Longduoduo Co Ltd's Business Segments

Longduoduo Company Limited, incorporated in Nevada in 2021, operates solely as a holding company. It owns seven operating companies organized and located in the People's Republic of China (PRC) through an intermediary holding company registered in Hong Kong. The corporate structure includes Longduoduo HK (Hong Kong), LDD Technology Limited (British Virgin Islands), LDDJK Hong Kong Limited, and several Chinese subsidiaries: Beijing Julong Health Consulting Co., Limited; Beijing Yihua Health Consulting Co., Limited; Longduoduo Health Technology Company Limited; Inner Mongolia Qingguo Health Consulting Company Limited; Inner Mongolia Rongbin Health Consulting Company Limited; Inner Mongolia Chengheng Health Consulting Company Limited; and Inner Mongolia Tianju Health Consulting Company Limited. These subsidiaries conduct all business operations. Longduoduo's principal corporate address is in Hohhot, Inner Mongolia, China. As a Nevada holding company with operations conducted through its PRC subsidiaries, Longduoduo is subject to regulatory considerations under Chinese law. Investors hold equity in the Nevada holding company rather than directly in the Chinese operating entities. The holding company relies on distributions from its Chinese subsidiaries to finance its expenses and shareholder distributions. PRC regulations may affect the ability of these subsidiaries to make such distributions, which could impact Longduoduo's operations and the value of its securities.

The Company operates in a single segment under FASB ASC Topic 280, with revenues and substantially all assets located in the People's Republic of China (PRC). It recognizes revenue from sales of products and services in accordance with ASC 606. The Company sells healthcare service packages, recognizing service revenue when the package is sold, ownership and risk have transferred, and the service is provided. Additionally, it earns commission revenue by acting as a sales agent for third-party healthcare service and product packages, recognizing commission revenue upon acceptance of the customer contract by the third party. Cost of service revenue includes costs of healthcare service packages purchased from third-party providers, while cost of product revenue includes costs of healthcare products purchased from suppliers.