Longduoduo Company Limited reported a significant decline in its financial performance for the fiscal year ending June 30, 2025, with total revenue falling to $4.26 million, a decrease of 42% from $7.39 million in the previous year. The company's net income also dropped by 64%, from $1.36 million to $492,260. This decline was primarily attributed to a post-pandemic revenue surge in the previous fiscal year, which was not replicated in 2025, alongside a challenging economic environment that reduced customer health expenditures.
The company’s revenue structure shifted notably, with 97% of its income now derived from commissions earned through a sales agency agreement with Inner Mongolia Honghai Health Management Co., Ltd. This agreement, initiated in June 2023, has become the cornerstone of Longduoduo's operations, overshadowing its previous focus on direct sales of healthcare services. Revenue from direct healthcare services fell sharply, contributing only $120,866 to total revenue, compared to $327,599 in the prior year.
Operationally, Longduoduo has made strategic adjustments, including a reduction in marketing expenses, which decreased from $3.34 million in 2024 to $1.94 million in 2025. This reduction was a response to the revenue decline, as the company aims to stabilize its financial position while continuing to invest in brand establishment. The total operating expenses also decreased by 30%, reflecting the company's efforts to streamline operations amid reduced revenue.
As of June 30, 2025, Longduoduo had a working capital of $983,123 and cash and cash equivalents of $1.64 million. The company has 52 full-time employees and operates through several subsidiaries in China, focusing on preventive healthcare solutions. Despite the challenges, management remains optimistic about future growth, citing ongoing government policies aimed at economic recovery and plans to enhance operational efficiency.
Looking ahead, Longduoduo intends to expand its service offerings and geographic reach while navigating the complexities of operating in the Chinese market, which is subject to stringent regulatory oversight. The company is also preparing to apply for a listing on the OTCQB or Nasdaq, contingent upon obtaining necessary approvals from Chinese regulatory authorities, which could impact its ability to raise capital and expand operations.
About Longduoduo Co Ltd
Longduoduo Company Limited is a Nevada holding company that owns and manages multiple Chinese subsidiaries providing health management and preventive healthcare services. Its core activities include acting as sales agent and distributor for third-party healthcare providers, focusing on cardiovascular and cerebrovascular disease prevention. The company leverages a network of clinics and partnerships in China to deliver high-quality, innovative health solutions to local markets.
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