Hong Yuan Holding Group

What they do

Hong Yuan Holding Group, through its subsidiary Hongyuan HK and agreements with Fengcuiyuan, provides supply chain management services, focusing on wholesale and internet sales of fast-moving consumer goods such as food, daily necessities, and electronic products. The company operates primarily in China, with its principal executive offices in Chengdu, Sichuan. It is a development-stage enterprise with insignificant revenues since inception.

Revenue drivers

• Supply chain management services — Provides wholesale and internet sales of fast-moving consumer goods (food, daily necessities, electronics) through consolidated entities. This is the primary business segment and generated $837,753 in annual revenue for 2025.
• Retail store operations (discontinued) — Previously operated stores through Xuchang, a 55% subsidiary of Rongcheng, but relinquished ownership in April 2025 and deconsolidated Xuchang in Q2 2025. Operating results prior to deconsolidation are reported as discontinued operations.
• Other revenues — The company has historically reported minimal revenues, including $245,572 in 2024 and $894,000 in 2012, but current operations are primarily the supply chain business.

Recent performance

For the quarter ended March 31, 2026, revenue was $43,697, a sharp decline from the prior quarter's $282,120 (Q4 2025) and $258,329 (Q3 2025). For the full year 2025, revenue was $837,753 with net income of $155,329, compared to 2024 revenue of $245,572 and a net loss of $98,844. As of March 31, 2026, total assets were $577,926, total liabilities were $647,983, and shareholder equity was negative $152,447, with cash of just $6,444.

Strategy

Management has shifted from store operations to a loan-based model, funding store openings but recovering investments as loans from store profits. The company's focus is on supply chain management for fast-moving consumer goods, leveraging agreements to consolidate Fengcuiyuan and its subsidiaries. It continues to incur losses and relies on raising capital, with no sustained profitable operations.

Risks

• Going concern uncertainty — Independent accountants have expressed a going concern opinion; as of December 31, 2025, the company had an accumulated deficit of $97,652,645 and negative working capital of $11,622.
• Negative shareholder equity — As of March 31, 2026, total liabilities exceeded assets, with shareholder equity at negative $152,447.
• Minimal cash reserves — Cash and equivalents were only $6,444 as of March 31, 2026, posing a liquidity risk for ongoing operations.
• Related-party concentration — The company's operations rely heavily on agreements with Fengcuiyuan, a company controlled by majority shareholder Xudong Li, creating related-party transaction risks.

Outlook

Management expects costs of operations to continue to exceed revenues, mainly due to public reporting costs, and anticipates possible continued losses. There are no assurances of establishing profitable operations, and the company may require additional funding to sustain operations. The company's ability to continue as a going concern is in substantial doubt.