Company: LDDD
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-042963
Chunk: 55

Company: Longduoduo Co Ltd
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 55
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 we have a Sales Agency Agreement. As of March 31, 2025, we operate through seven entities: Longduoduo Health Technology, Tianju,
Qingguo, Rongbin, Chengheng, Julong and Yihua which are established in Ordos, Ulanqab, Huhhot, Baotou, Ordos and Beijing, respectively,
which include four of the largest cities in Inner Mongolia, and the capital of China.

Quarter to quarter revenue
fell by 57% as compared with the operating revenue of $1,790,084 for the three months ended March 31, 2024. The decrease was primarily
attributable to the fact that Neimenggu Province was emerging from the pandemic during the three months ended March 31, 2024. 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 March 31, 2024. 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 March 31, 2025, our cost of revenue was $20,444, with the result that our gross
profit from service revenue was $8,280 (a gross margin of 29%). By comparison, our gross profit from service revenue for the three months
ended March 31, 2024 was $38,597, representing 28% of service revenue for that quarter.

When our net service revenue in the three months
ended March 31, 2025 was combined with commission revenue (for which there is no cost of revenue), we achieved gross profit of $757,276.
However, we realized only a $118,819 loss from operations for the three months ended March 31, 2025 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