Company: LDDD
Filing Date: 2025-09-26
Form Type: 10-K
Source: 0001213900-25-091988
Chunk: 18

Company: Longduoduo Co Ltd
Filing Date: 2025-09-26
Form: 10-K
Item: Item 1
Chunk 18
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 preventive healthcare market is further
segmented into large franchise companies, regional providers and numerous local independent medical examination centers located in nearly
every city in China. We compete primarily on the basis of price, quality of service, convenience, location, brand recognition and reputation.
We do not have the same level of brand recognition as some of the medical examination centers of large public hospitals, and in some
regional markets our brand is not as established and our geographical coverage is not as extensive as that of our private competitors.
Furthermore, we lack the equipment necessary for certain highly technical medical tests. Many competing hospitals that are government-owned
are exempt from income taxes on their medical income, which provides them with a significant competitive advantage over us. Furthermore,
competing hospitals, clinics or other facilities may commence new operations or expand existing operations, which would increase their
competitive position and potentially erode our business, financial condition, results of operations and prospects. 

13

We
may not be able to effectively control and manage our planned growth.

We
have limited operational, administrative and financial resources, which may be inadequate to sustain the growth we want to achieve. If
our business and markets grow and develop, it will be necessary for us to finance and manage expansion accordingly. In addition, we may
face challenges in managing our expanding service offerings. Such growth would place increased demands on our existing management, employees
and facilities. Our failure to meet these demands could interrupt or adversely affect our operations and cause administrative inefficiencies.
Additionally, failure to execute our planned growth strategy could have a material adverse effect on our financial condition and results
of operation.

Expansion
of our healthcare services could be affected by the expansion of government-sponsored social medical insurance available to the Chinese
population that is not available now.

Most
government-sponsored social medical insurance in China does not cover medical examinations. In certain locations where government-sponsored
social medical insurance covers medical examinations, we have cooperating hospitals that are qualified institutions under such insurance
coverage. Currently, most of our individual customers pay directly for medical examinations. If government-sponsored social medical insurance
is further expanded to cover medical examinations in more geographical locations, and Longduoduo does not become a qualified institution
for such coverage, certain of our customers may discontinue or terminate their relationship with us, and certain individual customers
may opt to use other medical institutions covered by such medical insurance rather than pay for our services. As a result, the expansion
of government-sponsored social medical insurance could materially and adversely affect our business, financial condition and