Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 000-00000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalent | $ 678,770 | $ 2,085,033 | |
Restricted cash | 187,976 | 29,006 | |
Short-term investment | 262,022 | ||
Accounts receivable, net | 6,475,620 | 7,429,904 | |
Notes receivable | 648,357 | 302,775 | |
Inventories, net | 2,802,102 | 2,613,549 | |
Prepaid expense and other current assets | 1,088,152 | 1,604,134 | |
Total current assets | 12,142,999 | 14,064,401 | |
Non-current assets | |||
Property, plant and equipment, net | 10,849,587 | 12,300,491 | |
Prepayment for purchase of Yingxuan Assets | 3,363,840 | 3,535,975 | |
Intangible assets, net | 4,060,693 | 4,961,881 | |
Finance lease right-of-use assets, net | 739,305 | 1,299,217 | |
Other non-current assets | 2,174 | ||
TOTAL ASSETS | 31,156,424 | 36,164,139 | |
Current liabilities | |||
Short-term loans | 3,973,081 | 6,015,975 | |
Accounts payable | 1,587,600 | 2,957,110 | |
Security deposit received for sales of properties | 1,449,633 | ||
Income tax payable | 57,747 | 136,544 | |
Finance lease obligation, current | 144,850 | 315,780 | |
Accrued expenses and other payables | 541,960 | 955,676 | |
Total current liabilities | 7,273,928 | 12,437,954 | |
Long-term loans | 3,272,517 | 10,147,428 | |
Long-term payable | 11,185 | 42,220 | |
Finance lease obligation, non-current | 1,144 | 46,623 | |
Deferred tax liability | 14,480 | 15,221 | |
TOTAL LIABILITIES | 10,573,254 | 22,689,446 | |
SHAREHOLDERS’ EQUITY: | |||
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 12,371,875 and 10,000,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively* | [1] | 1,237 | 1,000 |
Additional paid-in capital | 8,036,663 | 609,601 | |
Statutory reserve | 370,683 | 370,683 | |
Retained earnings | 13,537,337 | 12,740,983 | |
Accumulated other comprehensive loss | (1,362,750) | (247,574) | |
TOTAL SHAREHOLDERS’ EQUITY | 20,583,170 | 13,474,693 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 31,156,424 | 36,164,139 | |
Related Party | |||
Current liabilities | |||
Due to related parties | $ 968,690 | $ 607,236 | |
[1]The share amounts are presented on a retroactive basis. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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 | 12,371,875 | 10,000,000 |
Ordinary shares, shares outstanding | 12,371,875 | 10,000,000 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Income Statement [Abstract] | |||
Revenues, net | $ 8,915,111 | $ 10,485,582 | |
Cost of revenues | 5,869,310 | 6,986,054 | |
Gross Profit | 3,045,801 | 3,499,528 | |
Operating expenses: | |||
Selling, general and administrative expenses | 2,260,806 | 1,987,565 | |
Total operating expenses | 2,260,806 | 1,987,565 | |
Income from operations | 784,995 | 1,511,963 | |
Other income (expense) | |||
Other income | 445,148 | 581,677 | |
Financing expenses | (327,128) | (131,992) | |
Other expenses | (41,070) | ||
Total other income (expenses), net | 76,950 | 449,685 | |
Income before income taxes | 861,945 | 1,961,648 | |
Income tax expense | 65,591 | 94,786 | |
Net income | 796,354 | 1,866,862 | |
Comprehensive income (loss) | |||
Net income | 796,354 | 1,866,862 | |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment | (1,115,176) | (617,830) | |
Comprehensive income (loss) | $ (318,822) | $ 1,249,032 | |
Earnings per share | |||
Earnings per share, Basic (in Dollars per share) | $ 0.07 | $ 0.19 | |
Weighted average common shares outstanding* | |||
Weighted average common shares outstanding, Basic (in Shares) | [1] | 11,150,898 | 10,000,000 |
[1]The share amounts are presented on a retroactive basis. |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parentheticals) - $ / shares | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Income Statement [Abstract] | |||
Earnings per share, Diluted | $ 0.07 | $ 0.19 | |
Weighted average common shares outstanding, Diluted | [1] | 11,150,898 | 10,000,000 |
[1]The share amounts are presented on a retroactive basis. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) | Ordinary Shares | Additional paid-in capital | Statutory reserve | Retained earnings | Accumulated other comprehensive income (loss) | Total | ||
Balance at Dec. 31, 2021 | $ 1,000 | [1] | $ 609,601 | $ 370,683 | $ 9,808,620 | $ 698,692 | $ 11,488,596 | |
Balance (in Shares) at Dec. 31, 2021 | [1] | 10,000,000 | ||||||
Net income | [1] | 1,866,862 | 1,866,862 | |||||
Foreign currency translation adjustment | [1] | (617,830) | (617,830) | |||||
Balance at Jun. 30, 2022 | $ 1,000 | [1] | 609,601 | 370,683 | 11,675,482 | 80,862 | 12,737,628 | |
Balance (in Shares) at Jun. 30, 2022 | [1] | 10,000,000 | ||||||
Balance at Dec. 31, 2022 | $ 1,000 | [1] | 609,601 | 370,683 | 12,740,983 | (247,574) | $ 13,474,693 | |
Balance (in Shares) at Dec. 31, 2022 | 10,000,000 | [1] | 10,000,000 | |||||
Initial public offering - March 31, 2023 | $ 206 | [1] | 8,249,794 | $ 8,250,000 | ||||
Initial public offering - March 31, 2023 (in Shares) | [1] | 2,062,500 | ||||||
Initial public offering costs | [1] | (1,967,388) | (1,967,388) | |||||
Underwriter’s option exercised - May 2, 2023 | $ 31 | [1] | 1,237,469 | 1,237,500 | ||||
Underwriter’s option exercised - May 2, 2023 (in Shares) | [1] | 309,375 | ||||||
Exercise costs | [1] | (92,813) | (92,813) | |||||
Net income | [1] | 796,354 | 796,354 | |||||
Foreign currency translation adjustment | [1] | (1,115,176) | (1,115,176) | |||||
Balance at Jun. 30, 2023 | $ 1,237 | [1] | $ 8,036,663 | $ 370,683 | $ 13,537,337 | $ (1,362,750) | $ 20,583,170 | |
Balance (in Shares) at Jun. 30, 2023 | 12,371,875 | [1] | 12,371,875 | |||||
[1]The share amounts are presented on a retroactive basis. |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 796,354 | $ 1,866,862 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 508,428 | 356,948 |
Allowance for current expected credit losses | 66,277 | |
Amortization of operating lease right-of-use assets | 22,793 | |
Gain on disposals of property and equipment | (345,519) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 554,182 | (1,721,780) |
Notes receivable | (377,266) | 819,834 |
Inventories | (330,635) | 61,703 |
Prepaid expense and other current assets | (233,634) | 65,153 |
Other non-current assets | 2,166 | 73,295 |
Due from related parties | 209 | |
Due to related parties | 3,210 | (44,604) |
Accounts payable | (1,340,227) | (42,430) |
Accrued expenses and other payables | (292,690) | 110,340 |
Income tax payable | (75,543) | 57,161 |
Net cash (used in) provided by operating activities | (1,042,104) | 1,602,691 |
Cash flows from investing activities | ||
Purchase of property and equipment | (173,181) | (844,151) |
Prepayments for purchase of Yingxuan Assets | (843,643) | |
Short-term investment | (274,344) | |
Proceeds from sale of property and equipment | 750,837 | |
Net cash provided by (used) in investing activities | 303,312 | (1,687,794) |
Cash flows from financing activities | ||
Payments for financing liabilities | (194,002) | (136,645) |
Payments for finance leases | (208,115) | (279,892) |
Advances from related parties | 949,099 | 1,012,549 |
Repayments to related parties | (542,906) | (262,398) |
Borrowings from short term loans | 1,842,440 | 3,318,567 |
Repayments of short term loans | (3,674,772) | (3,395,743) |
Borrowings from long term loans | 4,727,388 | |
Repayments of long term loans | (11,408,398) | |
Proceeds from initial public offering | 9,487,500 | |
Disbursements for initial public offering costs | (1,343,572) | (84,734) |
Net cash (used in) provided by financing activities | (365,338) | 171,704 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (143,163) | (28,590) |
Net change in cash, cash equivalents and restricted cash | (1,247,293) | 58,011 |
Cash, cash equivalents and restricted cash, beginning of the period | 2,114,039 | 531,462 |
Cash, cash equivalents and restricted cash, end of the period | 866,746 | 589,473 |
Cash, cash equivalents | 2,085,033 | 484,389 |
Cash, cash equivalents | 678,770 | 544,682 |
Restricted cash | 29,006 | 47,073 |
Restricted cash | 187,976 | 44,791 |
Cash, cash equivalents and restricted cash, beginning of the period | 2,114,039 | 531,462 |
Cash, cash equivalents and restricted cash, end of the period | 866,746 | 589,473 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest expense | 409,431 | 206,232 |
Cash paid for income taxes | 330,693 | 37,625 |
Non-cash investing and financing activities | ||
Right-of-use assets transferred to property and equipment upon exercise of purchase option | 482,062 | 156,858 |
Security deposits applied to lease payments | $ 33,583 | $ 45,077 |