Kun Peng International Ltd.

What they do

The company operates King Eagle Mall, a mobile social e-commerce platform launched in July 2020 using an S2B2C model, selling dietary supplements, nutritional health foods, beauty cosmeceuticals, collagen peptides, probiotics, and household health products. It also runs Kun Zhi Jian, an online platform launched October 2022 and a mini program launched November 2023, initially selling thermal therapy cabins to wholesalers and now promoting physiotherapy equipment and preventive health care products. Customers are served through customer service centers, and the company has stated it is transitioning from offline retail and equipment-based services to a physician group-centric digital healthcare platform.

Revenue drivers

• King Eagle Mall e-commerce platform — Mobile social e-commerce platform selling self-operated and third-party preventive health products including dietary supplements, nutritional foods, cosmeceuticals and probiotics; had approximately 10,212 members as of June 30, 2026, down from 15,858 as of September 30, 2025.
• Kun Zhi Jian and Mini Program — Online platform launched October 2022 and mini program launched November 2023 selling physiotherapy equipment and preventive health care products; had approximately 7,140 members as of June 30, 2026, down from 8,745 as of September 30, 2025.
• Legacy equipment-services segment — Equipment-based services, including thermal therapy cabin sales, that the company says it is transitioning away from, with the 10-Q citing short-term financial pressure on this segment due to the transition.

Recent performance

Annual revenue declined each year from $7.5M in fiscal 2022 to $3.9M in 2023, $2.1M in 2024 and $1.4M in 2025, while annual net losses were $1,268,913 in 2025 and $1,991,747 in 2024. Quarterly revenue fell from $364,521 in the quarter ended September 30, 2025 to $174,824 in the December 2025 quarter, then $22,452 in the March 2026 quarter and $31,438 in the June 2026 quarter. Operating cash flow was negative $208,156 in fiscal 2025, and as of September 30, 2025, the company reported negative working capital of $8,495,197. At June 30, 2026, total assets were $423,510, total liabilities were $10.0M, shareholder equity was negative $9.6M, and cash and equivalents were $6,606.

Strategy

Management launched a "Physician Group" strategy in 2025 to integrate medical resources and build a digital healthcare ecosystem. The stated plan for the next 12 months focuses on promoting and selling its own brand of preventive health care products to wholesalers through Kun Zhi Jian, streamlining overhead costs, and obtaining financing or capital funding as needed. Management may seek funds through issuance of equity securities, loans from officers and controlling stockholders, or bank financing. The company completed a 1-for-10 reverse stock split effective June 2, 2026, reducing outstanding shares from 400,000,000 to approximately 40,000,624, decreasing authorized shares from 1,000,000,000 to 100,000,000, and increasing par value from $0.0001 to $0.001.

Risks

• Going concern doubt — The company's independent registered auditors have expressed substantial doubt about its ability to continue as a going concern, citing operating cash outflows of $208,156, a net loss of $1,268,913 and negative working capital of $8,495,197 as of September 30, 2025.
• Recurring losses and limited revenue — The company reported net losses of $1,268,913 and $1,991,747 for fiscal 2025 and 2024, and management states it has generated very limited revenue and may not return to profitability.
• Variable interest entity structure — The company has no equity interest in its consolidated affiliated entities King Eagle (Tianjin) and its subsidiaries, relies on contractual arrangements, and states that enforceability of those agreements has not been tested in court.
• Cash transfer restrictions in the PRC and Hong Kong — Funds and assets held in the PRC and Hong Kong entities may not be available to fund operations or be used outside those jurisdictions due to restrictions imposed by the PRC government, none of the subsidiaries have made distributions or dividends to the Company, and no dividend is anticipated in the foreseeable future.

Outlook

Management states that continuing as a going concern for the next 12 months depends on promoting and selling its own brand of preventive health care products to wholesalers through Kun Zhi Jian, streamlining overhead costs, and obtaining financing or capital funding as necessary. The company estimates additional capital will be needed to support operations and growth. The 10-Q attributes short-term financial pressure on the legacy equipment-services segment to the ongoing transition toward a physician group-centric digital healthcare platform.