Thu, Jul 3, 4:28 PM (11 days ago)
**Hong Yuan Holding Group (HGYN) - Annual Report Summary** **Financial Performance (in 000s):** - **Revenue:** $246 in 2024 (nil in 2023) due to consolidation of Chinese VIEs. - **Net Income:** Loss of $96,437 in 2024 (loss of $154,464 in 2023), a 37.6% decrease. - **Operating Expenses:** $189,198 in 2024 ($154,476 in 2023), a 22.5% increase. - **Earnings per Share:** Nil for both years. **Strategic Overview:** - Focuses on supply chain management, wholesale, and internet sales of fast-moving consumer goods. - Acquired Hongyuan International Holding Group Co., Ltd. (Hongyuan HK) in 2024. - Consolidated Fengcuiyuan Chang Technology Development Co., Ltd. and its subsidiaries. **Future Outlook:** - Plans to introduce new product categories and expand store network. - Expects to recover investment funds from store profits in the future. **Risk Factors:** - Going concern uncertainty due to accumulated deficit of $97,784,280 and negative working capital. - Dependence on debt and equity financing for operations. - Potential inability to raise additional capital or achieve profitability. **Financial Condition:** - Cash balance of $46,291 in 2024 ($5,983 in 2023). - Total liabilities of $391,466 in 2024 ($156,670 in 2023). - Stockholders' deficit of $168,802 in 2024 ($137,483 in 2023). **Market Position Changes:** - Shares trade on the Pink Sheets market under the symbol "HGYN". - 206 holders of record as of December 31, 2024, with an estimated 290 beneficial holders. **Management & Governance:** - CEO and President: Xudong Li. - Director: Zhang Haosong. - No audit or compensation committee due to limited board size. **Disclosures:** - No critical audit matters identified. - No off-balance sheet arrangements. - No material weaknesses in internal control over financial reporting as of December 31, 2023. **Note:** The company's continuation as a going concern is dependent on its ability to attain profitable operations and secure additional financing.