Hong Yuan Holding Group reported significant financial improvements in its latest quarterly filing, with revenues reaching $258,329 for the three months ended September 30, 2025, compared to just $85 in the same period last year. For the nine months ending September 30, 2025, the company generated $612,206 in revenue, a substantial increase from $15,290 in the prior year. The growth in revenue is attributed to the ramp-up of operations by its Chinese variable interest entities (VIEs), which began generating revenue in the second quarter of 2024.
The company's gross profit for the third quarter of 2025 was $178,011, compared to $55 in the same quarter of 2024. However, operating expenses also increased significantly, totaling $122,241 for the third quarter, up from $50,341 a year earlier. This rise in expenses was primarily driven by higher professional fees, general and administrative costs, and selling and marketing expenses. Despite these increased costs, Hong Yuan reported a net income of $50,778 for the third quarter, a notable turnaround from a net loss of $50,282 in the same quarter of 2024.
In terms of operational developments, the company underwent a strategic shift in its business model in April 2025, resulting in the deconsolidation of its subsidiary, Chongqing Xuchang Qingrong Trading Co., Ltd. (Xuchang). This change was part of a broader restructuring effort, as Xuchang relinquished its 55% ownership in Rongcheng (Sichuan) Supply Chain Management Co., Ltd. while still receiving funding for store openings. The financial results from Xuchang prior to its deconsolidation have been classified as discontinued operations.
As of September 30, 2025, Hong Yuan's total assets amounted to $430,222, a significant increase from $222,664 at the end of 2024. The company reported total liabilities of $476,361, up from $391,466 at the end of the previous fiscal year. The stockholders' deficit improved to $(46,139) from $(168,802) as of December 31, 2024, reflecting the company's efforts to stabilize its financial position. The company had 74,640,766 shares of common stock outstanding as of November 14, 2025.
Looking ahead, Hong Yuan Holding Group faces challenges in achieving sustainable profitability. The company has expressed concerns regarding its ability to continue as a going concern, citing a working capital deficit of $65,836 and an accumulated deficit of $97,667,803. Management is actively seeking additional funding through equity or debt financing to support its operations and growth initiatives. However, there is no assurance that such financing will be available on favorable terms, which could impact the company's future operations and financial stability.
About HONG YUAN HOLDING GROUP
Hong Yuan Holding Group is a supply chain management company engaged in wholesale and online sales of fast-moving consumer goods, including food, daily necessities, and electronic products. It operates through subsidiaries and strategic agreements in China, focusing on optimizing procurement, logistics, and distribution using advanced technology. The company also develops offline retail stores for branded beverages and gifts, serving regional markets with a competitive, diversified product portfolio.
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