Although the clan lost its city and most of its people, the wisdom they had gained was written and kept in the safest storage hardware ever existed, even a hydrogen bomb won't do a scratch!
Unlike the Ichizora Clan who almost lost every its people, the Luo Clan was rather lucky.
With the remains, they built a small village that was quite far from the second city and was hidden in a mysterious mountain.
In a safe location, they begin to grow, starting from the very beginning with the wisdom their ancestors had left. With the technology they created and manufactured, they sell them to the nearest city.
Unfortunately, the only nearest city was this hidden city. The product they created had to be passed through the city and then to others.
Even though the technology isn't food, it needed a lot of extra care when transporting it. A single mistake when doing so will decrease the quality of the product by a certain degree.