Hongchang International Reports 94% Revenue Increase to $3.84 Million in Latest Quarter

Hongchang International Co., Ltd. reported significant financial improvements in its latest quarterly results, with revenue reaching $3.84 million for the three months ended June 30, 2025, compared to $1.98 million during the same period in 2024. This 94% increase was primarily driven by strong sales in meat products, particularly from its newly acquired subsidiary, Pucheng Green Health Food, which contributed $3.44 million in product sales. The company also began generating rental income of $404,139 from its Hongchang Food Industrial Park, marking a new revenue stream.

The company's gross profit for the quarter was $613,712, a substantial increase from $98,715 in the previous year, reflecting a gross margin improvement from 5% to 16%. Operating expenses decreased to $76,277 from $122,729, contributing to an operating income of $537,435, a turnaround from an operating loss of $24,014 in the prior year. Net income for the quarter was reported at $499,942, compared to a net loss of $21,680 in the same period last year.

In terms of operational developments, Hongchang International has been actively expanding its business footprint. The company completed the merger with Hongchang Global Investment Holdings Limited in September 2023, which has allowed it to streamline operations and enhance its market presence in the food trade and biotechnology sectors. The company has also established several new subsidiaries to diversify its offerings, including Hongchang Global Food and Hongfu Food, which focus on meat processing and trading.

As of June 30, 2025, total assets stood at $58.94 million, a slight decrease from $59.54 million at the end of the previous quarter. Current liabilities decreased significantly to $4.79 million from $6.45 million, primarily due to reduced accounts payable. The company’s cash and cash equivalents were reported at $50,043, down from $493,201, reflecting cash outflows related to operational expenses and investments in construction projects.

Looking ahead, Hongchang International anticipates continued growth driven by its expanding product lines and the operational efficiencies gained from recent mergers and acquisitions. The company plans to enhance its market share by launching new products and services while maintaining a focus on cost control and capital utilization. However, management has acknowledged potential risks related to market conditions and operational challenges, emphasizing the need for ongoing evaluation of its strategic initiatives.