Company: LDDD
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-108744
Chunk: 10

Company: Longduoduo Co Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 “$”). 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 Three Months Ended
 September 30,  

    2025 
    2024 

    (USD to RMB/USD to HKD) 
    (USD to RMB/USD to HKD) 
  
    Assets and liabilities 
    period end exchange rate 
    7.1203/7.7813 
    7.0149/7.7702
  
    Revenue and expenses 
    period weighted average 
    7.1572/7.8208 
    7.1614/7.7992

E. Concentration of credit risk

The Company
maintains cash in state-owned banks in China. In China, the insurance coverage per account of each bank is RMB500,000 (approximately
USD$70,000). As of September 30, 2025 and June 30, 2025, the Company had $848,390 and $1,130,547 cash in excess of the
insured amount, respectively.

For each
of the three months ended September 30, 2025 and 2024, one customer accounted for 99.1% and 99.9% of revenue.

For the three months ended September
30, 2025 and 2024, the Company had two and three major suppliers that each accounted for over 10% of its total cost of revenue.

    For the Three Months Ended September 30, 2025  
    For the Three Months Ended September 30, 2024 

    Cost of 
revenue