Company: LDDD
Filing Date: 2025-09-26
Form Type: 10-K
Source: 0001213900-25-091988
Chunk: 318

Company: Longduoduo Co Ltd
Filing Date: 2025-09-26
Form: 10-K
Item: Item 3
Chunk 318
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 FINANCIAL STATEMENTS

FOR
THE YEARS ENDED JUNE 30, 2025 AND JUNE 30, 2024

D.
Functional currency and foreign currency translation

An
entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency
of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the
functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company
transactions and arrangements. The functional currency of the Company is the Chinese Renminbi (“RMB’), except the functional
currency of Longduoduo HK and LDDJK is the Hong Kong Dollar and the functional currency of Longduoduo and LDD is the United States Dollar
(“US Dollars” or “$”). The reporting currency of these consolidated financial statements is in US Dollars.

The
financial statements of Longduoduo’s subsidiaries, which are prepared using the RMB and HKD, are translated into the Company’s
reporting currency, the US Dollar. Assets and liabilities are translated using the exchange rate at each reporting period end date. Revenue
and expenses are translated using weighted average rates prevailing during each reporting period, and stockholders’ equity (deficit)
is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated
other comprehensive income or expense.

Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing
at the dates of the transactions. Foreign currency exchange gains and losses resulting from these transactions are included in operations.

The
exchange rates used for foreign currency translation are as follows:

    For
    the Years Ended June 30,

    2025

    2024

    (USD to RMB/
    USD to HKD)

    (USD to RMB/
    USD to HKD)

    Assets and
    liabilities
     
    period end
    exchange rate

    7.1672/7.8499

    7.2675/7.8081

    Revenue and expenses
     
    period weighted average

    7.2145/7.7895

    7.2107/7.8190

E.
Concentration of credit risk

The
Company maintains cash in state-owned banks in China. In China, the insurance coverage of