Exhibit 99.1
HONGLI GROUP INC.
CONSOLIDATED BALANCE SHEETS
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalent | $ | $ | ||||||
| Restricted cash | ||||||||
| Accounts receivable, net of allowance for expected credit losses of $ | ||||||||
| Notes receivable | ||||||||
| Inventories, net | ||||||||
| Prepaid expense and other current assets | ||||||||
| Total current assets | ||||||||
| Non-current assets | ||||||||
| Property, plant and equipment, net | ||||||||
| Prepayment for purchase of Yingxuan Assets | ||||||||
| Intangible assets, net | ||||||||
| Deposit for Investment in Joint Venture | ||||||||
| Deferred tax assets | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Short-term loans | $ | $ | ||||||
| Accounts payable | ||||||||
| Due to related parties | ||||||||
| Short-term loans - related party | ||||||||
| Income tax payable | ||||||||
| Accrued expenses and other payables | ||||||||
| Total current liabilities | ||||||||
| Long-term loans | ||||||||
| Long-term loans - related party | ||||||||
| TOTAL LIABILITIES | ||||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Ordinary shares, $ | ||||||||
| Additional paid-in capital | ||||||||
| Statutory reserve | ||||||||
| Retained earnings | ||||||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
| TOTAL SHAREHOLDERS’ EQUITY | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
HONGLI GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Revenues, net | $ | $ | ||||||
| Cost of revenues | ||||||||
| Gross Profit | ||||||||
| Operating expenses: | ||||||||
| Selling, general and administrative expenses | ||||||||
| Total operating expenses | ||||||||
| Income (loss) from operations | ( | ) | ||||||
| Other income (expense) | ||||||||
| Other income | ||||||||
| Interest and financing expenses, net | ( | ) | ( | ) | ||||
| Other expenses | ( | ) | ( | ) | ||||
| Total other income (loss), net | ( | ) | ( | ) | ||||
| Income (loss) before income taxes | ( | ) | ||||||
| Income tax expense | ||||||||
| Net income (loss) | $ | $ | ( | ) | ||||
| Comprehensive income (loss) | ||||||||
| Net income | $ | $ | ( | ) | ||||
| Other comprehensive income (loss) | ||||||||
| Foreign currency translation adjustment | ( | ) | ||||||
| Comprehensive income (loss) | $ | $ | ( | ) | ||||
| Earnings (loss) per share | ||||||||
| Basic and diluted | $ | $ | ( | ) | ||||
| Weighted average common shares outstanding | ||||||||
| Basic and diluted | ||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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HONGLI GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024
| Ordinary Shares | Additional | Accumulated other | Total | |||||||||||||||||||
| Number of shares | Amount | paid-in capital | Statutory reserve | Retained earnings | comprehensive income (loss) | shareholders’ equity | ||||||||||||||||
| Balance, December 31, 2024 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Net income for the six months | - | |||||||||||||||||||||
| Foreign currency translation adjustment | - | |||||||||||||||||||||
| Balance, June 30, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Ordinary Shares | Additional | Accumulated other | Total | |||||||||||||||||||
| Number of shares | Amount | paid-in capital | Statutory reserve | Retained earnings | comprehensive income (loss) | shareholders’ equity | ||||||||||||||||
| Balance, December 31, 2023 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Share-based compensation | ||||||||||||||||||||||
| Net income for the six months | - | ( | ) | ( | ) | |||||||||||||||||
| Foreign currency translation adjustment | - | ( | ) | ( | ) | |||||||||||||||||
| Balance, June 30, 2024 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||
| The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. |
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HONGLI GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | $ | ( | ) | ||||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Depreciation | ||||||||
| Amortization of operating lease right-of-use assets | ||||||||
| Amortization of intangible assets - land use rights | ||||||||
| Allowance for current expected credit losses | ||||||||
| (Gain) loss on disposals of property and equipment | ( | ) | ||||||
| Share-based compensation | ||||||||
| Write off of construction costs | ||||||||
| Change in inventory reserve | ||||||||
| Deferred tax provision (benefit) | ( | ) | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | ( | ) | ( | ) | ||||
| Notes receivable | ( | ) | ( | ) | ||||
| Inventories | ( | ) | ||||||
| Prepaid expense and other current assets | ||||||||
| Due to related parties | ( | ) | ||||||
| Accounts payable | ( | ) | ||||||
| Accrued expenses and other payables | ( | ) | ( | ) | ||||
| Income tax payable | ( | ) | ||||||
| Deferred revenue | ( | ) | ||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Prepayments for purchase of Yingxuan Assets | ( | ) | ||||||
| Proceeds from sale of property and equipment | ||||||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Cash flows from financing activities | ||||||||
| Payments for financing liabilities | ( | ) | ||||||
| Payments for finance leases | ( | ) | ||||||
| Proceeds from related party loans | ||||||||
| Repayments to related party loans | ( | ) | ( | ) | ||||
| Borrowings from short-term loans | ||||||||
| Repayments of short-term loans | ( | ) | ( | ) | ||||
| Borrowings from long-term loans | ||||||||
| Repayments of long-term loans | ( | ) | ||||||
| Net cash provided by financing activities | ||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ) | ||||||
| Net change in cash, cash equivalents and restricted cash | ||||||||
| Cash, cash equivalents and restricted cash, beginning of the period | ||||||||
| Cash, cash equivalents and restricted cash, end of the period | $ | $ | ||||||
| Reconciliation of cash, cash equivalents and restricted cash, beginning of the period | ||||||||
| Cash, cash equivalents | $ | $ | ||||||
| Restricted cash | ||||||||
| Cash, cash equivalents and restricted cash, beginning of the period | $ | $ | ||||||
| Reconciliation of cash, cash equivalents and restricted cash, end of the period | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Restricted cash | ||||||||
| Cash, cash equivalents and restricted cash, end of the period | $ | $ | ||||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest expense | $ | $ | ||||||
| Cash paid for income taxes | $ | $ | ||||||
| Non-cash investing and financing activities | ||||||||
| Property, plant and equipment transferred from construction in progress | $ | $ | ||||||
| Property, plant and equipment acquired in exchange of notes receivable | $ | $ | ||||||
| Right-of-use assets transferred to property and equipment upon exercise of purchase option | $ | $ | ||||||
| Prepayments applied to property and equipment acquired | $ | $ | ||||||
| Property and equipment acquired on credit as liabilities | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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