Yunhong Green CTI Ltd.

What they do

The company develops, produces, distributes and sells novelty products, principally foil and latex balloons and related gift items, and produces flexible films for food and other commercial and packaging uses. It manufactures most foil balloons and all packaging and container films at its Lake Barrington, Illinois plant, while purchasing latex balloons from an unrelated vendor for U.S. distribution. Substantially all packaging and custom film products are sold to U.S. customers. It markets balloon-inspired gift items and flexible consumer containers, and incorporated "Green" into its name in 2023 to signal intent to supply biodegradable and compostable materials developed by partners in Asia.

Revenue drivers

• Foil and latex balloons and novelty products — Foil balloons and related novelty items are produced in Lake Barrington and sold mainly in the U.S.; latex balloons are purchased from an unrelated vendor and distributed to customers wanting a combined foil-and-latex solution.
• Flexible films for packaging and commercial use — The company prints, processes and converts flexible film into finished products for food and other commercial and packaging applications, sold substantially all to U.S. customers.
• Balloon-inspired gifts and other products — Assembly and sale of balloon-inspired gift items, described as small gift bouquets of arranged candy items often including ribbons and/or a small foil balloon.
• Compostable and biodegradable materials — Samples of compostable material intended to replace single-use plastic and other materials were added in 2023, developed by partners in Asia; a new subsidiary was created for this purpose.

Recent performance

Net sales for the three months ended June 30, 2026 were approximately $3,900,000 versus $5,457,000 for the same period in 2025, a decrease of $1,557,000 or 29%. Management attributed the decline primarily to timing, as more spring products shipped in the first quarter of 2026 rather than the second, and to lower foil balloon volumes from a significant mass retail customer that adjusted replenishment practices beginning in the second half of 2025. Annual revenue was $19.7 million in 2025, up from $18.0 million in 2024, while net loss was $2.5 million in 2025 versus $1.5 million in 2024. Diluted EPS was $-1.01 in 2025 versus $-0.07 in 2024. As of June 30, 2026, the company had total assets of $18.6 million, total liabilities of $10.9 million, shareholder equity of $7.7 million and cash of $320,000.

Strategy

The company's stated direction centers on supplying biodegradable and compostable materials developed by its partners in Asia, reflected in the 2023 addition of "Green" to its name and the creation of a new subsidiary for that purpose. It continues to leverage over 40 years of flexible film technology, including patents on films, zipper closures and valves, to design and develop proprietary products for its customers. In September 2025 the company amended its senior credit facility, extending maturity to April 30, 2027 and increasing the revolving commitment from $6.0 million to $7.0 million. It also markets a combined foil-and-latex balloon offering for customers preferring a single solution.

Risks

• Mass retail customer concentration — Lower foil balloon volumes from a significant mass retail customer that adjusted replenishment practices beginning in the second half of 2025 reduced sales in both the three- and six-month periods ended June 30, 2026.
• Tariffs and import costs — The company states that existing and future U.S. trade tariffs, import duties and quotas on goods from countries including China could materially increase its costs of procuring materials and disrupt markets for its products.
• Leverage and credit facility dependence — At June 30, 2026 the company had $4.6 million outstanding on its revolving facility and $0.45 million on its term loan, with $2.4 million of remaining borrowing capacity, and the facility includes a minimum tangible net worth covenant of $4.0 million.
• Persistent net losses and thin liquidity — Net loss was $2.5 million in 2025 and $1.5 million in 2024, operating cash flow was negative $172,000 in 2025, and cash and equivalents were $320,000 at June 30, 2026.

Outlook

Management has not provided forward guidance in the excerpted filings. The company points to a September 2025 credit amendment extending maturity to April 30, 2027 and raising the revolver commitment to $7.0 million, and states it was in compliance with the minimum tangible net worth covenant as of June 30, 2026. It also cites tariffs on imports from countries including China as a factor that could materially affect costs and results. The final-quarter revenue trend has been uneven, from $6.5 million in the quarter ended December 31, 2025 to $6.2 million in the quarter ended March 31, 2026 and $3.9 million in the quarter ended June 30, 2026.