Hongchang International Reports Revenue Growth to $2.87 Million Despite Increased Net Loss

Hongchang International Co., Ltd., formerly known as Heyu Biological Technology Corporation, reported a net revenue of $2.87 million for the fiscal year ending December 31, 2024, marking an increase from $2.68 million in 2023. The company’s gross profit also rose significantly to $181,632, compared to $69,358 in the previous year. However, despite the revenue growth, Hongchang International recorded a net loss of $472,393 in 2024, which is an increase from a net loss of $378,794 in 2023. The increase in losses was attributed to higher operating expenses and other income fluctuations.

The company underwent significant organizational changes during the reporting period, including a merger with Hongchang Global Investment Holdings Limited, which was completed on September 4, 2023. This merger allowed Hongchang International to assume the principal business of Hongchang Food, which is focused on the construction and investment in a food industrial park in Fujian Province, China. The company also disposed of its previous assets, receiving nominal consideration due to their deficit value. Additionally, there were changes in the executive team, with Zengqiang Lin being appointed as both Chief Executive Officer and President on August 21, 2023.

Operationally, Hongchang International has begun limited sales operations in 2023, primarily driven by the demand for its products. The company is in the early stages of its business, and its revenue growth is expected to be influenced by expanding its product variety and distribution network. As of December 31, 2024, the company reported a cash balance of $240,598, a decrease from $895,730 in 2023, reflecting ongoing financing for operations and construction projects. The construction of the Hongchang Food Industrial Park remains a key focus, with a balance of approximately $41.26 million in construction in progress.

Looking ahead, Hongchang International aims to enhance its market presence by diversifying its product offerings and expanding its operations both domestically and internationally. The company recognizes that its growth will be influenced by various factors, including market competition, economic conditions, and customer consumption habits. The management has indicated that they will continue to evaluate their strategic business development plans to ensure effective cost control and supplier collaboration, which are critical for improving profitability in the future.