Exhibit 99.1
HONGLI GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Restricted cash | - | |||||||
| Accounts receivable | ||||||||
| Notes receivable | ||||||||
| Inventories, net | ||||||||
| Due from related parties - officers | - | |||||||
| 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 | ||||||||
| Finance lease right-of-use assets, net | ||||||||
| Deferred tax assets | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Short-term loans | $ | $ | ||||||
| Accounts payable | ||||||||
| Due to related parties | - | |||||||
| Income tax payable | ||||||||
| Finance lease obligation, current | ||||||||
| Accrued expenses and other payables | ||||||||
| Total current liabilities | ||||||||
| Long-term loans | ||||||||
| 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 | $ | $ | ||||||
HONGLI GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THE SIX MONTHS ENDED JUNE 30,
| 2024 | 2023 | |||||||
| Revenues, net | $ | $ | ||||||
| Cost of revenues | ||||||||
| Gross Profit | ||||||||
| Operating expenses: | ||||||||
| Selling, general and administrative expenses | ||||||||
| Total operating expenses | ||||||||
| (Loss) income from operations | ( | ) | ||||||
| Other income (expense) | ||||||||
| Other income | ||||||||
Interest and financing income and (expenses), net | ( | ) | ( | ) | ||||
Other gain (loss) and (expenses), net | ( | ) | ( | ) | ||||
| Total other (expenses) income, net | ( | ) | ||||||
| (Loss) income before income taxes | ( | ) | ||||||
| Income tax expense | ||||||||
| Net (loss) income | $ | ( | ) | $ | ||||
| Comprehensive income (loss) | ||||||||
| Net (loss) income | $ | ( | ) | $ | ||||
| Other comprehensive income (loss) | ||||||||
| Foreign currency translation adjustment | ( | ) | ( | ) | ||||
| Comprehensive loss | $ | ( | ) | $ | ( | ) | ||
(Net loss) earnings per share | ||||||||
| $ | ( | ) | $ | |||||
| Weighted average common shares outstanding | ||||||||
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HONGLI GROUP INC.
UNAUDITIED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023
| Ordinary Shares | ||||||||||||||||||||||||||||
| Number of shares | Amount | Additional paid-in capital | Statutory reserve | Retained earnings | Accumulated other comprehensive income (loss) | Total equity | ||||||||||||||||||||||
| Balance, December 31, 2023 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
| Share-based compensation | ||||||||||||||||||||||||||||
| Net loss for the six months | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| Foreign currency translation adjustment | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Balance, June 30, 2024 (Unaudited) | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
| Ordinary Shares | ||||||||||||||||||||||||||||
| Number of shares | Amount | Additional paid-in capital | Statutory reserve | Retained earnings | Accumulated other comprehensive income (loss) | Total equity | ||||||||||||||||||||||
| Balance, December 31, 2022 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
| Initial public offering - March 31, 2023 | ||||||||||||||||||||||||||||
| Initial public offering costs | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Underwriter’s option exercised - May 2, 2023 | ||||||||||||||||||||||||||||
| Exercise costs | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Net income for the six months | - | - | - | - | - | |||||||||||||||||||||||
| Foreign currency translation adjustment | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Balance, June 30, 2023 (Unaudited) | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
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HONGLI GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Six Months Ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities | ||||||||
| Net (loss) income | $ | ( | ) | $ | ||||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Depreciation and amortization | ||||||||
| Allowance for current expected credit losses | ||||||||
| Write off of construction costs | ||||||||
| Amortization of operating lease right-of-use assets | ||||||||
| Amortization of intangible assets - land use rights | ||||||||
| Loss (gain) on disposals of property and equipment | ( | ) | ||||||
| Share-based compensation | ||||||||
| Deferred tax provision | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | ( | ) | ||||||
| Notes receivable | ( | ) | ( | ) | ||||
| Inventories | ( | ) | ( | ) | ||||
| Prepaid expense and other current assets | ( | ) | ||||||
| Other non-current assets | ||||||||
| Due (from) to related parties | ( | ) | ||||||
| Accounts payable | ( | ) | ( | ) | ||||
| Accrued expenses and other payables | ( | ) | ( | ) | ||||
| Income tax payable | ( | ) | ( | ) | ||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Prepayments for purchase of Yingxuan Assets | ( | ) | ||||||
| Short-term investment | ( | ) | ||||||
| Proceeds from sale of property and equipment | ||||||||
| Net cash (used in) provided by investing activities | ( | ) | ||||||
| Cash flows from financing activities | ||||||||
| Payments for financing liabilities | ( | ) | ( | ) | ||||
| Payments for finance leases | ( | ) | ( | ) | ||||
| Advances from related parties | ||||||||
| Repayments to related parties | ( | ) | ( | ) | ||||
| Borrowings from short term loans | ||||||||
| Repayments of short term loans | ( | ) | ( | ) | ||||
| Borrowings from long term loans | ||||||||
| Repayments of long term loans | ( | ) | ( | ) | ||||
| Proceeds from initial public offering | ||||||||
| Disbursements for initial public offering costs | ( | ) | ||||||
| Net cash provided by (used in) 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, cash equivalents | $ | $ | ||||||
| Restricted cash | ||||||||
| Cash, cash equivalents and restricted cash, beginning 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 | ||||||||
| Right-of-use assets transferred to property and equipment upon exercise of purchase option | $ | $ | ||||||
| Prepayments applied to property and equipment acquired | $ | |||||||
| Security deposits applied to lease payments | $ | $ | ||||||
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