Kun Peng International (KPEA) Q3 2024 Earnings Report

Kun Peng International Ltd (KPEA) reported QQ3 2024 revenue of USD 672,062 thousand with a gross margin of approximately 73.18% (gross profit USD 491,797 thousand). Despite the strong gross margin, the quarter posted an operating loss of USD 284,484 thousand and a net loss of USD 292,533 thousand, with EPS of –0.0007. Management delivered YoY revenue growth of 45.9% and QoQ growth of 84.38% on a reported basis, underscoring a material expansion in top-line scale, likely driven by increased activity on the King Eagle Mall online platform and related health-care product sales. However, profitability remains constrained by elevated operating expenses; EBITDA stood at –USD 185,380 thousand and EBITDA margin at –27.6%, while operating margin was –42.3%. The company generated positive cash flow from operations (USD 183,546 thousand) and reported sizable capital expenditure (USD 58,596 thousand), yielding a free cash flow (per reported figures) of USD 242,142 thousand, though there is an inconsistency in reconciliation with reported capex and operating cash flow, warranting closer scrutiny in future filings.