Longduoduo Company Limited Reports 57% Revenue Decline and Net Loss for Fiscal Year Ending June 30, 2026

Longduoduo Company Limited reported a significant decline in its financial performance for the fiscal year ending June 30, 2026, with total revenue falling to $1.82 million, a decrease of 57% from $4.26 million in the previous year. The company attributed this decline primarily to a shift in its business model, as it transitioned to a sales agency model with Inner Mongolia Honghai Health Management Co., Ltd., which accounted for over 99.6% of its revenue. The company’s gross profit also decreased to $1.81 million, down from $4.17 million, while it incurred a net loss of $642,267 compared to a net income of $492,260 in the prior year.

The company’s operational strategy has shifted significantly, with a focus on agency sales of preventive healthcare solutions. This change began in June 2023, leading to a substantial drop in service revenue, which fell nearly 95% year-over-year. The company’s cost of revenue was reported at $16,958, primarily related to payments to third-party healthcare providers. Despite the drop in revenue, total operating expenses decreased by 33% to $2.44 million, reflecting cost-cutting measures in advertising and promotion, professional fees, and office expenses.

Longduoduo's operational metrics indicate a reliance on a single revenue source, which poses risks for future performance. The company operates through five subsidiaries in major cities in Inner Mongolia, and as of June 30, 2026, it had 51 full-time employees. The company’s cash and cash equivalents stood at $1.59 million, with a working capital of $501,414, indicating a tight liquidity position. The deferred revenue from customer prepayments was $790,429, which the company utilized to fund ongoing operations.

Looking ahead, Longduoduo plans to enhance its operational policies and improve its service offerings to regain market share and stabilize its financial performance. The company is also navigating regulatory challenges in China, particularly concerning foreign investments and the potential impact of U.S.-China relations on its operations. Management has expressed uncertainty regarding future capital raising efforts, which are crucial for funding growth and operational needs. The company’s ability to adapt to market conditions and regulatory environments will be critical for its recovery and long-term sustainability.