Hongli Group Inc. Reports Robust Fiscal Year 2025 Results: Revenue Grows 39% to $19.6 Million as Company Delivers $3.8 Million Profit Turnaround
Rhea-AI Summary
Hongli Group (Nasdaq:HLP) reported fiscal 2025 revenue of $19.6 million, up 39.0% from 2024, with international sales rising 58.2% to $3.0 million and PRC sales reaching $16.6 million.
Net income was approximately $1.9 million, a $3.8 million turnaround from a prior-year net loss.
Positive
- Revenue increased 39.0% year-over-year to $19.6 million
- International sales grew 58.2% to $3.0 million
- PRC sales rose by about $4.4 million to $16.6 million
- Gross profit increased 41.1% to $6.4 million; margin 32.5%
- Operating expenses declined 35.4% to $3.9 million
- Net income reached $1.9 million, versus $1.9 million loss in 2024
Negative
- Sales and marketing expenses rose 39.7% to $0.9 million
- R&D expenses increased 21.5% to $1.0 million
- Net other expense remained $262,000 despite modest improvement
News Market Reaction – HLP
In the May 13 session, HLP gained 23.40%, reflecting a significant positive market reaction. Argus tracked a peak move of +22.8% during that session. Argus tracked a trough of -7.5% from its starting point during tracking. Our momentum scanner triggered 22 alerts that day, indicating elevated trading interest and price volatility. Trading volume was exceptionally heavy at 17.5x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | Strategic initiative | Positive | +7.8% | Announced plan to explore clean energy and energy storage opportunities. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Limited history shows positive news accompanied by a positive price reaction.
Over the past months, Hongli Group has highlighted strategic repositioning and now financial improvement. On May 5, 2026, it announced plans to explore clean energy and energy storage opportunities, leveraging its cold roll steel capabilities, and the stock rose 7.82%. Today’s FY2025 results show revenue growth and a profit turnaround, extending that narrative of recovery and expansion. Together, these updates frame a shift from earlier challenges toward growth initiatives and improved fundamentals.
Key Terms
Form 20-F regulatory
U.S. Securities and Exchange Commission regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
WEIFANG,
Fiscal Year ended December 31, 2025, Full Year Highlights:
- Revenues for the fiscal year ended December 31, 2025, increased by
39.0% to$19.6 million 58.2% . - Gross profit increased by
41.2% to$6.4 million $4.5 million - Operating expenses were approximately
$3.9 million $2.2 million $6.1 million - Sales and marketing expenses increased to
$0.9 million $0.7 million - Research and development expenses increased
$0.2 million $1.0 million - General and administrative expenses decreased
$0.6 million - Net income reached approximately
$1.9 million $0.03 $3.8 million $1.9 million $0.11
"Our strong performance for the fiscal year 2025 marked an important turnaround for Hongli Group as we successfully navigated the prior year's global economic headwinds to deliver a period of robust growth and improved operating results," said Mr. Jie Liu, Chief Executive Officer of Hongli Group. "Our financial results reflected a meaningful recovery, characterized by a
Revenues
In 2025, Chinese manufacturers recovered after an economic slowdown triggered by weakening global demand last year. These factors actively affected our revenue performance. For the year ended December 31, 2025, our total revenues increased by approximately
The increase was primarily driven by a growth in PRC sales, which growth by approximately
Cost of revenues
Our cost of revenues consists primarily of expenses incurred to manufacture our products, including the cost of raw materials, direct labor, and depreciation of production machinery and equipment. For the year ended December 31, 2025, the cost of revenues increased by approximately
Gross profit
Our gross profit was approximately
Operating expenses
Operating expenses primarily consisted of salary expenses and related employee benefits relating to our sales and marketing, finance, legal, human resources and executive office personnel, and included research and development expenses, shipping and handling expenses, depreciation and amortization expenses, office overhead, professional service expenses and travel and transportation costs.
Operating expenses were approximately
Sales and marketing expenses
Our sales and marketing expenses primarily consisted of salaries and related employee benefits for sales and marketing personnel, as well as shipping and handling costs, port and customs clearance fees, storage expenses, promotional and marketing expenditures, and other costs associated with sales and marketing activities. For the year ended December 31, 2025, sales and marketing expenses were approximately
Research and development ("R&D") expenses
Substantially all research and development (R&D) costs reflect the Company's efforts in product development activities. In 2025, R&D expenses were approximately
General and administrative ("G&A") expenses
Our general and administrative (G&A) expenses primarily consisted of salaries and employee benefits, repair and maintenance, professional services, depreciation and amortization, travel, entertainment, and office supplies. In 2025, other G&A expenses were approximately
Interest and financing expenses, net
Interest and financing expenses, net primarily consisted of interest expenses on loans, finance leases, and other financial liabilities, as well as expenses related to the discounting of notes receivable prior to maturity, net of insignificant interest income. Interest and financing expenses, net were approximately
Other income
Other income primarily consists of proceeds from the sale of scrapped materials, government subsidies, foreign currency exchange gains or losses, gains or losses on the disposal of property and equipment, and other miscellaneous items. In 2025, the Company recorded other income of approximately
Total other income and expenses, net
Total other income and expenses, net, amounted to a net expense of approximately
Income (loss) before income taxes
Our income before income taxes was approximately
Net income (loss)
As a result of the foregoing, we reported a net income of approximately
Access to the FY2025 Annual Report:
The Company's FY2025 Annual Report on Form 20-F is accessible on the SEC's EDGAR system at www.sec.gov. Shareholders may also request a hard copy of the FY2025 Annual Report, including the audited consolidated financial statements, free of charge, by contacting the Company at zjf@hongli-profile.com.
About Hongli Group Inc.
Hongli Group Inc. is a
Forward-Looking Statements
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," "would," "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
For investor and media inquiries, please contact:
Hongli Group Inc.
Mr. Jie Liu
Email: zongjingban@hongli-profile.com
Mobile: +86-0536-2180886
HONGLI GROUP INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Amounts in | ||||||||
As of December 31, | ||||||||
2025 | 2024 | |||||||
US$ | US$ | |||||||
ASSETS | ||||||||
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 | ||||||
Due from related parties – officers | 356,576 | - | ||||||
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 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Short-term loans | 11,515,024 | 6,079,252 | ||||||
Accounts payable | 1,876,141 | 1,380,201 | ||||||
Due to related parties - officers | 4,207 | 21,247 | ||||||
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, | 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 | ||||||
HONGLI GROUP INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
(Amounts in US$, except for number of shares and per share data) | ||||||||||||
For the years ended December 31, | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
US$ | US$ | US$ | ||||||||||
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 and diluted | 73,438,750 | 17,451,865 | 11,752,180 | |||||||||
Earnings (loss) per share: | ||||||||||||
Basic and diluted | 0.03 | (0.11) | 0.07 | |||||||||
HONGLI GROUP INC. | ||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
(Amounts in US$, except for number of shares and per share data) | ||||||||||||||||||||||||||||
Ordinary Shares | Additional | Accumulated | Total | |||||||||||||||||||||||||
Numbers of | paid-in | Statutory | Retained | comprehensive | shareholders' | |||||||||||||||||||||||
Shares | Amount | capital | reserve | earnings | income (loss) | equity | ||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
Balance as of January 1, 2023 | 10,000,000 | 1,000 | 609,601 | 370,683 | 12,740,983 | (247,574) | 13,474,693 | |||||||||||||||||||||
Net income | - | - | - | - | 864,722 | - | 864,722 | |||||||||||||||||||||
Initial public offering | 2,062,500 | 206 | 8,249,794 | - | - | - | 8,250,000 | |||||||||||||||||||||
Initial public offering costs | - | - | (1,967,388) | - | - | - | (1,967,388) | |||||||||||||||||||||
Underwriter's option exercised | 309,375 | 31 | 1,237,469 | - | - | - | 1,237,500 | |||||||||||||||||||||
Exercise costs | - | - | (92,813) | - | - | - | (92,813) | |||||||||||||||||||||
Surrender of shares | (133,125) | (13) | 13 | - | - | - | - | |||||||||||||||||||||
Foreign currency translation | - | - | - | - | - | (659,161) | (659,161) | |||||||||||||||||||||
Balance as of December 31, | 12,238,750 | 1,224 | 8,036,676 | 370,683 | 13,605,705 | (906,735) | 21,107,553 | |||||||||||||||||||||
Net loss | - | - | - | - | (1,881,635) | - | (1,881,635) | |||||||||||||||||||||
Share-based compensation | 1,200,000 | 120 | 1,967,880 | - | - | - | 1,968,000 | |||||||||||||||||||||
Private placement | 60,000,000 | 6,000 | 32,994,000 | - | - | - | 33,000,000 | |||||||||||||||||||||
Foreign currency translation | - | - | - | - | - | (700,623) | (700,623) | |||||||||||||||||||||
Balance as of December 31, | 73,438,750 | 7,344 | 42,998,556 | 370,683 | 11,724,070 | (1,607,358) | 53,493,295 | |||||||||||||||||||||
Net income | - | - | - | - | 1,942,840 | - | 1,942,840 | |||||||||||||||||||||
Foreign currency translation | - | - | - | - | - | 2,395,988 | 2,395,988 | |||||||||||||||||||||
Balance as of December 31, | 73,438,750 | 7,344 | 42,998,556 | 370,683 | 13,666,910 | 788,630 | 57,832,123 | |||||||||||||||||||||
HONGLI GROUP INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
For the years ended December 31, | ||||||||||||
2025 | 2024 | 2023 | ||||||||||
US$ | US$ | US$ | ||||||||||
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) | ||||||||||||
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 | |||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||
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 | ||||||||||||
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 | 86,654 | - | |||||||||
Right-of-use assets transferred to property and equipment upon exercise of | - | 626,414 | 508,617 | |||||||||
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SOURCE Hongli Group Inc.