Hongli Group Inc.

Hongli Cayman is an offshore holding company incorporated in the Cayman Islands. As a holding company, it consolidates the financial results of Hongli Shandong, its Variable Interest Entity (VIE), and its subsidiaries through Contractual Arrangements dated April 12, 2021. Hongli Cayman and its subsidiaries do not own equity interests in the PRC operating entities. The PRC operating entities are a cold roll formed steel profile manufacturer in China, specializing in function innovation, performance improvement, and customized manufacturing. Their main business focuses on the design, production, deep processing, and sales of custom-made profiles for machinery and equipment across sectors such as mining and excavation, construction, agriculture, and transportation. The PRC operating entities use deformed flower designing in product design to visualize material formation and ensure a high success rate in research, development, and design. In May 2022, the PRC operating entities began offering cold roll formed (CRF) profiles with electrocoating services. Electrocoating is an electrical current-based painting method used for products including hardware, sporting equipment, business appliances, and automotive parts. As of the date of this Annual Report, the PRC operating entities have produced electrocoated products such as excavator cabs, safety frames for tractors, and weld-on brackets, generating approximately $1.81 million (RMB13.18 million) in revenue. They have also received approximately 56,346 new orders for electrocoated products with an estimated revenue of $1.81 million (RMB1318 million).