Rising Dragon Acquisition Corp. (RDAC) reported its financial results for the quarter ending September 30, 2025, revealing a net income of $452,318, a significant increase from a net loss of $11,390 in the same period last year. For the nine months ended September 30, 2025, the company recorded a net income of $1,305,166, compared to a loss of $50,250 for the same period in 2024. The increase in profitability is attributed primarily to interest income earned from investments held in the Trust Account, which amounted to $622,306 for the third quarter and $1,827,910 for the nine-month period.
The company’s total assets as of September 30, 2025, were $60,164,076, up from $58,786,225 at the end of 2024. This increase was driven by a rise in the investment held in the Trust Account, which grew to $60,158,456 from $58,330,546. However, cash reserves significantly decreased to $5,620 from $392,679, reflecting the company's operational expenditures. Current liabilities also rose to $95,185 from $22,500, primarily due to accrued liabilities and a new promissory note issued to a related party.
In terms of strategic developments, RDAC is in the process of executing a merger agreement with HZJL Cayman Limited, which was signed on January 27, 2025. This merger will involve RDAC merging with its wholly-owned subsidiary, Xpand Boom Technology Inc., and subsequently merging with HZJL. The transaction is valued at $350 million and is subject to regulatory approvals and shareholder votes. The company aims to complete this business combination by January 14, 2026, or extend the deadline if necessary.
Operationally, RDAC has not yet commenced any business activities, as it is a blank check company focused on identifying a target for acquisition. As of September 30, 2025, the company had 7,499,375 ordinary shares issued and outstanding, with 5,750,000 shares subject to possible redemption. The company’s management has indicated that it will utilize the funds from the Trust Account primarily for the business combination and related operational costs.
Looking ahead, RDAC's management expressed confidence in its ability to complete a business combination within the designated timeframe. However, they acknowledged the inherent risks associated with early-stage companies and the uncertainty surrounding the completion of the merger. The company’s ability to continue as a going concern is contingent upon successfully executing the merger and generating operational revenue thereafter.
About Rising Dragon Acquisition Corp.
Rising Dragon Acquisition Corp. is a blank check company focused on identifying and completing mergers or acquisitions with high-growth companies across diverse industries, including technology, healthcare, and sustainable businesses. Its management team has extensive experience in corporate governance, finance, and emerging markets. The company targets innovative, fast-growing firms with strong market positions, aiming to leverage public listing benefits and pursue opportunities aligned with ESG principles.
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