Rising Dragon Acquisition Corp. Reports Decrease in Net Income and Assets for Quarter Ending June 30, 2026

Rising Dragon Acquisition Corp. (RDAC) reported its financial results for the quarter ending June 30, 2026, revealing a net income of $84,657, a decrease from $398,981 in the same period last year. The company generated interest income of $304,805 from its investments held in a trust account, down from $608,447 in the prior year. For the first half of 2026, RDAC's net income was $296,620, compared to $852,848 in the first half of 2025. The decline in net income is attributed to a significant reduction in interest income, which fell to $685,588 from $1,205,604 year-over-year, while formation and operating costs increased to $388,968 from $352,756.

As of June 30, 2026, RDAC's total assets were reported at $18.4 million, a substantial decrease from $44.4 million at the end of 2025. This decline is primarily due to a reduction in the investment held in the trust account, which decreased from $44.4 million to $18.4 million. The company’s cash reserves also fell to $8,695 from $37,174 at the end of the previous fiscal year. Current liabilities increased significantly to $1.4 million, compared to $419,279 at the end of 2025, largely due to accrued liabilities and a promissory note from a related party.

In terms of strategic developments, RDAC is in the process of completing a merger with HZJL Cayman Limited, which was agreed upon in a merger agreement dated January 27, 2025. This transaction is expected to result in RDAC merging with its wholly-owned subsidiary, Xpand Boom Technology Inc., and subsequently acquiring HZJL. The merger is subject to regulatory approvals and shareholder votes, and if successful, will allow RDAC to continue as a publicly traded entity under a new ticker symbol.

Operationally, RDAC has not yet commenced any business operations, as it is a blank check company focused on identifying a target for its initial business combination. The company has extended its deadline to complete this merger until August 15, 2026, through a series of promissory notes issued to its sponsor, Aurora Beacon LLC. As of the latest report, RDAC has 3,435,357 ordinary shares outstanding, with a significant portion subject to possible redemption.

Looking ahead, RDAC's management has expressed confidence in its ability to meet its liquidity needs and complete the business combination. However, there remains substantial doubt about the company's ability to continue as a going concern if it fails to consummate the merger by the extended deadline. The company has indicated that it may need to seek additional financing to cover any potential redemptions of public shares or to complete the business combination, underscoring the inherent risks associated with its current operational status.