Hongli Group (Nasdaq: HLP) swings to 2025 profit on 39% revenue jump
Rhea-AI Filing Summary
Hongli Group Inc. reported a strong turnaround for fiscal 2025, with revenue rising 39% to $19.6 million from $14.1 million in 2024. Growth was driven by a recovery in China and a 58.2% increase in international sales to $3.0 million, reflecting broader demand for its cold roll formed steel profiles.
Gross profit increased to $6.4 million and gross margin edged up to 32.5%. Operating expenses fell 35.4% to $3.9 million, mainly because 2024 included $2.0 million of share-based compensation. Net income swung to a profit of $1.9 million, or $0.03 per share, from a net loss of $1.9 million in 2024, supported by modestly lower financing costs and higher other income.
Positive
- Profitable turnaround in 2025: Net income reached approximately $1.9 million, or $0.03 per share, compared with a net loss of about $1.9 million in 2024, reflecting improved operations and lower one-time costs.
- Strong top-line growth and margin stability: Revenue increased 39.0% to $19.6 million, with international sales up 58.2%, while gross margin improved to 32.5%, supporting sustainable earnings quality.
Negative
- None.
Insights
Hongli delivers a clear 2025 turnaround with higher sales and renewed profitability.
Hongli Group grew 2025 revenue to $19.6 million, up 39.0%, helped by a rebound in Chinese demand and stronger international sales. Gross profit rose to $6.4 million and margin improved slightly to 32.5%, showing the company converted higher volumes into better earnings.
Operating expenses dropped to $3.9 million, largely because 2024 included $2.0 million of share-based compensation, turning 2025 operating income positive at $2.4 million. Net income of $1.9 million reverses a prior-year loss of similar size, while cash and restricted cash increased to $1.9 million. Total liabilities remain modest relative to $72.2 million in assets, supported by short-term bank loans.
Management highlights plans to keep investing in R&D and to target solid-state battery and energy storage components, tying the business to construction machinery recovery and energy transition trends. Future company filings may show how these initiatives affect revenue mix, margins, and capital needs.
Key Figures
Key Terms
Form 20-F regulatory
private placement financial
foreign currency translation financial
statutory reserve financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2026
Hongli Group Inc.
(Exact name of registrant as specified in its charter)
No. 777, Daiyi Road
Changle County, Weifang City
Shandong Province, China, 262400
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Results of Operations and Financial Condition.
On May 13, 2026, Hongli Group Inc. (the “Company”) issued a press release regarding the Company’s financial results for its fiscal year ended December 31, 2025. A copy of the press release issued by the Company concerning the foregoing results is furnished hereto as Exhibit 99.1.
1
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press Release dated May 13, 2026 |
2
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| HONGLI GROUP INC. | ||
| Date: May 13, 2026 | By: | /s/ Jie Liu |
| Jie Liu | ||
| Chief Executive Officer | ||
3
Exhibit 99.1
Hongli Group Inc. Reports Robust Fiscal Year 2025 Results: Revenue Grows 39% to $19.6 Million as Company Delivers $3.8 Million Profit Turnaround
WEIFANG, CHINA, May 13, 2026 – Hongli Group Inc. (Nasdaq: HLP) (the “Company” or “Hongli Group”), a cold roll formed steel profile manufacturer, today announced its financial results for the fiscal year ended December 31, 2025, and the filing of its Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (the "SEC") on May 13, 2026.
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 compared to the prior year, driven by growth in both domestic and global markets; International sales grew by 58.2%. |
| ● | Gross profit increased by 41.2% to $6.4 million compared to $4.5 million in 2024. |
| ● | Operating expenses were approximately $3.9 million, representing a decrease of $2.2 million compared to $6.1 million in 2024. |
| ● | Sales and marketing expenses increased to $0.9 million compared to $0.7 million in 2024. |
| ● | Research and development expenses increased $0.2 million to $1.0 million for the year ended December 31, 2025. |
| ● | General and administrative expenses decreased $0.6 million. |
| ● | Net income reached approximately $1.9 million, or $0.03 per diluted share, for the year ended December 31, 2025, representing an approximate $3.8 million year-over-year turnaround from a net loss of approximately $1.9 million, or $0.11 per diluted share, for the year ended December 31, 2024. |
“Our strong performance for the fiscal year 2025 marked a 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 39.0% increase in total revenues to $19.6 million. This growth was driven by recovery in the domestic market in China and a 58.2% increase in our international sales, demonstrating the growing global demand for our products. By maintaining a disciplined approach to our cost structure and optimizing our financing through more favorable interest rates, we achieved a gross margin expansion to 32.5% and a substantial reduction in operating expenses. Most importantly, our focus on high-quality growth has allowed us to return to profitability, delivering $1.9 million in net income compared to a net loss in the previous year. As we look ahead, we remain committed to strategic investments in R&D and market expansion. We plan to focus on developing products and components for solid-state battery and other energy storage applications, which we believe may position Hongli Group to benefit from the continued recovery of the construction machinery sector and global energy transition trends, while delivering long-term, sustainable value to our shareholders.”
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 $5.5 million, or 39.0%, to $19.6 million, compared to $14.1 million for the year ended December 31, 2024.
The increase was primarily driven by a growth in PRC sales, which growth by approximately $4.4 million to $16.6 million in 2025, from $12.2 million in 2024, mainly due to increased orders from our domestic customers. Moreover, international sales also increased, reaching $3.0 million in 2025, an increase of $1.1 million, or 58.2%, from $1.9 million in the prior year.
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 $3.6 million, or 37.9%, compared to the same period in 2024. This increase was generally in line with the growth in total revenues.
Gross profit
Our gross profit was approximately $6.4 million in 2025, representing an increase of $1.9 million, or 41.1%, compared to $4.5 million in 2024. As a percentage of revenues, our gross margin growth to 32.5% in 2025 from 32.0% in 2024, an increase of 0.5 percentage points or representing a 1.7% relative increase.
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 $3.9 million for the year ended December 31, 2025, representing a decrease of $2.2 million, or 35.4%, compared to $6.1 million in 2024. The decrease was primarily driven by $2.0 million in share-based compensation recognized in 2024. On May 7, 2024, the Company issued 1,200,000 Ordinary Shares to three employees as part of their 2024 compensation packages. The Ordinary Shares were valued at $1.64 per share, based on the closing market price on May 6, 2024, resulting in $1,968,000 recognized as share-based compensation expense during the year.
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 $0.9 million, representing an increase of $0.2 million, or 39.7%, compared to $0.7 million in 2024. The increase was generally in line with the growth in sales during 2025.
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 $1.0 million, representing an increase of $0.2 million, or 21.5%, compared to $0.8 million in 2024. The increase was primarily attributable to the Company’s increased investment in research and development as the agricultural machinery and construction machinery markets continued to develop favorably in 2025. The Company plans to increase R&D investment as needed in the future to support the development of new products.
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 $2.0 million, a decrease of $0.6 million, or 23.9%, compared to $2.6 million in 2024. The decrease was mainly attributable to a decrease of $0.4 million in professional service expenses as less professional service was provided in 2025.
2
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 $470,000 in 2025, a decrease of $3,000, or 0.7%, compared to approximately $466,000 in 2024. The decrease was mainly attributable to lower interest expenses in 2025, as the Company refinanced its short-term loans at more favorable interest rates. The weighted average interest rate on short-term loans was 3.46% in 2025, compared to 4.35% in 2024.
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 $216,000, representing an increase of $31,000, or 16.5%, compared to $185,000 in 2024. The increase was mainly due to a gain of approximately $17,000 on the disposal of equipment in 2025, compared to a loss of approximately $77,000 recognized in 2024 from similar transactions.
Total other income and expenses, net
Total other income and expenses, net, amounted to a net expense of approximately $262,000 in 2025, a decrease of $28,000, or 9.7%, compared to $290,000 in 2024. This decrease was primarily attributable to the changes in interest and financial expenses, net and other income, as discussed in the respective sections above.
Income (loss) before income taxes
Our income before income taxes was approximately $2.2 million for the year ended December 31, 2025, representing an increase of approximately $4.0 million compared to loss before income taxes of approximately $1.9 million in 2024. This growth was primarily attributable to an increase in sales and other factors discussed in the sections above.
Net income (loss)
As a result of the foregoing, we reported a net income of approximately $1.9 million, or $0.03 per basic and diluted share, for the year ended December 31, 2025, compared to net loss of approximately $1.9 million, or $0.11 per basic and diluted share, for the same period in 2024.
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.
3
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 a cold roll formed steel profile manufacturer 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 25 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, and U.S. 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 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 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 investor and media inquiries, please contact:
Hongli Group Inc.
Mr. Jie Liu
Email: zongjingban@hongli-profile.com
Mobile: +86-0536-2180886
4
HONGLI GROUP INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in U.S. Dollars (“US$”), except for number of shares and per share data)
| 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, $0.0001 par value, 500,000,000 shares authorized, 73,438,750 and 73,438,750 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 7,344 | 7,344 | ||||||
| Additional paid-in capital | 42,998,556 | 42,998,556 | ||||||
| Statutory reserve | 370,683 | 370,683 | ||||||
| Retained earnings | 13,666,910 | 11,724,070 | ||||||
| Accumulated other comprehensive income (loss) | 788,630 | (1,607,358 | ) | |||||
| TOTAL SHAREHOLDERS’ EQUITY | 57,832,123 | 53,493,295 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 72,190,645 | 65,010,421 | ||||||
5
HONGLI GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Amounts in US$, 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 | ||||||||
6
HONGLI GROUP INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Amounts in US$, except for number of shares and per share data)
| Ordinary Shares | Additional | Accumulated other | Total | |||||||||||||||||||||||||
| Numbers of | paid-in | Statutory | Retained | comprehensive | shareholders’ | |||||||||||||||||||||||
| Shares | Amount | capital | reserve | earnings | income (loss) | equity | ||||||||||||||||||||||
| US$ | 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 loss | - | - | - | - | - | (659,161 | ) | (659,161 | ) | |||||||||||||||||||
| Balance as of December 31, 2023 | 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 loss | - | - | - | - | - | (700,623 | ) | (700,623 | ) | |||||||||||||||||||
| Balance as of December 31, 2024 | 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 income | - | - | - | - | - | 2,395,988 | 2,395,988 | |||||||||||||||||||||
| Balance as of December 31, 2025 | 73,438,750 | 7,344 | 42,998,556 | 370,683 | 13,666,910 | 788,630 | 57,832,123 | |||||||||||||||||||||
7
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) 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 | |||||||||
| 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 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 | 86,654 | - | |||||||||
| Right-of-use assets transferred to property and equipment upon exercise of purchase option | - | 626,414 | 508,617 | |||||||||
8