Company: LDDD
Filing Date: 2025-09-26
Form Type: 10-K
Source: 0001213900-25-091988
Chunk: 2

Company: Longduoduo Co Ltd
Filing Date: 2025-09-26
Form: 10-K
Item: Item 1
Chunk 2
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5, 2021. Longduoduo Health Technology has controlled 51% of Tianju since inception.

2

Considerations
Relating to Regulation under Chinese Law

Longduoduo
is not a Chinese operating company but a Nevada holding company with all of its operations conducted through seven subsidiaries located
in the PRC. Investors in the Company’s common stock should be aware that they will not directly hold equity interests in a Chinese
operating entity, but rather are purchasing equity solely in a Nevada holding company that will be dependent upon distributions from
its principal Chinese subsidiary to finance the administrative expenses of the Nevada holding company and any cash distributions by the
Nevada holding company to its shareholders. Our ability to obtain contributions from the Company’s subsidiary is significantly
affected by regulations promulgated by PRC authorities. Chinese regulatory authorities could prevent our principal Chinese subsidiary
from making distributions to its Nevada parent, which would likely result in a material change in our operations and cause the value
of our securities to significantly decline or become worthless. Any change in the interpretation by the PRC government of existing rules
and regulations or the promulgation of new rules and regulations may materially affect our operations or cause the value of our securities
to significantly decline or become worthless. For a detailed description of the risks facing the Company as a result of its dependence
on its Chinese operating subsidiaries, please refer to “Risk Factors - Risks Relating to Doing Business in the PRC.”

Exposure
to potential sanctions under the HFCAA

Pursuant
to the Holding Foreign Companies Accountable Act (“HFCAA”), as adopted by the United States Congress in 2020, the Public
Company Accounting Oversight Board (the “PCAOB”) issued a Determination Report on December 16, 2021 which found that the
PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in the PRC because of a position
taken by one or more authorities in mainland China. Under the HFCAA (as amended by the Consolidated Appropriations Act – 2023),
an issuer’s securities may be prohibited from trading on a U.S. stock exchange or facility if its auditor is not inspected by the
PCAOB for two consecutive years (reduced by Congress in 2023 from three consecutive years in the original HFCAA).

On
August 26, 2022, the China Securities Regulatory Commission (“CSRC”), the Ministry of Finance of China, and the PCAOB signed
a protocol governing inspections