Hongli Group Inc. Faces Nasdaq Minimum Bid Price Non-Compliance: 180-Day Compliance Period

Hongli Group Inc. has received a deficiency letter from Nasdaq stating that its ordinary shares are not in compliance with the minimum bid price of $1.00 per share for 30 consecutive business days. The company has a 180-day compliance period to regain compliance, either by meeting the minimum bid price or by implementing a reverse stock split. If it fails to comply, the company's securities may be delisted from Nasdaq.

Hongli Group Inc. (NASDAQ: HLP), a holding company based in the Cayman Islands, has received a deficiency letter from Nasdaq indicating that its ordinary shares have failed to meet the minimum bid price requirement of $1.00 per share over a 30-day period. The company has been granted a 180-day compliance period until January 6, 2026, to regain compliance by maintaining a closing bid price of $1.00 or higher for at least 10 consecutive business days. If unsuccessful, Hongli may be eligible for an additional 180-day period, provided it meets other Nasdaq Capital Market listing requirements, including implementing a reverse stock split.

The deficiency notice highlights significant market concerns about Hongli's prospects or fundamentals, as its shares have traded below $1.00 for 30 consecutive business days between May 27 and July 9, 2025 [1]. The company's primary remediation options include operational improvements to naturally increase the share price or executing a reverse stock split, which must be completed at least 10 business days before the January deadline.

Hongli Group has until January 6, 2026, to meet the compliance requirements. Failure to do so could result in delisting, significantly impacting liquidity and shareholder value. The company's statement that it "intends to actively monitor" and "evaluate available options" suggests no immediate concrete plan, which may concern investors about management's strategy for addressing this compliance issue.

About Hongli Group Inc.
Hongli Group Inc. is a Cayman Islands holding company that consolidates the financial results of Shandong Hongli Special Section Tube Co., Ltd. and its subsidiaries. Hongli Operating Group, one of the leading cold roll formed steel profile manufacturers with operating subsidiaries in China, designs, customizes, and manufactures cold roll formed steel profiles for various sectors, including mining, construction, agriculture, and transportation.

References:
[1] https://www.stocktitan.net/news/HLP/hongli-group-inc-nasdaq-minimum-bid-price-non-8ade0972ztit.html