Company: LDDD
Filing Date: 2025-09-26
Form Type: 10-K
Source: 0001213900-25-091988
Chunk: 29

Company: Longduoduo Co Ltd
Filing Date: 2025-09-26
Form: 10-K
Item: Item 1
Chunk 29
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 our ability to
fund and expand our business may be negatively affected.  

Because
our principal assets are located outside of the United States and because all of our directors and all our officers reside in China,
it may be difficult for you to use the United States Federal securities laws to enforce your rights against us and our officers or to
enforce judgments of United States courts against us or them in the PRC.

Our
Company conducts substantially all of its operations in China, and substantially all of the assets reflected on our balance sheet are
located in China. In addition, all members of our board of directors and all of our senior executive officers reside within China and
are PRC nationals. As a result, it may be difficult for our shareholders to effect service of process upon those persons inside China.
In addition, China does not have treaties providing for the reciprocal recognition and enforcement of judgments of courts with the United
States. Therefore, recognition and enforcement in China of judgments of a court in the United States in relation to any matter not subject
to a binding arbitration provision may be difficult or impossible.

Shareholder
claims that are common in the United States, including securities law class actions and fraud claims, generally are difficult to pursue
as a matter of law or practicality in China. For example, in China, there are significant legal and other obstacles to obtaining information
needed for shareholder investigations or litigation outside China or otherwise with respect to foreign entities. Although the local authorities
in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another country or region to
implement cross-border supervision and administration, such regulatory cooperation with the securities regulatory authorities in the
Unities States have not been efficient in the absence of a mutual and practical cooperation mechanism.

20

The
recent joint statement by the SEC and PCAOB and the Holding Foreign Companies Accountable Act calls for additional and more stringent
criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors
who are not inspected by the PCAOB. Furthermore, in 2023, the U.S. Congress passed, and the President signed, the Accelerating Holding
Foreign Companies Accountable Act, which amended the HFCA Act and requires the SEC to prohibit an issuer’s securities from trading
on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years (instead of three mandated in
the HFCAA). These developments could add uncertainties to our business operations. 

Purs