Company: LDDD
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013782
Chunk: 27

Company: Longduoduo Co Ltd
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 Technology, Tianju, Qingguo, Rongbin and Chengheng, which are established in Ordos, Ulanqab, Huhhot,
Baotou and Ordos, respectively, which include four of the largest cities in Inner Mongolia, China.

Quarter to quarter revenue
fell by 24% as compared with the operating revenue of $2,340,543 for the three months ended December 31, 2023. The decrease was primarily
attributable to the fact that Neimenggu Province was emerging from the pandemic during the three months ended December 31, 2023. A large
number of customers received services during that quarter that they had earlier paid for but could not receive. This resulted in a surge
in revenue during the three months ended December 31, 2023. One other important factor influencing revenue in the recent quarter is the
impact of the economic environment, which has led to a decrease in customer health expenditures. Management believes that the government
has recently introduced policies to promote economic recovery, but it may take some time for the situation to truly improve. Meanwhile,
as we wait for the economy to revive, the Company is implementing plans to improve its operations by adjusting its operational policies.

Cost of revenue relates
solely to our service revenue, and mainly consists of our payments to the third-party healthcare service providers who perform healthcare
services for our customers. During the three months ended December 31, 2024, our cost of revenue was $28,781, with the result that our
gross profit from service revenue was $13,540 (a gross margin of 32%). By comparison, our gross profit from service revenue for the three
months ended December 31, 2023 was $59,517, representing 58% of service revenue for that quarter.

When our net service revenue in the three months
ended December 31, 2024 was combined with commission revenue (for which there is no cost of revenue), we achieved gross profit of $1,746,714.
However, we realized only a $602,574 income from operations for the three months ended December 31, 2024 because the Company incurred
significant marketing expense in connection with establishing its brand as a new company. The Company will continue to invest heavily
in advertising and promotion expenses in the near future as it continues to establish and expand its brand and products and services.

Our operating expenses consist primarily of advertising
and promotion expenses, salaries and benefits, office expenses, professional