Chenghe Acquisition II Co., a blank check company incorporated on January 15, 2024, reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company, which has not yet commenced operations, aims to complete a business combination within 24 months of its Initial Public Offering (IPO) on June 10, 2024.

As of September 30, 2024, Chenghe Acquisition II Co. reported total current assets of $427,415, a substantial increase from $275,107 as of March 4, 2024. Total assets surged to $88,047,868, primarily due to the cash and marketable securities held in the Trust Account, which amounted to $87,620,453. However, total current liabilities also rose significantly to $2,484,000 from $267,810, leading to a total liabilities increase to $5,934,000. The company reported a shareholders’ deficit of $(5,506,585), a decline from a slight positive equity of $7,297 earlier in the year.

In terms of income, Chenghe Acquisition II Co. generated other income of $1,124,548 for the three months ended September 30, 2024, and $1,370,453 for the period from inception through the same date. However, the company incurred a net loss of $(1,363,129) for the three months ended September 30, 2024, and a cumulative net loss of $(1,652,837) since inception. The basic and diluted net loss per share for Class A ordinary shares subject to possible redemption was $(0.12) for the quarter and $(0.27) for the cumulative period.

Strategically, the company entered into a Business Combination Agreement with Polibeli Group Ltd and Polibeli Merger One Limited on September 16, 2024. This merger will see Polibeli Merger One Limited merge with Chenghe Acquisition II Co., with the latter becoming a wholly-owned subsidiary of Polibeli. The company has until June 12, 2025, to complete this initial business combination, failing which it will face liquidation.

Chenghe Acquisition II Co. has also reported a working capital deficit of $2,056,585 as of September 30, 2024, and management has expressed substantial doubt about the company's ability to continue as a going concern if the business combination does not occur within the specified timeframe. The company has no long-term debt or off-balance sheet arrangements, and it continues to incur expenses related to its public company status, including administrative support costs.