Kun Peng International Ltd. Announces 1-for-10 Reverse Stock Split and Major Corporate Changes
BEIJING, CHINA, May 29, 2026 — Kun Peng International Ltd. (OTCQB: KPEA) has announced a series of significant corporate actions that could impact its share value and are highly relevant for investors and shareholders.
Key Highlights from the Announcement
- 1-for-10 Reverse Stock Split: The company will execute a 1-for-10 reverse stock split, effective June 2, 2026. This means every ten shares of Kun Peng International’s \$0.0001 par value common stock will be converted into one share. The move will reduce the number of issued and outstanding shares from approximately 400 million to around 40 million.
- Amendment to Articles of Incorporation: Concurrently, the company will decrease its total authorized shares of common stock from 1 billion to 100 million shares. The par value of each share will increase from \$0.0001 to \$0.001.
- Approval Process: These changes were approved by written consent of the Board of Directors and by holders of about 85.4% of the company’s outstanding common stock. No further shareholder approval is required.
- No Fractional Shares: Fractional shares resulting from the split will be rounded up to the nearest whole share, ensuring shareholders do not lose any value.
- Trading and CUSIP Changes: Kun Peng International’s common stock will begin trading on a reverse split-adjusted basis on the OTC Markets under the same symbol (“KPEA”) starting June 2, 2026. The new CUSIP number will be 12672T 207.
- Transfer Agent: Transhare Corporation will act as the exchange agent for the reverse stock split. Shareholders holding shares electronically or in brokerage accounts will have their positions automatically adjusted and do not need to take any action.
Potential Impact on Shareholders and Share Price
- Reduced Share Float: The reverse stock split substantially decreases the number of shares outstanding. This generally increases the price per share, as the same market capitalization is spread across fewer shares.
- Authorized Shares Reduction: Lowering the number of authorized shares and increasing par value may signal a tighter capital structure and may discourage future dilution, potentially benefiting current shareholders.
- Corporate Governance: With over 85% approval from shareholders, these measures have strong backing and are unlikely to face regulatory or legal challenges.
- No Action Required for Shareholders: Holders in street name or book-entry need not take any steps; adjustments are handled automatically. This reduces administrative friction and risk.
- Trading Adjustments: Investors should note the adjustment in share quantity and price post-split, as well as the new CUSIP for tracking their holdings.
Business Overview and Growth Initiatives
Kun Peng International Ltd. is a distributor of preventive health care and wellness products in China, operating through mobile and online e-commerce platforms. The company’s core business is managed via its mobile social e-commerce platform, King Eagle Mall, which utilizes an S2B2C (Supplier-to-Business-to-Consumer) model. The platform integrates a wide array of health care products, including dietary supplements, nutritional foods, cosmeceuticals, and household products aimed at promoting a healthier lifestyle.
The company’s online platform, Kun Zhi Jian, launched in October 2022, focuses on selling physiotherapy equipment and branded health care products to wholesalers and retailers. In November 2023, Kun Peng introduced the Kun Zhi Jian Mini Program, which features physiotherapy equipment, a customer service center providing diet and nutritional suggestions based on health profiles and tongue examinations, and an online shopping mall offering health foods and household appliances.
Forward-Looking Statements
The company cautions that certain statements in this announcement are forward-looking, including expectations regarding business growth, product launches, and customer expansion. Actual results may differ materially due to risks and uncertainties, such as customer base diversity, app development and acceptance, customer service quality, marketing efforts, and competitive positioning. Investors are encouraged to review the company’s SEC filings for detailed risk factors.
Contact Information
Media Enquiries: Lili Zhang
Email: [email protected]
Phone: +86-10-87227012
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. The information herein reflects public disclosures by Kun Peng International Ltd. and may be subject to change or further clarification by the company or regulatory authorities.
