Kun Peng International Ltd. reported a significant decline in financial performance for the three months ended December 31, 2024, with revenues of $356,519, down 36.6% from $562,158 in the same period of 2023. The company's gross profit also decreased to $300,836 from $412,811 year-over-year. Operating expenses rose slightly to $998,922, compared to $979,807 in the previous year, leading to a loss from operations of $698,086, up from a loss of $566,996 in the prior year. The net loss attributable to Kun Peng International Ltd. was $645,478, compared to $520,934 in the same quarter of 2023.
The decline in revenue was primarily attributed to a sharp decrease in retail product sales, which fell to $78,457 from $506,333. However, the company reported a notable increase in equipment service revenue, which rose to $278,062 from $8,668, indicating a strategic shift towards service-oriented offerings. General and administrative expenses increased significantly, driven by higher employee compensation and professional service fees, while selling expenses decreased due to reduced service agent fees.
In terms of operational metrics, Kun Peng International Ltd. has been expanding its online platforms, including the King Eagle Mall and the newly launched Kun Zhi Jian Mini Program. As of December 31, 2024, the King Eagle Mall had approximately 5,669 members, while the Kun Zhi Jian platform had around 2,394 members. The company is focusing on promoting preventive health care products and services, leveraging partnerships with local health service providers to enhance its offerings.
Looking ahead, the company faces challenges related to liquidity, with negative working capital of $8,198,139 as of December 31, 2024. Management is exploring various strategies to improve financial stability, including increasing sales through its online platforms, reducing operating costs, and seeking additional funding from shareholders. However, the company has expressed uncertainty regarding its ability to continue as a going concern without successful implementation of these strategies. The financial statements do not include adjustments for potential future effects on asset recoverability or liability classifications should the company be unable to continue operations.
About Kun Peng International Ltd.
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