Rising Dragon Acquisition Corp. Reports Financial Performance and Merger Agreement with HZJL Cayman Limited

Rising Dragon Acquisition Corp. (RDAC) has reported its financial performance for the fiscal year ending December 31, 2024, following its initial public offering (IPO) on October 15, 2024. The company successfully raised $50 million by selling 5 million units at $10 each, with an additional $7.5 million generated from the full exercise of an over-allotment option. The total proceeds from the IPO and a private placement amounted to approximately $57.8 million, which has been deposited into a trust account for the benefit of public shareholders. For the year, RDAC reported a net income of $257,513, primarily from interest earned on marketable securities held in the trust account, offset by operational costs.

Compared to the previous fiscal period, RDAC's financial position has significantly improved due to the successful IPO. The company had cash of $392,679 and marketable securities in the trust account totaling $58.3 million as of December 31, 2024. This marks a substantial increase in liquidity, allowing RDAC to pursue its strategy of identifying and completing a business combination. The company has not yet engaged in any operations or generated revenue from business activities, as its focus remains on finding a suitable target for acquisition.

Strategically, RDAC has entered into a merger agreement with HZJL Cayman Limited, which is expected to be completed in 2025. This merger will involve RDAC merging with Xpand Boom Technology Inc., a wholly-owned subsidiary, and HZJL becoming a wholly-owned subsidiary of Xpand Boom Technology. The transaction is subject to regulatory approvals and shareholder votes, and upon completion, the combined entity will continue to be listed on NASDAQ under a new ticker symbol. The merger is anticipated to enhance RDAC's market position and operational capabilities.

Operationally, RDAC has not yet established a customer base or user statistics, as it is still in the process of identifying a target business for acquisition. The company has conducted due diligence on various potential targets across different sectors, including technology and sustainable businesses. As of now, RDAC has two executive officers and does not plan to hire additional full-time employees until after the business combination is completed. The management team, which has significant experience in public company operations and investment, is expected to leverage its expertise to identify high-potential acquisition opportunities.

Looking ahead, RDAC's management has expressed confidence in completing a business combination before the mandatory liquidation date of January 15, 2026. However, there are inherent risks associated with the regulatory environment in China, where the company is based, which could impact its ability to finalize a merger. The company has acknowledged these risks in its filings and is actively working to navigate the complexities of the market. Overall, RDAC's future performance will largely depend on its ability to successfully execute the planned merger and capitalize on the opportunities presented by the target business.