| Schedule of Consolidated VIE and Subsidiaries |
As of December 31, 2025, details of the Company’s subsidiaries,
VIE and its subsidiaries are as follows:
| Name | | Date of
Incorporation | | Place
of incorporation | | Equity interest attributed
to the Group | | Principal activities | | Subsidiaries | | | | | | | | | | Hongli Hong Kong Limited (“Hongli HK”) | | March 5, 2021 | | Hong Kong | | 100% | | Investment holding | | Shandong Xiangfeng Heavy Industry Co., Ltd. (“WFOE”) | | April 8, 2021 | | PRC | | 100% | | Consulting service | | VIE and its Subsidiaries | | | | | | | | | | Shandong Hongli Special Section Tube Co., Ltd., (“Hongli Shandong”) | | September 13, 1999 | | PRC | | 100% | | Manufacturing and selling of customized steel profiles | | Shandong Maituo Heavy Industry Co., Ltd. (“Maituo”) (1) | | May 23, 2019 | | PRC | | 100% | | No operations | | Shandong Haozhen Heavy Industry Co., Ltd. (“Haozhen Shandong”) (2) | | September 18, 2020 | | PRC | | 97% | | No operations | | Beijing Haozhen Heavy Industry Technology Company Limited (“Haozhen Beijing”) (3) | | February 4, 2021 | | PRC | | 70% | | No operations |
| (1) | Wholly owned subsidiary of Hongli Shandong. |
| (2) | Haozhen Shandong was jointly established by Hongli Shandong and Shengda
Technology Co. Ltd, with Shengda Technology Co. Ltd holding a 30 % ownership interest in Haozhen Shandong. As of December 31,
2025, Haozhen Shandong has not commenced operations, and no portion of income or loss was attributable to the noncontrolling interest
in the subsidiary. Therefore, no noncontrolling interest was reported in the consolidated financial statements for the years ended December
31, 2025, 2024 and 2023. |
| (3) | Haozhen Beijing was jointly established by Hongli Shandong and an individual, who holding a 3 % ownership interest in Haozhen Beijing. As of December 31, 2025, Haozhen Beijing had not commenced operations, and no portion of income or loss was attributable to the noncontrolling interest in the subsidiary. Therefore, no noncontrolling interest was reported in the consolidated financial statements for the years ended December 31, 2025, 2024 and 2023. |
|
| Schedule of Consolidated Financial Information of the VIE and VIE’s Subsidiaries |
The following information of the VIE and VIE’s
subsidiaries as a whole as of December 31, 2025 and 2024 were included in the accompanying consolidated financial statements of the Company.
Transactions between VIE and VIE’s subsidiaries are eliminated in the financial information presented below:
| | |
As of December 31, | |
| | |
2025 | | |
2024 | |
| | |
US$ | | |
US$ | |
| Assets | |
| | |
| |
| Current assets: | |
| | |
| |
| Cash and cash equivalents | |
| 1,762,954 | | |
| 857,212 | |
| Restricted cash | |
| 74,018 | | |
| 15,070 | |
| Accounts receivable, net | |
| 9,273,016 | | |
| 5,809,374 | |
| Notes receivable | |
| 1,041,185 | | |
| 522,331 | |
| Inventories | |
| 2,463,460 | | |
| 2,674,001 | |
| Due from parent company | |
| 981,294 | | |
| 940,130 | |
| Due from related parties | |
| 356,556 | | |
| - | |
| Prepayments and other current assets | |
| 1,064,084 | | |
| 2,004,889 | |
| Total current assets | |
| 17,016,567 | | |
| 12,823,007 | |
| | |
| | | |
| | |
| 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 | |
| Deferred tax assets, net | |
| 47,781 | | |
| 40,773 | |
| Total Assets | |
| 38,806,569 | | |
| 33,021,018 | |
| | |
| | | |
| | |
| Liabilities | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Short-term loans | |
| 11,515,024 | | |
| 6,079,252 | |
| Accounts payable | |
| 1,876,141 | | |
| 1,380,201 | |
| Due to related parties | |
| 4,207 | | |
| 21,246 | |
| Income tax payable | |
| 174,598 | | |
| 34,427 | |
| Accrued expenses and other payables | |
| 739,532 | | |
| 638,610 | |
| Total current liabilities | |
| 14,309,502 | | |
| 8,153,736 | |
| | |
| | | |
| | |
| Non-current liabilities | |
| | | |
| | |
| Long-term bank loans | |
| - | | |
| 3,305,209 | |
| Due to related parties | |
| 8,237,172 | | |
| 7,906,642 | |
| Total Liabilities | |
| 22,546,674 | | |
| 19,365,587 | |
| Net Assets | |
| 16,259,895 | | |
| 13,655,431 | |
|
| Schedule of Consolidated Operating Information of the VIE and VIE’s Subsidiaries |
| | |
For the years ended December 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| | |
US$ | | |
US$ | | |
US$ | |
| Revenue, net | |
| 19,600,691 | | |
| 14,105,620 | | |
| 15,997,954 | |
| Gross profit | |
| 6,378,880 | | |
| 4,519,747 | | |
| 5,245,840 | |
| Income from operations | |
| 2,597,220 | | |
| 606,308 | | |
| 1,101,095 | |
| Net income | |
| 1,952,276 | | |
| 146,528 | | |
| 780,491 | |
|