Company: LDDD
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-108744
Chunk: 184

Company: Longduoduo Co Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part II, Item 8
Chunk 184
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AND 2024

(UNAUDITED)

D. Functional
currency and foreign currency translation

An entity’s functional currency is the currency
of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily
generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators,
such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency
of the Company is the Chinese Renminbi (“RMB’), except the functional currency of Longduoduo HK and LDDJK is the Hong Kong
Dollar and the functional currency of Longduoduo and LDD is the United States Dollar (“US Dollars” or “$”). 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,