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HLP

Hongli Group Inc.

HLP

Hongli Group Inc. • NASDAQ
$1.64 ▼ -1.89% (-0.03)
Market Cap $120.44 M
52w High $1.82
52w Low $0.61
Dividend Yield 0%
P/E 32.8
Volume 19.00K
Outstanding Shares 73.44M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q4-2024 $7.143M ▲ $2.106M ▼ $20.713K ▲ 0.29% ▲ $0 ▲ $721.772K ▲
Q2-2024 $6.962M ▼ $3.997M ▲ $-1.902M ▼ -27.324% ▼ $-0.15 ▼ $-1.217M ▼
Q4-2023 $7.083M ▼ $1.965M ▼ $68.368K ▼ 0.965% ▼ $0.005 ▼ $699.146K ▼
Q2-2023 $8.915M ▼ $2.261M ▲ $796.354K ▼ 8.933% ▼ $0.071 ▼ $1.72M ▼
Q4-2022 $9.798M $2.058M $1.066M 10.875% $0.088 $1.743M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q4-2024 $909.716K ▼ $65.01M ▲ $11.517M ▼ $53.493M ▲
Q2-2024 $930.419K ▲ $32.698M ▲ $12.011M ▲ $20.687M ▼
Q4-2023 $815.669K ▼ $32.129M ▲ $11.021M ▲ $21.108M ▲
Q2-2023 $940.792K ▼ $31.156M ▼ $10.573M ▼ $20.583M ▲
Q4-2022 $2.085M $36.164M $22.689M $13.475M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q4-2024 $20.713K ▲ $804.318K ▲ $-32.928M ▼ $31.772M ▲ $-5.633K ▼ $881.14K ▲
Q2-2024 $-1.902M ▼ $-1.218M ▼ $-383.75K ▲ $1.736M ▲ $114.75K ▲ $-1.605M ▼
Q4-2023 $68.368K ▼ $1.927M ▲ $-2.557M ▼ $747.432K ▲ $-51.077K ▲ $21.282K ▲
Q2-2023 $796.354K ▼ $-1.042M ▼ $303.312K ▲ $-365.338K ▼ $-1.247M ▼ $-1.215M ▲
Q4-2022 $1.066M $890.333K $-9.983M $10.67M $1.525M $-10.578M

Five-Year Company Overview

Income Statement

Income Statement Revenue over the past few years has been very small and broadly flat, with only modest gross profit. Operating and net results hover around break‑even, and earnings per share have swung from positive to slightly negative in the most recent year. That points to a business with thin margins and high sensitivity to changes in costs or pricing. The recent slip into a small loss, after earlier profitability, suggests either rising input costs, pricing pressure, one‑off expenses around the listing, or a mix of all three. Overall, the income statement shows a niche, small‑scale operator rather than a mature, high‑margin steel business.

Balance Sheet

Balance Sheet The balance sheet has grown from a very small base, with total assets and shareholders’ equity both increasing over time. That hints at some reinvestment in the business or new capital coming in, which is a positive sign for development. Debt exists but does not dominate the structure, though even moderate borrowing can matter when profits are thin. Reported cash balances are negligible, which raises questions about day‑to‑day liquidity and reliance on short‑term financing or rapid collection from customers. In short, the company appears lightly levered but also lightly cushioned, with limited balance‑sheet shock absorbers if conditions deteriorate.

Cash Flow

Cash Flow Cash generation from operations has been roughly around break‑even, which means the business is broadly self‑funding but leaves little margin for error. Free cash flow has also hovered close to zero, with one year dipping negative as the company invested in its asset base. This pattern fits a small industrial company that is keeping the lights on and occasionally investing, but without producing strong surplus cash. The main risk is that any downturn in orders, or any need for larger capital projects, could quickly strain liquidity given the lack of a visible cash buffer.

Competitive Edge

Competitive Edge HLP operates in a narrow corner of the steel industry, focusing on custom cold‑formed profiles rather than standard commodity steel products. Its strengths lie in long operating history, deep process know‑how, and the ability to deliver tailored shapes for demanding uses such as mining, heavy construction, and agriculture. This customization tends to create close, sticky relationships with customers, including both domestic clients and some export markets. At the same time, the company is small and exposed to cyclical end‑markets, and it competes in a country with intense industrial rivalry. Larger steel groups could choose to move further into customized products, and HLP’s limited scale and financial cushion may make it harder to respond aggressively if competition intensifies or if demand weakens.

Innovation and R&D

Innovation and R&D The company’s “innovation” is mainly in process expertise and engineering rather than in headline‑grabbing patents. Over many years it has refined the cold roll forming process to handle complex, customer‑specific designs, which is itself a technical skill and a barrier for newer entrants. Future upside depends on whether HLP continues to modernize its lines, automate more of its operations, and experiment with higher‑performance steels and tighter tolerances. Formal R&D spending is likely modest, but the business is inherently engineering‑driven. The key risk is that, without steady investment in equipment and process improvement, its know‑how advantage could gradually erode as peers adopt similar technologies.

Summary

HLP is a very small, niche steel producer that has built its business around custom, cold‑formed profiles for industrial customers. Financially, it operates close to break‑even, with thin margins, limited visible cash, and only modest debt—leaving it balanced between resilience and fragility. The balance sheet and cash flows suggest a company that can sustain current operations but has little room for prolonged shocks without additional support. Strategically, its edge comes from specialization, long‑term relationships, and technical competence rather than sheer scale. The longer‑term story hinges on whether it can deepen this niche, keep upgrading its technology, and manage growth carefully given its tight financial headroom and exposure to cyclical heavy‑industry demand. Uncertainty is elevated because of the company’s small size, short trading history as a listed firm, and limited public detail, so results may remain more volatile than for larger, more diversified steel players.

NEWS

October 6, 2025 · 4:15 PM UTC

Hongli Group Inc. Announces Compliance with Nasdaq Minimum Bid Price Requirement

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