Exhibit 99.1
HONGLI GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, | December 31, | |||||||
2023 | 2022 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalent | $ | $ | ||||||
Restricted cash | ||||||||
Short-term investment | ||||||||
Accounts receivable | ||||||||
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 | ||||||||
Finance lease right-of-use assets, net | ||||||||
Other non-current assets | ||||||||
TOTAL ASSETS | $ | $ | ||||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Short-term loans | $ | $ | ||||||
Accounts payable | ||||||||
Security deposit received for sales of properties | ||||||||
Due to related parties | ||||||||
Income tax payable | ||||||||
Finance lease obligation, current | ||||||||
Accrued expenses and other payables | ||||||||
Total current liabilities | ||||||||
Long-term loans | ||||||||
Long-term payable | ||||||||
Finance lease obligation, non-current | ||||||||
Deferred tax liability | ||||||||
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,
2023 | 2022 | |||||||
Revenues, net | $ | $ | ||||||
Cost of revenues | ||||||||
Gross Profit | ||||||||
Operating expenses: | ||||||||
Selling, general and administrative expenses | ||||||||
Total operating expenses | ||||||||
Income from operations | ||||||||
Other income (expense) | ||||||||
Other income | ||||||||
Financing expenses | ( | ) | ( | ) | ||||
Other expenses | ( | ) | ||||||
Total other income (expenses), net | ||||||||
Income before income taxes | ||||||||
Income tax expense | ||||||||
Net income | $ | $ | ||||||
Comprehensive income (loss) | ||||||||
Net income | $ | $ | ||||||
Other comprehensive income (loss) | ||||||||
Foreign currency translation adjustment | ( | ) | ( | ) | ||||
Comprehensive income (loss) | $ | ( | ) | $ | ||||
Earnings per share | ||||||||
$ | $ | |||||||
Weighted average common shares outstanding* | ||||||||
* |
2
HONGLI GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)
Ordinary Shares* | Additional | Accumulated other | ||||||||||||||||||||||||||
Number of shares | Amount | paid-in capital | Statutory reserve | Retained earnings | 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) | $ | $ | $ | $ | $ | ( | ) | $ |
Ordinary Shares* | Additional | Accumulated other | ||||||||||||||||||||||||||
Number of shares | Amount | paid-in capital | Statutory reserve | Retained earnings | comprehensive income (loss) | Total equity | ||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Net income for the six months | - | |||||||||||||||||||||||||||
Foreign currency translation adjustment | - | ( | ) | ( | ) | |||||||||||||||||||||||
Balance, June 30, 2022 (Unaudited) | $ | $ | $ | $ | $ | $ |
* |
3
HONGLI GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | ||||||||
Allowance for current expected credit losses | ||||||||
Amortization of operating lease right-of-use assets | ||||||||
Gain on disposals of property and equipment | ( | ) | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | ( | ) | ||||||
Notes receivable | ( | ) | ||||||
Inventories | ( | ) | ||||||
Prepaid expense and other current assets | ( | ) | ||||||
Other non-current assets | ||||||||
Due from related parties | ||||||||
Due to related parties | ( | ) | ||||||
Accounts payable | ( | ) | ( | ) | ||||
Accrued expenses and other payables | ( | ) | ||||||
Income tax payable | ( | ) | ||||||
Net cash (used in) provided by 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 provided by (used) in 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 (used in) 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, 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 | ||||||||
Right-of-use assets transferred to property and equipment upon exercise of purchase option | ||||||||
Security deposits applied to lease payments | $ | $ |
4