We, Hongli Group Inc. (“Hongli Cayman”), are an offshore holding company incorporated in the Cayman Islands. As a holding company with no material operations of its own, we consolidate the financial results of Shandong Hongli Special Section Tube Co., Ltd., (“Hongli Shandong”) and its subsidiaries (“the PRC operating entities”), through the contractual arrangements. Neither we nor our subsidiaries own any equity interests in the PRC operating entities. the PRC operating entities are engaged in a business providing solutions, manufacturing and selling of customized cold roll formed steel profiles in China. With more than 20-year operating history, the PRC operating entities are engaged in a business in providing solutions, manufacturing and selling of customized metal profiles in China. The Company’s on-going research and development, customer support and continuous quality control help its customers remain competitive.
The PRC operating entities are one of the leading cold roll formed steel profile manufacturers in China with respect to the function innovation, performance improvement, and customized manufacturing of their products, according to China Sub-Association for Cold Formed Steel Industries, a professional industrial association. A profile is a specific product designed for a specific use. The PRC operating entities design, customize and manufacture cold roll formed steel profiles for machineries and equipment in a variety of sectors including but not limited to mining and excavation, construction, agriculture and transportation. The PRC operating entities are a strategic supplier for large corporations and international enterprises such as Weichai LOVOL Heavy Industry Co., Ltd., SUNGJIN TECH CO., LTD, Shandong Lingong Construction Machinery Co., Ltd., and some newly developed entities associated with Katsushiro Machinery Co., Ltd.
The PRC operating entities employ a broad array of manufacturing techniques, most importantly cold roll forming (CRF) which is the technique used for manufacturing all the products that differentiates the PRC operating entities from other steel pipe manufacturers that employ alternative forming techniques such as extrusion or pull-trusion. CRF is widely used for applications where precise dimension and mechanical tolerances are required.
The PRC operating entities employ deformed flower designing in their product design which enables the visualization of the formation process, and further ensure the high success rate of our research, development, and design. Currently, the PRC operating entities have applied more than 36 utility patents for this technique, 26 of which have been approved. Currently, the PRC operating entities are designing and developing a certain type of cross section profile with unequal thickness. Through the changes of thickness of the profile, such cross section profile has overall stronger strength and lighter weight compared to those regular cross section profile. The PRC operating entities are in the preparation of the patent application for such technique, which is expected to be widely used in different applications in five years, including but not limited to, lightweight process of cabs, high-strength fireproof doors, and window and curtain walls. Supported by the in-house R&D team and manufacturing facilities, the PRC operating entities can facilitate their customers’ orders as a “custom-made profile shop” including designing, customizing, manufacturing and delivery.
The PRC operating entities currently have 11 lines of CRF production lines, 3 units of laser welding coupled with inspection equipment, 3 units for high frequency welding coupled with inspection equipment, 3 units for welding robots, 5 units for 3D laser cutting machines, 3 units for 3D CNC bending machines, a hydraulic press, 2 units of CNC machining and 2D laser cutting machines. The PRC operating entities produce a variety of distinct profile products in a broad range of materials, sizes and shapes. They are specialized in high-end products such as anti-roll cab frame profile and engineering machinery structural parts profile, the usual application of which includes excavator cabs, pay-loader and other engineering machinery cabs, profile and set for Shandong Lingong Construction Machinery Co., Ltd. and Weichai LOVOL Heavy Industry Co. Ltd., agricultural machinery cabs and rollover protective structures, and square profile for buses.