.
In terms of operational metrics, the company reported a significant increase in equipment-based service revenue, which rose to $456,614 for the quarter, compared to $299,019 in the previous year. This growth reflects a strategic pivot towards health care equipment services, which the company believes has strong market potential post-COVID-19. The total cash and cash equivalents as of March 31, 2025, were $27,379, down from $82,184 at the end of September 2024, indicating ongoing liquidity challenges.
Looking ahead, Kun Peng International Ltd. acknowledges substantial doubt about its ability to continue as a going concern due to negative working capital of $8,329,536 and ongoing losses. The company is actively seeking to improve its financial position through increased sales, cost reductions, and potential financing options. However, management has cautioned that there are no guarantees regarding the success of these initiatives or the availability of financing on favorable terms.
About Kun Peng International Ltd.
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