Hongli Group Inc. – Nasdaq Minimum Bid Price Non-Compliance

Rhea-AI Summary

Hongli Group (NASDAQ:HLP) has received a deficiency notice from Nasdaq due to non-compliance with the minimum bid price requirement. The company's stock has traded below $1.00 per share for 30 consecutive business days between May 27 and July 9, 2025.

HLP has been granted a 180-day compliance period until January 6, 2026, to regain compliance by maintaining a closing bid price of $1.00 or higher for at least 10 consecutive business days. If unsuccessful, the company may be eligible for an additional 180-day period, provided it meets other Nasdaq Capital Market listing requirements. Options for compliance include implementing a reverse stock split.

Positive

• Granted 180-day compliance period to resolve the issue
• Potential eligibility for additional 180-day extension if other listing requirements are met
• Multiple options available to regain compliance, including reverse stock split

Negative

• Stock trading below $1.00 minimum bid requirement for 30 consecutive days
• Risk of delisting from Nasdaq if compliance is not achieved
• Potential need for reverse stock split which could impact share structure

Insights

Financial Compliance Specialist

Hongli faces Nasdaq delisting risk due to shares trading below $1; has until January to resolve via price recovery or reverse split.

Hongli Group has received a Nasdaq deficiency notice for failing to maintain the minimum bid price requirement of $1.00 per share over a 30-day period. While this notice doesn't immediately affect their listing status, it initiates a critical compliance timeline. The company now has until January 6, 2026 (180 days) to regain compliance by having its share price exceed $1.00 for at least 10 consecutive business days.

This type of deficiency notice is a serious warning signal for investors. The sustained trading below $1 indicates significant market concerns about the company's prospects or fundamentals. Hongli has two primary remediation options: naturally improving share price through operational improvements or executing a reverse stock split, which must be completed at least 10 business days before the January deadline.

If Hongli fails to meet requirements during this initial period, they may qualify for an additional 180-day grace period, but only if they meet all other Nasdaq Capital Market listing standards except the bid price requirement. The company's statement that it "intends to actively monitor" and "evaluate available options" suggests no immediate concrete plan, which may concern investors about management's strategy for addressing this compliance issue.

This deficiency notice represents a pivotal moment for Hongli, as failure to resolve could ultimately result in delisting, significantly impacting liquidity and shareholder value.

WEIFANG, CHINA, July 15, 2025 (GLOBE NEWSWIRE) -- Hongli Group Inc. (the “Company”) (Nasdaq: HLP) today announced that on July 10, 2025, it received a deficiency letter (the “Notice”) from the Nasdaq Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”). The Notice informed the Company that, based upon the closing bid price of the Company’s ordinary shares (“Ordinary Shares”) over the 30 consecutive business day period between May 27, 2025 and July 9, 2025, the Company is not in compliance with the requirement to maintain a minimum bid price of $1.00 per share of its Ordinary Shares for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”).

The Notice has no immediate effect on the continued listing status of the Ordinary Shares on The Nasdaq Capital Market. The Company has been provided a compliance period of 180 calendar days from the date of the Notice, or until January 6, 2026, to regain compliance pursuant to Nasdaq Listing Rule 5810(c)(3)(A). If at any time before January 6, 2026, the closing bid price of the Ordinary Shares reaches or exceeds $1.00 per share for a minimum of 10 consecutive business days, the Staff will provide written notification that the Company has achieved compliance with the Minimum Bid Price Requirement, and the matter would be resolved. If the Company chooses to implement a reverse stock split, it must complete the split no later than ten business days prior to January 6, 2026, in order to regain compliance. If the Company does not regain compliance with the Minimum Bid Price Requirement during the initial 180 calendar day period, the Company may be eligible for additional time for compliance.

To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. If the Company meets these requirements, Nasdaq will inform the Company that it has been granted an additional 180 calendar days. However, if it appears to Staff that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, Nasdaq will provide notice that its securities will be subject to delisting

The Company intends to actively monitor the closing bid price of the Ordinary Shares and will evaluate available options to regain compliance with the Minimum Bid Price Requirement. However, there can be no assurance that the Company will regain compliance during the initial 180-day compliance period, secure a second compliance period or maintain compliance with the other Nasdaq Listing Rules.

About Hongli Group Inc

Hongli Group Inc. is a Cayman Islands holding company, and through a series of contractual arrangements, consolidates the financial results of Shandong Hongli Special Section Tube Co., Ltd. and its subsidiaries (collectively, “Hongli Operating Group”). Hongli Operating Group is one of the leading cold roll formed steel profile manufacturers with operating subsidiaries in China. The Hongli Operating Group designs, customizes and manufactures cold roll formed steel profiles for machineries and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture and transportation. The Hongli Operating Group, with over 20 years of operating history, has developed customers in more than 30 major cities in China as well as a global network including South Korea, Japan, U.S. and Sweden.  Hongli Operating Group currently has 11 cold roll forming production lines and produces a variety of distinct profile products in a broad range of materials, sizes and shapes.

Forward-Looking Statement

Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “continue” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks, including, but not limited to, the following: the Company’s ability to achieve its goals and strategies, the Company’s future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, import and export restrictions, fluctuations in general economic and business conditions, the Company’s ability to comply with Nasdaq continued listing standards and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission (“SEC”). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Hongli Group Inc.

Ms. Jian Liu
Email: zongjingban@hongli-profile.com
Mobile: +86-18753635666

FAQ

Why did Hongli Group (HLP) receive a Nasdaq deficiency notice?

Hongli Group received the notice because its stock price traded below $1.00 per share for 30 consecutive business days between May 27 and July 9, 2025, violating Nasdaq's minimum bid price requirement.

What is the deadline for Hongli Group (HLP) to regain Nasdaq compliance?

Hongli Group has until January 6, 2026 (180 days) to regain compliance by maintaining a closing bid price of $1.00 or higher for at least 10 consecutive business days.

What happens if Hongli Group (HLP) fails to meet the initial compliance deadline?

If HLP meets other Nasdaq Capital Market listing requirements, it may be eligible for an additional 180-day compliance period. If not, the company's securities may be subject to delisting.

What options does Hongli Group (HLP) have to regain Nasdaq compliance?

HLP can either wait for natural stock price recovery above $1.00 or implement a reverse stock split, which must be completed at least 10 business days before January 6, 2026.

Will Hongli Group (HLP) be immediately delisted from Nasdaq?

No, the deficiency notice has no immediate effect on HLP's listing status. The company has until January 6, 2026, to regain compliance, with potential for additional time if eligible.