Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2024 | |
Document Information Line Items | |
Entity Registrant Name | HONGLI GROUP INC. |
Document Type | 6-K |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001855557 |
Document Period End Date | Jun. 30, 2024 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 000-00000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 930,419 | $ 775,686 |
Restricted cash | 39,983 | |
Accounts receivable | 6,411,049 | 6,013,536 |
Notes receivable | 1,882,903 | 236,654 |
Inventories, net | 2,318,144 | 2,349,705 |
Prepaid expense and other current assets | 452,612 | 1,059,275 |
Total current assets | 11,995,127 | 10,816,892 |
Non-current assets | ||
Property, plant and equipment, net | 10,771,835 | 10,752,745 |
Prepayment for purchase of Yingxuan Assets | 5,362,676 | 5,207,346 |
Intangible assets, net | 4,502,141 | 4,659,569 |
Finance lease right-of-use assets, net | 57,786 | 681,845 |
Deferred tax assets | 8,087 | 10,273 |
TOTAL ASSETS | 32,697,652 | 32,128,670 |
Current liabilities | ||
Short-term loans | 6,613,276 | 5,726,841 |
Accounts payable | 1,279,390 | 1,379,161 |
Income tax payable | 17,961 | 36,708 |
Finance lease obligation, current | 1,141 | 45,300 |
Accrued expenses and other payables | 420,508 | 495,032 |
Total current liabilities | 8,332,907 | 7,683,042 |
Long-term loans | 3,677,777 | 3,338,075 |
TOTAL LIABILITIES | 12,010,684 | 11,021,117 |
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 13,438,750 and 12,238,750 shares issued and outstanding as of June 30, 2024, and December 31, 2023, respectively | 1,344 | 1,224 |
Additional paid-in capital | 10,004,556 | 8,036,676 |
Statutory reserve | 370,683 | 370,683 |
Retained earnings | 11,703,357 | 13,605,705 |
Accumulated other comprehensive loss | (1,392,972) | (906,735) |
TOTAL SHAREHOLDERS’ EQUITY | 20,686,968 | 21,107,553 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 32,697,652 | 32,128,670 |
Related Party | ||
Current assets: | ||
Due from related parties - officers | $ 342,053 | |
Current liabilities | ||
Due to related parties | $ 631 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 13,438,750 | 12,238,750 |
Ordinary shares, shares outstanding | 13,438,750 | 12,238,750 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||
Revenues, net | $ 6,962,241 | $ 8,915,111 |
Cost of revenues | 4,659,769 | 5,869,310 |
Gross Profit | 2,302,472 | 3,045,801 |
Operating expenses: | ||
Selling, general and administrative expenses | 3,996,714 | 2,260,806 |
Total operating expenses | 3,996,714 | 2,260,806 |
(Loss) income from operations | (1,694,242) | 784,995 |
Other income (expense) | ||
Other income | 127,373 | 445,148 |
Interest and financing income and expenses, net | (216,131) | (327,128) |
Other gain (loss) and (expenses), net | (107,826) | (41,070) |
Total other (expenses) income, net | (196,584) | 76,950 |
(Loss) income before income taxes | (1,890,826) | 861,945 |
Income tax expense | 11,522 | 65,591 |
Net (loss) income | (1,902,348) | 796,354 |
Comprehensive income (loss) | ||
Net (loss) income | (1,902,348) | 796,354 |
Other comprehensive income (loss) | ||
Foreign currency translation adjustment | (486,237) | (1,115,176) |
Comprehensive loss | $ (2,388,585) | $ (318,822) |
(Net loss) earnings per share | ||
Earnings per share, Basic (in Dollars per share) | $ (0.15) | $ 0.07 |
Weighted average common shares outstanding | ||
Weighted average common shares outstanding, Basic (in Shares) | 12,607,981 | 11,150,898 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parentheticals) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||
Earnings per share, Diluted | $ (0.15) | $ 0.07 |
Weighted average common shares outstanding, Diluted | 12,607,981 | 11,150,898 |
Unauditied Condensed Consolidat
Unauditied Condensed Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Ordinary Shares | Additional paid-in capital | Statutory reserve | Retained earnings | Accumulated other comprehensive income (loss) | Total |
Balance at Dec. 31, 2022 | $ 1,000 | $ 609,601 | $ 370,683 | $ 12,740,983 | $ (247,574) | $ 13,474,693 |
Balance (in Shares) at Dec. 31, 2022 | 10,000,000 | |||||
Initial public offering - March 31, 2023 | $ 206 | 8,249,794 | 8,250,000 | |||
Initial public offering - March 31, 2023 (in Shares) | 2,062,500 | |||||
Initial public offering costs | (1,967,388) | (1,967,388) | ||||
Underwriter’s option exercised - May 2, 2023 | $ 31 | 1,237,469 | 1,237,500 | |||
Underwriter’s option exercised - May 2, 2023 (in Shares) | 309,375 | |||||
Exercise costs | (92,813) | (92,813) | ||||
Net income (Loss) | 796,354 | 796,354 | ||||
Foreign currency translation adjustment | (1,115,176) | (1,115,176) | ||||
Balance at Jun. 30, 2023 | $ 1,237 | 8,036,663 | 370,683 | 13,537,337 | (1,362,750) | 20,583,170 |
Balance (in Shares) at Jun. 30, 2023 | 12,371,875 | |||||
Balance at Dec. 31, 2023 | $ 1,224 | 8,036,676 | 370,683 | 13,605,705 | (906,735) | $ 21,107,553 |
Balance (in Shares) at Dec. 31, 2023 | 12,238,750 | 12,238,750 | ||||
Share-based compensation | $ 120 | 1,967,880 | $ 1,968,000 | |||
Share-based compensation (in Shares) | 1,200,000 | |||||
Net income (Loss) | (1,902,348) | (1,902,348) | ||||
Foreign currency translation adjustment | (486,237) | (486,237) | ||||
Balance at Jun. 30, 2024 | $ 1,344 | $ 10,004,556 | $ 370,683 | $ 11,703,357 | $ (1,392,972) | $ 20,686,968 |
Balance (in Shares) at Jun. 30, 2024 | 13,438,750 | 13,438,750 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Cash Flows [Abstract] | ||
Net (loss) income | $ (1,902,348) | $ 796,354 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 427,005 | 508,428 |
Allowance for current expected credit losses | 48,833 | 66,277 |
Write off of construction costs | 28,767 | |
Amortization of operating lease right-of-use assets | 11,583 | 22,793 |
Amortization of intangible assets - land use rights | 50,521 | |
Loss (gain) on disposals of property and equipment | 76,901 | (345,519) |
Share-based compensation | 1,968,000 | |
Deferred tax provision | 1,964 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (588,655) | 554,182 |
Notes receivable | (1,663,623) | (377,266) |
Inventories | (22,695) | (330,635) |
Prepaid expense and other current assets | 502,043 | (233,634) |
Other non-current assets | 2,166 | |
Due (from) to related parties | (31,246) | 3,210 |
Accounts payable | (77,259) | (1,340,227) |
Accrued expenses and other payables | (30,113) | (292,690) |
Income tax payable | (18,031) | (75,543) |
Net cash used in operating activities | (1,218,353) | (1,042,104) |
Cash flows from investing activities | ||
Purchase of property and equipment | (109,325) | (173,181) |
Prepayments for purchase of Yingxuan Assets | (277,196) | |
Short-term investment | (274,344) | |
Proceeds from sale of property and equipment | 2,772 | 750,837 |
Net cash (used in) provided by investing activities | (383,749) | 303,312 |
Cash flows from financing activities | ||
Payments for financing liabilities | (33,264) | (194,002) |
Payments for finance leases | (43,949) | (208,115) |
Advances from related parties | 1,406,772 | 949,099 |
Repayments to related parties | (1,038,298) | (542,906) |
Borrowings from short term loans | 2,773,281 | 1,842,440 |
Repayments of short term loans | (1,719,935) | (3,674,772) |
Borrowings from long term loans | 415,795 | 4,727,388 |
Repayments of long term loans | (23,958) | (11,408,398) |
Proceeds from initial public offering | 9,487,500 | |
Disbursements for initial public offering costs | (1,343,572) | |
Net cash provided by (used in) financing activities | 1,736,444 | (365,338) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (19,592) | (143,163) |
Net change in cash, cash equivalents and restricted cash | 114,750 | (1,247,293) |
Cash, cash equivalents and restricted cash, beginning of the period | 815,669 | 2,114,039 |
Cash, cash equivalents and restricted cash, end of the period | 930,419 | 866,746 |
Reconciliation of cash, cash equivalents and restricted cash, beginning of the period | ||
Cash, cash equivalents | 775,686 | 2,085,033 |
Restricted cash | 39,983 | 29,006 |
Cash, cash equivalents and restricted cash, beginning of the period | 815,669 | 2,114,039 |
Reconciliation of cash, cash equivalents and restricted cash, end of the period | ||
Cash, cash equivalents | 930,419 | 678,770 |
Restricted cash | 187,976 | |
Cash, cash equivalents and restricted cash, end of the period | 930,419 | 866,746 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest expense | 304,769 | 409,431 |
Cash paid for income taxes | 27,589 | 330,693 |
Non-cash investing and financing activities | ||
Right-of-use assets transferred to property and equipment upon exercise of purchase option | 645,402 | 482,062 |
Prepayments applied to property and equipment acquired | 83,833 | |
Security deposits applied to lease payments | $ 33,583 |