{"url_path":"/sec/lud/10-k/2026/item-19","section_key":"item-19","section_title":"Item 19 **","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1984124/0001213900-26-057512-index.html","accession_number":"0001213900-26-057512","cik":"0001984124","ticker":"LUD","issuer_name":"Luda Technology Group Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1984124/0001213900-26-057512-index.html","primary_entity_key":"0001984124","primary_entity_name":"Luda Technology Group Ltd"},"word_count":19963,"has_tables":true,"body_markdown":"**ITEM 19.**\n**EXHIBITS**\n\n** **\n\n**Exhibit\nNo.**\n \n**Description**\n\n1.1\n \n[Current\nEffective Amended and Restated Memorandum and Articles of Association (incorporated herein by reference to Exhibit 3.2 to the registration\nstatement on Form F-1 (File No. 333-283680), as amended, initially filed with the SEC on December 6, 2024)](http://www.sec.gov/Archives/edgar/data/1984124/000121390024106566/ea022004401ex3-2_luda.htm)\n\n2.1\n \n[Specimen\nCertificate for the Shares (incorporated herein by reference to Exhibit 4.1 to the registration statement on Form F-1 (File No. 333-283680),\nas amended, initially filed with the SEC on December 6, 2024)](https://www.sec.gov/Archives/edgar/data/1984124/000121390024106566/ea022004401ex4-1_luda.htm)\n\n2.2\n \n[Description\nof Securities (incorporated herein by reference to Exhibit 2.2 to the report on 20-F (File No. 001-42289), as filed with the SEC\non April 30, 2025)](http://www.sec.gov/Archives/edgar/data/1984124/000121390025037162/ea023867101ex2-2_ludatech.htm)\n\n4.1\n \n[Form\nof Underwriters’ Warrants (incorporated herein by reference to Exhibit 4.2 to the registration statement on Form F-1 (File\nNo. 333-283680), as amended, initially filed with the SEC on December 6, 2024)](https://www.sec.gov/Archives/edgar/data/1984124/000121390024106566/ea022004401ex4-2_luda.htm)\n\n4.2\n \n[Unofficial\nEnglish translation of the office lease agreement dated March 30,2023 between Luda Development Limited and Won Fittings Company Limited\n(incorporated herein by reference to Exhibit 10.1 to the registration statement on Form F-1 (File No. 333-283680), as amended, initially\nfiled with the SEC on December 6, 2024)](https://www.sec.gov/Archives/edgar/data/1984124/000121390024106566/ea022004401ex10-1_luda.htm)\n\n4.3\n \n[Form\nof service agreement between the Company and its independent directors of the Registrant (incorporated herein by reference to Exhibit\n10.2 to the registration statement on Form F-1 (File No. 333-283680), as amended, initially filed with the SEC on December 6, 2024)](https://www.sec.gov/Archives/edgar/data/1984124/000121390024106566/ea022004401ex10-2_luda.htm)\n\n4.4\n \n[Employment\nagreement of executive director between the Company and Ma Biu (incorporated herein by reference to Exhibit 10.3 to the registration\nstatement on Form F-1 (File No. 333-283680), as amended, initially filed with the SEC on December 6, 2024)](https://www.sec.gov/Archives/edgar/data/1984124/000121390024106566/ea022004401ex10-3_luda.htm)\n\n4.5\n \n[Employment\nagreement of executive director between the Company and Liu Liangping (incorporated herein by reference to Exhibit 10.4 to the registration\nstatement on Form F-1 (File No. 333-283680), as amended, initially filed with the SEC on December 6, 2024)](https://www.sec.gov/Archives/edgar/data/1984124/000121390024106566/ea022004401ex10-4_luda.htm)\n\n4.6\n \n[Tenancy\nAgreement dated April 1, 2025 between Luda Development Limited and Won Fittings Company Limited (incorporated herein by reference\nto Exhibit 4.6 to the report on 20-F (File No. 001-42289), as filed with the SEC on April 30, 2025)](http://www.sec.gov/Archives/edgar/data/1984124/000121390025037162/ea023867101ex4-6_ludatech.htm)\n\n4.7\n \n[Form\nof Warrant Cancellation Agreement (incorporated herein by reference to Exhibit 10.1 to the report on Form 6-K (File No. 001-42289),\nas filed with the SEC on July 15, 2025)](http://www.sec.gov/Archives/edgar/data/1984124/000121390025063979/ea024898401ex10-1_ludatech.htm)\n\n4.8\n \n[Letter\nof ZH CPA, LLC dated November 24, 2025. (Incorporated herein by reference to Exhibit 99.1 to the report on Form 6-K (file No. 001-42289),\nfiled with the SEC on November 24, 2025)](http://www.sec.gov/Archives/edgar/data/1984124/000121390025114023/ea026694901ex99-1_luda.htm)\n\n4.9*\n \n[Tenancy\nAgreement I dated September 2, 2025 between Luda Technology Group Limited and Pioneer Time Investment Limited](ea028558901ex4-9.htm)\n\n4.10*\n \n[Tenancy\nAgreement II dated September 2, 2025 between Luda Technology Group Limited and Pioneer Time Investment Limited](ea028558901ex4-10.htm)\n\n4.11*\n \n[Tenancy\nAgreement I dated November 12, 2025 between Luda Development Limited and Pioneer Time Investment Limited](ea028558901ex4-11.htm)\n\n4.12*\n \n[Tenancy\nAgreement II dated November 12, 2025 between Luda Development Limited and Pioneer Time Investment Limited](ea028558901ex4-12.htm)\n\n11.1\n \n[Code\nof Business Conduct and Ethics (incorporated herein by reference to Exhibit 14.1 to the registration statement on Form F-1 (File\nNo. 333-283680), as amended, initially filed with the SEC on December 6, 2024)](https://www.sec.gov/Archives/edgar/data/1984124/000121390024106566/ea022004401ex14-1_luda.htm)\n\n11.2\n \n[Insider\nTrading Policy (incorporated herein by reference to Exhibit 14.3 to the registration statement on Form F-1 (File No. 333-283680),\nas amended, initially filed with the SEC on December 6, 2024)](http://www.sec.gov/Archives/edgar/data/1984124/000121390024106566/ea022004401ex14-3_luda.htm)\n\n12.1*\n \n[Chief\nExecutive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea028558901ex12-1.htm)\n\n12.2*\n \n[Chief\nFinancial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea028558901ex12-2.htm)\n\n13.1*\n \n[Chief\nExecutive Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea028558901ex13-1.htm)\n\n13.2*\n \n[Chief\nFinancial Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea028558901ex13-2.htm)\n\n21.1\n \n[List\nof subsidiaries of the Company (incorporated herein by reference to Exhibit 21.1 to the registration statement on Form F-1 (File\nNo. 333-283680), as amended, initially filed with the SEC on December 6, 2024)](http://www.sec.gov/Archives/edgar/data/1984124/000121390024106566/ea022004401ex21-1_luda.htm)\n\n97.1\n \n[Executive\nCompensation Recovery Policy (incorporated by reference to Exhibit 14.2 to the registration statement on Form F-1 (File No. 333-283680),\nas amended, initially filed with the SEC on December 6, 2024)](https://www.sec.gov/Archives/edgar/data/1984124/000121390024106566/ea022004401ex14-2_luda.htm)\n\n101.INS\n \nInline\nXBRL Instance Document *\n\n101.SCH\n \nInline\nXBRL Taxonomy Extension Schema Document *\n\n101.CAL\n \nInline\nXBRL Taxonomy Extension Calculation Linkbase Document *\n\n101.DEF\n \nInline\nXBRL Taxonomy Extension Definition Linkbase Document *\n\n101.LAB\n \nInline\nXBRL Taxonomy Extension Label Linkbase Document *\n\n101.PRE\n \nInline\nXBRL Taxonomy Extension Presentation Linkbase Document *\n\n104\n \nCover\nPage Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).\n\n \n\n*Furnished\nwith this annual report on Form 20-F\n\n  \n\n94\n\n \n\n**SIGNATURES**\n\n** **\n\nThe registrant hereby certifies that it meets\nall of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report\non its behalf.\n\n \n\n \n**LUDA TECHNOLOGY GROUP LIMITED**\n\n \n \n \n\n \n*/s/ Ma Biu*\n\n \nName: \nMa Biu\n\n \nTitle:\nChief Executive Officer\n\n \n \n \n\nDate: May 15, 2026\n \n \n\n \n\n95\n\n** **\n\n**LUDA TECHNOLOGY GROUP LIMITED**\n\n** **\n\n**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**\n\n \n\n    **Page**\n\n[Report of Independent Registered Public Accounting Firm (PCAOB #7020)](#f_007)   F-2\n\n[Report of Independent Registered Public Accounting Firm (PCAOB #6413)](#f_001)   F-3\n\n[Consolidated Balance Sheets as of December 31, 2025 and 2024](#f_002)   F-4\n\n[Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023](#f_003)   F-5\n\n[Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2025, 2024 and 2023](#f_004)   F-6\n\n[Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023](#f_005)   F-7\n\n[Notes to the Consolidated Financial Statements](#f_006)   F-9\n\n \n\nF-1\n\n \n\n \n\n**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING\nFIRM**\n\n \n\nTo the Board of Directors and Shareholders of\nLuda Technology Group Limited\n\n \n\n**Opinion on the Consolidated Financial Statements**\n\n \n\nWe have audited the accompanying consolidated\nbalance sheets of Luda Technology Group Limited and its subsidiaries (the “Company”) as of December 31, 2025, and the related\nconsolidated statements of operations and comprehensive income, changes in shareholders’ equity, and cash flows for the year ended\nDecember 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion,\nthe consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31,\n2025, and the results of its operations and its cash flows for the year ended December 31, 2025, in conformity with accounting principles\ngenerally accepted in the United States of America.\n\n \n\n**Basis for Opinion**\n\n \n\nThese consolidated financial statements are the\nresponsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial\nstatements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect\nto the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange\nCommission and the PCAOB.\n\n \n\nWe conducted our audits in accordance with the\nstandards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated\nfinancial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we\nengaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding\nof internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s\ninternal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur audits included performing procedures to assess\nthe risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures\nthat respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the\nconsolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by\nmanagement, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide\na reasonable basis for our opinion.\n\n \n\n/s/ AOGB CPA Limited\n\n \n\nHong Kong, Hong Kong\n\nMay 15, 2026\n\n \n\nWe have served as the Company’s auditor since 2025.\n\n \n\nAOGB CPA Limited, Suite 2501-03, Tesbury Centre, 28 Queen’s Road\nEast, Admiralty, Hong Kong\n\nTel: 2152-2238, Website: *www.aogb.com* \n\n \n\nF-2\n\n \n\n** **\n\n**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**\n\n** **\n\n**To the Board of Directors and Shareholders of**\n\n** **\n\n**Luda Technology Group Limited**\n\n** **\n\n**Opinion on the Financial Statements**\n\n** **\n\nWe have audited the accompanying consolidated\nbalance sheet of Luda Technology Group Limited and its subsidiaries (the “Company”) as of December 31, 2024, and the related\nconsolidated statements of operations and comprehensive (loss) income, changes in shareholders’ equity, and cash flows for each\nof the years in the two-year period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated\nfinancial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial\nposition of the Company as of December 31, 2024, and the results of its operations and its cash flows for each of the years in the two-year\nperiod ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.\n\n \n\n**Basis for Opinion**\n\n** **\n\nThese consolidated financial statements are the\nresponsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial\nstatements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United\nStates) (the “PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities\nlaws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe conducted our audits in accordance with the\nstandards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated\nfinancial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we\nengaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding\nof internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s\ninternal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur audits included performing procedures to assess\nthe risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures\nthat respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the\nconsolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by\nmanagement, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide\na reasonable basis for our opinion.\n\n** **\n\n/s/ ZH CPA, LLC\n\n \n\nWe served as the Company’s auditor from 2022 through November 24, 2025.\n\n \n\nDenver, Colorado\n\n \n\nApril 30, 2025\n\n** **\n\n \n\nF-3\n\n \n\n**LUDA TECHNOLOGY GROUP LIMITED**\n\n**CONSOLIDATED BALANCE SHEETS**\n\n**AS OF DECEMBER 31, 2025 AND 2024**\n\n**(in U.S. dollar, except share data)**\n\n \n\n  \nDecember 31,\n\n2025  \nDecember 31,\n\n2024 \n\nAssets \n   \n  \n\nCurrent assets \n   \n  \n\nCash and cash equivalents \n$4,516,669  \n$8,132,655 \n\nRestricted cash \n 78,959  \n 200,517 \n\nAccounts receivable, net \n 13,483,520  \n 13,165,058 \n\nNotes receivable, net \n 966,447  \n 381,878 \n\nRedemption receivable, net \n 8,222,754  \n \n—\n \n\nPrepayments, deposits and other receivables, net \n 437,971  \n 479,613 \n\nAdvance to suppliers \n 148,959  \n 33,043 \n\nInventories, net \n 4,704,386  \n 4,868,035 \n\nInventories to be returned \n 262,291  \n 939,404 \n\nDeferred costs \n \n—\n  \n 671,321 \n\nContract assets - current, net \n 1,220,925  \n 1,591,188 \n\nShort-term investments \n 5,732,433  \n 1,390,475 \n\nOther current assets \n 217,949  \n \n—\n \n\nTotal current assets \n$39,993,263  \n$31,853,187 \n\n  \n    \n   \n\nNon-current assets \n    \n   \n\nRestricted cash – non-current \n$176,296  \n$\n—\n \n\nProperty, plant and equipment, net \n 4,980,105  \n 5,124,432 \n\nIntangible assets, net \n 711,156  \n 701,154 \n\nOperating lease right-of-use assets, net \n 483,431  \n \n—\n \n\nDeferred tax assets \n 622,879  \n 552,966 \n\nContract assets - non-current, net \n 1,832,158  \n 667,456 \n\nOther receivables - non-current, net \n 325,809  \n 406,630 \n\nTotal non-current assets \n$9,131,834  \n$7,452,638 \n\nTotal assets \n$49,125,097  \n$39,305,825 \n\n  \n    \n   \n\nLiabilities and shareholders’ equity \n    \n   \n\nCurrent liabilities \n    \n   \n\nShort-term loans \n$10,894,987  \n$11,675,074 \n\nAccounts payable \n 10,567,115  \n 8,673,801 \n\nContract liabilities \n 128,192  \n 221,770 \n\nOther payables and accruals \n 2,318,929  \n 3,975,334 \n\nOperating lease liabilities, current \n 293,803  \n \n—\n \n\nIncome taxes payable \n 1,652  \n 1,652 \n\nRefundable liabilities \n 331,737  \n 1,303,748 \n\nTotal current liabilities \n$24,536,415  \n$25,851,379 \n\n  \n    \n   \n\nNon-current liabilities \n    \n   \n\nLong-term loans \n$1,773,176  \n$614,476 \n\nOperating lease liabilities - non-current \n 234,843  \n \n—\n \n\nDeferred tax liabilities \n 372,942  \n 176,430 \n\nTotal non-current liabilities \n$2,380,961  \n$790,906 \n\nTotal liabilities \n$26,917,376  \n$26,642,285 \n\n  \n    \n   \n\nCommitments and contingencies \n \n—\n  \n \n—\n \n\n  \n    \n   \n\nShareholders’ equity \n    \n   \n\nOrdinary shares, $0.03 (equivalent to HK$0.25) par value, 4,000,000,000 shares\nauthorized, 22,690,000 and 20,000,000 shares issued and outstanding as of December 31, 2025 and 2024, respectively \n$727,244  \n$641,026 \n\nAdditional paid-in capital \n 8,295,213  \n \n—\n \n\nStatutory reserve \n 2,365,592  \n 2,253,177 \n\nRetained earnings \n 11,816,891  \n 11,372,477 \n\nAccumulated other comprehensive loss \n (997,219) \n (1,603,140)\n\nTotal equity \n$22,207,721  \n$12,663,540 \n\nTotal liabilities and shareholders’ equity \n$49,125,097  \n$39,305,825 \n\n \n\nSee accompanying notes to the consolidated financial\nstatements.\n\n \n\nF-4\n\n \n\n**LUDA TECHNOLOGY GROUP LIMITED\nCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)\nFOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023\n(in U.S. dollar, except share data)**\n\n** **\n\n  \nFor the years ended\nDecember 31, \n\n  \n2025  \n2024  \n2023 \n\nRevenues \n$33,535,351  \n$44,863,430  \n$51,428,054 \n\nCost of sales \n (27,615,538) \n (33,458,207) \n (40,533,077)\n\nGross profit \n 5,919,813  \n 11,405,223  \n 10,894,977 \n\n  \n    \n    \n   \n\nOperating expenses: \n    \n    \n   \n\nSelling expenses \n$(1,806,192) \n$(6,342,751) \n$(2,709,376)\n\nGeneral and administrative expenses \n (3,720,646) \n (3,222,959) \n (2,950,188)\n\nResearch and development expenses \n (1,452,052) \n (1,383,605) \n (1,364,473)\n\nTotal operating expenses \n (6,978,890) \n (10,949,315) \n (7,024,037)\n\n(Loss) income from operations \n (1,059,077) \n 455,908  \n 3,870,940 \n\n  \n    \n    \n   \n\nOther income (expenses) \n    \n    \n   \n\nInterest expenses \n (520,916) \n (556,156) \n (406,692)\n\nOther income, net \n 2,571,217  \n 3,453  \n 15,228 \n\nTotal other income (expenses), net \n 2,050,301  \n (552,703) \n (391,464)\n\n  \n    \n    \n   \n\nIncome (loss) before income taxes \n 991,224  \n (96,795) \n 3,479,476 \n\nIncome taxes \n (434,395) \n (264,221) \n (446,899)\n\nNet income (loss) \n$556,829  \n$(361,016) \n$3,032,577 \n\nOther comprehensive income (loss): \n    \n    \n   \n\nForeign currency translation adjustment \n 605,921  \n (344,879) \n (566,358)\n\nComprehensive income (loss) \n$1,162,750  \n$(705,895) \n$2,466,219 \n\n  \n    \n    \n   \n\nWeighted average number of ordinary shares*: \n    \n    \n   \n\nBasic and diluted \n 22,242,767  \n 20,000,000  \n 20,000,000 \n\nEarnings (loss) per share*: \n    \n    \n   \n\nBasic and diluted \n$0.03  \n$(0.02) \n$0.15 \n\n \n\n*** *Shares presented on a retroactive basis to reflect the reorganization in note 1.*\n\n \n\nSee accompanying notes to the consolidated financial\nstatements.\n\n \n\nF-5\n\n \n\n**LUDA TECHNOLOGY GROUP LIMITED\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY\nFOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023\n(in U.S. dollar, except share data)**\n\n** **\n\n  \n   \n   \n   \nAccumulated  \n   \n   \n  \n\n  \nOrdinary Shares  \nAdditional  \nOther  \n   \n   \n  \n\n  \nNumber of\nShares*  \nAmount  \npaid-in\ncapital  \nComprehensive\nLoss  \nStatutory\nReserve  \nRetained\nEarnings  \nTotal equity \n\nBalance as of January 1, 2023 \n 20,000,000  \n$641,026  \n**$**\n—\n  \n$(691,903) \n$1,721,266  \n$12,858,122  \n$14,528,511 \n\nNet income \n —  \n \n—\n  \n \n—\n  \n \n—\n  \n \n—\n  \n 3,032,577  \n 3,032,577 \n\nTransfer to statutory reserve \n —  \n \n—\n  \n \n—\n  \n \n—\n  \n 399,503  \n (399,503) \n \n—\n \n\nForeign currency translation adjustment \n —  \n \n—\n  \n \n—\n  \n (566,358) \n \n—\n  \n \n—\n  \n (566,358)\n\nDividend declared \n —  \n \n—\n  \n \n—\n  \n \n—\n  \n \n—\n  \n (247,731) \n (247,731)\n\nBalance as of December 31, 2023 \n 20,000,000  \n$641,026  \n \n—\n  \n$(1,258,261) \n$2,120,769  \n$15,243,465  \n$16,746,999 \n\nNet loss \n —  \n \n—\n  \n \n—\n  \n \n—\n  \n \n—\n  \n (361,016) \n (361,016)\n\nTransfer to statutory reserve \n —  \n \n—\n  \n \n—\n  \n \n—\n  \n 132,408  \n (132,408) \n \n—\n \n\nForeign currency translation adjustment \n —  \n \n—\n  \n \n—\n  \n (344,879) \n \n—\n  \n \n—\n  \n (344,879)\n\nDividend declared \n —  \n \n—\n  \n \n—\n  \n \n—\n  \n \n—\n  \n (3,377,564) \n (3,377,564)\n\nBalance as of December 31, 2024 \n 20,000,000  \n$641,026  \n \n—\n  \n$(1,603,140) \n$2,253,177  \n$11,372,477  \n$12,663,540 \n\nNet income \n —  \n \n—\n  \n \n—\n  \n \n—\n  \n \n—\n  \n 556,829  \n 556,829 \n\nTransfer to statutory reserve \n —  \n \n—\n  \n \n—\n  \n \n—\n  \n 112,415  \n (112,415) \n \n—\n \n\nForeign currency translation adjustment \n —  \n \n—\n  \n \n—\n  \n 605,921  \n \n—\n  \n \n—\n  \n 605,921 \n\nIssuance of shares under initial public offering \n 2,500,000  \n 80,128  \n 7,604,179  \n \n—\n  \n \n—\n  \n \n—\n  \n 7,684,307 \n\nIssuance of shares under over-allotment \n 190,000  \n 6,090  \n 691,034  \n \n—\n  \n \n—\n  \n \n—\n  \n 697,124 \n\nBalance at of December 31, 2025 \n 22,690,000  \n$727,244 ** **\n**$****8,295,213**  \n$(997,219) \n$2,365,592  \n$11,816,891  \n$22,207,721 \n\n** **\n\n****Shares presented on a retroactive basis to reflect the reorganization in note 1.*\n\n \n\nSee accompanying notes to the consolidated financial\nstatements.\n\n \n\nF-6\n\n \n\n**LUDA TECHNOLOGY GROUP LIMITED\nCONSOLIDATED STATEMENTS OF CASH FLOWS\nFOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023\n(in U.S. dollar)**\n\n \n\n  \nFor the years ended\nDecember 31, \n\n  \n2025  \n2024  \n2023 \n\n  \n   \n   \n  \n\nCash flows from operating activities: \n   \n   \n  \n\nNet income (loss) \n$556,829  \n$(361,016) \n$3,032,577 \n\nAdjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: \n    \n    \n   \n\nAmortization expenses \n 20,139  \n 20,116  \n 20,442 \n\nDepreciation expenses \n 581,723  \n 460,494  \n 449,678 \n\nAllowance for inventory valuation \n 303,834  \n 210,377  \n 231,715 \n\n(Reversal of) provision for allowance for expected credit losses \n (117,438) \n (27,137) \n 714,384 \n\nFair value changes of short-term investments \n (1,631,751) \n 398,654  \n \n—\n \n\nExpensed deferred initial public offering cost \n \n—\n  \n 137,596  \n \n—\n \n\n(Gain) loss on disposal of property, plant and equipment \n (38,286) \n (9,962) \n 13,926 \n\nGain on extinguishment of consulting expenses payable \n (564,918) \n \n—\n  \n \n—\n \n\nDeferred tax expenses \n 145,937  \n (265,469) \n (186,300)\n\nChanges in operating assets and liabilities: \n    \n    \n   \n\nInventories \n 803,486  \n 1,158,627  \n (1,636,282)\n\nContract assets \n (616,700) \n 2,419,355  \n (596,041)\n\nAccounts receivable \n 306,867  \n 2,959,961  \n (1,017,999)\n\nNotes receivable \n (557,927) \n 1,587,449  \n 301,548 \n\nPrepayments and other receivables \n 65,717  \n (78,716) \n 350,977 \n\nAdvance to suppliers \n (115,566) \n (24,753) \n 83,048 \n\nRefundable liabilities \n (1,001,257) \n (923,120) \n 1,624,975 \n\nAccounts, other payables, accruals and income taxes payable \n 314,319  \n (1,926,096) \n (44,503)\n\nNotes payable \n \n—\n  \n (138,971) \n 141,225 \n\nContract liabilities \n (95,371) \n (2,147) \n 2,005 \n\nOperating lease liabilities \n 45,215  \n \n—\n  \n \n—\n \n\nOther current assets \n (217,949) \n \n—\n  \n \n—\n \n\nOther long-term assets \n 104,417  \n (137,651) \n (152,523)\n\nNet cash (used in) provided by operating activities \n$(1,708,680) \n$5,457,591  \n$3,332,852 \n\n  \n    \n    \n   \n\nCash flows from investing activities: \n    \n    \n   \n\nPurchase of short-term investments \n (20,982,405) \n (1,769,528) \n (1,360)\n\nProceeds from disposal of short-term investments \n 10,298,313  \n \n—\n  \n \n—\n \n\nPurchase of property, plant and equipment \n (458,221) \n (1,078,271) \n (1,758,567)\n\nProceeds from disposal of property, plant and equipment \n 108,868  \n 26,446  \n 661 \n\nNet cash used in investing activities \n$(11,033,445) \n$(2,821,353) \n (1,759,266)\n\n  \n    \n    \n   \n\nCash flows from financing activities: \n    \n    \n   \n\nNet proceeds from initial public offering \n 8,915,989  \n \n—\n  \n \n—\n \n\nNet proceeds from share over-allotment \n 696,792  \n \n—\n  \n \n—\n \n\nPayment of deferred offering cost \n (565,937) \n (20,026) \n (633,891)\n\nDividends paid \n \n—\n  \n (3,377,564) \n (630,785)\n\nAdvance from related parties \n \n—\n  \n 215,995  \n 25,486 \n\nRepayments to related parties \n \n—\n  \n (25,487) \n (17,192)\n\nProceeds from bank loans \n 14,749,713  \n 14,529,278  \n 12,903,494 \n\nRepayments on bank loans \n (14,974,782) \n (13,907,349) \n (8,939,750)\n\nNet cash provided by (used in) financing activities \n$8,821,775  \n$(2,585,153) \n 2,707,362 \n\nEffect of exchange rate changes on cash, cash equivalents and restricted cash \n 359,102  \n (113,839) \n (165,164)\n\nNet (decrease) increase in cash and cash equivalents, and restricted\ncash \n$(3,561,248) \n$(62,754) \n 4,115,784 \n\nCash and cash equivalents, and restricted cash at beginning of the\nyear \n 8,333,172  \n 8,395,926  \n 4,280,142 \n\nCash and cash equivalents, and restricted cash at end of the year \n$4,771,924  \n$8,333,172  \n 8,395,926 \n\n \n\nF-7\n\n** **\n\n  \nFor the years ended\nDecember 31, \n\n  \n2025  \n2024  \n2023 \n\n  \n   \n   \n  \n\nReconciliation to amounts on consolidated balance sheet \n   \n   \n  \n\nCash and cash equivalents \n$4,516,669  \n$8,132,655  \n$8,082,691 \n\nRestricted cash \n 255,255  \n 200,517  \n 313,235 \n\n  \n    \n    \n   \n\nSupplemental disclosure of cash flow information \n    \n    \n   \n\nCash received for interest \n 9,100  \n 23,461  \n 48,765 \n\nCash paid for interests \n 473,435  \n 530,185  \n 455,457 \n\nCash paid for income tax (note 1) \n 204,455  \n 557,354  \n 954,109 \n\n  \n    \n    \n   \n\n**Supplemental disclosures of non-cash financing and investing activities** \n    \n    \n   \n\nRight-of-use assets obtained in exchange for new operating lease liabilities \n 535,901  \n \n—\n  \n \n—\n \n\nCapitalization of deferred costs\n \n \n671,321\n \n \n \n**—**\n \n \n \n**—**\n \n\n \n\nNote:\n\n \n\n1.During the year ended December 31, 2025, the Company has\npaid income taxes (including withholding tax for dividend income) of $155,192, $49,263, $nil and $nil in the PRC, HK, BVI and Cayman,\nrespectively.\n\n \n\nSee accompanying notes to the consolidated financial\nstatements\n\n \n\nF-8\n\n \n\n**LUDA TECHNOLOGY GROUP LIMITED\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS**\n\n** **\n\n**NOTE 1 — ORGANIZATION AND PRINCIPAL\nACTIVITIES**\n\n** **\n\n**(a) Organization and principal activities**\n\n \n\nLuda Technology Group\nLimited (“Luda Cayman”) is a holding company incorporated under the laws of the Cayman Islands on October 21, 2021,\nwith one share issued to Diamond Horses Group Limited (“DHGL”). At the time of incorporation, Luda Cayman had an\nauthorized share capital of Hong Kong Dollars (“HKD” or “HK$”) 1,000,000,000 (United State Dollars\n(“USD”, “US$”, “$”) 128,205,128) divided into 1,000,000,000 ordinary shares of a nominal or par\nvalue of HK$1 (US$0.1282) each.\n\n \n\nThe Company and its subsidiaries (collectively referred as the “Company”)\nare principally engaged in (i) the manufacture and sale of stainless steel and carbon steel flanges and fittings products; and (ii) trading\nof steel pipes, valves, and other steel tubing products. We are headquartered in Hong Kong with manufacturing base in Taian City,\nShandong Province of the People’s Republic of China (the “PRC”).\n\n \n\nDetails of the Company and\nits subsidiaries after reorganization are set out below:\n\n \n\n**Name of Entity**   **Date of Incorporation**   **Place of\nIncorporation** **% of\nOwnership**   **Principal\nActivities**\n\nLuda Technology Group Limited (“Luda Cayman”)   October 21, 2021   Cayman Islands   Parent   Investment holding\n\nLuda Investment Holding Limited (“Luda BVI”)   October 25, 2021   British Virgin Islands   100%   Investment holding\n\nLuda Development Limited (“Luda HK”)   February 20, 2004   Hong Kong   100%   Trading of steel pipes, valves, and other steel tubing products\n\nLuda (Taian) Industrial Company (“Luda PRC”)   April 4, 2005   The PRC   100%   Manufacture and sale of stainless steel and carbon steel flanges and fittings products\n\n \n\nLuda BVI was incorporated under\nthe laws of the British Virgin Islands on October 25, 2021, with one share at no par value issued to DHGL which is owned by our Founder\nand controlling shareholder Mr. Ma Biu. Luda BVI is a holding company with no operations. The following entities are all directly\nand indirectly 100% owed by DHGL prior to the completion of the Company’s initial public offering\non February 27, 2025.\n\n \n\nLuda HK was incorporated under\nthe laws of Hong Kong on February 20, 2004, with 5,000,000 shares at HK$1 issued to DHGL. Luda HK was a trading company for\nsteel pipes, valves, and other steel tubing products.\n\n \n\nLuda PRC was incorporated\non April 4, 2005 as a wholly owned subsidiary of Luda HK under the laws of the PRC. Luda PRC was set up to commence the manufacturing\nof flanges and fittings with self-owned factory in China.\n\n \n\n**(b) Reorganization**\n\n \n\nOn August 14, 2023,\nLuda Cayman entered into a sale and purchase agreement to acquire 100% ownership of Luda BVI from DHGL at consideration of HK$1.00 to\nbe satisfied by the issue and allotment of one share of par value of HK$1.00 each to DHGL. On August 14, 2023, Luda BVI entered into\na sale and purchase agreement to acquire 100% ownership of Luda HK from DHGL at the consideration of HK$4,999,998 to be satisfied by the\nissue and allotment by Luda Cayman of 4,999,998 shares of par value of HK$1.00 each to DHGL.\n\n \n\nUpon the completion of the\nabove transactions and prior to the completion of subdivision on December 19, 2023, DHGL held 5,000,000 ordinary shares at par value\nof HK$1(US$0.1282), representing 100% of the issued and outstanding shares of the Company.\n\n \n\nOn December 19, 2023,\nthe Company subdivided each issued and unissued share of par value of HK$1.00 each into four shares of par value of HK$0.25 each. Upon\ncompletion of the above subdivision, the Company’s authorized share capital became 4,000,000,000 shares with par value of HK$0.25\n(US$0.03) each and the Company’s issued share capital became HK$5,000,000 divided into 20,000,000 shares of par value of HK$0.25\neach.\n\n \n\nBefore and after the above\nreorganization, the Company and its subsidiaries resulting from reorganization has always been under the common control of the same controlling\nshareholder, DHGL or the Founder. Accordingly, the combination has been treated as a corporate restructuring (reorganization) of entities\nunder common control and thus the current group structure has been retroactively presented in prior periods as if such structure existed\nat that time and in accordance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all\nperiods to which such entities were under common control.\n\n \n\nThe consolidation of the\nCompany and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions\nhad become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Results\nof operations for the periods presented comprise those of the previously separate entities combined from the beginning of the period to\nthe end of the period, eliminating the effects of intra-entity transactions.\n\n \n\nF-9\n\n \n\n**NOTE 2 — SUMMARY OF SIGNIFICANT\nACCOUNTING POLICIES**\n\n** **\n\n**(c) Initial public offering (“Offering”)**\n\n \n\nOn February 27, 2025, the ordinary shares of the Company began trading\non NYSE American LLC under the ticker symbol “LUD”. On February 28, 2025, the Company consummated its Offering of 2,500,000 ordinary\nshares, par value HK$0.25 (equivalent to $0.03) per share (the “Ordinary Shares”), at a public offering price of $4.00 per\nshare. The Offering was conducted on a firm commitment basis, after deducting certain underwriting expenses, the Company received net\nproceeds of US$8,915,989.\n\n** **\n\nIn connection with the IPO, the Company granted the underwriters a 45-day\noption to purchase up to an additional 375,000 Ordinary Shares (the “Over-Allotment Option”) to cover over-allotments,\nif any. On April 7, 2025, the underwriters partially exercised the Over-Allotment Option, and the Company issued and sold an additional 190,000 Ordinary\nShares at the offering price of $4.00 per share, generating additional net proceeds of $696,792.\n\n** **\n\n**Basis of presentation and principles of consolidation**\n\n \n\nThe accompanying consolidated\nfinancial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.\nGAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”).\n\n \n\nThe consolidated\nfinancial statements include the financial statements of the Company and its all subsidiaries. A subsidiary is an entity (including\na structured entity), directly and indirectly, controlled by the Company. The financial statements of the subsidiaries are prepared\nfor the same reporting period as the Company, using consistent accounting policies. All significant inter-company transactions and\nbalances between the Company and its subsidiaries are eliminated upon consolidation.\n\n \n\n**Use of estimates**\n\n \n\nThe preparation of the consolidated financial statements in conformity\nwith U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and\ndisclosed of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues\nand expenses during the reporting period. Management makes these estimates using the best information available at the time the estimates\nare made. Actual results could differ from those estimates. If actual results significantly differ from the Company’s estimates,\nthe Company’s financial condition and results of operations could be materially impacted.\n\n  \n\nSignificant accounting estimates reflected in the Company’s consolidated\nfinancial statements include, but not limited to allowance for expected credit losses on accounts receivable, notes receivable, contract\nassets and other current assets, allowance for inventory valuation and sales returns.\n\n**  **\n\n**Foreign currency translation**\n\n \n\nTransactions denominated\nin other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on\nthe transaction dates. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated\ninto the functional currency at the prevailing rates of exchange at the balance sheet date. The resulting exchange differences are reported\nin the consolidated statement of operations and comprehensive income (loss).\n\n \n\nThe functional and reporting currency of the Company is United State\nDollars. The financial records of the Company’s subsidiaries in the PRC\nand Hong Kong (“HK”) are maintained in their local currencies, as their functional currency which are Chinese Yuan (“RMB”)\nand Hong Kong Dollars. In general, for consolidation purposes, assets and liabilities of\nthe Company’s subsidiaries whose functional currency is not US$ are translated into US$, in accordance with Accounting Standards\nCodifications (“ASC”) Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance\nsheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation\nof financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income (loss)\nwithin the consolidated statements of shareholders’ equity.\n\n \n\nTotal foreign translation adjustments income (loss) was $605,921, $(344,879)\nand $(566,358) for the years ended December 31, 2025, 2024 and 2023. The balance sheet amounts of subsidiary in the PRC, with the exception\nof its shareholders’ equity on December 31, 2025 and 2024 were translated at RMB6.9931 and RMB7.2993 to $1.0000, respectively. The\nshareholders’ equity accounts were stated at their historical rate. The average translation rates applied to statement of income\nof PRC subsidiary for the fiscal years ended December 31, 2025, 2024 and 2023 were RMB7.1875, RMB7.1957 and RMB7.0809 to $1.0000, respectively.\nThe balance sheet amounts of subsidiary in HK, with the exception of its shareholders’ equity on December 31, 2025 and 2024, and\nthe average translation rates applied to statement of income for fiscal years ended December 31, 2025, 2024 and 2023, were all translated\nat HK$7.8000 to $1.0000. This rate reflects the pegged exchange rate under the Linked Exchange Rate System in Hong Kong, which has remained\nstable throughout the periods presented.\n\n** **\n\nF-10\n\n \n\n**Cash and cash equivalents**\n\n \n\nCash and cash equivalents primarily\nconsist of cash and deposits with financial institutions which are unrestricted as to withdrawal and use. Cash equivalents consist of\nhighly liquid investments that are readily convertible to cash generally with original maturities of three months or less when purchased.\n\n \n\nThe Company maintains certain bank accounts in Hong Kong. Cash balances in bank accounts in Hong Kong are protected under Deposit Protection Scheme in accordance with the Deposit Protection Scheme Ordinance. The maximum protection is up to HK$800,000 per depositor per Scheme member, including both principal and interest. As of December 31, 2025 and 2024, cash and cash equivalents in Hong Kong was $1,494,125 and $783,945, respectively.\n\n \n\nThe Company also maintains\ncertain bank accounts in the PRC. Cash balances in bank accounts in the PRC are protected under Deposit Guarantee Scheme in accordance\nwith the Deposit Insurance Regulation in PRC. The maximum protection is up to RMB500,000 per depositor per Scheme member, including both\nprincipal and interest. As of December 31, 2025 and 2024, cash and cash equivalents in the PRC was $3,022,544 and $7,348,710, respectively.\n\n** **\n\n**Restricted cash**\n\n \n\nThe Company’s restricted cash mainly represents the secured deposits\nheld in designated bank accounts for issuance of letter of credit and bank guarantee and is presented separately on the consolidated balance\nsheets and is included in the total cash and cash equivalents in the consolidated statements of cash flows. As of December 31, 2025 and\n2024, restricted cash was $255,255 and $200,517 respectively.\n\n** **\n\n**Allowance for expected credit losses**\n\n \n\nThe Company have adopted\nloss rate method and individual specific valuation method to calculate the credit loss and considered the reverent factors of the historical\nand future conditions of the Company to make reasonable estimation of the risk rate. For accounts receivable and other receivables aged\nless than 360 days, notes receivable and contract assets, the Company uses the loss rate method, which is a combination of historical\nrate method and adjustment rate method, to estimate the credit loss. For accounts receivable aged over 360 days and overdue retainage\nreceivable, the Company uses the individual specific valuation method to estimate the credit loss.\n\n \n\nThe Company believes that\nthe estimates utilized in preparing its consolidated financial statements are reasonable and prudent. Actual results could differ from\nthese estimates. To the extent that there are material differences between these estimates and the actual results, future financial statements\nwill be affected.\n\n \n\n**Accounts receivable, net**\n\n \n\nAccounts receivable are recognized initially at fair value and subsequently adjusted for any allowance for expected credit loss. The\nCompany grants credit to customers, without collateral, under normal payment terms (typically 30 to 120 days after invoicing). Generally,\ninvoicing occurs after the products were delivered. The carrying value of such receivables, net of allowance for expected credit loss,\nrepresents its estimated realized value. The Company expects to collect the outstanding balance of accounts receivable within one year.\n\n \n\nThe allowance for expected credit loss recognized against accounts\nreceivable as of December 31, 2025 and 2024 was $1,911,104 and $1,929,117, respectively.\n\n** **\n\n**Notes receivable, net**\n\n \n\nNotes receivable are recorded\nat the face amount, adjusted for any allowance for expected credit loss. Notes receivable are issued by PRC financial institutions and\ncorporates. The Company’s notes receivable generally mature and are due for payment 120 to 180 days from the date of issuance\nof notes and are classified as current assets.\n\n \n\nThe allowance for expected\ncredit loss recognized against notes receivable as of December 31, 2025 and December 31, 2024 was $8,780 and $3,053, respectively.\n\n** **\n\n**Redemption receivable, net**\n\n \n\nRedemption receivable represents\nthe receivable from redemption of the short-term investment in a private fund, without collateral and under payment terms of 120 days.\nIt is initially recognized at fair value and subsequently adjusted for any allowance for expected credit loss.\n\n \n\nThe allowance for expected\ncredit loss recognized against redemption receivable as of December 31, 2025 and 2024 was $54,579 and $nil, respectively.\n\n** **\n\nF-11\n\n** **\n\n**Inventories, net**\n\n \n\nInventories are stated at the\nlower of cost or net realizable value. Cost is principally determined using the weighted-average method. The Company records adjustments\nto inventory for excess quantities, obsolescence or impairment when appropriate to reflect inventory at net realizable value. These adjustments\nare based upon a combination of factors including current sales volume, market conditions, lower of cost or market analysis and expected\nrealizable value of the inventory.\n\n \n\nThe allowance for inventory\nvaluation recognized as of December 31, 2025 and 2024 was $1,614,284 and $1,247,384, respectively, and effect of change in allowance\nfor inventory valuation are recognized in cost of sales.\n\n** **\n\n**Contract assets, net**\n\n \n\nContract assets, excluding any amounts presented as receivable, all\nthe Company’s contract assets were retainage. Certain of our contracts contain retention provisions whereby a portion of the revenue\nearned is withheld from payment as a form of security until contractual provisions are satisfied. Allowance for expected credit loss on\ncontract assets was assessed in accordance with ASC 326.\n\n** **\n\nThe allowance for expected\ncredit loss recognized against contract assets as of December 31, 2025 and December 31, 2024 was $51,727 and $108,664, respectively.\n\n** **\n\n**Short-term investments**\n\n \n\nThe Company’s short-term investments included investment in equity\nsecurities with readily determinable fair values and investment in a private fund with variable returns which is redeemable on demand\nafter certain lock-up period.\n\n \n\nThe investment in equity\nsecurities is measured at fair value with changes in unrealized gains and losses included in current period operations according to ASC\nsubtopic 321-10. During the years ended December 31, 2025, 2024 and 2023, the Company purchased certain publicly-listed\nequity securities through various open market transactions and accounted for such investments as “financial assets at FVTPL”\nand subsequently measure the investments at fair value. The Company recognized an unrealized fair value gain (loss) of short-term investments\nof $939,352, $(398,654), and $1,359, respectively, in the consolidated statements of operations and comprehensive income (loss) and included\nin other income, net for the years ended December 31, 2025, 2024 and 2023, respectively.\n\n \n\nThe investment in private\nfund represented the Company’s investment in participating shares of Stable Income Fund SP, a segregated portfolio of Global A Plus\nInvestment SPC Ltd, an independent third party. The Company elected the fair value method at the date of initial recognition and carries\nsuch investment at fair value in accordance with ASC 825, *Financial Instruments*, for investments with variable returns referenced\nto performance of underlying assets. Change in the fair value of such investment is reflected in the consolidated statements of operations\nand comprehensive income (loss) as realized fair value gain (loss) of short-term investments included in other income, net. Fair value\nis estimated based on the net assets value provided by financial institutions at the end of each reporting period. During the years ended\nDecember 31, 2025, 2024 and 2023, the Company recognized a gain of $318,359, $nil and $nil. The investment had been fully redeemed as\nof December 31, 2025. As of December 31, 2025 and 2024, the balance of investment in private fund is $nil and $nil, respectively.\n\n** **\n\n**Other current assets**\n\n** **\n\nThe Company’s other\ncurrent assets represent cash in transit for fund transfers initiated and deducted from the Company’s bank account prior to the\nyear-end date, but not yet been reflected in the recipient’s bank record due to banking process time. These amounts are expected\nto be settled within the next business day following the period end. Other current assets are carried at cost, less any applicable allowance\nfor credit losses.\n\n \n\nThere is no allowance for\nexpected credit loss recognized for both years ended December 31, 2025 and 2024.\n\n** **\n\n**Fair value of financial instruments**\n\n \n\nThe Company applies the provisions\nof ASC 820, *Fair Value Measurements and Disclosures*, to the financial instruments that are required to be carried at fair\nvalue. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal\nor most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.\nThe Company uses a three-tier fair value hierarchy based upon observable and non-observable inputs that prioritizes the information used\nto develop our assumptions regarding fair value. Fair value measurements are separately disclosed by level within the fair value hierarchy.\n\n \n\n \n●\nLevel 1 —\ndefined as observable inputs such as quoted prices in active markets for identical assets or liabilities;\n\n \n \n \n\n \n●\nLevel 2 —\ndefined as inputs other than quoted prices in active markets, that are either directly or indirectly observable; and\n\n \n \n \n\n \n●\nLevel 3 —\ndefined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.\n\n \n\nThe Company’s financial\ninstruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, contract assets, notes receivable, other\nreceivables, other current assets, short-term investments, short-term loans, accounts payable, other payables and refundable liabilities.\n\n \n\nThe carrying amount of long-term\nloans reported in the balance sheet approximates their fair value due to their fixed interest rates that approximate current market rates\nfor similar instruments.\n\n \n\nF-12\n\n \n\nThe Company holds certain\nequity securities that are measured at fair value through profit or loss (“FVTPL”) in accordance with the applicable accounting\nstandards. The fair value of these equity securities is determined based on quoted market prices in active markets (Level 1). The carrying\namount of the investment in equity securities reported in the balance sheet approximates their fair value due to their classification\nas FVTPL and the use of quoted market prices in active markets.\n\n \n\nThe carrying value of the\nCompany’s financial instruments mentioned above are approximate fair value because of the short-term nature of these items.\n\n \n\nThe Company noted no transfers\nbetween levels during any of the periods presented. Except for investment in equity securities, the Company did not have any other instruments\nthat were measured at fair value on a recurring nor non-recurring basis as of December 31, 2025 and 2024.\n\n** **\n\n**Employee benefit expenses**\n\n \n\nThe Company compensates its\nemployees through short-term employee benefits and defined contribution plans. Short-term employee benefits are recognized at the undiscounted\namount of the benefits expected to be paid as and when employees rendered the services. All short-term employee benefits are recognized\nas an expense. A liability is recognized for benefits accruing to employees (such as wages and salaries) after deducting any amount already\npaid.\n\n \n\nPayments to defined contribution plans are recognized as an expense\nwhen employees have rendered service entitling them to the contributions.\n\n \n\nAll eligible employees of the Company in the PRC are entitled to staff\nwelfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a PRC government-mandated\nmulti-employer defined contribution plan. The Company is required to accrue for these benefits based on certain percentages of the qualified\nemployees’ salaries and to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the\nmedical benefits and the pension liability to be paid to these employees and the Company’s obligations are limited to the amounts\ncontributed. The Company recorded retirement benefit expenses for PRC staff of $344,778, $373,200 and $473,134 for the years ended\nDecember 31, 2025, 2024 and 2023, respectively.\n\n \n\nAll salaried employees of the Company in Hong Kong are enrolled\nin a Mandatory Provident Fund Scheme (“MPF scheme”) scheme under the Hong Kong Mandatory Provident Fund Schemes Ordinance,\nwithin two months of employment. The MPF scheme is a defined contribution retirement plan administered by an independent trustee.\nThe Company makes regular contributions of 5% of the employee’s relevant income to the MPF scheme, subject to a maximum of $194\n(equivalent to HKD 1,500) per month. Contributions to the plan vest immediately. The Company recorded retirement benefit expenses for\nHK staff of $29,084, $23,976 and $19,995 for the years ended December 31, 2025, 2024 and 2023, respectively.\n\n** **\n\nIn June 2022, the Hong\nKong government gazetted the Mandatory Provident Fund Schemes (Amendment) Ordinance 2021 (the “Amendment Ordinance”),\nwhich will eventually abolish the statutory right of an employer to reduce its long service payment payable to a Hong Kong employee\nby drawing on its mandatory contributions to the MPF scheme. The abolition will officially take effect on the Transition Date (i.e.\nMay 1, 2025). Separately, the Hong Kong government is also expected to introduce a subsidy scheme to employers for a period of 25\nyears after the Transition Date on the LSP payable by employers up to a certain amount per employee per year. Among other things,\nonce the abolition of the offsetting mechanism takes effect, an employer can no longer use any of the accrued benefits derived from\nits mandatory MPF contributions (irrespective of the contributions made before, on or after the Transition Date) to reduce the long\nservice payment in respect of an employee’s service from the Transition Date. However, where an employee’s employment\ncommenced before the Transition Date, the employer can continue to use the above accrued benefits to reduce the long service payment\nin respect of the employee’s service up to that date; in addition, the long service payment in respect of the service before\nthe Transition Date will be calculated based on the employee’s monthly salary immediately before the Transition Date and the\nyears of service up to that date. The Company has assessed that the Amendment Ordinance has no material impact on the\nCompany’s LSP liability with respect to employees in Hong Kong.\n\n \n\nF-13\n\n \n\n**Property, plant, and equipment, net**\n\n \n\nProperty, plant, and\nequipment are stated at cost less accumulated depreciation and impairment loss, and include expenditure that substantially increases\nthe useful lives of existing assets. Expenditures for repairs and maintenance, which do not extend the useful life of the assets,\nare expensed as incurred, whereas significant renewals and betterments are capitalized. Depreciation is provided over their\nestimated useful lives with an estimated residual value of the assets, using the straight-line method. Estimated useful lives are as\nfollows:\n\n \n\n**Asset type** \n **Estimated useful life**  \n\nBuildings \n 5 – 20 years \n\nPlant and machinery \n 3 – 10 years \n\nFurniture and fixture \n 3 – 10 years \n\nComputers and office equipment \n 3 – 10 years \n\nMotor vehicles \n 3 – 5 years \n\n \n\nWhen assets are sold or retired,\ntheir costs and accumulated depreciation are derecognized from the consolidated financial statements and any gain or loss resulting from\ntheir disposal is recognized in the period of disposition as an element of other income.\n\n \n\n**Intangible assets, net**\n\n \n\nIntangible assets are non-monetary\nassets without physical substance. These items are initially measured at cost and subsequently carried at cost less any accumulated amortization\nand impairment losses. Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives.\nAmortization of finite-lived intangible assets is computed using the straight-line method over the estimated useful lives, which is as\nfollows:\n\n \n\nCategory   **Useful life** \n\nLand use-right   50 years \n\nPatents   10 years \n\n** **\n\n**Impairment of long-lived assets**\n\n \n\nThe Company accounts for\nimpairment of long-lived assets in accordance with the relevant ASC, primarily ASC 360, *Property, Plant, and Equipment*, and ASC\n350, *Intangibles — Goodwill and Other*. Long-lived assets consist primarily of property, plant and equipment and intangible\nassets.\n\n \n\nFor property, plant and equipment,\nin accordance with ASC 360, the Company evaluates the carrying value whenever a triggering event occurs, or when events or changes in\ncircumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability is assessed by comparing the\ncarrying amount of the asset group to the estimated undiscounted future net cash flows expected to be generated. Examples of triggering\nevents include significant disposals of a portion of assets or adverse changes in the market or business environment. If the asset group\nis determined not to be recoverable, the Company measures the fair value and recognizes an impairment loss if the fair value is less than\nthe carrying amount. The determination of fair value, based on reasonable and supportable assumptions and projections, requires significant\nsubjective judgment. Depending on the assumptions and estimates used, the fair value of the asset group can vary within a range of outcomes.\nThe Company considers the likelihood of possible outcomes in determining the best estimate of fair value.\n\n \n\nFor intangible assets, in\naccordance with ASC 350, the Company evaluates indefinite-lived intangible assets for impairment at least annually or more frequently\nif triggering events occur, by comparing their fair value to their carrying amount. Definite-lived intangible assets are amortized over\ntheir estimated useful lives and are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount\nmay not be recoverable.\n\n \n\nThe Company did not record\nany impairment charges related to its long-lived assets for the years ended December 31, 2025, 2024, and 2023. There can be no assurance,\nhowever, that future events will not negatively impact the Company’s operations or financial position, which could result in future\nimpairment charges.\n\n** **\n\n**Leases**\n\n \n\nThe Company adopted this\nAccounting Standards Update (“ASU”) and related amendments as of January 1, 2021 and made an accounting policy election\nto not include leases with an initial term of 12 months or less on the balance sheets and the short term lease expenses. The Company elected\nto apply the package of practical expedients for existing arrangements entered into prior to January 1, 2021 to not reassess (a) whether\nan arrangement is or contains a lease, (b) the lease classification applied to existing leases, and (c) initial direct costs.\nNo cumulative-effect adjustment to retained earnings was required upon adoption of Topic 842 as payments made under operating leases\nare also recognized as an expense on a straight-line basis over the lease term prior to the adoption of ASC 842. The Company makes\nan accounting policy election not to separate non-lease components to measure the lease liability and lease asset.\n\n* *\n\nF-14\n\n* *\n\n*Operating leases*\n\n \n\nUpon adoption of ASC 842,\nthe lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the\nlease term, operating leases are recognized as right-of-use assets (“ROU”) in non-current assets and lease liabilities in\nnon-current liabilities in the consolidated balance sheets if the initial lease term is greater than 12 months. For all operating\nleases with an initial term of 12 months or less the Company elects to recognizes as short term lease and expenses lease payments\non a straight-line basis over the lease term.\n\n \n\nROU assets represent the right\nto use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease.\nOperating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease\nterm. As most of the Company’s leases do not provide an implicit rate, management uses the incremental borrowing rate based on the\ninformation available at commencement date in determining the present value of lease payments. Management uses the implicit rate when\nreadily determinable. Lease expense is recognized on a straight-line basis over the lease term and are included in general and administrative\n(“G&A”) expenses.\n\n \n\nDuring the years ended December 31, 2025, 2024 and 2023,\nthe Company incurred total operating lease expenses of $147,521, $81,538 and $80,385, respectively. A portion of operating lease expenses\nrelates to an office lease with a related party, Won Fittings Company Limited, which is wholly owned by a director, Ms. Liu Liangping\n(Note 21).\n\n** **\n\n**Value-added taxes (“VAT”)**\n\n \n\nSales revenue represents the invoiced value of goods, net of VAT. The\nCompany’s products manufactured and sold by the PRC subsidiary are subject to a VAT on the gross sales price. The Company is subject\nto a VAT rate of 13%. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing\nor acquiring its finished products, and other expenses.\n\n** **\n\n**Revenue Recognition**\n\n \n\nThe Company recognizes revenue in accordance with ASC Topic 606\n*Revenue from Contracts with Customers*. Revenue is recognized when control of the promised goods or services is transferred to the\ncustomers in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services.\nRevenue is recognized when the following 5-step revenue recognition criteria are met:\n\n \n\n1)Identify the contract with a customer\n\n \n\n2)Identify the performance obligations in the contract\n\n \n\n3)Determine the transaction price\n\n \n\n4)Allocate the transaction price\n\n \n\n5)Recognize revenue when or as the entity satisfies a performance\nobligation.\n\n  \n\nThe Company considers customer\npurchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. As part of its consideration\nof the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract,\nthe Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations.\n\n \n\nIn determining the transaction\nprice the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company\nexpects to be entitled.\n\n \n\nThe Company allocates the transaction\nprice to each distinct product based on their relative standalone selling price.\n\n \n\nRevenue is recognized when\ncontrol of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied at a point\nin time), which typically occurs at delivery.\n\n \n\nF-15\n\n \n\nRevenue from the self-manufactured production\nsales\n\n \n\nRevenue from self-manufactured production sales generates from both\ndomestic and oversea customers. For domestic self-manufactured production sales, revenue is recognized at the point in time control of\nthe products is transferred, generally upon customer receipt based upon the standard contract terms. For oversea self-manufactured sales,\nthe Company sells its products either under free onboard (“FOB”) shipping point term or under FOB destination term. For sales\nunder FOB shipping point term, the Company recognize revenues when products are loaded on the vessels. Product delivery is evidenced by\nwarehouse shipping logs as well assigned shipping bills from the shipping companies. For sales under FOB destination term, the Company\nrecognize revenues when the products are delivered and accepted by customers.\n\n \n\nRevenue from the self-manufactured\nproduction sales are recognized net of expected sales return and value added taxes. The Company does not routinely permit customers to\nreturn products, while in certain conditions product changes are allowed, and historically customer returns have been immaterial and due\nto the nature of Company’s products, there was warranty offered per contract. However historically warranty expenses were immaterial.\nThe Company’s sales returns are generally recognized according to i) repurchase percentage stipulated in sales agreements with certain\ncustomers or ii) estimated return rate base on historical experience and industry practice for those sales agreement without repurchase\nterms. The Company determines repurchase terms in sales contracts as sales return rather than repurchase arrangement as repurchase price\nusually are the same as selling price.\n\n  \n\nThe Company recognized purchase\nobligation derived from sales return as refundable liability and related product cost that will be returned as inventories to be returned\non balance sheet at end of each financial period. The estimate is based on accumulated sales revenue and stipulated repurchase percentage\nor estimated return rate. No significant sales return occurred historically, therefore, the Company determined estimated return rates\nfor those sales agreements without repurchase terms are not significant, refundable liability as of December 31, 2025 and 2024 represents\nobligations related to sales agreements with repurchase term.\n\n \n\nThe Company generally provides\nrights of return up to certain percentage of contract for certain customers. As of December 31, 2025 and 2024, refundable liabilities\nof $331,737 and $1,303,748 were provided, respectively.\n\n \n\nRevenue from trading sales to overseas market\n\n \n\nFor trading sales, the Company presents the revenue on a gross basis\nas the Company act as principal in trading sales. Prices are determined based on negotiations with the Company’s customers and are\nnot subject to adjustment. the Company sells its products either under free onboard (“FOB”) shipping point term or under FOB\ndestination term. For sales under FOB shipping point term, the Company recognize revenues when products are loaded on the vessels. Product\ndelivery is evidenced by warehouse shipping logs as well assigned shipping bills from the shipping companies. For sales under FOB destination\nterm, the Company recognize revenues when the products are delivered and accepted by customers.\n\n \n\nShipping and handling activities\nare considered to be fulfillment activities rather than promised services and are not, therefore, considered to be separate performance\nobligations. Payment terms for product sales are generally set at 30 – 120 days after the consideration becomes due and payable.\n\n* *\n\n*Disaggregation of revenue*\n\n \n\nThe Company disaggregates\nits revenue by business model which the Company believes best depicts how the nature, amount, timing, and uncertainty of the revenue\nand cash flows are affected by economic factors. The Company’s disaggregation of revenue for the years ended December 31,\n2025, 2024 and 2023 is as following:\n\n \n\n \n \nFor the years ended December\n31,\n \n\nRevenue stream\n \n2025\n \n \n2024\n \n \n2023\n \n\nSelf-manufactured production sales revenue\n \n$\n24,573,665\n \n \n$\n37,581,158\n \n \n$\n45,966,687\n \n\nTrading sales revenue\n \n \n8,961,686\n \n \n \n7,282,272\n \n \n \n5,461,367\n \n\n**Total revenue**\n** **\n**$**\n**33,535,351**\n** **\n** **\n**$**\n**44,863,430**\n** **\n** **\n**$**\n**51,428,054**\n** **\n\n \n\nF-16\n\n \n\nThe table below shows the\nbreakdown of sales revenue by geographical locations of our customers for the years ended December 31, 2025, 2024 and 2023:\n\n \n\n  \nFor years ended December 31, \n\nRevenue by International Markets: \n2025  \n2024  \n2023 \n\nThe PRC \n$22,397,641  \n$36,863,348  \n$45,237,236 \n\nSouth America \n 6,708,846  \n 4,100,965  \n 2,769,090 \n\nAustralia \n 1,020,860  \n 1,802,150  \n 1,373,689 \n\nEurope \n 219,957  \n 368,772  \n 666,772 \n\nNorth America \n 828,038  \n 699,013  \n 445,423 \n\nAsia excluding the PRC \n 2,281,627  \n 871,783  \n 888,563 \n\nOthers \n 78,382  \n 157,399  \n 47,281 \n\n**Total revenue**** **\n**$****33,535,351**** **** **\n**$****44,863,430**** **** **\n**$****51,428,054**** **\n\n \n\nThe table below sets out\nour revenue by product categories for the periods indicated:\n\n \n\n  \nFor the years ended December 31, \n\nRevenue by product \n2025  \n2024  \n2023 \n\nFittings \n$11,018,432  \n$13,617,429  \n$9,784,712 \n\nFlanges \n 21,732,191  \n 30,923,382  \n 40,773,687 \n\nOthers \n \n784,728\n  \n 322,619  \n 869,655 \n\n**Total**** **\n**$****33,535,351**** **** **\n**$****44,863,430**** **** **\n**$****51,428,054**** **\n\n \n\n**Contract liabilities**\n\n \n\nA contract liability is\nrecognized when the customer pays consideration before the Company recognized the related revenue. A contract liability would also be\nrecognized if the Company has an unconditional right to receive consideration before the Company recognized the related revenue.\n\n \n\nContract liability at the\nbeginning of each reporting period recognized in revenue for years ended December 31, 2025, 2024 and 2023 are $201,471, $203,507 and $214,626,\nrespectively.\n\n** **\n\n**Cost of sales**\n\n \n\nCost of sales consists primarily\nof cost of materials, direct labor costs and overhead costs that are directly attributable to products and services provided.\n\n** **\n\n**Selling expenses**\n\n \n\nSelling expenses include\nsales commission for bidding consultation, freight expenses and entertainment expenses.\n\n** **\n\n**General and administrative expenses**\n\n \n\nGeneral and\nadministrative expenses include management and office staff salaries and employee benefits, depreciation of office furniture and\nequipment, staff salaries, transportation and entertainment, bank charges, expected credit loss charge, other office expenses and\naudit fees.\n\n** **\n\n**Research and development costs**\n\n \n\nResearch and development\nactivities are directed toward the development of new products as well as improvements in existing processes. These costs, which primarily\ninclude salaries, contract services and supplies, are expensed as incurred.\n\n** **\n\nF-17\n\n** **\n\n**Income taxes**\n\n \n\nCurrent income taxes are\nrecorded in accordance with the regulations of the relevant tax jurisdictions. The Company accounts for income taxes under the asset and\nliability method in accordance with ASC 740, *Income Tax*. Under this method, deferred tax assets and liabilities are recognized\nfor the tax consequences attributable to differences between carrying amounts of existing assets and liabilities in the financial statements\nand their respective tax basis, and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates\nexpected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect\non deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period of change.\nValuation allowances are established when necessary to reduce the amount of deferred tax assets if it is considered more likely than not\nthat amount of the deferred tax assets will not be realized. The Company records uncertain tax positions in accordance with ASC 740\non the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will\nbe sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not\nrecognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon\nultimate settlement with the related tax authority.\n\n  \n\nTo the extent applicable,\nthe Company records interest and penalties as other expenses. All of the tax returns of the Company’s PRC subsidiary remain subject\nto examination by the PRC tax authorities for five years from the date of filing. The fiscal years for tax purpose in the PRC\nare ended at December 31. All of the tax returns of the Company’s HK subsidiary remain subject to examination by HK tax authorities\nfor seven years from the date of filing.\n\n \n\nThe Company and its subsidiaries\nare not subject to U.S. tax laws and local state tax laws. The Company’s income and that of its related entities must be computed\nin accordance with Chinese and Hong Kong tax laws, as applicable, and all of which may be changed in a manner that could adversely affect\nthe amount of distributions to shareholders. There can be no assurance that Income Tax Laws of PRC and Hong Kong will not be changed\nin a manner that adversely affects shareholders. In particular, any such change could increase the amount of tax payable by the Company,\nreducing the amount available to pay dividends to the holders of the Company’s ordinary shares.\n\n** **\n\n**Comprehensive income (loss)**\n\n \n\nComprehensive income (loss)\nis defined as the change in equity during the year from transactions and other events, excluding the changes resulting from investments\nby owners and distributions to owners, and is not included in the computation of income tax expense or benefit. Accumulated comprehensive\nincome (loss) consists of foreign currency translation. The Company presents comprehensive income (loss) in accordance with ASC Topic 220,\n“Comprehensive Income”.\n\n** **\n\n**Earnings (loss) per share**\n\n \n\nThe Company calculates earnings\n(loss) per share in accordance with ASC Topic 260 “Earnings per Share.” Basic earnings (loss) per share is computed by\ndividing the net income (loss) by the weighted average number of common shares outstanding during the year. Diluted earnings per share\nis computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares\nthat would have been outstanding if the potential ordinary shares equivalents had been issued and if the additional common shares were\ndilutive. As of December 31, 2025 and 2024, there were no dilution impact.\n\n** **\n\n**Commitments and contingencies**\n\n \n\nIn the normal course of\nbusiness, the Company is subject to contingencies, including legal proceedings and environmental claims arising out of the normal course\nof businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals\nfor such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability.\nManagement may consider many factors in making these assessments including past history, scientific evidence and the specifics of each\nmatter. The Company’s management has evaluated all such proceedings and claims that existed as of December 31, 2025 and 2024.\n\n** **\n\nF-18\n\n** **\n\n**Segment reporting**\n\n \n\nThe Company follows FASB\nASC Topic 280, Segment Reporting, segments are defined as components of a company that engage in business activities from which\nthey may earn revenues and incur expenses, and for which separate financial information is available and is evaluated regularly by the\nchief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing\nperformance. Our chief operating decision maker, who is our chief executive officer, manages the business under two operating segments,\nwhich are our reportable segments: (1) Hong Kong trading, and (2) PRC manufacturing.\n\n** **\n\n**Related party**\n\n \n\nIn general, related parties\nexist when there is a relationship that offers the potential for transactions at less than arm’s-length, favorable treatment, or\nthe ability to influence the outcome of events different from that which might result in the absence of that relationship. A related\nparty may be any of the following: a) an affiliate, which is a party that directly or indirectly controls, is controlled by, or is under\ncommon control with another party; b) a principle owner, owner of record or known beneficial owner of more than 10% of the voting interest\nof an entity; c) management, which are persons having responsibility for achieving objectives of the entity and requisite authority to\nmake decision; d) immediate family of management or principal owners; e) a parent Company and its subsidiaries; and f) other parties\nthat have ability to significant influence the management or operating policies of the entity. The Company discloses all significant\nrelated party transactions.\n\n** **\n\n**Recently issued accounting pronouncements**\n\n* *\n\nThe Company is an “emerging\ngrowth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).\nUnder the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until\nsuch time as those standards apply to private companies.\n\n* *\n\n*New accounting standards which have been adopted*\n\n \n\nIn December 2023, the FASB\nissued ASU No. 2023-09, *Income Taxes (Topic 740) Improvements to Income Tax Disclosures*, which requires that an entity, on an annual\nbasis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The amendment in\nthe ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this Update are effective\nfor annual periods beginning after December 15, 2024. The Company adopted this update beginning January 1, 2025 and the required information\nwas disclosed in Note 22.\n\n \n\n*New accounting standards which have not yet been adopted*\n\n \n\nIn November 2024, the FASB\nissued ASU No. 2024-03, *Income Statement (Topic 22) - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic\n220-40)*. ASU No. 2024-03 requires publicly traded business entities to disclose specified information about the components of certain\ncosts and expenses that are currently disclosed in the financial statements. In January 2025, the FASB issued ASU No. 2025-01, which clarifies\nthe effective date of ASU No. 2024-03. The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim\nreporting periods beginning after December 15, 2027. Early adoption is permitted. The Company does not expect to adopt ASU No. 2024-03\nearly and is currently evaluating the impact of adopting this standard on its consolidated financial statements.\n\n \n\nIn August 2025, the FASB\nissued ASU No. 2025-05, *Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Trade Receivables\nand Contract Assets*. ASU No. 2025-05 provides a practical expedient and accounting policy election to allow entities to measure expected\ncredit losses on certain trade receivables and contract assets using a provision matrix approach. The ASU is effective for annual periods\nbeginning after December 15, 2025, and interim periods within those fiscal years, with early adoption permitted. The Company is currently\nevaluating the potential effect of this ASU on its credit loss estimation methodology.\n\n \n\nF-19\n\n \n\nIn September 2025, the FASB\nissued ASU No. 2025-06, *Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to\nthe Accounting for Internal-Use Software*, which is intended to improve the operability of the guidance by removing all references\nto software development project stages so that the guidance is neutral to different software development methods. The ASU is effective\nfor annual periods beginning after December 15, 2027, and interim periods within those fiscal years, with early adoption permitted. The\nCompany is evaluating the potential effect of this ASU on its accounting for internal-use software development costs.\n\n \n\nIn December 2025, the FASB\nissued ASU No. 2025-10, *Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities*, which provides\nupdated guidance on how to recognize, measure, and present government grants. The ASU will be effective for annual reporting periods beginning\nafter December 15, 2028, including interim periods within those fiscal years. with early adoption permitted. The Company is assessing\nthe effect of this update on its consolidated financial statements.\n\n \n\nExcept as mentioned above,\nthe Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material\neffect on the Company’s consolidated balance sheets, statements of operations and comprehensive income (loss) and statements of\ncash flows.\n\n \n\n**NOTE 3 — SHORT-TERM INVESTMENTS**\n\n \n\nShort-term investments as\nof December 31, 2025 and 2024 consist of the following:\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nInvestment in equity securities with readily determinable fair value \n$5,732,433  \n$1,390,475 \n\n** **\n\nDuring the years ended December\n31, 2025, 2024 and 2023, $939,352, $(398,654) and $1,359 of unrealized gain (loss) from investment in equity securities were included\nin other income, net in the statement of operation and comprehensive income (loss), respectively.\n\n \n\nDuring the years ended December\n31, 2025, 2024 and 2023, $692,399, $nil and $nil of realized gain from investment in equity securities were included in other income,\nnet in the statement of operation and comprehensive income (loss), respectively.\n\n \n\n**NOTE 4 — ACCOUNTS RECEIVABLE, NET**\n\n \n\nAccounts receivable, net as of December 31, 2025\nand 2024 consists of the following:\n \n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nAccounts receivable, \n$15,394,624  \n$15,094,175 \n\nLess: allowance for expected credit loss \n (1,911,104) \n (1,929,117)\n\nAccounts receivable, net \n$13,483,520  \n$13,165,058 \n\n \n\nThe movement of allowances\nfor credit loss for the years ended December 31, 2025, 2024 and 2023 were as follows:\n\n \n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nBalance at beginning of the year \n$1,929,117  \n$1,905,008  \n$1,341,865 \n\n(Reversal)/addition \n (99,437) \n 75,975  \n 601,272 \n\nExchange adjustments \n 81,424  \n (51,866) \n (38,129)\n\nBalance at end of the year \n$1,911,104  \n$1,929,117  \n$1,905,008 \n\n \n\n**NOTE 5 — NOTES RECEIVABLE, NET**\n\n \n\nNotes receivable, net as\nof December 31, 2025 and 2024 consists of the following:\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nNotes receivable \n$975,227  \n$384,931 \n\nLess: allowance for expected credit loss \n (8,780) \n (3,053)\n\nNotes receivable, net \n$966,447  \n$381,878 \n\n \n\nF-20\n\n \n\n**NOTE 6 — CONTRACT\nASSETS, CURRENT AND NON-CURRENT, NET and Contract LIABILITIES**\n\n \n\nContract assets - current and non-current and contract liabilities\nas of December 31, 2025 and 2024 consist of the following:\n\n** **\n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nContract assets - current \n$1,238,460  \n$1,680,374 \n\nLess: allowance for expected credit loss \n (17,535) \n (89,186)\n\nContract assets - current, net \n$1,220,925  \n$1,591,188 \n\n  \n    \n   \n\nContract assets – non-current \n 1,866,350  \n 686,934 \n\nLess: allowance for expected credit loss \n (34,192) \n (19,478)\n\nContract assets – non-current, net \n$1,832,158  \n$667,456 \n\nContract liabilities: \n    \n   \n\nPayments received or receivable (contracts receivable) in excess of revenue recognized on uncompleted contracts (contract liability), excluding retainage \n$(128,192) \n$(221,770)\n\n** **\n\nThe Company recognized $201,471, $203,507 and\n$214,626 of revenue for the years ended December 31, 2025, 2024 and 2023, respectively, that were included in the contract liabilities\nat the beginning of the respective periods.\n\n** **\n\n**NOTE 7 — INVENTORIES, NET**\n\n \n\nInventories, net as of December\n31, 2025 and 2024 consist of the following:\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nRaw materials \n$3,545,114  \n$3,128,599 \n\nWork in progress \n 2,022,375  \n 1,876,800 \n\nFinished goods \n 696,160  \n 666,405 \n\nGoods in transit \n \n—\n  \n 399,304 \n\nOther consumables \n 55,021  \n 44,311 \n\nLess: allowance for inventories valuation \n (1,614,284) \n (1,247,384)\n\nTotal inventories, net \n$4,704,386  \n$4,868,035 \n\n \n\nThe movement of allowances\nfor inventories valuation for the years ended December 31, 2025, 2024 and 2023 were as follows:\n\n \n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nBalance at beginning of the year \n$1,247,384  \n$1,069,201  \n$862,736 \n\nAdditions \n 303,834  \n 210,377  \n 231,715 \n\nExchange adjustments \n 63,066  \n (32,194) \n (25,250)\n\nBalance at end of the year \n**$****1,614,284**** **** **\n**$****1,247,384**** **** **\n**$****1,069,201** \n\n ** **\n\n**NOTE 8 — REDEMPTION RECEIVABLE,\nNET **\n\n** **\n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nRedemption receivable \n$8,277,333  \n$\n—\n \n\nLess: allowance for expected credit loss \n (54,579) \n \n—\n \n\nRedemption receivable, net \n$8,222,754  \n$\n—\n \n\n** **\n\nF-21\n\n \n\nOn March 18, 2025, the Company invested $8,000,000 into a Stable Income\nFund SP, a segregated portfolio of Global A Plus Investment SPC Ltd. (the “Fund”), an independent third party, which was classified\nas a short-term investment. On December 29, 2025, the Company fully redeemed its investment in the Fund and recognized a realized gain\nof $318,359 included in other income, net for the year ended December 31, 2025. As of December 31, 2025, the balance represents the receivable\nfrom such redemption, which was subsequently settled in April 2026.\n\n** **\n\n**NOTE 9 — PREPAYMENTS, DEPOSITS AND\nOTHER RECEIVABLES, NET** \n\n \n\nPrepayments, deposits and other receivables, net as of December 31,\n2025 and 2024 consists of the following:\n\n \n\n \n \nAs of December 31,\n \n\n \n \n2025\n \n \n2024\n \n\nPrepaid operating expenses\n \n$\n91,267\n \n \n$\n66,211\n \n\nOther receivables\n \n \n37,414\n \n \n \n38,420\n \n\nRefundable deposits\n \n \n629,473\n \n \n \n710,816\n \n\nPrepayments for equipment\n \n \n5,885\n \n \n \n5,638\n \n\nIncome tax recoverable\n \n \n8,382\n \n \n \n91,173\n \n\nLess: allowance for expected credit loss (note 1)\n \n \n(8,641\n)\n \n \n(26,015\n)\n\n**Prepayments, deposits and other receivables, net**\n \n$\n763,780\n \n \n$\n886,243\n \n\n \n \n \n \n \n \n \n \n \n\nCurrent\n \n$\n437,971\n \n \n$\n479,613\n \n\nNon-current\n \n \n325,809\n \n \n \n406,630\n \n\n \n \n$\n763,780\n \n \n$\n886,243\n \n\n \n\nNote:\n\n \n\n1.The allowance for expected credit loss is contributed by\nother receivables and refundable deposits only.\n\n \n\n**NOTE 10 — PROPERTY, PLANT AND EQUIPMENT,\nNET**\n\n \n\nProperty, plant and equipment,\nnet as of December 31, 2025 and 2024 consists of the following:\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nBuildings \n$2,765,931  \n$2,649,902 \n\nConstruction in process \n 698,462  \n 702,746 \n\nPlant and machinery \n 5,026,985  \n 4,505,039 \n\nFurniture and fixture \n 897,742  \n 793,664 \n\nComputers and office equipment \n 192,556  \n 146,161 \n\nMotor vehicles \n 577,831  \n 880,923 \n\nTotal property plant and equipment, at cost \n 10,159,507  \n 9,678,435 \n\nLess: accumulated depreciation \n (5,179,402) \n (4,554,003)\n\nTotal property, plant and equipment, net \n$4,980,105  \n$5,124,432 \n\n \n\nDuring the years ended December\n31, 2025, 2024 and 2023, (i) depreciation expenses of $581,723, $460,494 and $449,678 were incurred, respectively; and (ii) gain (loss)\non disposal of property, plant and equipment of $38,286, $9,962, $(13,926), were incurred, respectively on the consolidated statements\nof operations and comprehensive income (loss). For the years ended December 31, 2025, 2024 and 2023, no impairment was recognized for\nproperty, plant and equipment.\n\n \n\nAs of December 31, 2025\nand 2024, the Company pledged buildings to secure banking facilities granted to the Company. The carrying values of the pledged buildings\nto secure bank loans by the Company are shown in Note 14.\n\n \n\n**NOTE 11 — INTANGIBLE ASSETS, NET**\n\n \n\nIntangible assets as of\nDecember 31, 2025 and 2024 consist of the following:\n\n \n\n  \nAs of December 31, \n\nIntangible Assets \n2025  \n2024 \n\nLand use rights, costs \n$1,009,188  \n$966,853 \n\nPatent, costs \n 5,148  \n 4,932 \n\nAccumulated amortization \n (303,180) \n (270,631)\n\nTotal intangible assets, net \n$711,156  \n$701,154 \n\n \n\nF-22\n\n \n\nThe land use rights represents\nthe Company’s land use rights of plant in Taian City, Shandong Province of the PRC, which had been pledged to secure the Company’s\nbanking facilities granted to the Company as of December 31, 2025 and 2024. The carrying values of the pledged land use rights to\nsecure bank loans by the Company are shown in Note 14.\n\n \n\nAmortization expense was\n$20,139, $20,116 and $20,442 for the years ended December 31, 2025, 2024 and 2023, respectively. For the years ended December\n31, 2025, 2024 and 2023, no impairment of intangible assets was recognized.\n\n** **\n\n**NOTE 12 — LEASES**\n\n \n\nAs of December 31, 2025,\nthe Company entered into 6 new operating lease agreements for use of office premises and carpark spaces in Hong Kong, with lease terms\nranging from 1 to 2 years.\n\n \n\nAs of December 31, 2024,\nthe Company entered into 1 new operating lease agreement for use of office premise in Hong Kong, with lease term 1 year.\n\n \n\nThe Company excluded short-term leases (those with lease terms of less\nthan one year at inception) from the measurement of operating lease liabilities or operating lease right-of-use assets. The following\ntables summarize the lease expense, as follows:\n\n \n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nOperating lease expenses \n$60,657  \n$\n—\n  \n$\n—\n \n\nShort-term lease expenses \n 86,864  \n 81,538  \n 80,385 \n\nTotal lease expenses \n$147,521  \n$81,538  \n$80,385 \n\n \n\nDuring\nthe years ended December 31, 2025, 2024 and 2023, the Company recorded the operating lease expenses and short-term lease expenses which\nare included in the “General and administrative expenses” on consolidated statements of operations and comprehensive income\n(loss).\n\n \n\nThe Company’s operating lease right-of-use\nassets and operating lease liabilities recognized in the consolidated balance sheets consisted of the following:\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nOperating lease right-of-use assets, net \n$483,431  \n$\n—\n \n\n \n\nDuring the years\nended December 31, 2025, 2024 and 2023, there are no impairment loss was recognized.\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nOperating lease liabilities: \n   \n  \n\nCurrent operating lease obligation \n$293,803  \n$\n—\n \n\nNon-current operating lease obligation \n 234,843  \n \n—\n \n\nTotal \n$528,646  \n$**—** \n\n \n\n   As of December 31, \n\n   2025   2024 \n\nWeighted average remaining lease term (years)   1.76    \n—\n \n\nWeighted average discount rate   5.36%   \n—\n \n\n \n\nThe\nfollowing is a maturity analysis of the annual undiscounted cash flows for operating lease liabilities as of December 31, 2025:\n\n \n\nYears ending December 31, \n  \n\n2026 \n$314,576 \n\n2027 \n 240,100 \n\nTotal undiscounted lease payment \n 554,676 \n\nLess: imputed interest \n (26,030)\n\nLease liabilities recognized in the consolidated balance sheet \n$528,646 \n\n \n\nF-23\n\n \n\n**NOTE 13 — OTHER PAYABLES AND ACCRUED LIABILITIES**\n\n** **\n\nOther\npayables and accrued liabilities as of December 31, 2025 and 2024 consist of the following:\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nAccrued staff salaries \n$1,233,008  \n$1,350,655 \n\nVAT and other tax payable \n 311,900  \n 210,733 \n\nAccrued administrative expenses \n 389,907  \n 2,195,226 \n\nOther payables \n 384,114  \n 218,720 \n\nTotal \n$2,318,929  \n$3,975,334 \n\n \n\n**NOTE 14 — LOANS**\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nBank loans \n$12,451,851  \n$12,289,550 \n\nMargin loan (note 1) \n 216,312  \n \n—\n \n\nTotal \n$12,668,163  \n$12,289,550 \n\n \n\nCurrent \n$10,894,987  \n$11,675,074 \n\nNon-current \n 1,773,176  \n 614,476 \n\n  \n$12,668,163  \n$12,289,550 \n\n \n\nBank loans consisted of the following\nat December 31, 2025:\n\n \n\n**Bank Name**   **Outstanding Amount - RMB**     **Outstanding Amount - HKD**     **Outstanding Amount - USD**     **Issuance Date**   **Expiration Date**   **Interest**  \n\nHeng Sang Bank (“HSB”) (note 2)     NA       795,662       102,008     2025/09/23   2026/01/21       SOFR+3.08 %\n\nHSB (note 2)     NA       1,127,123       144,503     2025/09/30   2026/01/28       SOFR+3.08 %\n\nHSB (note 2)     NA       1,385,520       177,631     2025/10/23   2026/02/20       SOFR+3.08 %\n\nHSB (note 2)     NA       1,554,081       199,241     2025/11/11   2026/03/11       SOFR+3.08 %\n\nHSB (note 2)     NA       918,392       117,742     2025/11/21   2026/03/23       SOFR+3.08 %\n\nHSB (note 2)     NA       837,787       107,409     2025/12/08   2026/04/08       SOFR+3.08 %\n\nHSB (note 2)     NA       1,664,221       213,362     2025/12/29    2026/04/28      SOFR+3.08 %\n\nHSB (note 3)     NA       2,872,915     368,322     2022/10/06   2032/10/06     BLR-2.25 %\n\nIndustrial and Commercial Bank of China (Asia) Limited (“ICBC”) (note 3)     NA       6,000,000     769,231     2024/09/27   2030/05/18     HIBOR+2.7 %\n\nICBC (note 3)     NA       2,500,000     320,513     2025/08/28   2026/08/26     HIBOR+2.7 %\n\nICBC (note 3)     NA       2,500,000     320,513     2025/10/31   2026/10/29     HIBOR+2.7 %\n\nICBC (note 4)     NA       1,508,453       193,391     2025/10/15   2026/02/12     ARR+2.25 %\n\nICBC (note 4)     NA       1,908,330       244,658     2012/09/03   2032/09/03     HIBOR+2 %\n\nBank of China Limited (note 5)     8,350,000        NA       1,194,034     2025/08/21   2026/08/09     2.80 %\n\nBank of Taian Co., Ltd. (note 6)     9,000,000        NA       1,286,983     2025/06/18   2026/06/15     3.30 %\n\nChina Everbright Bank Company Limited (note 7)     5,000,000        NA       714,990     2025/01/23   2026/01/22     3.20 %\n\nBank of communications     8,000,000        NA       1,143,985     2025/05/29   2026/05/25     2.80 %\n\nIndustrial Bank Co., Ltd. (note 7)     8,000,000        NA       1,143,985     2025/11/27   2026/11/26     2.70 %\n\nPostal Savings Bank of China Co., Ltd. (note 8)     5,000,000        NA       714,990     2025/08/25   2026/08/24     3.17 %\n\nBank of Qingdao Co., Ltd. (note 7)     8,000,000        NA       1,143,985     2025/08/20   2026/08/18     3.10 %\n\nShandong Feicheng Rural Commercial Bank Co., Ltd (note 5)     12,800,000        NA       1,830,375     2025/05/16   2028/05/15     2.90 %\n\nLess: Reclassification of short-term loan to long-term loan     (12,400,000 )      NA       (1,773,176 )   2025/05/16   2028/05/15     2.90 %\n\n**Total short-term bank loan**     **51,750,000**       **25,572,484 **       **10,678,675**                    \n\n**Total long-term bank loan**     **12,400,000**       —        **1,773,176**                    \n\n \n\nF-24\n\n \n\nBank loans consisted of the following\nat December 31, 2024:\n\n \n\n**Bank Name**\n \n**Outstanding Amount–RMB**\n \n \n**Outstanding Amount–HKD**\n \n \n**Outstanding Amount– USD**\n \n \n**Issuance Date**\n \n**Expiration Date**\n \n**Interest**\n \n\nHSB (note 2)\n \n \nNA\n \n \n \n644,356\n \n \n \n82,610\n \n \n2020/12/01\n \n2025/12/01\n \n \nBLR-2.25\n%\n\nHSB (note 2)\n \n \nNA\n \n \n \n-\n \n \n \n-\n \n \n2020/12/01\n \n2025/12/01\n \n \nBLR-2.25\n%\n\nHSB (note 2)\n \n \nNA\n \n \n \n1,416,883\n \n \n \n181,652\n \n \n2024/10/22\n \n2025/2/19\n \n \nSOFR+3.08\n%\n\nHSB (note 2)\n \n \nNA\n \n \n \n2,145,115\n \n \n \n275,015\n \n \n2024/10/30\n \n2025/2/27\n \n \nSOFR+3.08\n%\n\nHSB (note 2)\n \n \nNA\n \n \n \n1,145,800\n \n \n \n146,897\n \n \n2024/11/06\n \n2025/3/06\n \n \nSOFR+3.08\n%\n\nHSB (note 2)\n \n \nNA\n \n \n \n1,311,254\n \n \n \n168,109\n \n \n2024/12/04\n \n2025/4/03\n \n \nSOFR+3.08\n%\n\nHSB (note 2)\n \n \nNA\n \n \n \n1,545,684\n \n \n \n198,165\n \n \n2024/12/17\n \n2025/4/16\n \n \nSOFR+3.08\n%\n\nHSB (note 2)\n \n \nNA\n \n \n \n710,498\n \n \n \n91,090\n \n \n2024/12/18\n \n2025/4/17\n \n \nSOFR+3.08\n%\n\nHSB (note 3)\n \n \nNA\n \n \n \n3,246,694\n \n \n \n416,243\n \n \n2022/10/06\n \n2032/10/06\n \n \nBLR-2.25\n%\n\nLess:\nReclassification of short-term loan to long-term loan\n \n \nNA\n \n \n \n(2,875,119\n)\n \n \n(368,605\n)\n \n2022/10/06\n \n2032/10/06\n \n \nBLR-2.25\n%\n\nICBC (note 3)\n \n \nNA\n \n \n \n2,500,000\n \n \n \n320,513\n \n \n2024/08/23\n \n2025/08/22\n \n \nHIBOR+2.7\n%\n\nICBC (note 3)\n \n \nNA\n \n \n \n6,000,000\n \n \n \n769,231\n \n \n2024/09/27\n \n2025/09/26\n \n \nHIBOR+2.7\n%\n\nICBC (note 4)\n \n \nNA\n \n \n \n716,668\n \n \n \n91,881\n \n \n2024/11/13\n \n2025/3/13\n \n \nARR+2.25\n%\n\nICBC (note 3)\n \n \nNA\n \n \n \n2,500,000\n \n \n \n320,513\n \n \n2024/11/15\n \n2025/11/14\n \n \nHIBOR+2.7\n%\n\nICBC (note 4)\n \n \nNA\n \n \n \n2,142,813\n \n \n \n274,720\n \n \n2012/09/03\n \n2032/09/03\n \n \nHIBOR+2\n%\n\nLess: Reclassification of short-term loan to long-term loan\n \n \nNA\n \n \n \n(1,917,791\n)\n \n \n(245,871\n)\n \n2012/09/03\n \n2032/09/03\n \n \nHIBOR+2\n%\n\nBank of China Limited (note 5)\n \n \n8,350,000\n \n \n \n NA\n \n \n \n1,143,945\n \n \n2024/09/06\n \n2025/09/06\n \n \n3.20\n%\n\nBank of Taian Co., Ltd. (note 6)\n \n \n10,000,000\n \n \n \n NA\n \n \n \n1,369,994\n \n \n2024/06/13\n \n2025/06/11\n \n \n3.45\n%\n\nChina Everbright Bank Company Limited (note 9)\n \n \n8,000,000\n \n \n \n NA\n \n \n \n1,095,995\n \n \n2024/01/26\n \n2025/01/16\n \n \n3.60\n%\n\nBank of communications (note 7)\n \n \n5,000,000\n \n \n \n NA\n \n \n \n684,997\n \n \n2024/05/24\n \n2025/05/24\n \n \n3.70\n%\n\nIndustrial Bank Co., Ltd. (note 7)\n \n \n8,000,000\n \n \n \n NA\n \n \n \n1,095,995\n \n \n2024/10/31\n \n2025/10/30\n \n \n3.30\n%\n\nPostal Savings Bank of China Co. Ltd. (note 8)\n \n \n5,000,000\n \n \n \n NA\n \n \n \n684,997\n \n \n2024/09/09\n \n2025/09/08\n \n \n3.52\n%\n\nBank of Qingdao Co., Ltd. (note 7)\n \n \n8,000,000\n \n \n \n NA\n \n \n \n1,095,995\n \n \n2024/09/03\n \n2025/08/29\n \n \n3.75\n%\n\nShandong Feicheng Rural Commercial Bank Co., Ltd (note 5)\n \n \n13,000,000\n \n \n \n NA\n \n \n \n1,780,993\n \n \n2024/05/20\n \n2025/05/12\n \n \n3.45\n%\n\n**Total short-term loan**\n \n \n**65,350,000**\n \n \n \n**21,232,855**\n \n \n \n**11,675,074**\n \n \n \n \n \n \n \n \n \n\n**Total long-term loan**\n \n \n—\n \n \n \n**4,792,910**\n \n \n \n**614,476**\n \n \n \n \n \n \n \n \n \n\n \n\nNote:\n\n \n\n1. During the year ended December 31, 2025, the Company borrowed an aggregate amount of $280,415 from its investment margin account to finance the acquisition of equity securities, with pledging the assets (i.e. equity securities and cash) in the Company’s investment account as collateral. The interest rate for such margin loan is charged at 6.80% per annum with interest only payable daily. The margin loan has no maturity but is repayable on demand as the custodian can issue a margin call at any time, therefore the margin loan is recorded as a current liability on the Company’s consolidated balance sheets.\n\n \n\nAs of December 31, 2025, the assets in the Company’s investment\naccount pledged as collateral for the margin loan were equity securities of amounted to $2,480,398.\n\n \n\n2.The Company’s controlling shareholder and director,\nMr. Ma Biu, together with the Company’s director, Ms. Liu Liangping, and Luda PRC provided unlimited personal and corporate guarantee\nfor the loans, respectively. In addition, the loans were secured by certain properties held under Ms. Liu Liangping.\n\n \n\n3.Mr. Ma Biu and Ms. Liu Liangping provided unlimited personal guarantee\nfor the loans. In addition, Hong Kong Mortgage Corporation Limited under the small and medium-sized enterprises Financing Guarantee Scheme\nprovided corporate guarantee for 80% - 100% of the loan.\n\n \n\n4.Mr. Ma Biu and Ms. Liu Liangping provided unlimited personal\nguarantee for the loans. In addition, the loans were secured by certain properties held under Mr. Ma Biu.\n\n \n\n5.Mr. Ma Biu and Ms. Liu Liangping provided unlimited personal\nguarantee for the loans. In addition, the loans were secured by the Company’s building with carrying value of approximately $1,573,692\n(2024: $1,438,626).\n\n \n\n6.The loan is secured by the Company’s patent rights,\nwhich were registered under the laws of the PRC.\n\n \n\n7.Mr. Ma Biu and Ms. Liu Liangping provided unlimited personal\nguarantee for the loans.\n\n \n\n8.Mr. Ma Biu and Ms. Liu Liangping provided unlimited personal\nguarantee for the loans. In addition, the loans were secured by the Company’s patent rights, which were registered under the laws\nof the PRC.\n\n \n\nF-25\n\n \n\n9.Mr. Ma Biu and Ms. Liu Liangping provided unlimited personal guarantee for the loans. In addition, the loans were secured by certain properties held under Mr. Ma Biu and Ms. Liu Liangping.\n\n  \n\n10.As of December 31, 2025, bank loans totaling $1,382,211 with original\nmaturities exceeding one year were classified as current liabilities due to the inclusion of repayment on demand clauses.\n\n \n\n“SOFR”\nstands for Secured Overnight Financing Rate.\n\n \n\n“HIBOR”\nstands for Hong Kong Interbank Offered Rate.\n\n \n\n“ARR”\nstands for Alternative Reference Rate.\n\n \n\n“BLR” stands for Best Lending Rate. \n\n \n\nThe\ncarrying amounts of the Company’s buildings and land use rights pledged as collateral for bank loans are as follows:\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nBuildings, net \n$865,239  \n$740,555 \n\nLand use right, net \n 708,453  \n 698,071 \n\nTotal \n$1,573,692  \n$1,438,626 \n\n \n\nFor the years ended December 31, 2025, 2024 and 2023, interest\nexpense on all loans amounted to $474,959, $530,185 and $455,457, respectively.\n\n** **\n\n**NOTE 15 — OTHER INCOME, NET**\n\n** **\n\n** **\n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nUnrealized fair value gain (loss) of short-term investments \n$939,352  \n$(398,654) \n$1,359 \n\nRealized fair value gain (loss) of short-term investments (note 1) \n 692,399  \n \n—\n  \n \n—\n \n\nDividend income from short-term investments \n 180,590  \n \n—\n  \n \n—\n \n\nGain on extinguishment of consulting expenses payable (note 2) \n 564,918  \n \n—\n  \n \n—\n \n\nRefund of VAT \n 105,444  \n 427,503  \n \n—\n \n\nOthers, net \n 88,514  \n (25,396) \n 13,869 \n\n  \n$2,571,217  \n$3,453  \n$15,228 \n\n \n\nNote:\n\n \n\n1. It included $318,359 and $374,040 realized fair value gain from the\nredemption of the Company’s investment in Stable Income Fund SP and the sales of equity investments in the year ended December 31,\n2025, respectively.\n\n \n\n2. During the year ended December 31, 2025, the Company and one of its consultancy service providers executed a termination agreement pursuant to which both parties agree to terminate the consultancy service arrangement. In connection with this termination, the service provider has granted an unconditional waiver of the Company’s consulting expenses payable of $564,918.   \n\n** **\n\n**NOTE 16 — SELLING EXPENSES**\n\n** **\n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nCommission paid \n$268,733  \n$169,422  \n$144,476 \n\nConsulting expenses \n 268,931  \n 4,974,139  \n 1,485,807 \n\nEmployee compensation and benefits \n 124,405  \n 112,450  \n 105,987 \n\nEntertainment expenses \n 207,226  \n 227,284  \n 247,713 \n\nFreight charges \n 716,356  \n 675,134  \n 592,053 \n\nOther expenses \n 220,541  \n 184,322  \n 133,340 \n\n** **** **\n**$****1,806,192**** **** **\n**$****6,342,751**** **** **\n**$****2,709,376**** **\n\n \n\nF-26\n\n \n\n**NOTE 17 — GENERAL AND ADMINSTRATIVE\nEXPENSES**\n\n** **\n\n \n \nFor the years ended December 31,\n \n\n \n \n2025\n \n \n2024\n \n \n2023\n \n\nAmortization expenses\n \n$\n20,139\n \n \n$\n43,778\n \n \n$\n30,530\n \n\nAudit fee\n \n \n237,774\n \n \n \n35,897\n \n \n \n35,897\n \n\nBad debt charges\n \n \n\n—\n\n \n \n \n\n—\n\n \n \n \n13,926\n \n\nConsulting expenses\n \n \n48,087\n \n \n \n58,174\n \n \n \n122,167\n \n\nDepreciation expenses\n \n \n116,781\n \n \n \n78,031\n \n \n \n85,160\n \n\nEmployee compensation and benefits\n \n \n1,988,455\n \n \n \n1,725,710\n \n \n \n816,526\n \n\nEntertainment expenses\n \n \n64,516\n \n \n \n21,567\n \n \n \n16,939\n \n\n(Reversal of )/provision for allowance for expected credit losses\n \n \n(117,438\n)\n \n \n(27,137\n)\n \n \n714,383\n \n\nOperating lease expenses\n \n \n60,657\n \n \n \n\n—\n\n \n \n \n\n—\n\n \n\nListing expenses\n \n \n\n—\n\n \n \n \n\n—\n\n \n \n \n230,787\n \n\nOther expenses\n \n \n709,275\n \n \n \n531,186\n \n \n \n685,021\n \n\nProfessional fee\n \n \n469,195\n \n \n \n579,507\n \n \n \n40,328\n \n\nShort-term lease expenses (note 1)\n\n \n \n86,864\n \n \n \n81,538\n \n \n \n80,385\n \n\nOther taxes\n \n \n36,341\n \n \n \n94,708\n \n \n \n78,139\n \n\n \n \n$\n3,720,646\n \n \n$\n3,222,959\n \n \n$\n2,950,188\n \n\n \n\nNote:\n\n \n\n1.During the years ended December 31, 2025, 2024, and 2023, short-term\nlease expenses included office premise lease payments of $81,538, $81,538 and $80,385, respectively, charged by Won Fittings Company Limited,\nan entity controlled by Ms. Liu Liangping, a director of the Company. The remaining balance of short-term lease expenses for the year\nended December 31, 2025 was paid to an independent third party.\n\n** **\n\n**NOTE 18 — RESEARCH AND DEVELOPMENT\nEXPENSES**\n\n** **\n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nDepreciation expenses \n$163,925  \n$137,983  \n$99,713 \n\nDirect cost \n 941,991  \n 961,080  \n 947,183 \n\nEmployee compensation and benefits \n 212,887  \n 223,646  \n 260,118 \n\nOther expenses \n 133,249  \n 60,896  \n 57,459 \n\n** **** **\n**$****1,452,052**** **** **\n**$****1,383,605**** **** **\n**$****1,364,473**** **\n\n** **\n\n**NOTE\n19 — ORDINARY SHARE**\n\n \n\nAs of December 31, 2025 and 2024, the Company’s authorized share\ncapital will be HKD1,000,000,000 divided into 4,000,000,000 ordinary shares with a HK$0.25 (equivalent to $0.03) par value per share.\nThe issued and outstanding number of ordinary shares was 22,690,000 and 20,000,000 shares as of December 31, 2025 and 2024, respectively.\n\n \n\n*Initial Public Offering*\n\n \n\nOn February 27, 2025, the\nordinary shares of the Company began trading on NYSE American LLC under the ticker symbol “LUD”. On February 28, 2025, the\nCompany consummated its Offering of 2,500,000 ordinary shares, par value HK$0.25 (equivalent to $0.03) per share, at a\npublic offering price of $4.00 per share. The Offering was conducted on a firm commitment basis, after deducting certain underwriting\nexpenses, the Company received net proceeds of US$8,915,989.\n\n** **\n\nIn connection with the IPO,\nthe Company granted the underwriters the Over-Allotment Option to cover over-allotments, if any. On April 7, 2025, the underwriters partially\nexercised the Over-Allotment Option, and the Company issued and sold an additional 190,000 Ordinary Shares at the offering price\nof $4.00 per share, generating additional net proceeds of $696,792.\n\n \n\n**NOTE 20 — STATUTORY RESERVE AND\nADDITIONAL PAID-IN CAPITAL**\n\n** **\n\n*Statutory reserve*\n\n** **\n\nThe statutory reserve\nrepresents restricted retained earnings. The Company’s PRC subsidiary is required to transfer 10% of their net income, as\ndetermined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of the\nCompany’s registered capital. The registered share capital of the Company’s PRC subsidiary was $14,743,590 (HK$115,000,000)\nand its maximum reserve balance was $7,731,795 (HK$ 57,500,000) as of December 31, 2025 and 2024.\n\n \n\nF-27\n\n \n\nUnder the PRC laws and regulations, statutory surplus reserves are\nrestricted to set-off against losses, expansion of production and operation and increasing registered capital of the respective company\nand are not distributable other than upon liquidation. The reserves are not allowed to be transferred to the Company in terms of cash\ndividends, loans or advances, nor are they allowed for distribution except under liquidation. Amounts restricted include the PRC subsidiary’s\npaid-in capital and statutory reserves. As of December 31, 2025 and 2024, the statutory reserve subject to such restrictions amounted to $2,365,592\n(RMB16,000,966) and $2,253,177 (RMB15,408,737), respectively.\n\n \n\n*Additional paid-in capital*\n\n** **\n\nAs of December 31, 2025\nand 2024, the additional paid-in capital of the Company was $8,295,213 and $nil, respectively.\n\n** **\n\n**NOTE\n21 — RELATED PARTY TRANSACTIONS**\n\n** **\n\n**Names of Related Party:**\n \nExisting Relationship with the Company\n\nWon Fittings Company Limited\n \nWholly owned by Ms. Liu Liangping.\n\nMr. Ma Biu\n \nChairman, Director, and Chief Executive Officer\n\nMs. Liu Liangping\n \nDirector and Chief Operating Officer\n\nDiamond Horses Group Limited (Formerly known as “Luda Group Ltd.”)\n \nControlling shareholder of the Company\n\n** **\n\n**Summary of Related Party Transactions:**\n\n \n\nA summary of trade transactions\nwith a related party for years ended December 31, 2025, 2024 and 2023 are listed below:\n\n \n\n  \nFor the years ended December 31, \n\nRental expenses charged by a related party: \n2025  \n2024  \n2023 \n\nWon Fittings Company Limited \n$81,538  \n$81,538  \n$80,385 \n\n \n\nDetails of the guarantees\nand collaterals provided by Mr. Ma and Ms. Liu are disclosed in Note 14.\n\n \n\nThe Company declared $nil, $3,377,564 and $247,731 dividend distributed\nto Diamond Horses Group Limited for the years ended December 31, 2025, 2024 and 2023, respectively, and paid $nil, $3,377,564 and $630,785\nfor the years ended December 31, 2025, 2024 and 2023, respectively.\n\n \n\n**NOTE 22 — INCOME TAXES**\n\n \n\n*Cayman*\n\n \n\nLuda Cayman is incorporated\nin Cayman Island as an offshore holding company. For the period ended December 31, 2025, 2024 and 2023, no provision was recognized for\nLuda Technology Group Limited.\n\n \n\n*BVI *\n\n \n\nLuda BVI is incorporated\nin BVI as an offshore holding company. For the years ended December 31, 2025, 2024 and 2023, no provision was recognized for Luda BVI.\n\n \n\n*Hong Kong*\n\n \n\nLuda HK is incorporated in\nHong Kong. On December 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the\n“Bill’’) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on December 28, 2018\nand was gazetted on the following day.\n\n  \n\nUnder the two-tiered profits\ntax rates regime, the first HK$2 million of its profits of the qualifying entity will be taxed at 8.25%, and profits above HK$2 million\nwill be taxed at 16.5%.\n\n \n\n*PRC*\n\n \n\nLuda PRC, the Company’s\noperating subsidiary in PRC, was entitled High and New Technology Enterprise (“HNTE”) and enjoyed preferential tax rate of\n15% for a three-year validity period from August 17, 2020. Thus, Luda PRC is eligible for a 15% preferential tax rate from August 17,\n2020 to August 17, 2023. As of December 31, 2023, the eligibility of HNTE was renewed and Luda PRC enjoyed another preferential tax\nrate of 15% for a three-year validity period from November 29, 2023. Thus, Luda PRC is eligible for a 15% preferential tax rate from November\n29, 2023 to November 29, 2026.\n\n \n\nF-28\n\n \n\nPursuant to the PRC Corporate\nIncome Tax Law, a 10% withholding tax is levied on dividends declared to foreign investors from the foreign investment enterprises established\nin the PRC. The requirement became effective from January 1, 2008 and applies to earnings after December 31, 2007. A lower withholding\ntax rate may be applied if there is a tax treaty between the PRC and the jurisdiction of the foreign investors. For the Company, the applicable\nrate is 5%. The Company is therefore liable for withholding taxes on dividends distributed by Luda PRC in respect of earnings generated\nfrom January 1, 2008.\n\n \n\nAs of December 31, 2025 and 2024, deferred tax liabilities have been\nrecognized for withholding taxes that would be payable on the undistributed earnings that are subject to withholding taxes of the Company’s\nsubsidiaries established in the PRC. Up to the date of the report, the Company has no intention to reinvest the undistributed earnings\nand calculate the deferred tax liabilities based on the whole amount of undistributed earnings of Luda PRC. The aggregate amount of temporary\ndifferences associated with investments in subsidiaries in the PRC for which deferred tax liabilities have been recognized approximately\n$nil and US$23,050 as of December 31, 2025 and 2024 respectively, which is 5% of the undistributed earnings of Luda PRC approximately\n$nil and US$461,000 respectively.\n\n \n\nThe Company evaluates each\nuncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the\nunrecognized benefits associated with the tax positions. As of December 31, 2025 and 2024, the Company did not have any significant unrecognized\nuncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the\nyears ended December 31, 2025, 2024 and 2023, respectively, and also does not anticipate any significant increases or decreases in unrecognized\ntax benefits in the next 12 months from December 31, 2025.\n\n \n\nOur income tax expense amounted\nto $434,395, $264,221 and $446,899 for the years ended December 31, 2025, 2024 and 2023, respectively. The increase was mainly due to\nchange from loss before income tax for the year ended December 31, 2024 to income before income tax for the year ended December 31, 2025.\nThe effective tax rate was 43.8% and 12.8% in the year ended December 31, 2025 and 2023, while the effective tax rate for the years ended\nDecember 31, 2024 is not applicable due to the pre-tax loss.\n\n \n\nThe Company recognized valuation\nallowance of $478,875 and $283,630 for deferred tax assets as of December 31, 2025 and 2024, respectively, as it is more likely than not\nthat this portion of the deferred tax assets will not be realized. In assessing the realizability of deferred tax assets, management considers\nwhether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization\nof deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences\nbecome deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning\nstrategies in making this assessment.\n\n \n\nThe PRC statutory tax rate\nof 25% is used for the effective tax rate reconciliation as substantially all of the Company’s operations are based in the PRC.\n\n \n\nUpon adoption of ASU No. 2023-09 as described in Note 2, the reconciliation\nof income before income taxes computed at the PRC statutory rate to the income tax expense for the year ended December 31, 2025 was\nas follows:\n\n \n\n  \nFor the year ended\nDecember 31, 2025 \n\n  \nAmount  \nPercent \n\nIncome before income taxes \n$991,224  \n   \n\n  \n    \n   \n\nIncome before income taxes computed at the PRC statutory income tax rate \n 247,805  \n 25%\n\nForeign tax effect: \n    \n   \n\nStatutory tax rate difference between Hong Kong and the PRC \n (30,855) \n (3.1)%\n\nStatutory tax rate difference between Cayman and the PRC \n 162,668  \n 16.4%\n\nStatutory tax rate difference between BVI and the PRC \n 3,603  \n 0.4%\n\nTax credit: \n    \n   \n\nR&D additional deduction \n (325,558) \n (32.8)%\n\nTax at concessionary rate \n (8,820) \n (0.9)%\n\nNon-taxable or non-deductible items \n    \n   \n\nTax effect of non-deductible expense \n 35,178  \n 3.5%\n\nTax effect of non-taxable income \n (30,265) \n (3.1)%\n\nChange in valuation allowances \n 195,245  \n 19.7%\n\nPRC dividend withholding tax \n 49,263  \n 5.0%\n\nUnder provision in previous years \n 157,841  \n 15.9%\n\nOthers \n (21,710) \n (2.2)%\n\n**Income tax expense**** **\n**$****434,395**** **** **\n** ****43.8****%**\n\n \n\nDuring the year ended December\n31, 2025, the Company has paid income taxes (including withholding tax for dividend income) of $155,192, $49,263, $nil and $nil in the\nPRC, HK, BVI and Cayman, respectively.\n\n \n\nF-29\n\n \n\nPer the consolidated statements of operations and comprehensive (loss) income, the income tax expenses for the Company can be reconciled to the (loss) income before income taxes for the years ended December 31, 2024 and 2023 as follows:\n\n \n\n  \nFor the years ended December 31, \n\n  \n2024  \n2023 \n\n(Loss) income before taxes \n$(96,795) \n$3,479,476 \n\nCayman Islands statutory income tax rate \n \n—\n  \n \n—\n \n\nIncome tax calculated at statutory rate \n \n—\n  \n \n—\n \n\nRate differences in various jurisdictions \n 1,082,355  \n 487,611 \n\nTax effect of non-taxable income \n (1,122,273) \n (1,564)\n\nR&D additional deduction \n (198,766) \n (287,423)\n\nTax effect of non-deductible expenditure \n 311,177  \n 192,798 \n\nChange in deferred income tax allowance \n 117,607  \n 120,664 \n\nPRC dividend withholding tax \n 339,590  \n 121,113 \n\nDeferred income tax recovery \n (265,469) \n (186,300)\n\nIncome tax expenses \n$264,221  \n$446,899 \n\n  \n\nIncome taxes for the years\nended December 31, 2025, 2024 and 2023 are attributed to the Company consisting of:\n\n \n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nCurrent income tax - PRC \n$239,195  \n$190,100  \n$512,086 \n\nDeferred income tax - PRC \n (70,048) \n (265,469) \n (186,300)\n\nDeferred income tax - HK \n 215,985  \n \n—\n  \n \n—\n \n\nPRC dividend withholding tax - HK \n 49,263  \n 339,590  \n 121,113 \n\nIncome tax expenses \n$434,395  \n$264,221  \n$446,899 \n\n \n\nThe tax effects of temporary\ndifferences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2025\nand 2024 are presented below:\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nDeferred tax assets \n   \n  \n\nTax loss \n$477,825  \n$283,630 \n\nAllowance for expected credit losses \n 297,132  \n 310,139 \n\nDecelerated tax depreciation for HK \n \n—\n  \n 1,153 \n\nRefundable liability \n 10,417  \n 54,566 \n\nInventory provision \n 242,143  \n 187,108 \n\nUnrealized fair value changes in short-term investments \n 74,237  \n \n—\n \n\nLess: valuation allowance \n (478,875) \n (283,630)\n\nTotal \n$622,879  \n$552,966 \n\n \n\nDuring the years ended December\n31, 2025 and 2024, the Company recognized the valuation allowance of $478,875 and $283,630, respectively, against its deferred tax asset,\nprimarily related to net operating loss carryforwards for Luda HK. Based on historical taxable income and projections of future results,\nmanagement determined it is more likely than not that these deferred tax assets will not be realized.\n\n \n\nAs of December 31, 2025 and 2024, the Company had net operating loss\ncarry forwards of $2,895,910 (equivalent to approximately HK$ 22,588,099) and $1,718,967 (equivalent to approximately HK$13,407,945),\nrespectively. No tax losses were utilized during the years ended December 31, 2025 and 2024.\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\nDeferred tax liabilities \n   \n  \n\nAccelerated tax depreciation for the PRC \n$136,297  \n$153,380 \n\nAccelerated tax depreciation for HK \n 2,200  \n \n—\n \n\nUndistributed earnings of PRC subsidiary \n \n—\n  \n 23,050 \n\nUnrealized fair value changes in short-term investments \n 234,445  \n \n—\n \n\nTotal \n$372,942  \n$176,430 \n\n** **\n\nF-30\n\n** **\n\n**NOTE 23 — SIGNIFICANT RISKS AND UNCERTAINTIES**\n\n** **\n\n*Concentration of Risks*\n\n \n\nConcentration of major customers\nand suppliers:\n\n \n\n \n \n**For\nthe years ended December 31,**  \n \n\n \n \n2025\n \n \n2024\n \n \n2023\n \n\n \n \nAmount\n \n \nPercentage\n \n \nAmount\n \n \nPercentage\n \n \nAmount\n \n \nPercentage\n \n\nMajor customers representing more than 10% of the Company’s revenues\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nCustomer A\n \n$\n4,037,204\n \n \n \n12.0\n%\n \n$\n*\n \n \n \n *\n%\n \n$\n\n*\n\n \n \n \n *\n%\n\nCustomer B\n \n$\n3,995,291\n \n \n \n11.9\n%\n \n$\n*\n \n \n \n*\n%\n \n$\n*\n \n \n \n *\n%\n\nCustomer C\n \n$\n3,552,714\n \n \n \n10.6\n%\n \n$\n\n*\n\n \n \n \n\n*\n\n%\n \n$\n*\n \n \n \n *\n%\n\nCustomer D\n \n$\n            *\n \n \n \n        *\n%\n \n$\n8,228,966\n \n \n \n18.3\n%\n \n$\n*\n \n \n \n *\n%\n\nCustomer E\n \n$\n  *\n \n \n \n *\n%\n \n$\n5,957,404\n \n \n \n13.3\n%\n \n$\n8,390,058\n \n \n \n16.3\n%\n\nCustomer F\n \n$\n\n*\n\n \n \n \n\n*\n\n%\n \n$\n5,560,578\n \n \n \n12.4\n%\n \n$\n*\n \n \n \n *\n%\n\nCustomer G\n \n$\n  *\n \n \n \n *\n%\n \n$\n4,497,689\n \n \n \n10.0\n%\n \n$\n15,852,474\n \n \n \n30.8\n%\n\n \n\n \n \n**As of December 31,**\n \n\n \n \n**2025**\n \n \n**2024**\n \n\n \n \n**Amount**\n \n \n**Percentage**\n \n \n**Amount**\n \n \n**Percentage**\n \n\nMajor customers of the Company’s accounts receivable\n \n \n \n \n \n \n \n \n \n \n \n \n\nCustomer C\n \n $\n2,636,843 \n \n \n \n     17.1\n% \n \n$\n*\n \n \n \n*\n%\n\nCustomer D\n \n $\n    * \n \n \n \n     *\n %\n \n$\n2,718,597\n \n \n \n18.0\n%\n\nCustomer E\n \n $\n* \n \n \n \n*\n %\n \n$\n1,582,693\n \n \n \n10.5\n%\n\nCustomer F\n \n $\n* \n \n \n \n*\n %\n \n \n*\n \n \n \n*\n%\n\nCustomer G\n \n $\n2,543,460 \n \n \n \n16.5 \n %\n \n$\n1,704,452\n \n \n \n11.3\n%\n\n \n\nThe loss of our significant\ncustomer or the failure to attract new customers could have a material adverse effect on our business, consolidated results of operations\nand financial condition.\n\n \n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\n  \nAmount  \nPercentage  \nAmount  \nPercentage  \nAmount  \nPercentage \n\nMajor suppliers representing more than 10% of the Company’s purchase \n   \n   \n   \n   \n   \n  \n\nSupplier A \n$       *  \n         *% \n$*  \n *% \n$11,425,454  \n 23.8%\n\nSupplier B \n$4,453,329  \n 17.7% \n$ 3,939,174  \n 12.4% \n$*  \n *%\n\nSupplier C \n$*  \n *% \n$4,651,267  \n 14.7% \n$*  \n *%\n\nSupplier D \n$2,682,282  \n 10.7% \n$ *  \n *% \n$*  \n *%\n\n \n\n \n \n**As of December 31,**\n \n\n \n \n**2025**\n \n \n \n**2024**\n \n\n \n \n**Amount**\n \n \n \n**Percentage**\n \n \n**Amount**\n \n**Percentage**\n \n\nMajor suppliers of the Company’s accounts payables\n \n \n \n \n \n \n \n \n \n \n \n\nSupplier A\n \n$\n*\n \n \n*\n%\n \n$\n1,378,928\n \n15.9\n%\n\nSupplier B\n \n$\n2,084,843\n \n \n19.7\n%\n \n$\n1,499,161\n \n17.3\n%\n\nSupplier C\n \n$\n   *\n \n \n *\n%\n \n$\n1,645,008\n \n19.0\n%\n\nSupplier E\n \n$\n1,234,813\n \n \n11.7\n%\n \n$\n*\n \n *\n%\n\n \n\n \n\n*Represents less than 10% of the Company’s total amount or balance.\n\n \n\nF-31\n\n \n\nThe Company believes there\nare numerous other suppliers that could be substituted should the supplier become unavailable or non-competitive.\n\n* *\n\n*Exchange Rate Risks*\n\n \n\nThe Company operates in the PRC,\nwhich may give rise to significant foreign currency risks mainly from fluctuations and the degree of volatility of foreign exchange rates\nbetween the USD and the RMB. Strengthening of the RMB against the USD would result in a negative impact of the Company’s net income\nand/or its financial position.\n\n* *\n\n*Currency Convertibility Risks*\n\n \n\nThe Company’s operating\nactivities are predominantly (over 80% to 90%) transacted in RMB and USD. While USD is freely convertible into other currencies, RMB is\nnot freely convertible into other currencies. which are not freely convertible into foreign currencies. All foreign exchange transactions\ntake place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange\nrates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory\ninstitutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping\ndocuments and signed contracts.\n\n* *\n\n*Credit Risks*\n\n \n\nCredit risk is the potential\nfinancial loss to the Company resulting from the failure of a customer or a counterparty to settle its financial and contractual obligations\nto the Company, as and when they fall due. As the Company does not hold any collateral, the maximum exposure to credit risk is the carrying\namounts of accounts receivable, other receivables, notes receivable, contract assets, restricted cash and cash and cash equivalents presented\non the consolidated balance sheet. The Company has no other financial assets which carry significant exposure to credit risk.\n\n* *\n\n*Interest Rate Risks*\n\n \n\nThe Company is exposed to\nfair value interest rate risk primarily relates to the fixed-rate loans. The Company is also exposed to cash flow interest rate risk primarily\nrelates to the variable-rate loans and bank balances. The Company has not used any derivative instruments to mitigate its exposure associated\nwith interest rate risk.\n\n* *\n\n*Risks and Uncertainties*\n\n \n\nThe operations of the Company are located in Hong Kong\nand the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political,\neconomic, and legal environments in Hong Kong and PRC, as well as by the general state of Hong Kong and PRC economy. The Company’s\nresults may be adversely affected by changes in the political, regulatory and social conditions in Hong Kong and the PRC. Although\nthe Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations\nincluding its organization and structure disclosed in Note 1, this may not be indicative of future results.\n\n* *\n\n*Liquidity Risks*\n\n \n\nLiquidity risk is the risk\nthat the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering\ncash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always\nhave sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable\nlosses or risking damage to the Company’s reputation.\n\n \n\nTypically, the Company ensures\nthat it has sufficient cash on demand to meet expected operational expenses for a period of 150-180 days, including the servicing\nof financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural\ndisasters.\n\n \n\nF-32\n\n \n\n**NOTE 24 — COMMITMENT AND CONTINGENCIES**\n\n \n\nOther than the lease commitments\nand debt obligations as disclosed in the notes to the consolidated financial statements, the Company\ndid not have any significant financial or capital commitments as of December 31, 2025 and 2024, and through the issuance date of these\nconsolidated financial statements.\n\n \n\nIn the ordinary course of business, the Company may be subject to legal\nproceedings regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities\nresulting from such claims, when a loss is assessed to be probable, and the amount of the loss is reasonably estimable. In the opinion\nof management, there were no pending or threatened claims and litigation as of December 31, 2025 and 2024, and through the issuance date\nof these consolidated financial statements.\n\n  \n\n**NOTE 25 — SEGMENT REPORTING**\n\n \n\nThe Company follows Financial Accounting Standards Board (“FASB”)\nAccounting Standards Codification (“ASC”) Topic 280, Segment Reporting, as amended by Accounting Standards Update (“ASU”)\nNo. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires companies to disclose segment\ninformation based on how management allocates resources and evaluates operating performance. The Company’s chief operating decision\nmaker (“CODM”) is the Chief Executive Officer. The CODM regularly reviews financial information, including segment revenue,\ngross profit, significant segment expenses (selling expenses and general and administrative expenses), segment net income (loss), and\nsegment assets to evaluate segment performance and allocate resources accordingly. Based on the internal management reporting and assessment,\nthe Company determined that it operates in two reportable segments: Hong Kong Trading and PRC Manufacturing. The Company’s primary\nmeasure of segment performance is segment net income (loss). Other key measures reviewed by the CODM include segment revenue, segment\ngross profit, significant segment expenses (selling expenses and general and administrative expenses), and segment assets.\n\n  \n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nRevenue \n   \n   \n  \n\n— Hong Kong Trading \n$8,961,686  \n$7,282,272  \n$5,461,367 \n\n— PRC Manufacturing \n 25,080,099  \n 38,102,258  \n 46,155,510 \n\nElimination of\ninternal transaction (note 1) \n (506,434) \n (521,100) \n (188,823)\n\n**Total revenue** \n**$****33,535,351**  \n$44,863,430  \n$51,428,054 \n\n  \n    \n    \n   \n\nCost of sales \n    \n    \n   \n\n— Hong Kong Trading \n$6,978,182  \n$5,655,693  \n$4,341,978 \n\n— PRC Manufacturing \n 21,224,333  \n 28,323,614  \n 36,418,495 \n\nElimination of\ninternal transaction (note 1) \n (586,977) \n (521,100) \n (227,396)\n\n**Total cost of sales** \n**$****27,615,538**  \n$33,458,207  \n$40,533,077 \n\n  \n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nGross profit \n   \n   \n  \n\n— Hong Kong Trading \n$1,983,504  \n$1,626,579  \n 1,119,389 \n\n— PRC Manufacturing \n 3,855,766  \n 9,778,644  \n 9,737,015 \n\nElimination of internal transaction (note 1) \n 80,543  \n \n—\n  \n 38,573 \n\n**Total gross profit** \n$5,919,813  \n$11,405,223  \n 10,894,977 \n\n  \n    \n    \n   \n\nSelling expenses \n    \n    \n   \n\n— Hong Kong Trading \n$661,262  \n$417,823  \n 190,198 \n\n— PRC Manufacturing \n 1,144,930  \n 5,924,928  \n 2,519,178 \n\n**Total selling expenses** \n$1,806,192  \n$6,342,751  \n 2,709,376 \n\n  \n    \n    \n   \n\nGeneral and administrative expenses \n    \n    \n   \n\n— Hong Kong Trading \n$2,374,450  \n$2,268,421  \n 1,756,780 \n\n— PRC Manufacturing \n 1,265,653  \n 954,538  \n 1,193,408 \n\nElimination of internal transaction (note 1) \n 80,543  \n \n—\n  \n \n—\n \n\n**Total general and administrative expenses** \n$3,720,646  \n$3,222,959  \n 2,950,188 \n\n \n\n \n \n**For the years ended December 31,**\n \n\n \n \n**2025**\n \n \n**2024**\n \n \n**2023**\n \n\n**Segment net income (loss):**\n \n \n \n \n \n \n \n \n \n\n— Hong Kong Trading\n \n$\n2,445,459\n \n \n$\n5,059,493\n \n \n$\n2,780,297\n \n\n— PRC Manufacturing\n \n \n495,604\n \n \n \n1,379,362\n \n \n \n3,995,034\n \n\nElimination of internal\ntransaction (note 2)\n \n \n(2,384,234\n)\n \n \n(6,799,871\n)\n \n \n(3,742,754\n)\n\n**Total segment net income (loss)**\n \n**$**\n**556,829**\n \n \n**$**\n**(361,016**\n**)**\n \n**$**\n**3,032,577**\n \n\n \n\nF-33\n\n  \n\n  \nAs of December 31, \n\nSegment assets \n2025  \n2024 \n\n— Hong Kong Trading \n$30,803,643  \n$17,112,819 \n\n— PRC Manufacturing \n 35,824,110  \n 36,286,620 \n\nElimination of internal transaction (note 3) \n (17,502,656) \n (14,093,614)\n\nTotal segment assets \n$49,125,097  \n$39,305,825 \n\n \n\nNote:\n\n \n\n  1. The internal transaction represents sales from PRC Manufacturing segment to Hong Kong trading segment.\n\n     \n\n  2. The internal transaction mainly represents dividend income distributed from PRC Manufacturing segment to Hong Kong trading segment.\n\n     \n\n  3. The internal transaction mainly represents Hong Kong Trading segment’s investment in PRC Manufacturing segment, in the form of investment in subsidiary.  \n\n \n\nThe following table summarized\nthe Company’s long-lived assets, including property, plant and equipment, net, intangible assets, net, and operating lease right-of-use\nassets, net by geographical regions:\n\n \n\n  \nAs of December 31, \n\nLong-lived assets \n2025  \n2024 \n\n—HK \n$524,634  \n$56,637 \n\n—PRC \n 5,650,058  \n 5,768,949 \n\nTotal long-lived assets \n$6,174,692  \n$5,825,586 \n\n \n\n**NOTE 26 — SUBSEQUENT EVENTS**\n\n \n\nThe Company evaluated all\nevents and transactions that occurred after December 31, 2025 up through May 15, 2026, which is the date of these consolidated financial statements\nare available to be issued. Except as disclosed below or elsewhere, there was no other subsequent event occurred that would require recognition\nor disclosure in the Company’s consolidated financial statements.\n\n  \n\n**note\n27****— RESTRICTED NET ASSETS**\n\n** **\n\nPRC laws and regulations\npermit payments of dividends by the Company’s subsidiaries incorporated in the PRC only out of their retained earnings, if any,\nas determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries incorporated\nin the PRC are required to annually appropriate 10% of their profit after taxation to the statutory fund reserve (including the general\nreserve fund and enterprise expansion fund, where appropriate) prior to payment of any dividends, unless such fund has reached 50% of\nthe registered capital of the respective company. Furthermore, registered share capital and capital reserve accounts are also restricted\nfrom distribution. As a result of the restrictions described above and elsewhere under PRC laws and regulations, the Company’s subsidiaries\nincorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividends.\nFurthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government\ncontrol of currency conversion. Shortages in the availability of foreign currency may temporarily delay the ability of the PRC subsidiaries\nto remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated\nobligations. The restricted portion amounted to approximately $16,774,079 and $15,241,658 as of December 31, 2025 and 2024, respectively.\nExcept for the above or disclosed elsewhere, there is no other restriction on the use of proceeds generated by the Company’s subsidiaries\nto satisfy any obligations of the Company.\n\n \n\nThe Company performed a test\non the restricted net assets of its subsidiaries in accordance with Securities and Exchange Commission Regulation S — X\nRule 4-08(e)(3), “General Notes to Financial Statements” and concluded that the restricted net assets exceed 25% of the\nconsolidated net assets of the Company as of December 31, 2025 and 2024 and the condensed financial information of the parent company\nis set out in Note 28.\n\n** **\n\n**NOTE 28 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY**\n\n  \n\nThe following condensed financial information of the parent company\nhave been prepared using the same accounting policies as set out in the Company’s consolidated financial statements, except that\nthe parent company’s investment in its subsidiary is presented at cost and such investment is presented on the separate condensed\nbalance sheets of the parent company as “Investment in a subsidiary”.\n\n \n\nThe parent company is a Cayman\nIslands company and, therefore, is not subjected to income taxes for all years presented. Certain information and footnote disclosures\nnormally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures\ncontain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction\nwith the notes to the consolidated financial statements of the Company.\n\n \n\nAs of December 31, 2025 and 2024, there were no\nmaterial commitments or contingencies, significant provisions for long-term obligations, mandatory dividend or redemption requirements\nof redeemable shares or guarantees of the Parent Company except for those which have been separately disclosed in the consolidated financial\nstatements, if any.\n\n \n\nF-34\n\n  \n\n**(a)****Condensed balance sheets**\n\n** **\n\n  \nDecember 31,  \nDecember 31, \n\n  \n2025  \n2024 \n\nAssets \n   \n  \n\nCurrent assets: \n   \n  \n\nCash and cash equivalents \n$331,946  \n$5,019 \n\nDue from subsidiaries \n 649,611  \n \n—\n \n\nRedemption receivable, net \n 8,222,754  \n \n—\n \n\nPrepayments, deposits and other receivables, net \n 68,789  \n \n—\n \n\nDeferred offering cost \n \n—\n  \n 671,321 \n\nTotal current assets \n 9,273,100  \n 676,340 \n\n  \n    \n   \n\nNon-current assets: \n    \n   \n\nInvestment in a subsidiary \n \n—\n* \n \n—\n*\n\nPlant and equipment \n 8,076  \n \n—\n \n\nOperating lease right-of-use assets \n 217,185  \n \n—\n \n\nTotal non-current assets \n 225,261  \n \n—\n \n\n  \n    \n   \n\nTotal assets \n$9,498,361  \n$676,340 \n\n  \n    \n   \n\nCurrent liabilities: \n    \n   \n\nAmount due to a subsidiary \n$806,594  \n$176,237 \n\nOther payables and accruals \n 211,475  \n \n—\n \n\nOperating lease liabilities \n 147,752  \n \n—\n \n\nTotal current liabilities \n 1,165,821  \n 176,237 \n\n  \n    \n   \n\nNon-current liabilities: \n    \n   \n\nOperating lease liabilities \n 101,677  \n \n—\n \n\nTotal non-current liabilities \n 101,677  \n \n—\n \n\n  \n    \n   \n\nTotal liabilities \n$1,267,498  \n$176,237 \n\n  \n    \n   \n\nShareholders’ equity: \n    \n   \n\nOrdinary shares, $0.03 (equivalent to HK$0.25) par value, 4,000,000,000 shares authorized, 20,000,000 and 22,690,000 shares issued and outstanding as of December 31, 2025 and 2024, respectively \n$727,244  \n$641,026 \n\nAdditional paid-in capital \n 8,295,213  \n \n—\n \n\nAccumulated deficit \n (791,594) \n (140,923)\n\nTotal shareholders’ equity \n 8,230,863  \n 500,103 \n\nTotal liabilities and shareholders’ equity \n$9,498,361  \n$676,340 \n\n \n\n*** *Amount less than $1.*\n\n** **\n\n**(b)**\n**Condensed statements of operations and comprehensive (loss) income**\n\n \n\n  \nFor the year ended\nDecember 31,\n2025  \nFor the year\nended December 31,\n2024  \nFor the year\nended December 31,\n2023 \n\nOperating expenses: \n   \n   \n  \n\nGeneral and administrative expenses \n$(918,255) \n$(140,942) \n$\n—\n \n\nTotal operating expenses \n (918,255) \n (140,942) \n \n—\n \n\n  \n    \n    \n   \n\nLoss from operations \n (918,255) \n (140,942) \n \n—\n \n\n  \n    \n    \n   \n\nOther income, net \n 267,584  \n 19  \n \n—\n \n\nDividend income from subsidiaries \n \n—\n  \n 3,377,564  \n 247,731 \n\nTotal other income, net \n 267,584  \n 3,377,583  \n 247,731 \n\n  \n    \n    \n   \n\n(Loss) income before income taxes \n (650,671) \n 3,236,641  \n 247,731 \n\nIncome taxes \n \n—\n  \n \n—\n  \n \n—\n \n\nNet (loss) income and comprehensive (loss) income \n$(650,671) \n$3,236,641  \n$247,731 \n\n \n\nF-35\n\n \n\n**(c)****Condensed statements of cash flows**\n\n** **\n\n  \nFor the year\nended\nDecember 31,\n2025  \nFor the year\nended\nDecember 31,\n2024  \nFor the year\nended\nDecember 31,\n2023 \n\nCash flows from operating activities: \n   \n   \n  \n\nNet (loss) income \n$(650,671) \n$3,236,641  \n$247,731 \n\nAdjustments to reconcile net loss to net cash (used in) provided by operating activities: \n    \n    \n   \n\nFair value changes of short-term investments \n (318,359) \n \n—\n  \n \n—\n \n\nProvision for allowance for expected credit losses \n 54,579  \n \n—\n  \n \n—\n \n\nExpensed deferred listing fee \n \n—\n  \n 137,596  \n \n—\n \n\nChanges in operating assets and liabilities: \n 706  \n \n—\n  \n \n—\n \n\nPrepayment, deposit and other receivables, net \n (68,789) \n \n—\n  \n \n—\n \n\nOther payables and accruals \n 217,383  \n \n—\n  \n \n—\n \n\nLease liabilities - operating leases \n 32,244  \n \n—\n  \n \n—\n \n\nNet cash (used in) provided by operating activities \n$(732,907) \n$3,374,237  \n**$****247,731** \n\n  \n    \n    \n   \n\nCash flows from investing activities \n    \n    \n   \n\nPurchase of short-term investments \n$(7,958,974) \n$\n—\n  \n$\n—\n \n\nAdvance to a subsidiary \n (649,611) \n \n—\n  \n \n—\n \n\nPurchase of plant and equipment \n (8,782) \n \n—\n  \n \n—\n \n\nNet cash used in investing activities \n$(8,617,367) \n$\n—\n  \n$\n—\n \n\n  \n    \n    \n   \n\nCash flows from financing activities \n    \n    \n   \n\nIssuance of ordinary shares \n$\n—\n  \n$\n—\n  \n$641,026 \n\nNet proceeds from initial public offering \n 8,915,989  \n \n—\n  \n \n—\n \n\nNet proceeds from share over-allotment \n 696,792  \n \n—\n  \n \n—\n \n\nPayment of deferred offering cost \n (565,937) \n (20,026) \n (633,891)\n\nAdvance from a subsidiary \n 630,357  \n 28,372  \n \n—\n \n\nRepayment to a subsidiary \n \n—\n  \n \n—\n  \n (7,135)\n\nDividend paid \n \n—\n  \n (3,377,564) \n (247,731)\n\nNet cash provided by (used in) financing activities \n$9,677,201  \n$(3,369,218) \n**$****(247,731****)**\n\n  \n    \n    \n   \n\nNet increase in cash and cash equivalents \n$326,927  \n$5,019  \n$\n—\n \n\n  \n    \n    \n   \n\nCash and cash equivalents at beginning of year \n 5,019  \n \n—\n  \n \n—\n \n\n  \n    \n    \n   \n\nCash and cash equivalents at end of year \n$331,946  \n$5,019  \n**$**\n—\n \n\n** ** \n\nF-36\n\n** **\n\n784728\n\nDuring the year ended December 31, 2025, the Company borrowed an aggregate amount of $280,415 from its investment margin account to finance the acquisition of equity securities, with pledging the assets (i.e. equity securities and cash) in the Company’s investment account as collateral. The interest rate for such margin loan is charged at 6.80% per annum with interest only payable daily. The margin loan has no maturity but is repayable on demand as the custodian can issue a margin call at any time, therefore the margin loan is recorded as a current liability on the Company’s consolidated balance sheets.\n\nAs of December 31, 2025, the assets in the Company’s investment account pledged as collateral for the margin loan were equity securities of amounted to $2,480,398.\n\nhttp://fasb.org/srt/2025#ChiefExecutiveOfficerMember\n\n0001984124\nfalse\nFY\n00000\n00000\n\n0001984124\n\n2025-01-01\n2025-12-31\n\n0001984124\n\ndei:BusinessContactMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\n2025-12-31\n\n0001984124\n\n2024-12-31\n\n0001984124\n\n2024-01-01\n2024-12-31\n\n0001984124\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nus-gaap:CommonStockMember\n\n2022-12-31\n\n0001984124\n\nus-gaap:AdditionalPaidInCapitalMember\n\n2022-12-31\n\n0001984124\n\nus-gaap:AccumulatedOtherComprehensiveIncomeMember\n\n2022-12-31\n\n0001984124\n\nlud:StatutoryReservesMember\n\n2022-12-31\n\n0001984124\n\nus-gaap:RetainedEarningsMember\n\n2022-12-31\n\n0001984124\n\n2022-12-31\n\n0001984124\n\nus-gaap:CommonStockMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nus-gaap:AdditionalPaidInCapitalMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nus-gaap:AccumulatedOtherComprehensiveIncomeMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:StatutoryReservesMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nus-gaap:RetainedEarningsMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nus-gaap:CommonStockMember\n\n2023-12-31\n\n0001984124\n\nus-gaap:AdditionalPaidInCapitalMember\n\n2023-12-31\n\n0001984124\n\nus-gaap:AccumulatedOtherComprehensiveIncomeMember\n\n2023-12-31\n\n0001984124\n\nlud:StatutoryReservesMember\n\n2023-12-31\n\n0001984124\n\nus-gaap:RetainedEarningsMember\n\n2023-12-31\n\n0001984124\n\n2023-12-31\n\n0001984124\n\nus-gaap:CommonStockMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nus-gaap:AdditionalPaidInCapitalMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nus-gaap:AccumulatedOtherComprehensiveIncomeMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:StatutoryReservesMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nus-gaap:RetainedEarningsMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nus-gaap:CommonStockMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:AdditionalPaidInCapitalMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:AccumulatedOtherComprehensiveIncomeMember\n\n2024-12-31\n\n0001984124\n\nlud:StatutoryReservesMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:RetainedEarningsMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:CommonStockMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:AdditionalPaidInCapitalMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:AccumulatedOtherComprehensiveIncomeMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:StatutoryReservesMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:RetainedEarningsMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:CommonStockMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:AdditionalPaidInCapitalMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:AccumulatedOtherComprehensiveIncomeMember\n\n2025-12-31\n\n0001984124\n\nlud:StatutoryReservesMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:RetainedEarningsMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:CommonStockMember\n\n2021-10-21\n\n0001984124\n\n2021-10-21\n\n0001984124\n\nlud:DiamondHorsesGroupLimitedMember\n\n2021-10-25\n2021-10-25\n\n0001984124\n\ncountry:HK\n\n2004-02-20\n\n0001984124\n\n2004-02-20\n\n0001984124\n\nlud:DHGLMember\n\n2023-08-14\n\n0001984124\n\nlud:DHGLMember\n\n2023-08-14\n\n0001984124\n\n2023-08-14\n\n0001984124\n\nlud:LudaCaymanMember\n\n2023-08-14\n2023-08-14\n\n0001984124\n\nlud:DHGLMember\n\n2023-12-19\n2023-12-19\n\n0001984124\n\nus-gaap:CommonStockMember\n\n2023-12-19\n\n0001984124\n\nlud:DHGLMember\nus-gaap:CommonStockMember\n\n2023-12-19\n\n0001984124\n\nus-gaap:CommonStockMember\n\n2023-12-19\n\n0001984124\n\n2023-12-19\n\n0001984124\n\n2023-12-19\n2023-12-19\n\n0001984124\n\nlud:LudaTechnologyGroupLimitedMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:LudaInvestmentHoldingLimitedMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:LudaDevelopmentLimitedMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:LudaTaianIndustrialCompanyMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:CommonStockMember\nus-gaap:IPOMember\n\n2025-02-28\n2025-02-28\n\n0001984124\n\nus-gaap:CommonStockMember\nus-gaap:IPOMember\n\n2025-02-28\n\n0001984124\n\nus-gaap:IPOMember\n\n2025-02-28\n\n0001984124\n\nus-gaap:CommonStockMember\nus-gaap:OverAllotmentOptionMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:CommonStockMember\nus-gaap:OverAllotmentOptionMember\n\n2025-04-07\n2025-04-07\n\n0001984124\n\nus-gaap:CommonStockMember\nus-gaap:OverAllotmentOptionMember\n\n2025-04-07\n\n0001984124\n\nsrt:MaximumMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nsrt:MinimumMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\ncountry:CN\n\n2025-01-01\n2025-12-31\n\n0001984124\n\ncountry:CN\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nsrt:MaximumMember\ncountry:CN\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nsrt:MinimumMember\ncountry:CN\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nsrt:MinimumMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nsrt:MaximumMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\ncountry:HK\n\n2025-12-31\n\n0001984124\n\ncountry:HK\n\n2024-12-31\n\n0001984124\n\ncountry:CN\n\n2025-12-31\n\n0001984124\n\ncountry:CN\n\n2024-12-31\n\n0001984124\n\nlud:GlobalAPlusInvestmentSPCLtdMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:GlobalAPlusInvestmentSPCLtdMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:GlobalAPlusInvestmentSPCLtdMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nus-gaap:SalesRevenueNetMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:SalesRevenueNetMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nus-gaap:SalesRevenueNetMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\ncountry:HK\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nsrt:MinimumMember\nus-gaap:BuildingMember\n\n2025-12-31\n\n0001984124\n\nsrt:MaximumMember\nus-gaap:BuildingMember\n\n2025-12-31\n\n0001984124\n\nsrt:MinimumMember\nus-gaap:MachineryAndEquipmentMember\n\n2025-12-31\n\n0001984124\n\nsrt:MaximumMember\nus-gaap:MachineryAndEquipmentMember\n\n2025-12-31\n\n0001984124\n\nsrt:MinimumMember\nus-gaap:FurnitureAndFixturesMember\n\n2025-12-31\n\n0001984124\n\nsrt:MaximumMember\nus-gaap:FurnitureAndFixturesMember\n\n2025-12-31\n\n0001984124\n\nsrt:MinimumMember\nlud:ComputersAndOfficeEquipmentMember\n\n2025-12-31\n\n0001984124\n\nsrt:MaximumMember\nlud:ComputersAndOfficeEquipmentMember\n\n2025-12-31\n\n0001984124\n\nsrt:MinimumMember\nus-gaap:VehiclesMember\n\n2025-12-31\n\n0001984124\n\nsrt:MaximumMember\nus-gaap:VehiclesMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:UseRightsMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:PatentsMember\n\n2025-12-31\n\n0001984124\n\nlud:SelfManufacturedProductionSalesRevenueMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:SelfManufacturedProductionSalesRevenueMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:SelfManufacturedProductionSalesRevenueMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:TradingSalesRevenueMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:TradingSalesRevenueMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:TradingSalesRevenueMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\ncountry:CN\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nsrt:SouthAmericaMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nsrt:SouthAmericaMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nsrt:SouthAmericaMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\ncountry:AT\n\n2025-01-01\n2025-12-31\n\n0001984124\n\ncountry:AT\n\n2024-01-01\n2024-12-31\n\n0001984124\n\ncountry:AT\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nsrt:EuropeMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nsrt:EuropeMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nsrt:EuropeMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nsrt:NorthAmericaMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nsrt:NorthAmericaMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nsrt:NorthAmericaMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:AsiaExcludingPRCMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:AsiaExcludingPRCMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:AsiaExcludingPRCMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:OthersCountryMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:OthersCountryMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:OthersCountryMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:FittingsMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:FittingsMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:FittingsMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:FlangesMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:FlangesMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:FlangesMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nus-gaap:ProductAndServiceOtherMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:ProductAndServiceOtherMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nus-gaap:ProductAndServiceOtherMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\n2025-03-18\n\n0001984124\n\nus-gaap:BuildingMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:BuildingMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:ConstructionInProgressMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:ConstructionInProgressMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:MachineryAndEquipmentMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:MachineryAndEquipmentMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:FurnitureAndFixturesMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:FurnitureAndFixturesMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:ComputerEquipmentMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:ComputerEquipmentMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:VehiclesMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:VehiclesMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:UseRightsMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:PatentsMember\n\n2024-12-31\n\n0001984124\n\nsrt:MinimumMember\n\n2025-12-31\n\n0001984124\n\nsrt:MaximumMember\n\n2025-12-31\n\n0001984124\n\nlud:MsLiuLiangPingMember\n\n2025-12-31\n\n0001984124\n\nlud:MsLiuLiangPingMember\n\n2024-12-31\n\n0001984124\n\nlud:HengSangBankHSBMember\n\n2025-12-31\n\n0001984124\n\nlud:HengSangBankHSBMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:HSBOneMember\n\n2025-12-31\n\n0001984124\n\nlud:HSBOneMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:HSBTwoMember\n\n2025-12-31\n\n0001984124\n\nlud:HSBTwoMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:HSBThreeMember\n\n2025-12-31\n\n0001984124\n\nlud:HSBThreeMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:HSBFourMember\n\n2025-12-31\n\n0001984124\n\nlud:HSBFourMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:HSBFiveMember\n\n2025-12-31\n\n0001984124\n\nlud:HSBFiveMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:HSBSixMember\n\n2025-12-31\n\n0001984124\n\nlud:HSBSixMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:HSBSevenMember\n\n2025-12-31\n\n0001984124\n\nlud:HSBSevenMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:IndustrialAndCommercialBankOfChinaAsiaLimitedICBCMember\n\n2025-12-31\n\n0001984124\n\nlud:IndustrialAndCommercialBankOfChinaAsiaLimitedICBCMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:ICBCOneMember\n\n2025-12-31\n\n0001984124\n\nlud:ICBCOneMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:ICBCTwoMember\n\n2025-12-31\n\n0001984124\n\nlud:ICBCTwoMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:ICBCThreeMember\n\n2025-12-31\n\n0001984124\n\nlud:ICBCThreeMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:ICBCFourMember\n\n2025-12-31\n\n0001984124\n\nlud:ICBCFourMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:BankOfChinaLimitedMember\n\n2025-12-31\n\n0001984124\n\nlud:BankOfChinaLimitedMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:BankOfTaianCoLtdMember\n\n2025-12-31\n\n0001984124\n\nlud:BankOfTaianCoLtdMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:ChinaEverbrightBankCompanyLimitedMember\n\n2025-12-31\n\n0001984124\n\nlud:ChinaEverbrightBankCompanyLimitedMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:BankOfCommunicationsMember\n\n2025-12-31\n\n0001984124\n\nlud:BankOfCommunicationsMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:IndustrialBankCoLtdMember\n\n2025-12-31\n\n0001984124\n\nlud:IndustrialBankCoLtdMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:PostalSavingsBankOfChinaCoLtdMember\n\n2025-12-31\n\n0001984124\n\nlud:PostalSavingsBankOfChinaCoLtdMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:BankOfQingdaoCoLtdMember\n\n2025-12-31\n\n0001984124\n\nlud:BankOfQingdaoCoLtdMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:ShandongFeichengRuralCommercialBankCoLtdMember\n\n2025-12-31\n\n0001984124\n\nlud:ShandongFeichengRuralCommercialBankCoLtdMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:ReclassificationOfShortTermLoanToLongTermLoanMember\n\n2025-12-31\n\n0001984124\n\nlud:ReclassificationOfShortTermLoanToLongTermLoanMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:HSBEightMember\n\n2024-12-31\n\n0001984124\n\nlud:HSBEightMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:HSBNineMember\n\n2024-12-31\n\n0001984124\n\nlud:HSBNineMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:HSBTenMember\n\n2024-12-31\n\n0001984124\n\nlud:HSBTenMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:HSBElevenMember\n\n2024-12-31\n\n0001984124\n\nlud:HSBElevenMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:HSBTwelveMember\n\n2024-12-31\n\n0001984124\n\nlud:HSBTwelveMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:HSBThirteenMember\n\n2024-12-31\n\n0001984124\n\nlud:HSBThirteenMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:HSBFourteenMember\n\n2024-12-31\n\n0001984124\n\nlud:HSBFourteenMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:HSBFifteenMember\n\n2024-12-31\n\n0001984124\n\nlud:HSBFifteenMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:HSBSixteenMember\n\n2024-12-31\n\n0001984124\n\nlud:HSBSixteenMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:ReclassificationOfShortTermLoanToLongTermLoanOneMember\n\n2024-12-31\n\n0001984124\n\nlud:ReclassificationOfShortTermLoanToLongTermLoanOneMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:ICBCFiveMember\n\n2024-12-31\n\n0001984124\n\nlud:ICBCFiveMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:ICBCSixMember\n\n2024-12-31\n\n0001984124\n\nlud:ICBCSixMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:ICBCSevenMember\n\n2024-12-31\n\n0001984124\n\nlud:ICBCSevenMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:ICBCEightMember\n\n2024-12-31\n\n0001984124\n\nlud:ICBCEightMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:ICBCNineMember\n\n2024-12-31\n\n0001984124\n\nlud:ICBCNineMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:ReclassificationOfShortTermLoanToLongTermLoanTwoMember\n\n2024-12-31\n\n0001984124\n\nlud:ReclassificationOfShortTermLoanToLongTermLoanTwoMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:BankOfChinaLimitedOneMember\n\n2024-12-31\n\n0001984124\n\nlud:BankOfChinaLimitedOneMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:BankOfTaianCoLtdOneMember\n\n2024-12-31\n\n0001984124\n\nlud:BankOfTaianCoLtdOneMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:ChinaEverbrightBankCompanyLimitedOneMember\n\n2024-12-31\n\n0001984124\n\nlud:ChinaEverbrightBankCompanyLimitedOneMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:BankOfCommunicationsOneMember\n\n2024-12-31\n\n0001984124\n\nlud:BankOfCommunicationsOneMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:IndustrialBankCoLtdOneMember\n\n2024-12-31\n\n0001984124\n\nlud:IndustrialBankCoLtdOneMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:PostalSavingsBankOfChinaCoLtdMember\n\n2024-12-31\n\n0001984124\n\nlud:PostalSavingsBankOfChinaCoLtdMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:BankOfQingdaoCoLtdOneMember\n\n2024-12-31\n\n0001984124\n\nlud:BankOfQingdaoCoLtdOneMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:ShandongFeichengRuralCommercialBankCoLtdOneMember\n\n2024-12-31\n\n0001984124\n\nlud:ShandongFeichengRuralCommercialBankCoLtdOneMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:BuildingsNetMember\nlud:MrMaBiuAndMsLiuLiangpingMember\n\n2025-12-31\n\n0001984124\n\nlud:BuildingsNetMember\nlud:MrMaBiuAndMsLiuLiangpingMember\n\n2024-12-31\n\n0001984124\n\nlud:LandUseRightNetMember\nlud:MrMaBiuAndMsLiuLiangpingMember\n\n2025-12-31\n\n0001984124\n\nlud:LandUseRightNetMember\nlud:MrMaBiuAndMsLiuLiangpingMember\n\n2024-12-31\n\n0001984124\n\nlud:MrMaBiuAndMsLiuLiangpingMember\n\n2025-12-31\n\n0001984124\n\nlud:MrMaBiuAndMsLiuLiangpingMember\n\n2024-12-31\n\n0001984124\n\nlud:StableIncomeFundSPMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:WonFittingsCompanyLimitedMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:WonFittingsCompanyLimitedMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:WonFittingsCompanyLimitedMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nus-gaap:GeneralAndAdministrativeExpenseMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:GeneralAndAdministrativeExpenseMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nus-gaap:GeneralAndAdministrativeExpenseMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\n2025-02-28\n2025-02-28\n\n0001984124\n\n2025-04-07\n2025-04-07\n\n0001984124\n\nlud:MrMaBiuMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:MsLiuLiangpingMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:DiamondHorsesGroupLimitedMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:WonFittingsCompanyLimitedMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:WonFittingsCompanyLimitedMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:WonFittingsCompanyLimitedMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:TwoTieredProfitsTaxMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\n2020-08-17\n2020-08-17\n\n0001984124\n\n2020-08-17\n2023-08-17\n\n0001984124\n\ncountry:VG\n\n2025-01-01\n2025-12-31\n\n0001984124\n\ncountry:KY\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:HongKongAndThePRCMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CaymanAndThePRCMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:BVIAndThePRCMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:StateAdministrationOfTaxationChinaMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:StateAdministrationOfTaxationChinaMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nus-gaap:StateAdministrationOfTaxationChinaMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\ncountry:HK\n\n2025-01-01\n2025-12-31\n\n0001984124\n\ncountry:HK\n\n2024-01-01\n2024-12-31\n\n0001984124\n\ncountry:HK\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:CustomerAMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerAMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:CustomerAMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:CustomerBMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerBMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:CustomerBMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:CustomerCMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerCMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:CustomerCMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:CustomerDMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerDMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:CustomerDMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:CustomerEMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerEMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:CustomerEMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:CustomerFMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerFMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:CustomerFMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:CustomerGMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerGMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:CustomerGMember\nus-gaap:SalesRevenueNetMember\nus-gaap:CustomerConcentrationRiskMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:CustomerCMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-12-31\n\n0001984124\n\nlud:CustomerCMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerDMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-12-31\n\n0001984124\n\nlud:CustomerDMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerDMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-12-31\n\n0001984124\n\nlud:CustomerDMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:CustomerEMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-12-31\n\n0001984124\n\nlud:CustomerEMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerEMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-12-31\n\n0001984124\n\nlud:CustomerEMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:CustomerFMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-12-31\n\n0001984124\n\nlud:CustomerFMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerFMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-12-31\n\n0001984124\n\nlud:CustomerFMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:CustomerGMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-12-31\n\n0001984124\n\nlud:CustomerGMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:CustomerGMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-12-31\n\n0001984124\n\nlud:CustomerGMember\nus-gaap:AccountsReceivableMember\nus-gaap:CustomerConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:SupplierAMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:SupplierAMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:SupplierAMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:SupplierBMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:SupplierBMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:SupplierBMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:SupplierCMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:SupplierCMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:SupplierCMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:SupplierDMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:SupplierDMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:SupplierDMember\nlud:PurchaseMember\nus-gaap:SupplierConcentrationRiskMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:SupplierAMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-12-31\n\n0001984124\n\nlud:SupplierAMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:SupplierAMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-12-31\n\n0001984124\n\nlud:SupplierAMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:SupplierBMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-12-31\n\n0001984124\n\nlud:SupplierBMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:SupplierBMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-12-31\n\n0001984124\n\nlud:SupplierBMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:SupplierCMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-12-31\n\n0001984124\n\nlud:SupplierCMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:SupplierCMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-12-31\n\n0001984124\n\nlud:SupplierCMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:SupplierEMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-12-31\n\n0001984124\n\nlud:SupplierEMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:SupplierEMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-12-31\n\n0001984124\n\nlud:SupplierEMember\nus-gaap:AccountsPayableMember\nus-gaap:SupplierConcentrationRiskMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\ncountry:HK\nus-gaap:AllOtherSegmentsMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\ncountry:HK\nus-gaap:AllOtherSegmentsMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\ncountry:HK\nus-gaap:AllOtherSegmentsMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\ncountry:CN\nus-gaap:AllOtherSegmentsMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\ncountry:CN\nus-gaap:AllOtherSegmentsMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\ncountry:CN\nus-gaap:AllOtherSegmentsMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nlud:EliminationOfInternalTransactionMember\nus-gaap:AllOtherSegmentsMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nlud:EliminationOfInternalTransactionMember\nus-gaap:AllOtherSegmentsMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nlud:EliminationOfInternalTransactionMember\nus-gaap:AllOtherSegmentsMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nus-gaap:AllOtherSegmentsMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:AllOtherSegmentsMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nus-gaap:AllOtherSegmentsMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\ncountry:HK\nus-gaap:AllOtherSegmentsMember\n\n2025-12-31\n\n0001984124\n\ncountry:HK\nus-gaap:AllOtherSegmentsMember\n\n2024-12-31\n\n0001984124\n\ncountry:CN\nus-gaap:AllOtherSegmentsMember\n\n2025-12-31\n\n0001984124\n\ncountry:CN\nus-gaap:AllOtherSegmentsMember\n\n2024-12-31\n\n0001984124\n\nlud:EliminationOfInternalTransactionMember\nus-gaap:AllOtherSegmentsMember\n\n2025-12-31\n\n0001984124\n\nlud:EliminationOfInternalTransactionMember\nus-gaap:AllOtherSegmentsMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:AllOtherSegmentsMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:AllOtherSegmentsMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:ParentMember\n\n2025-12-31\n\n0001984124\n\nus-gaap:ParentMember\n\n2024-12-31\n\n0001984124\n\nus-gaap:ParentMember\n\n2025-01-01\n2025-12-31\n\n0001984124\n\nus-gaap:ParentMember\n\n2024-01-01\n2024-12-31\n\n0001984124\n\nus-gaap:ParentMember\n\n2023-01-01\n2023-12-31\n\n0001984124\n\nus-gaap:ParentMember\n\n2023-12-31\n\n0001984124\n\nus-gaap:ParentMember\n\n2022-12-31\n\nxbrli:shares\n\niso4217:USD\n\niso4217:USD\n\nxbrli:shares\n\niso4217:HKD\n\nxbrli:shares\n\niso4217:HKD\n\nxbrli:pure\n\niso4217:CNY\n\nxbrli:shares\n\niso4217:CNY\n\nlud:segments"}