Company: LDDD
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-042963
Chunk: 32

Company: Longduoduo Co Ltd
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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oduo Health Technology, Tianju, Qingguo, Rongbin，Chengheng, Julong and Yihua which are established in Ordos, Ulanqab,
Huhhot, Baotou,Ordos and Beijing, respectively, which include four of the largest cities in Inner Mongolia, and the capital of China.

Period to period revenue
fell by 42% as compared with the operating revenue of $5,718,060 for the nine months ended March 31, 2024. The decrease was primarily
attributable to the fact that Neimenggu Province was emerging from the pandemic during the nine months ended March 31, 2024. 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 nine months ended March 31, 2024. One other important factor influencing revenue in the recent period 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 nine months ended March 31, 2025, our cost of revenue was $81,501, with the result that our gross
profit from service revenue was $36,139 (a gross margin of 31%). By comparison, our gross profit from service revenue for the nine months
ended March 31, 2024 was $184,306, representing 56% of service revenue for that quarter.

When our net service revenue in the nine months
ended March 31, 2025 was combined with commission revenue (for which there is no cost of revenue), we achieved gross profit of $3,240,786.
However, we realized only a $421,679 income from operations for the nine months ended March 31, 2025 because the Company incurred significant
marketing expense in connection with establishing its brand as a new company. The Company will continue to invest heavily in advertising
and promotion expenses in the near future as it continues to establish and expand its brand and products and services.

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