HLP Hongli Group Inc.

Overview and Growth

Hongli Group Inc. generated $19.60M of revenue in fiscal 2025, with net income of $1.94M and an operating cash inflow of $878.27K. Revenue of $19.60M sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 39.0% from $14.11M in fiscal 2024, increasing the company’s operating scale. Diluted earnings per share were $0.03, translating the period’s attributable earnings into the amount reported for each diluted share. Asset turnover was 0.27x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $6.38M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. The gross-profit relationship equaled 32.5% of revenue, quantifying the portion retained before operating expenses were recognized. Operating income was $2.43M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 12.4%, showing the portion of revenue preserved after the full set of operating costs. After all reported below-operating-line items, the company recorded net income of $1.94M for the fiscal year. The final earnings result represented 9.9% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $2.17M of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 11.1%, adding a pre-tax profitability layer between revenue and net income. The company recognized $228.68K of income tax for the period, completing the transition from pretax income to net income. Relative to pretax income, the tax provision measured 10.5%, quantifying the portion of pre-tax earnings paid in income tax. Net income equaled 3.4% of period-end equity, showing the earnings generated on shareholders’ book capital. The net-income-to-assets relationship measured 2.7%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

Total assets were $72.19M, supported by $14.36M of liabilities and $57.83M of shareholder equity. The near-term balance sheet paired $16.08M of current assets with $14.36M of current liabilities at the reporting date. The current ratio was 1.12x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $1.81M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 12.6% of current liabilities, showing how much near-term coverage came from cash alone. The liabilities-to-assets relationship was 19.9%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 2.5%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 11.0% higher than fiscal 2024 assets of $65.01M, measuring the company’s own balance-sheet change. Reported equity changed 8.1% from $53.49M in fiscal 2024, placing the current capital base higher year over year.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $878.27K, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 0.45x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $217.44K, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 24.8%, connecting investment intensity with the company’s cash-generation base. Free cash flow came to $660.82K, leaving a positive amount after capital expenditures. Free cash flow represented 3.4% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 0.9% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.