Company: LDDD
Filing Date: 2025-09-26
Form Type: 10-K
Source: 0001213900-25-091988
Chunk: 117

Company: Longduoduo Co Ltd
Filing Date: 2025-09-26
Form: 10-K
Item: Item 1A
Chunk 117
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 trading market within the US.

Governmental
control of currency conversion may affect the value of your investment.

The
People’s Republic of China (PRC) government imposes controls on the convertibility of Renminbi (RMB) into foreign currencies and,
in certain cases, the remittance of currency out of the PRC. We receive substantially all of our revenues in RMB, which is currently
not a freely convertible currency. Shortages in the availability of foreign currency may restrict our ability to remit sufficient foreign
currency to pay dividends, or otherwise satisfy foreign currency dominated obligations. Under existing PRC foreign exchange regulations,
payments of current account items, including profit distributions, interest payments and expenditures in connection with a commercial
transaction, can be made in foreign currencies without prior approval from the PRC State Administration of Foreign Exchange by complying
with certain procedural requirements. However, approval from appropriate governmental authorities is required where RMB is to be converted
into foreign currency and remitted out of PRC to pay capital expenses such as the repayment of bank loans denominated in foreign currencies.

The
PRC government also may at its discretion restrict access in the future to foreign currencies for current account transactions. If the
foreign exchange control system prevents us from obtaining sufficient foreign currency to satisfy our currency demands, we may not be
able to pay certain of our expenses as they come due, finance our cash requirements, service debt or make dividend or other distributions
to our shareholders, all of which may adversely affect your investment.

22

The
fluctuation of RMB may materially and adversely affect your investment.

The
value of the RMB against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s
political and economic conditions. As we rely entirely on revenues earned in the PRC, any significant revaluation of RMB may materially
and adversely affect our cash flows, revenues and financial condition. For example, to the extent that we need to convert U.S. dollars
we receive from an offering of our securities into RMB for our operations, appreciation of the RMB against the U.S. dollar could have
a material adverse effect on our business, financial condition and results of operations. Conversely, if we decide to convert our RMB
into U.S. dollars for the purpose of making dividend payments on our common stock or for other business purposes and the U.S. dollar
appreciates against the RMB, the U.S. dollar equivalent of