$HLP

Hongli Group Inc.

CIK:0001855557|SEC Filings

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Income Statement [Abstract]
Revenues, net	$ 19,600,691	$ 14,105,620	$ 15,997,954
Cost of revenues	(13,221,811)	(9,585,873)	(10,752,114)
Gross profit	6,378,880	4,519,747	5,245,840
Operating expenses:
Sales and marketing expenses	(935,432)	(669,542)	(631,359)
General and administrative expenses	(2,015,663)	(4,615,189)	(2,631,085)
Research and development expenses	(994,500)	(818,312)	(962,961)
Total operating expenses	(3,945,595)	(6,103,043)	(4,225,405)
Income from operations	2,433,285	(1,583,296)	1,020,435
Other income and (expense):
Interest and financing expenses, net	(469,710)	(466,386)	(631,558)
Other income	215,881	185,299	591,440
Other expenses	(7,932)	(8,860)	(47,855)
Total other expenses, net	(261,761)	(289,947)	(87,973)
Income (loss) before income taxes	2,171,524	(1,873,243)	932,462
Income tax expenses	(228,684)	(8,392)	(67,740)
Net income (loss)	1,942,840	(1,881,635)	864,722
Other comprehensive income (loss):
Foreign currency translation gain (loss)	2,395,988	(700,623)	(659,161)
Total comprehensive income (loss)	$ 4,338,828	$ (2,582,258)	$ 205,561
Weighted average common shares outstanding:
Basic (in Shares)	73,438,750	17,451,865	11,752,180
Diluted (in Shares)	73,438,750	17,451,865	11,752,180
Earnings (loss) per share:
Basic (in Dollars per share)	$ 0.03	$ (0.11)	$ 0.07
Diluted (in Dollars per share)	$ 0.03	$ (0.11)	$ 0.07

Consolidated Statements of Cash Flows	12 Months Ended
Consolidated Statements of Cash Flows	Dec. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 1,942,840	$ (1,881,635)	$ 864,722
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	687,159	804,395	871,445
Amortization of right-of-use assets		37,335	73,422
Amortization of intangible assets	124,047	101,315	100,689
Allowance for current expected credit losses	124,517	38,616	52,914
(Gain) loss on disposals of property and equipment and intangible assets	(16,835)	105,954	(339,117)
Share-based compensation		1,968,000
Change in inventory reserve	125,614	488	32,412
Deferred tax benefit	(18,120)	(31,223)	(25,129)
Changes in operating assets and liabilities:
Accounts receivable	(3,246,989)	1,845	1,155,718
Notes receivable	(701,686)	(385,084)	57,678
Inventories	193,149	(394,565)	157,729
Prepayments and other current assets	978,924	(1,070,397)	(134,308)
Other non-current assets			2,118
Due from related parties			117,210
Due to related parties	53,307	(10,417)	(138,951)
Accounts payable	444,917	39,274	(1,557,271)
Accrued expenses and other payables	43,951	261,255	(310,147)
Income tax payable	143,472	810	(96,217)
Net cash provided by (used in) operating activities	878,267	(414,034)	884,917
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(217,443)	(32,506)	(302,393)
Purchase of intangible assets			(561,395)
Prepayments for purchase of Yingxuan Assets	(1,099,783)	(277,944)	(1,776,529)
Proceeds from sale of property and equipment	41,740	2,779	738,607
Deposit for investment		(33,350,376)
Advance to related parties	(410,017)		(351,924)
Repayment from related parties	423,930	346,238
Net cash used in investing activities	(1,261,573)	(33,311,809)	(2,253,634)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for financing liabilities		(44,763)	(235,969)
Payments for finance leases		(45,235)	(307,637)
Advances from related parties		1,064,327	4,566,368
Repayments to related parties		(1,041,097)	(5,127,251)
Payments of offering costs			(229,723)
Borrowings from short term loans	8,932,174	7,172,270	1,765,312
Repayments of short term loans	(7,387,826)	(6,866,531)	(1,883,941)
Borrowings from long term loans		416,916	4,660,425
Repayments of long term loans	(288,596)	(147,310)	(11,199,141)
Proceeds from initial public offering, net of costs			7,228,964
Proceeds from exercise of option, net of costs			1,144,687
Proceeds from private placement		33,000,000
Net cash provided by financing activities	1,255,752	33,508,577	382,094
Effect of exchange rate changes	87,935	326,383	(311,747)
Net increase (decrease) in cash and cash equivalents and restricted cash	960,381	109,117	(1,298,370)
Cash and cash equivalents and restricted cash, beginning of year	924,786	815,669	2,114,039
Cash and cash equivalents and restricted cash, end of year	1,885,167	924,786	815,669
Cash and cash equivalents	1,811,149	909,716	775,686
Restricted cash	74,018	15,070	39,983
Cash and cash equivalents and restricted cash, end of year	1,885,167	924,786	815,669
Cash paid during the year for:
Income taxes	90,294	38,805	374,487
Interest paid	354,567	599,524	650,803
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Property, plant and equipment acquired in exchange of notes receivable	219,117	87,477
Property, plant and equipment acquired and applied from prepayments	17,116	80,654
Right-of-use assets transferred to property and equipment upon exercise of purchase option		$ 626,414	$ 508,617

Consolidated Balance Sheets - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Current assets
Cash and cash equivalent	$ 1,811,149	$ 909,716
Restricted cash	74,018	15,070
Accounts receivable, net	9,273,016	5,809,374
Notes receivable	1,041,185	522,331
Inventories, net	2,463,460	2,674,001
Prepayments and other current assets	1,064,656	2,004,889
Total current assets	16,084,060	11,935,381
Non-current assets
Property, plant and equipment, net	12,292,214	10,385,742
Prepayments for purchase of Yingxuan Assets	4,951,021	5,339,093
Intangible assets, net	4,498,986	4,432,403
Deposit for investment	34,316,583	32,877,029
Deferred tax assets, net	47,781	40,773
Total non-current assets	56,106,585	53,075,040
TOTAL ASSETS	72,190,645	65,010,421
Current liabilities
Short-term loans	11,515,024	6,079,252
Accounts payable	1,876,141	1,380,201
Income tax payable	185,562	36,505
Accrued expenses and other payables	777,588	694,712
Total current liabilities	14,358,522	8,211,917
Non-current liabilities
Long-term loans		3,305,209
Total non-current liabilities		3,305,209
Total liabilities	14,358,522	11,517,126
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 73,438,750 and 73,438,750 shares issued and outstanding as of December 31, 2025 and 2024, respectively	7,344	7,344
Additional paid-in capital	42,998,556	42,998,556
Statutory reserve	370,683	370,683
Retained earnings	13,666,910	11,724,070
Accumulated other comprehensive income (loss)	788,630	(1,607,358)
TOTAL SHAREHOLDERS’ EQUITY	57,832,123	53,493,295
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	72,190,645	65,010,421
Related party
Current assets
Due from related parties – officers	356,576
Current liabilities
Due to related parties - officers	$ 4,207	$ 21,247