Rising Dragon Acquisition Corp. Reports Net Income of $398,981 for Q2 2025

Rising Dragon Acquisition Corp. (RDAC) reported its financial results for the quarter ending June 30, 2025, revealing a net income of $398,981 for the three-month period, a significant increase from a net loss of $10,000 during the same period in 2024. For the six months ending June 30, 2025, the company recorded a net income of $852,848, compared to a net loss of $38,860 in the prior year. The positive performance was primarily driven by interest income earned from investments held in a trust account, amounting to $608,447 for the quarter and $1,205,604 for the six-month period.

The company’s total assets as of June 30, 2025, were reported at $59.64 million, a slight increase from $58.79 million at the end of 2024. The increase in assets was largely attributed to the investment held in the trust account, which rose to $59.54 million from $58.33 million. However, the company’s cash reserves decreased significantly to $83,406 from $392,679 at the end of the previous fiscal year, reflecting the operational costs incurred during the period.

In terms of strategic developments, RDAC entered into a merger agreement on January 27, 2025, with HZJL Cayman Limited, which is expected to result in a business combination that will allow RDAC to merge with Xpand Boom Technology Inc. This transaction is subject to regulatory approvals and shareholder votes, and upon completion, the combined entity will continue to be listed on Nasdaq under a new ticker symbol. The merger is part of RDAC's strategy to identify and engage in business combinations, as the company has not yet commenced any operations since its inception.

Operationally, RDAC has maintained a consistent number of ordinary shares issued and outstanding, totaling 1,749,375 as of June 30, 2025. The company has also reported a working capital of approximately $289,889, which it intends to use for identifying and evaluating potential business combinations. The company’s management has expressed confidence in its ability to meet liquidity needs prior to the consummation of a business combination, although it acknowledges the potential need for additional financing to complete such a transaction.

Looking ahead, RDAC has until January 14, 2026, to complete its business combination. If it fails to do so, the company will be required to cease operations and redeem public shares. Management has indicated that while they believe they have sufficient working capital to meet anticipated cash needs, there remains uncertainty regarding the ability to successfully complete a business combination within the designated timeframe.