Company: LDDD
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013782
Chunk: 54

Company: Longduoduo Co Ltd
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 54
---
, primarily derived from sales of “Immunological
Ozonated Autohemotherapy”, “Meridian-regulating and Consciousness-restoring Iatrotechnics”, “Assay”, “PRP”
and other healthcare services. The remaining $2,544,567 of revenue was attributable to commissions earned by the Company from its service
as sales agent for Honghai. In June of 2023, the Company began to engage in the sales agent business and focused on the sales of preventive
healthcare solutions administered by Honghai, with whom we have a Sales Agency Agreement. As of December 31, 2024, we operate through
five entities: Longduoduo Health Technology, Tianju, Qingguo, Rongbin and Chengheng, which are established in Ordos, Ulanqab, Huhhot,
Baotou and Ordos, respectively, which include four of the largest cities in Inner Mongolia, China.

Quarter to quarter revenue
fell by 42% as compared with the operating revenue of $3,927,976 for the six months ended December 31, 2023. The decrease was primarily
attributable to the fact that Neimenggu Province was emerging from the pandemic during the six months ended December 31, 2023. A large
number of customers received services during that period that they had earlier paid for but could not receive. This resulted in a surge
in revenue during the six months ended December 31, 2023. One other important factor influencing revenue in the recent half-year is the
impact of the economic environment, which has led to a decrease in customer health expenditures. Management believes that the government
has recently introduced policies to promote economic recovery, but it may take some time for the situation to truly improve. Meanwhile,
as we wait for the economy to revive, the Company is implementing plans to improve its operations by adjusting its operational policies.

Cost of revenue relates
solely to our service revenue, and mainly consists of our payments to the third-party healthcare service providers who perform healthcare
services for our customers. During the six months ended December 31, 2024, our cost of revenue was $61,057, with the result that our gross
profit from service revenue was $27,859 (a gross margin of 31%). By comparison, our gross profit from service revenue for the six months
ended December 31, 2023 was $169,096, representing 61% of service revenue for that quarter