Rubber Leaf Inc.

What they do

The company sells automotive rubber and plastic sealing strips, mainly to auto OEMs in China. Its predecessor operating subsidiary, Rubber Leaf Sealing Products (Zhejiang) Co., Ltd. (RLSP), was a first-tier supplier to eGT, a Dongfeng-Renault joint venture, and to Volkswagen, and also supplied as a second-tier manufacturer. Before selling RLSP on November 20, 2025, the company established Rubber Leaf Limited (RLHK) in Hong Kong on September 22, 2025 and substantially transferred RLSP's principal orders, customer contracts and supply arrangements to it. RLHK is now the company's primary operating entity.

Revenue drivers

• Direct supply of sealing strips to OEMs (Model A) — RLSP is listed as a first-tier supplier after OEM on-site inspections and sells sealing strips directly to OEMs such as eGT under purchase or supply agreements; revenue is recognized when finished goods are accepted into the OEM warehouse.
• Indirect supply through related parties (Model B) — RLSP received purchase orders from related parties Shanghai Xinsen and Xinsen Sealing Products (Hangzhou) Co., Ltd (Hangzhou Xinsen); the 10-Q excerpt describing this model is truncated.
• Sealing strips for FAW-Volkswagen — In October 2023 the company signed a joint R&D agreement, confidentiality agreement and integrity cooperation agreement with FAW-Volkswagen; after quotations, technical analyses and facility inspections, FAW-Volkswagen accepted the company's quotation and technical plan in December 2023.
• Hozon New Energy Auto window sealing orders — In February 2024 the company engaged Hozon New Energy Auto Co., Ltd for whole-car rubber window sealing orders, with sample supply scheduled for March 2024, first batch production in August 2024 and ramp-up from October 2024; initial production was forecast at 3,000-4,000 seal sets, rising 2,000 sets monthly to a peak of 12,000 sets.

Recent performance

Annual revenue has been volatile: $3.0M in 2021, $5.3M in 2022, $1.4M in 2023, $5,245 in 2024 and $4.9M in 2025. Net income swung from a $3.2M loss in 2021 to $757,381 of income in 2022, then to losses of $1.4M in 2023 and $2.2M in 2024, before $2.9M of net income in 2025. Operating cash flow was negative in 2023, 2024 and 2025, at -$84,078, -$508,429 and -$153,846 respectively. Recent quarterly revenue was $2,107 in the quarter ended 2024-09-30, $1.1M in the quarter ended 2025-09-30, $3.3M in the quarter ended 2026-03-31 and $2.8M in the quarter ended 2026-06-30. At 2026-06-30 total assets were $11.4M, total liabilities $10.9M, shareholder equity $470,686 and cash and equivalents $1,361.

Strategy

The company has restructured around RLHK, the Hong Kong entity that received RLSP's principal orders, customer contracts and supply arrangements before RLSP was sold. It disposed of RLSP to Shanghai Yongliansen Import and Export Trading Co., Ltd. for US$3,000,000 in cash, payable in three installments; CEO Xingxiu Hua holds 30% of Yongliansen. Management states RLHK is now the primary operating entity and continues the automotive rubber and plastic sealing strip business. The 10-K highlights the company's technical advantages in rubber formulations, including high-hardness rubber and low-density sponge production, and cites tooling, mold creation, specialized equipment development and product design capabilities.

Risks

• Dependence on a small set of OEM customers — The business is concentrated on a few named auto customers, including eGT, Volkswagen and FAW-Volkswagen, so the loss or reduction of any one relationship could materially affect revenue.
• Related-party disposition of RLSP — The sale of the company's former operating subsidiary was made to Yongliansen, in which CEO Xingxiu Hua holds 30% of the outstanding equity, creating a related-party transaction.
• Thin equity and very low cash — At 2026-06-30 shareholder equity was only $470,686 and cash and equivalents were $1,361 against $10.9M of total liabilities.
• Historically volatile operating results — Revenue has ranged from $5,245 in 2024 to $5.3M in 2022, and operating cash flow has been negative in each of 2023, 2024 and 2025.

Outlook

The company states that RLHK is now its primary operating entity and continues to conduct the automotive rubber and plastic sealing strip business after the RLSP disposition. The 10-K describes the transfer of all principal orders, customer contracts and supply arrangements from RLSP to RLHK prior to the sale. Management's stated focus remains supplying sealing strips to domestic and foreign automobile manufacturers, along with supporting research and development and follow-up services; no specific forward financial guidance is provided in the excerpts.