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What changed in Huadi International Group Co., Ltd.'s 20-F — 2024 vs 2025

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Paragraph-level year-over-year comparison of Huadi International Group Co., Ltd.'s 2024 and 2025 20-F annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+352 added−308 removedSource: 20-F (2026-01-30) vs 20-F (2025-01-30)

Top changes in Huadi International Group Co., Ltd.'s 2025 20-F

352 paragraphs added · 308 removed · 181 edited across 5 sections

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

76 edited+148 added−8 removed301 unchanged
Biggest changeSubstantial uncertainties exist with respect to the enactment timetable and final content of draft China Foreign Investment Law and how it may impact the viability of our current corporate structure, corporate governance and business operations. The Chinese Ministry of Commerce (“MOFCOM”) published a discussion draft of the proposed Foreign Investment Law in January 2015 (the “Draft FIL”).
Biggest changeSee “ Risk Factors - Risks Related to Doing Business in China - Changes in China’s economic, political or social conditions or government policies could have a material adverse effect on our business and results of operations” on page 26. ● Substantial uncertainties exist with respect to China Foreign Investment Law and how it may impact the viability of our current corporate structure, corporate governance and business operations.
Then, our business revenue might suffer some loss as well. 5 Implementation of PRC intellectual property related laws and regulations has historically been lacking, primarily because of ambiguities in the PRC laws and enforcement difficulties. Accordingly, intellectual property rights and confidentiality protections in China may not be as effective as in the United States or other western countries.
Then, our business revenue might suffer some loss as well. Implementation of PRC intellectual property related laws and regulations has historically been lacking, primarily because of ambiguities in the PRC laws and enforcement difficulties. Accordingly, intellectual property rights and confidentiality protections in China may not be as effective as in the United States or other western countries.
Any failure or perceived failure of us to fully comply with such new regulatory requirements could significantly limit or completely hinder our ability to continue to offer securities to investors, cause significant disruption to our business operations, and severely damage our reputation, which could materially and adversely affect our financial condition and results of operations and could cause the value of our securities to significantly decline or be worthless. 13 As confirmed by our PRC counsel, Zhejiang Dongou Law Firm, our PRC operating entities currently have obtained all material permissions and approvals required for our operations in compliance with the relevant PRC laws and regulations in the PRC, including the business license, and we are not required to obtain permission or approval from the PRC authorities, including CSRC or CAC, for their operations, nor have we or our PRC operating entities received any denial.
Any failure or perceived failure of us to fully comply with such new regulatory requirements could significantly limit or completely hinder our ability to continue to offer securities to investors, cause significant disruption to our business operations, and severely damage our reputation, which could materially and adversely affect our financial condition and results of operations and could cause the value of our securities to significantly decline or be worthless. 25 As confirmed by our PRC counsel, Zhejiang Dongou Law Firm, our PRC operating entities currently have obtained all material permissions and approvals required for our operations in compliance with the relevant PRC laws and regulations in the PRC, including the business license, and we are not required to obtain permission or approval from the PRC authorities, including CSRC or CAC, for their operations, nor have we or our PRC operating entities received any denial.
We cannot assure you that our determination regarding our qualification to enjoy the preferential tax treatment will not be challenged by the relevant tax authority or we will be able to complete the necessary filings with the relevant tax authority and enjoy the preferential withholding tax rate of 5% under the Double Taxation Arrangement with respect to dividends to be paid by our PRC subsidiaries to HK Beach, our Hong Kong subsidiary. 20 The recent joint statement by the SEC and PCAOB, proposed rule changes submitted by Nasdaq, and the HFCAA all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB.
We cannot assure you that our determination regarding our qualification to enjoy the preferential tax treatment will not be challenged by the relevant tax authority or we will be able to complete the necessary filings with the relevant tax authority and enjoy the preferential withholding tax rate of 5% under the Double Taxation Arrangement with respect to dividends to be paid by our PRC subsidiaries to HK Beach, our Hong Kong subsidiary. 32 The recent joint statement by the SEC and PCAOB, proposed rule changes submitted by Nasdaq, and the HFCAA all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB.
In addition, the above rules and amendments and any additional actions, proceedings, or new rules resulting from these efforts to increase U.S. regulatory access to audit information could create some uncertainty for investors, the market price of our ordinary shares could be adversely affected, and we could be delisted if we and our auditor are unable to meet the PCAOB inspection requirement or being required to engage a new audit firm, which would require significant expense and management time. 22 Enhanced scrutiny over acquisition transactions by the PRC tax authorities may have a negative impact on potential acquisitions we may pursue in the future.
In addition, the above rules and amendments and any additional actions, proceedings, or new rules resulting from these efforts to increase U.S. regulatory access to audit information could create some uncertainty for investors, the market price of our ordinary shares could be adversely affected, and we could be delisted if we and our auditor are unable to meet the PCAOB inspection requirement or being required to engage a new audit firm, which would require significant expense and management time. 34 Enhanced scrutiny over acquisition transactions by the PRC tax authorities may have a negative impact on potential acquisitions we may pursue in the future.
In addition, these risks represent important factors that can cause our actual results to differ materially from those anticipated in our forward-looking statements. Risks Related to Our Business and Industry Tariffs could materially have a negative impact on the demand for our products.
In addition, these risks represent important factors that can cause our actual results to differ materially from those anticipated in our forward-looking statements. 11 Risks Related to Our Business and Industry Tariffs could materially have a negative impact on the demand for our products.
If we cannot successfully implement these measures efficiently and cost-effectively, we will be unable to satisfy the demand for our products, which will impair our revenue growth and hurt our overall financial performance. 4 During any growth, our products may necessitate hiring additional employees.
If we cannot successfully implement these measures efficiently and cost-effectively, we will be unable to satisfy the demand for our products, which will impair our revenue growth and hurt our overall financial performance. During any growth, our products may necessitate hiring additional employees.
Failure by such shareholders or beneficial owners to comply with SAFE regulations, or failure by us to amend the foreign exchange registrations of our PRC subsidiaries, could subject us to fines or legal sanctions, restrict our overseas or cross-border investment activities, limit our PRC subsidiaries’ ability to make distributions or pay dividends to us or affect our ownership structure, which could adversely affect our business and prospects. 19 If our entities outside of China are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders.
Failure by such shareholders or beneficial owners to comply with SAFE regulations, or failure by us to amend the foreign exchange registrations of our PRC subsidiaries, could subject us to fines or legal sanctions, restrict our overseas or cross-border investment activities, limit our PRC subsidiaries’ ability to make distributions or pay dividends to us or affect our ownership structure, which could adversely affect our business and prospects. 31 If our entities outside of China are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders.
The rules apply to registrants that the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that PCAOB is unable to inspect or investigate completely because of a position taken by an authority in foreign jurisdictions. 21 On December 16, 2021, the SEC announced that the PCAOB designated China and Hong Kong as the jurisdictions where the PCAOB is not allowed to conduct full and complete audit inspections as mandated under the HFCAA.
The rules apply to registrants that the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that PCAOB is unable to inspect or investigate completely because of a position taken by an authority in foreign jurisdictions. 33 On December 16, 2021, the SEC announced that the PCAOB designated China and Hong Kong as the jurisdictions where the PCAOB is not allowed to conduct full and complete audit inspections as mandated under the HFCAA.
If we are subject to late contribution fees or fines in relation to the underpaid employee benefits, our financial condition and results of operations may be adversely affected. 18 The M&A Rules and certain other PRC regulations establish complex procedures for some acquisitions of Chinese companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China.
If we are subject to late contribution fees or fines in relation to the underpaid employee benefits, our financial condition and results of operations may be adversely affected. 30 The M&A Rules and certain other PRC regulations establish complex procedures for some acquisitions of Chinese companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China.
If an enterprise reduces its taxable income or income by implementing other arrangements without reasonable commercial purposes, tax authorities have the right to adjust them in accordance with reasonable methods. 23 Huadi International faces uncertainties on the reporting and consequences on future private equity financing transactions, share exchange or other transactions involving the transfer of shares in our company by investors that are non-PRC resident enterprises.
If an enterprise reduces its taxable income or income by implementing other arrangements without reasonable commercial purposes, tax authorities have the right to adjust them in accordance with reasonable methods. 35 Huadi International faces uncertainties on the reporting and consequences on future private equity financing transactions, share exchange or other transactions involving the transfer of shares in our company by investors that are non-PRC resident enterprises.
If such allegations are not proven to be groundless, we and our business operations will be severely affected and you could sustain a significant decline in the value of our share. 24 Risks Related to Our Corporate Structure and Ordinary Shares Huadi International is an “emerging growth company,” and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our Ordinary Shares less attractive to investors.
If such allegations are not proven to be groundless, we and our business operations will be severely affected and you could sustain a significant decline in the value of our share. 36 Risks Related to Our Corporate Structure and Ordinary Shares Huadi International is an “emerging growth company,” and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our Ordinary Shares less attractive to investors.
Excess inventory levels may lead to increases in inventory holding costs, risks of inventory obsolescence and provisions for write-downs, which will materially and adversely affect our business, financial condition and results of operations. 10 To maintain an appropriate inventory level of finished goods and raw materials to meet market demand, we adjust our procurement amount and production schedule from time to time based on customers’ orders and anticipated demand.
Excess inventory levels may lead to increases in inventory holding costs, risks of inventory obsolescence and provisions for write-downs, which will materially and adversely affect our business, financial condition and results of operations. 22 To maintain an appropriate inventory level of finished goods and raw materials to meet market demand, we adjust our procurement amount and production schedule from time to time based on customers’ orders and anticipated demand.
According to the “Enterprise Income Tax Law of the People’s Republic of China” (adopted on March 16, 2007, first amended on February 24, 2017, and second amended on December 29, 2018), if the business dealings between an enterprise and its affiliated parties do not conform to the principle of independent transactions and thus reduce the taxable income or income of the enterprise or its affiliated parties, the tax authorities have the right to adjust in accordance with reasonable methods.
According to the “Enterprise Income Tax Law of the People’s Republic of China” (adopted on March 16, 2007, first amended on February 24, 2017, and further amended on December 29, 2018), if the business dealings between an enterprise and its affiliated parties do not conform to the principle of independent transactions and thus reduce the taxable income or income of the enterprise or its affiliated parties, the tax authorities have the right to adjust in accordance with reasonable methods.
However, we cannot assure you that we will be able to continue implementing these measures in the future, or that we will not identify additional material weaknesses or significant deficiencies in the future. 8 Furthermore, it is possible that, had our independent registered public accounting firm conducted an audit of our internal control over financial reporting, such firm might have identified additional material weaknesses and deficiencies.
However, we cannot assure you that we will be able to continue implementing these measures in the future, or that we will not identify additional material weaknesses or significant deficiencies in the future. 20 Furthermore, it is possible that, had our independent registered public accounting firm conducted an audit of our internal control over financial reporting, such firm might have identified additional material weaknesses and deficiencies.
Given the current regulatory environment in the PRC, we are still subject to the uncertainty of different interpretations and enforcement of the rules and regulations in the PRC adverse to us, which may take place quickly with little advance notice. 12 On December 28, 2021, the Cyberspace Administration of China, or the CAC, published the CAC Revised Measures, which further restates and expands the applicable scope of the cybersecurity review.
Given the current regulatory environment in the PRC, we are still subject to the uncertainty of different interpretations and enforcement of the rules and regulations in the PRC adverse to us, which may take place quickly with little advance notice. 24 On December 28, 2021, the Cyberspace Administration of China, or the CAC, published the CAC Revised Measures, which further restates and expands the applicable scope of the cybersecurity review.
As a result, you will not have the same protection afforded to shareholders of companies that are subject to these corporate governance requirements. 6 From time to time we may evaluate and potentially consummate strategic investments or acquisitions, which could require significant management attention, disrupt our business and adversely affect our financial results.
As a result, you will not have the same protection afforded to shareholders of companies that are subject to these corporate governance requirements. 18 From time to time we may evaluate and potentially consummate strategic investments or acquisitions, which could require significant management attention, disrupt our business and adversely affect our financial results.
In that event, current stockholders would likely experience a loss of most of or all of their investment. 11 Risks Related to Doing Business in China Chinese government’s monitoring and macro-control of the market could hurt demand of our products. Our PRC operating entities could be impacted by China’s macro-control policy on control of China’s steel and steel products industry.
In that event, current stockholders would likely experience a loss of most of or all of their investment. 23 Risks Related to Doing Business in China Chinese government’s monitoring and macro-control of the market could hurt demand of our products. Our PRC operating entities could be impacted by China’s macro-control policy on control of China’s steel and steel products industry.
In accordance with Chinese intellectual property laws and regulations, we will have to renew our trademarks once the terms expire. However, patents are not renewable. Our 35 utility patents issued to us have only 10 years of protection. Once these patents expire, our products may lose some market share if they are copied by our competitors.
In accordance with Chinese intellectual property laws and regulations, we will have to renew our trademarks once the terms expire. However, patents are not renewable. Our 39 utility patents issued to us have only 10 years of protection. Once these patents expire, our products may lose some market share if they are copied by our competitors.
Any prolonged slowdown in the Chinese economy may reduce the demand for our products and services and materially and adversely affect our business and results of operations. 14 Huadi International may also decide to finance our PRC subsidiaries by means of capital contributions. These capital contributions must be approved by the Ministry of Commerce (“MOC”) or its local counterpart.
Any prolonged slowdown in the Chinese economy may reduce the demand for our products and services and materially and adversely affect our business and results of operations. 26 Huadi International may also decide to finance our PRC subsidiaries by means of capital contributions. These capital contributions must be approved by the Ministry of Commerce (“MOC”) or its local counterpart.
If we cannot maintain long-term relationships with major customers or replace major customers from period to period with equivalent customers, the loss of such sales could have an adverse effect on our business, financial condition, and results of operations. 3 We have engaged in transactions with related parties, and such transactions present possible conflicts of interest that could have an adverse effect on our business and results of operations.
If we cannot maintain long-term relationships with major customers or replace major customers from period to period with equivalent customers, the loss of such sales could have an adverse effect on our business, financial condition, and results of operations. 14 We have engaged in transactions with related parties, and such transactions present possible conflicts of interest that could have an adverse effect on our business and results of operations.
In addition, we cannot assure you that any future investment in or acquisition of new businesses or technology will lead to the successful development of new or enhanced products or that any new or enhanced products, if developed, will achieve market acceptance or prove to be profitable. 7 A lack of insurance coverage could expose us to significant costs and business disruption.
In addition, we cannot assure you that any future investment in or acquisition of new businesses or technology will lead to the successful development of new or enhanced products or that any new or enhanced products, if developed, will achieve market acceptance or prove to be profitable. 19 A lack of insurance coverage could expose us to significant costs and business disruption.
Any deterioration of credit profile of our customers or any failure or delay in their settlement of our accounts receivable could put tremendous pressure on our operating cash flow, and may result in material and adverse impact on our business operations, results of operations and financial condition. 9 Environmental regulations impose substantial costs and limitations on our operations.
Any deterioration of credit profile of our customers or any failure or delay in their settlement of our accounts receivable could put tremendous pressure on our operating cash flow, and may result in material and adverse impact on our business operations, results of operations and financial condition. 21 Environmental regulations impose substantial costs and limitations on our operations.
For so long as Huadi International remains a controlled company under that definition, Huadi International are permitted to elect to rely, and will rely, on certain exemptions from corporate governance rules, including an exemption from the rule that a majority of our board of directors must be independent directors.
For so long as Huadi International remains a controlled company under that definition, Huadi International is permitted to elect to rely, and will rely, on certain exemptions from corporate governance rules, including an exemption from the rule that a majority of our board of directors must be independent directors.
Section 404 of the Sarbanes-Oxley Act of 2002, or Section 404, will require that we include a report of management on our internal control over financial reporting in our annual report on Form 20-F beginning with our annual report for the fiscal year ending September 30, 2020.
Section 404 of the Sarbanes-Oxley Act of 2002, or Section 404, will require that we include a report of management on our internal control over financial reporting in our annual report on Form 20-F beginning with our annual report for the fiscal year ended September 30, 2020.
Jueqin Wang has the sole voting and dispositive power of all the shares held by Yongqiang Maituo Limited. Collectively, Di Wang and Jueqin Wang have voting and dispositive power over 70% of the issued and outstanding shares of Huadi International. Accordingly, Huadi International is a controlled company under applicable Nasdaq listing standards.
Jueqin Wang has the sole voting and dispositive power of all the shares held by Yongqiang Maituo Limited. Collectively, Di Wang and Jueqin Wang have voting and dispositive power over 50% of the issued and outstanding shares of Huadi International. Accordingly, Huadi International is a controlled company under applicable Nasdaq listing standards.
As a result, fluctuations in exchange rates may have a material adverse effect on the price of our ordinary shares. 17 Governmental control of currency conversion may limit our ability to utilize our net revenues effectively and affect the value of your investment.
As a result, fluctuations in exchange rates may have a material adverse effect on the price of our ordinary shares. 29 Governmental control of currency conversion may limit our ability to utilize our net revenues effectively and affect the value of your investment.
If there is a decline in economic activity in China and the other markets in which we operate or a protracted slowdown in industries on which we rely for our sales, demand for our products and our revenue will likewise decrease. 2 We operate in a competitive industry.
If there is a decline in economic activity in China and the other markets in which we operate or a protracted slowdown in industries on which we rely for our sales, demand for our products and our revenue will likewise decrease. 13 We operate in a competitive industry.
All 47 patents and 10 of the trademarks have been properly registered with regulatory agencies such as the State Intellectual Property Office and Trademark Office of China’s State Administration for Industry and Commerce (“SAIC”). One trademark has been properly registered with the United States Patent and Trademark Office (“USPTO”).
All 55 patents and 10 of the trademarks have been properly registered with regulatory agencies such as the State Intellectual Property Office and Trademark Office of China’s State Administration for Industry and Commerce (“SAIC”). One trademark has been properly registered with the United States Patent and Trademark Office (“USPTO”).
As of the date of this annual report, Di Wang is deemed to beneficially own 8,336,000 ordinary shares through Yongqiang Donghai Limited, a British Virgin Islands company holding 8,336,000 shares of our ordinary shares.
As of the date of this annual report, Di Wang is deemed to beneficially own 8,336,000 of our ordinary shares through Yongqiang Donghai Limited, a British Virgin Islands company holding 8,336,000 ordinary shares of Huadi International.
Di Wang has the sole voting and dispositive power of all the shares held by Yongqiang Donghai Limited through certain entrustment agreement with the shareholders of Yongqiang Donghai Limited. Jueqin Wang is deemed to beneficially own 1,664,000 ordinary shares through Yongqiang Maituo Limited, a British Virgin Islands company holding 1,664,000 shares of Huadi International’s ordinary shares.
Di Wang has the sole voting and dispositive power of all the shares held by Yongqiang Donghai Limited through certain entrustment agreement with the shareholders of Yongqiang Donghai Limited. Jueqin Wang is deemed to beneficially own 1,664,000 of our ordinary shares through Yongqiang Maituo Limited, a British Virgin Islands company holding 1,664,000 ordinary shares of Huadi International.
As of September 30, 2024, we have 355 employees. Our PRC operating entities would also need to continue to expand, train, and manage our employees. Continued future growth will impose significant added responsibilities upon our management to identify, recruit, maintain, integrate, and motivate new employees.
As of September 30, 2025, we have 362 employees. Our PRC operating entities would also need to continue to expand, train, and manage our employees. Continued future growth will impose significant added responsibilities upon our management to identify, recruit, maintain, integrate, and motivate new employees.
Strategic investments or acquisitions will involve risks commonly encountered in business relationships, including: ● difficulties in assimilating and integrating the operations, personnel, systems, data, technologies, products and services of the acquired business; ● inability of the acquired technologies, products or businesses to achieve expected levels of revenue, profitability, productivity or other benefits; ● difficulties in retaining, training, motivating and integrating key personnel; ● diversion of management’s time and resources from our normal daily operations; ● difficulties in successfully incorporating licensed or acquired technology and rights into our products; ● difficulties in maintaining uniform standards, controls, procedures and policies within the combined organizations; ● difficulties in retaining relationships with clients, employees and suppliers of the acquired business; ● risks of entering markets in which we have limited or no prior experience; ● regulatory risks, including remaining in good standing with existing regulatory bodies or receiving any necessary pre- closing or post-closing approvals, as well as being subject to new regulators with oversight over an acquired business; ● assumption of contractual obligations that contain terms that are not beneficial to us, require us to license or waive intellectual property rights or increase our risk for liability; ● failure to successfully further develop the acquired technology; ● liability for activities of the acquired business before the acquisition, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities; ● potential disruptions to our ongoing businesses; and We may not make any investments or acquisitions, or any future investments or acquisitions may not be successful, may not benefit our business strategy, may not generate sufficient revenues to offset the associated acquisition costs or may not otherwise result in the intended benefits.
Strategic investments or acquisitions will involve risks commonly encountered in business relationships, including: ● difficulties in assimilating and integrating the operations, personnel, systems, data, technologies, products and services of the acquired business; ● inability of the acquired technologies, products or businesses to achieve expected levels of revenue, profitability, productivity or other benefits; ● difficulties in retaining, training, motivating and integrating key personnel; ● diversion of management’s time and resources from our normal daily operations; ● difficulties in successfully incorporating licensed or acquired technology and rights into our products; ● difficulties in maintaining uniform standards, controls, procedures and policies within the combined organizations; ● difficulties in retaining relationships with clients, employees and suppliers of the acquired business; ● risks of entering markets in which we have limited or no prior experience; ● regulatory risks, including remaining in good standing with existing regulatory bodies or receiving any necessary pre- closing or post-closing approvals, as well as being subject to new regulators with oversight over an acquired business; ● assumption of contractual obligations that contain terms that are not beneficial to us, require us to license or waive intellectual property rights or increase our risk for liability; ● failure to successfully further develop the acquired technology; ● liability for activities of the acquired business before the acquisition, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities; and ● potential disruptions to our ongoing businesses.
Additionally, during the fiscal years ended September 30, 2024, and 2023, we sold a total of $nil and $239,640 of piping products to Taizhou Huadi Industrial Ltd, respectively; a total of $7,343 and $nil of piping products to Taizhou Huadi Material Technology Co, Ltd, respectively; and a total of $1,661 and $nil of piping products to Shanghai Huadi Industrial Ltd, respectively.
Additionally, during the fiscal years ended September 30, 2025 and 2024, we sold a total of $nil and $7,343 of piping products to Taizhou Huadi Material Technology Co., respectively; and a total of $nil and $1,661 of piping products to Shanghai Huadi Industrial Ltd., respectively.
While China has been grown significantly over the past two decades, the growth rate may decrease due to uncertainties with respect to national structural control along with other factors. If China’s economy condition continues to slow, or even materially decline, demand for our products might be accordingly decreased.
While China has grown significantly over the past two decades, the growth rate has decreased and may continue to decrease due to uncertainties with respect to national structural control along with other factors. If China’s economy continues to slow, or even materially decline, demand for our products might also decrease accordingly.
If we elected to rely on the “controlled company” exemption, a majority of the members of our board of directors might not be independent directors and our nominating and corporate governance and compensation committees might not consist entirely of independent directors.
If we elected to rely on the “controlled company” exemption, a majority of the members of our board of directors might not be independent directors and our nomination and compensation committees might not consist entirely of independent directors.
However, should the development, manufacture and sales of construction materials products and manufacturing equipment become subject to foreign investment restrictions set forth in the Catalogue of Industries for Guiding Foreign Investment then the viability of our current corporate structure, corporate governance and business operations may be materially impacted in many aspects.
However, should the development, manufacture and sales of construction materials products and manufacturing equipment become subject to foreign investment restrictions set forth in the Negative List, then the viability of our current corporate structure, corporate governance and business operations may be materially impacted in many aspects.
Item 3. Key Information A. [RESERVED] B. CAPITALIZATION AND INDEBTEDNESS Not applicable for annual reports on Form 20-F. C. REASONS FOR THE OFFER AND USE OF PROCEEDS Not applicable for annual reports on Form 20-F. D. RISK FACTORS An investment in our ordinary shares involves a high degree of risk.
CAPITALIZATION AND INDEBTEDNESS Not applicable for annual reports on Form 20-F. C. REASONS FOR THE OFFER AND USE OF PROCEEDS Not applicable for annual reports on Form 20-F. D. RISK FACTORS An investment in our ordinary shares involves a high degree of risk.
Holders of Our Ordinary Shares - People’s Republic of China Taxation. ” However, the tax resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term “de facto management body.” As substantially all of our management members are based in China, it remains unclear how the tax residency rule will apply to our case.
See “ Item 10.E - Taxation - PRC Taxation. ” However, the tax resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term “de facto management body.” As substantially all of our management members are based in China, it remains unclear how the tax residency rule will apply to our case.
We rely on short-term borrowings for our liquidity and we may not be able to continue to obtain financing on favorable terms, if at all. Our liquidity relies significantly on short-term borrowings. As of September 30, 2024, we had $1,249,765 undue factored notes receivable with recourse, which were classified as short-term borrowings.
We rely on short-term borrowings for our liquidity and we may not be able to continue to obtain financing on favorable terms, if at all. Our liquidity relies significantly on short-term borrowings. As of September 30, 2025, we had $4,122,341 undue factored notes receivable with recourse, which were classified as short-term borrowings.
For example, during the fiscal years ended September 30, 2024 and 2023, we purchased a total of $1,832 and $679,210 of raw materials from Taizhou Huadi Industrial Ltd, respectively; and we purchased a total of $666,114 and $nil of raw materials from Taizhou Huadi Material Technology Co, Ltd, respectively.
For example, during the fiscal years ended September 30, 2025 and 2024, we purchased a total of $2,456,896 and $1,832 of raw materials from Taizhou Huadi Industrial Ltd., respectively; and we purchased a total of $nil and $666,114 of raw materials from Taizhou Huadi Material Technology Co., respectively.
We had two major customers for the fiscal years ended September 30, 2024, while no such major customers for the fiscal years ended September 30, 2023 and 2022.
We had nil and two major customers for the fiscal years ended September 30, 2025 and 2024, while no such major customers for the fiscal year ended September 30, 2023.
During fiscal years ended September 30, 2024 and 2023, we purchased a total of $1,832 and $679,210 raw materials from Taizhou Huadi Industrial Technology Co., a related party, respectively; and we purchased a total of $666,114 and $nil raw materials from Taizhou Huadi Material Technology Co., another related party, respectively.
During fiscal years ended September 30, 2025 and 2024, we purchased a total of $2,456,896 and $1,832 raw materials from Taizhou Huadi Industrial Ltd., a related party, respectively; and we purchased a total of $nil and $666,114 raw materials from Taizhou Huadi Material Technology Co., another related party, respectively.
However, there can be no assurances that the U.S. or China will not increase tariffs or impose additional tariffs in the future. 1 In addition to the proposed retaliatory tariffs, the President has also directed the U.S.
However, there can be no assurances that the U.S. or China will not increase tariffs or impose additional tariffs in the future. 12 In addition to the tariffs on Chinese imports, the President has also directed the U.S.
If we were to incur substantial losses or liabilities due to fire, explosions, floods, other natural disasters or accidents or business interruption, our results of operations could be materially and adversely affected.
The lack of insurance could leave our business inadequately protected from loss. If we were to incur substantial losses or liabilities due to fire, explosions, floods, other natural disasters or accidents or business interruption, our results of operations could be materially and adversely affected.
We rely on a combination of patent, trademark and domain name laws and non-disclosure agreements and other methods to protect our intellectual property rights. As of the date of this annual report, our PRC subsidiaries own 47 patents and 10 trademarks.
If we fail to protect our intellectual property rights, it could harm our business and competitive position. We rely on a combination of patent, trademark and domain name laws and non-disclosure agreements and other methods to protect our intellectual property rights. As of the date of this annual report, our PRC subsidiaries own 55 patents and 10 trademarks.
In response to the persistent capital outflow and the Renminbi’s depreciation against the U.S. dollar in the fourth quarter of 2016, the People’s Bank of China and the SAFE, have implemented a series of capital control measures, including stricter vetting procedures for China-based companies to remit foreign currency for overseas acquisitions, dividend payments and shareholder loan repayments.
These reserve funds and staff welfare and bonus funds are not distributable as cash dividends. 28 In response to the persistent capital outflow and the Renminbi’s depreciation against the U.S. dollar in the fourth quarter of 2016, the People’s Bank of China and the SAFE, have implemented a series of capital control measures, including stricter vetting procedures for China-based companies to remit foreign currency for overseas acquisitions, dividend payments and shareholder loan repayments.
On December 27, 2021, the National Development and Reform Commission (“NDRC”) of China and MOFCOM, jointly issued the Special Administrative Measures for Entry of Foreign Investment (Negative List) (2021 Version), or the Negative List, which became effective and replaced the previous version on January 1, 2022.
On September 6, 2024, the National Development and Reform Commission (“NDRC”) of China and MOFCOM, jointly issued the Special Administrative Measures for Entry of Foreign Investment (Negative List) (2024 Version), or the Negative List, which became effective and replaced the previous version on November 1, 2024.
At its discretion, a wholly foreign-owned enterprise may allocate a portion of its after-tax profits based on PRC accounting standards to staff welfare and bonus funds. These reserve funds and staff welfare and bonus funds are not distributable as cash dividends.
At its discretion, a wholly foreign-owned enterprise may allocate a portion of its after-tax profits based on PRC accounting standards to staff welfare and bonus funds.
As of September 30, 2024 and 2023, we had accounts receivable net of allowance of $18,741,984 and $22,630,275, respectively. Our customers include various levels of government and state-owned entities. Due to the nature of the customers and the practice of the industry, the Company generally allows credit period of 6 months to its customers.
As of September 30, 2025 and 2024, we had accounts receivable net of allowance of $24,773,841 and $18,713,342, respectively. Our customers include various levels of government and state-owned entities. Due to the nature of the customers and the practice of the industry, the Company generally allows credit period of 6 months to its customers.
Holders of Our Ordinary Shares - People’s Republic of China Taxation. ” As of September 30, 2023 and 2022, we did not record any withholding tax on the retained earnings of our subsidiaries in the PRC as we intended to re-invest all earnings generated from our PRC subsidiaries for the operation and expansion of our business in China, and we intend to continue this practice in the foreseeable future.
See “ Item 10.E - Taxation - PRC Taxation. ” As of September 30, 2025 and 2024, we did not record any withholding tax on the retained earnings of our subsidiaries in the PRC as we intended to re-invest all earnings generated from our PRC subsidiaries for the operation and expansion of our business in China, and we intend to continue this practice in the foreseeable future.
All of our revenues and expenditures are denominated in RMB, whereas our reporting currency is the U.S. dollar. As a result, fluctuations in the exchange rate between the U.S. dollar and RMB will affect the relative purchasing power in RMB terms of our U.S. dollar assets and the proceeds from our initial public offering.
As a result, fluctuations in the exchange rate between the U.S. dollar and RMB will affect the relative purchasing power in RMB terms of our U.S. dollar assets and the proceeds from our initial public offering. Our reporting currency is the U.S. dollar while the functional currency for our PRC subsidiaries is RMB.
There are also other conditions for enjoying the reduced withholding tax rate according to other relevant tax rules and regulations. See “ Material Tax Consequences Applicable to U.S.
There are also other conditions for enjoying the reduced withholding tax rate according to other relevant tax rules and regulations.
Any limitation on the ability of our PRC subsidiaries to pay dividends or make other distributions to us could materially and adversely limit Huadi International’s ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business. 16 Fluctuations in exchange rates could have a material adverse effect on our results of operations and the price of our ordinary shares.
Any limitation on the ability of our PRC subsidiaries to pay dividends or make other distributions to us could materially and adversely limit Huadi International’s ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.
Our reporting currency is the U.S. dollar while the functional currency for our PRC subsidiaries is RMB. Gains and losses from the re-measurement of assets and liabilities that are receivable or payable in RMB are included in our consolidated statements of operations.
Gains and losses from the re-measurement of assets and liabilities that are receivable or payable in RMB are included in our consolidated statements of operations.
We believe none of our entities outside of China is a PRC resident enterprise for PRC tax purposes. See “ Material Tax Consequences Applicable to U.S.
We believe none of our entities outside of China is a PRC resident enterprise for PRC tax purposes.
With regard to our company in particular, the Section 232 tariff had a limited effect on our U.S. sales, because the tariffs on our exports to the United States had already reached 25% before 2018. There was no additional tariff on our US exports in respect of the Section 232 tariff or the US-China trade war.
With regard to our company in particular, the Section 232 tariff had a limited effect on our U.S. sales, because the tariffs on our exports to the United States had already reached 25% before 2018 and 70 % before June 2025.
It is likely that our future marketing efforts will require us to incur significant additional expenses. These efforts may not result in increased revenues in the immediate future or at all and, even if they do, any increases in revenues may not offset the expenses incurred.
These efforts may not result in increased revenues in the immediate future or at all and, even if they do, any increases in revenues may not offset the expenses incurred.
The changes and developments taking place in our industry may also require us to re-evaluate our business model and adopt significant changes to our long-term strategies and business plan. Our failure to innovate and adapt to these changes would have a material adverse effect on our business, financial condition and results of operations.
The changes and developments taking place in our industry may also require us to re-evaluate our business model and adopt significant changes to our long-term strategies and business plan.
Under Nasdaq listing Rule 5605(a)(2), “Family Member” means a person’s spouse, parents, children and siblings, whether by blood, marriage or adoption, or anyone residing in such person’s home. Our Chairman, Di Wang, and our Director, Jueqin Wang, are father and son.
Under Nasdaq listing Rule 5605(a)(2), “family member” means a person’s spouse, parents, children, siblings, mothers and fathers-in-law, sons and daughters-in-law, brothers and sisters-in-law, and anyone (other than domestic employees) who shares such person’s home. Our Chairman, Di Wang, and our Director, Jueqin Wang, are father and son.
If any dispute arises between our current or former officers and us, we may have to incur substantial costs and expenses to enforce such agreements in China or we may be unable to enforce them at all.
If any dispute arises between our current or former officers and us, we may have to incur substantial costs and expenses to enforce such agreements in China or we may be unable to enforce them at all. 16 Our business substantially dependent upon our key research and development personnel who possess skills that are valuable in our industry, and we may have to actively compete for their services.
If adequate additional financing is not available on reasonable terms, we may not be able to undertake our expansion plan or purchase additional equipment for our operations, and we would have to modify our business plans accordingly.
If adequate additional financing is not available on reasonable terms, we may not be able to undertake our expansion plan or purchase additional equipment for our operations, and we would have to modify our business plans accordingly. 15 The rapid expansion could significantly strain our resources, management, and operational infrastructure, which could impair our ability to meet increased demand for our PRC operating entities’ products and hurt our business results.
Based on a set of Q&A published on the NDRC’s official website, a NDRC official indicated that after a PRC company submits its application for overseas listing to the CSRC and where matters relating to prohibited businesses under the Negative List are implicated, the CSRC will consult the regulatory authorities having jurisdiction over the relevant industries and fields. 15 The development, manufacture and sales of construction materials products and manufacturing equipment are not currently subject to foreign investment restrictions set forth in the Catalogue of Industries for Guiding Foreign Investment (Amended in 2017), or the Catalogue, issued by the National Development and Reform Commission and the Ministry of Commerce on June 28, 2017 and became effective on July 28, 2017.
Based on a set of Q&A published on the NDRC’s official website, a NDRC official indicated that after a PRC company submits its application for overseas listing to the CSRC and where matters relating to prohibited businesses under the Negative List are implicated, the CSRC will consult the regulatory authorities having jurisdiction over the relevant industries and fields.
The US government imposed a 25% tariff on steel imports and a 10% tariff on aluminum imports in March 2018 under “Section 232” from nearly all foreign countries. In addition to the Section 232 tariff, the US government has imposed hefty anti-dumping and subsidy countervailing duties on a wide range of steel imports from China.
In June 2025, the US government further increased the tariff rate for both steel and aluminum imports to 50% effective from June 4, 2025. In addition to the Section 232 tariff, the US government has imposed hefty anti-dumping and subsidy countervailing duties on a wide range of steel imports from China.
The Draft FIL embodies an expected Chinese regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments.
On March 15, 2019, the National People’s Congress approved the Foreign Investment Law, which came into effect on January 1, 2020. The Foreign Investment Law embodies a Chinese regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments.
However, our customers sometimes still require additional time for payment, depending on their internal cash flow budget or various levels of approvals. Due to uncertainty of the timing of collection, we established allowance for doubtful account based on individual account analysis and historical collection trends.
However, our customers sometimes still require additional time for payment, depending on their internal cash flow budget or various levels of approvals.
Once an entity is determined to be an FIE, it will be subject to the foreign investment restrictions or prohibitions set forth in a Negative List to be separately issued by the State Council later.
Once an entity is determined to be a FIE, it will be subject to the foreign investment restrictions or prohibitions set forth in a negative list to be proposed by the competent investment department of the State Council in conjunction with the competent commerce department of the State Council and other relevant departments, and be reported to the State Council for promulgation, or be promulgated by the competent investment department or competent commerce department of the State Council after being reported to the State Council for approval.
Successful promotion of our brand and our ability to attract clients depend largely on the effectiveness of our marketing efforts and the success of the channels we use to promote our products. Currently, we promote our brand through print media advertising, video advertising, billboard advertising and internet promotions.
We believe that developing and maintaining awareness of our brand effectively is critical to attracting new and retaining existing clients. Successful promotion of our brand and our ability to attract clients depend largely on the effectiveness of our marketing efforts and the success of the channels we use to promote our products.
Intense competition for these personnel could cause our compensation costs to increase, which could have a material adverse effect on our results of operations and financial performance. Our future success and ability to grow our business will depend in part on the continued service of these individuals and our ability to identify, hire and retain additional qualified personnel.
Our PRC operating entities compete for qualified personnel with other steel pipes products manufacturing companies. Intense competition for these personnel could cause our compensation costs to increase, which could have a material adverse effect on our results of operations and financial performance.
The trade policy initiatives announced by the United States administration against China may adversely affect our business.
See “ Risk Factors- Risks Related to Our Business and Industry- The trade policy initiatives announced by the United States administration against China may adversely affect our business ” on page 12. ● Our business is affected by global economic and political conditions.
Save as the Deposit Protection Scheme mentioned above, neither Huadi International nor its subsidiaries maintain any insurance to cover other assets, property and potential liability of our business. The lack of insurance could leave our business inadequately protected from loss.
Such Deposit Insurance Regulation would not provide complete protection for the Company’s accounts, as its aggregate deposits are higher than the compensation limit, which is RMB500,000 for one bank ($70,000). Save for the Deposit Insurance Regulation mentioned above, neither Huadi International nor its subsidiaries maintain any insurance to cover other assets, property and potential liability of our business.
However, you should not expect that our sales of products would continue to offset the potential increase in the pricing of steel products due to any increased tariffs. As a result of increasing costs, our potentially increased pricing could have an adverse effect on our operations and financial conditions.
There was no additional tariff on our US exports in respect of the Section 232 tariff or the US-China trade war. However, you should not expect that our sales of products would continue to offset the potential increase in the pricing of steel products due to any increased tariffs.
If our PRC operating entities fail to promote and maintain our brand in an effective and cost-efficient way, our business and results of operations may be harmed. We believe that developing and maintaining awareness of our brand effectively is critical to attracting new and retaining existing clients.
Our failure to innovate and adapt to these changes would have a material adverse effect on our business, financial condition and results of operations. 17 If our PRC operating entities fail to promote and maintain our brand in an effective and cost-efficient way, our business and results of operations may be harmed.
If we are unable to attract and retain qualified employees, we may not be able to meet our business and financial goals. If we fail to protect our intellectual property rights, it could harm our business and competitive position.
Our future success and ability to grow our business will depend in part on the continued service of these individuals and our ability to identify, hire and retain additional qualified personnel. If we are unable to attract and retain qualified employees, we may not be able to meet our business and financial goals.
The Draft FIL, if enacted as proposed, will not materially impact the viability of our current corporate structure, corporate governance and business operations in many aspects.
The development, manufacture and sales of construction materials products and manufacturing equipment are not currently subject to foreign investment restrictions set forth in the Negative List. Currently, the Foreign Investment Law does not materially impact the viability of our current corporate structure, corporate governance and business operations in many aspects.
The Company maintains majority of its bank accounts in the PRC as of September 30, 2024. Cash balances in bank accounts in PRC are protected under Deposit Protection Scheme in accordance with the Deposit Protection Scheme Ordinance. The maximum protection is up to RMB500,000 per depositor per Scheme member, including both principal and interest.
The Company maintains majority of its bank accounts in the PRC as of September 30, 2025. Cash balances in bank accounts in PRC are protected under Deposit Insurance Regulation, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them.
Removed
The rapid expansion could significantly strain our resources, management, and operational infrastructure, which could impair our ability to meet increased demand for our PRC operating entities’ products and hurt our business results.
Added
Item 3. Key Information Overview Our Corporate Structure and Operations in China Huadi International is not a Chinese operating company but a Cayman Islands incorporated holding company with no material operations of its own, conducting business through our subsidiaries’ operation in China. Huadi International does not conduct our business through variable interest entity (“VIE”) structure.
Removed
Our business substantially dependent upon our key research and development personnel who possess skills that are valuable in our industry, and we may have to actively compete for their services. Our PRC operating entities compete for qualified personnel with other steel pipes products manufacturing companies.
Added
For more details of risks related to our corporate structure, see “ Risk Factors- Risks Related to Our Corporate Structure and Ordinary Shares” beginning on page 10. Huadi Songyang, Wenzhou Hongshun, and Huadi Steel are subject to certain legal and operational risks associated with being based in China and having a majority of our operations in China.

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Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeHuadi Songyang is a wholly owned subsidiary of Hong Kong Beach Limited. Huadi Songyang was established to expand the product line of industrial steel pipe and tube products manufacture and distribution. For information regarding our principal capital expenditures, see “
Biggest changeHuadi Songyang is a wholly owned subsidiary of Hong Kong Beach Limited. Huadi Songyang was established to expand the product line of industrial steel pipe and tube products manufacture and distribution. Factory in Huadi Songyang is still in construction and expected to completed and in use in the year ended September 30, 2026.
Huadi International was incorporated on September 27, 2018 under the laws of Cayman Islands. On the date of its incorporation, one (1) ordinary share was issued to Mapcal Limited. On the same day, Mapcal Limited transferred one (1) odinary share to Mr. Shek Kin Pong for a consideration of $1.00. ● Incorporations of the intermediate holding entities.
Huadi International was incorporated on September 27, 2018 under the laws of Cayman Islands. On the date of its incorporation, one (1) ordinary share was issued to Mapcal Limited. On the same day, Mapcal Limited transferred one (1) ordinary share to Mr. Shek Kin Pong for a consideration of $1.00. ● Incorporations of the intermediate holding entities.
Prior to the reorganizations as described above, we historically conducted our business through Huadi Steel, a company incorporated on November 12, 1998 under the laws of PRC. In August 2019, Wenzhou Hongshun acquired 99% shares of Huadi Steel from the PRC Shareholders, and Huadi Steel became 99% owned by Wenzhou Hongshun.
Prior to the reorganizations as described above, we historically conducted our business through Huadi Steel, a company incorporated on November 12, 1998 under the laws of PRC. In August 2019, Wenzhou Hongshun acquired 99% shares of Huadi Steel from the PRC Shareholders (as defined below), and Huadi Steel became 99% owned by Wenzhou Hongshun.
Our principal executive office is located No. 1688 Tianzhong Street, Longwan District, Wenzhou, Zhejiang Province, People’s Republic of China 325025. The telephone number of our principal executive offices is +86 057786598888. Our registered agent in Cayman Islands is Harneys Fiduciary (Cayman) Limited.
Our principal executive office is located at No. 1688 Tianzhong Street, Longwan District, Wenzhou, Zhejiang Province, People’s Republic of China 325025. The telephone number of our principal executive office is +86 057786598888. Our registered agent in Cayman Islands is Harneys Fiduciary (Cayman) Limited.
As of the date of this annual report, Huadi Steel engages in the manufacture and distribution of industrial steel pipe and tube products. 28 Huadi International listed its ordinary shares on the Nasdaq Capital Market under the symbol “HUDI” on January 22, 2021 and completed an initial public offering of 3,125,000 ordinary shares on January 26, 2021, raising approximately $22 million in net proceeds after deducting underwriting commissions and the offering expenses payable by us.
As of the date of this annual report, Huadi Steel engages in the manufacturing and distribution of industrial steel pipe and tube products. 40 Huadi International listed its ordinary shares on the Nasdaq Capital Market under the symbol “HUDI” on January 22, 2021 and completed an initial public offering of 3,125,000 ordinary shares on January 26, 2021, raising approximately $22 million in net proceeds after deducting underwriting commissions and the offering expenses payable by us.
Item 4. Information on the Company A. History and Development of the Company Huadi International was incorporated in the Cayman Islands, with limited liabilities on September 27, 2018. Huadi International does not have operations, and it conducts business through its subsidiaries in China.
Item 4. Information on the Company A. History and Development of the Company Huadi International was incorporated in the Cayman Islands with limited liability on September 27, 2018. Huadi International does not have any operations, and it conducts business through its subsidiaries in China.
Added
For information regarding our principal capital expenditures, see “

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

64 edited+17 added−110 removed139 unchanged
Biggest changePRC 7 Huadi Steel 3371731 March 13, 2034 Steel pipe; steel plate; metal valve (non-machine parts); highway anti-collision metal fence; steel wire; metal ring; hardware; metal flange; metal pipe joint; ordinary metal buckle PRC 8 Huadi Steel 6110349 December 13, 2029 Keywords steel template; wire metal pole; steel wire; gasket (filler); metal head; metal wire; metal mooring buoy; metal ore; metal tablet; metal coin box; PRC 9 Huadi Steel 33766210 December 27, 2029 Steel plate; steel pipe; movable metal ladder for passenger boarding; metal track; steel wire; metal joint for non electrical cable; metal gasket; metal hinge; hardware; metal lock (non electric); electronic safe; metal flange; metal packaging container; metal signboard; metal cage; metal welding wire; metal mooring buoy; metal identification bracelet; metal wind vane; Keywords metal buttress of tree or plant; animal trap; common metal art; chrome ore; metal monument; PRC 10 Huadi Steel 1328323 December 27, 2034 STAINLESS STEEL TUBE, STEEL TUBE, STEEL PLATE, METAL VALVE, (NON-MACHINERY PARTS) HIGHWAY CRASHWORTHY METAL RAILING, STEEL WIRE, FERRULE, HARDWARE, TOOL METAL FLANGES, METAL PIPING JOINT, COMMON METAL BUTTON, ALL IN INTERNATIONAL CLASS 6.
Biggest changeRegistrant Trademark Registration Number Valid Through Application Area Jurisdiction of Registration 9 Huadi Steel 33766210 December 27, 2029 Steel plate; steel pipe; movable metal ladder for passenger boarding; metal track; steel wire; metal joint for non electrical cable; metal gasket; metal hinge; hardware; metal lock (non electric); electronic safe; metal flange; metal packaging container; metal signboard; metal cage; metal welding wire; metal mooring buoy; metal identification bracelet; metal wind vane; Keywords metal buttress of tree or plant; animal trap; common metal art; chrome ore; metal monument; PRC 10 Huadi Steel 76959663 October 27, 2034 Faucets, pipes (sanitary equipment components), hand dryers for bathrooms, automatic watering devices, water pipe faucets, water pipe equipment, floor drains, bathroom fixtures, pipe fittings for plumbing fixtures PRC 11 Huadi Steel 1328323 December 27, 2034 STAINLESS STEEL TUBE, STEEL TUBE, STEEL PLATE, METAL VALVE, (NON-MACHINERY PARTS) HIGHWAY CRASHWORTHY METAL RAILING, STEEL WIRE, FERRULE, HARDWARE, TOOL METAL FLANGES, METAL PIPING JOINT, COMMON METAL BUTTON, ALL IN INTERNATIONAL CLASS 6.
Our Steel Pipe and Tube Customers China For the Chinese market, we supplied a significant portion of our products to market sectors of oil and gas, electrical energy, pharmaceutical, and automotive, which are generally publicly owned entities. We also supply to other industries, including agriculture, chemistry, and construction, which are generally privately-owned entities.
Our Steel Pipe and Tube Customers China For the Chinese market, we supplied a significant portion of our products to the oil and gas, electrical energy, pharmaceutical, and automotive market sectors, which are generally publicly owned entities. We also supply to other industries, including agriculture, chemistry, and construction, which are generally privately-owned entities.
The CAC Revised Measures empowers the cybersecurity review office to initiate a cybersecurity review when they believe any particular data processing activities “affect or may affect national security.” In addition, on November 14, 2021, the CAC promulgated the Regulations on the Administration of Cyber Data Security (Draft for Comments) (the “Draft CAC Regulations”), and according to the Draft CAC Regulations, any data processors shall, in accordance with relevant state provisions, apply for a cybersecurity review when carrying out, among other things, “other data processing activities that affect or may affect national security.” As confirmed by our PRC counsel, Zhejiang Dongou Law Firm, we are not subject to cybersecurity review with the CAC in accordance with the CAC Revised Measures, because (i) we are not in possession of or otherwise holding personal information of over one million users and it is also very unlikely that it will reach such threshold in the near future; and (ii) as of the date of this annual report, we have not received any notice or determination from applicable PRC governmental authorities identifying our PRC operating entities as critical information infrastructure operators or requiring our PRC operating entities to go through cybersecurity review or network data security review by the CAC. 42 On February 17, 2023, the CSRC promulgated the Trial Measures of, and the Overseas Listings Rules, which has become effective on March 31, 2023.
The CAC Revised Measures empowers the cybersecurity review office to initiate a cybersecurity review when they believe any particular data processing activities “affect or may affect national security.” In addition, on November 14, 2021, the CAC promulgated the Regulations on the Administration of Cyber Data Security (Draft for Comments) (the “Draft CAC Regulations”), and according to the Draft CAC Regulations, any data processors shall, in accordance with relevant state provisions, apply for a cybersecurity review when carrying out, among other things, “other data processing activities that affect or may affect national security.” As confirmed by our PRC counsel, Zhejiang Dongou Law Firm, we are not subject to cybersecurity review with the CAC in accordance with the CAC Revised Measures, because (i) we are not in possession of or otherwise holding personal information of over one million users and it is also very unlikely that it will reach such threshold in the near future; and (ii) as of the date of this annual report, we have not received any notice or determination from applicable PRC governmental authorities identifying our PRC operating entities as critical information infrastructure operators or requiring our PRC operating entities to go through cybersecurity review or network data security review by the CAC. 54 On February 17, 2023, the CSRC promulgated the Trial Measures of, and the Overseas Listings Rules, which has become effective on March 31, 2023.
Violation of the Product Quality Law may result in fines and the violator will be ordered to suspend its operations, or its business license will be revoked and criminal liability may be incurred if the case is serious enough to constitute a crime. 43 Regulation on Foreign Exchange Control and Registration of Offshore Investment by PRC Residents See “ Item 10.
Violation of the Product Quality Law may result in fines and the violator will be ordered to suspend its operations, or its business license will be revoked and criminal liability may be incurred if the case is serious enough to constitute a crime. Regulation on Foreign Exchange Control and Registration of Offshore Investment by PRC Residents See “ Item 10.
Inida 38 Patent We rely on our technology patents to protect our domestic business interests and ensure our competitive position in our industry. As of the date of this annual report, the issued patents we hold are as follows: No. Patent Name Owner Category Patent Code. Authorization Date 1. Stainless Steel Pipe Huadi Steel Utility Patent 201821427886.8 4/16/2019 2.
Inida Patent We rely on our technology patents to protect our domestic business interests and ensure our competitive position in our industry. As of the date of this annual report, the issued patents we hold are as follows: No. Patent Name Owner Category Patent Code. Authorization Date 1. Stainless Steel Pipe Huadi Steel Utility Patent 201821427886.8 4/16/2019 2.
See “Risk Factors—Risks Related to Our Business and Industry — Failure to make adequate contributions to various employee benefit plans as required by PRC regulations may subject our PRC operating entities to penalties.” 49 C. Corporate Structure Below is a chart illustrating our current corporate structure as of the date of this annual report: D.
See “Risk Factors-Risks Related to Our Business and Industry - Failure to make adequate contributions to various employee benefit plans as required by PRC regulations may subject our PRC operating entities to penalties.” C. Corporate Structure Below is a chart illustrating our current corporate structure as of the date of this annual report: D.
On April 6, 2023, Huadi Steel filed a complaint with the Tuoketuo District People’s Court in Hohhot, Ineer Mongolia Province, demanding that Inner Mongolia Jiutai New Material Co., Ltd (“Jiutai”) pay for purchases of goods from Huadi Steel of RMB 980,543 and bear the litigation costs of the case.
On April 6, 2023, Huadi Steel filed a complaint with the Tuoketuo District People’s Court in Hohhot, Ineer Mongolia Province, demanding that Inner Mongolia Jiutai New Material Co., Ltd (“Jiutai”) pay for purchases of goods from Huadi Steel in the amount of RMB 980,543 and bear the litigation costs of the case.
Item 5. Operating and Financial Review and Prospects - B. Liquidity and Capital Resources - Capital Expenditures. ” B. Business Overview We are a provider of industrial stainless steel piping products and production services with extensive distribution facilities and networks for over twenty (20) provinces in China.
Item 5. Operating and Financial Review and Prospects - B. Liquidity and Capital Resources - Capital Expenditures. ” B. Business Overview We are a provider of industrial stainless steel piping products and production services with extensive distribution facilities and networks in over twenty (20) provinces in China.
This certificate is valid until June 25, 2021. ● On January 30, 2015, Zhejiang Provincial Bureau of Administration for Industry and Commerce issued a certificate of “Zhejiang Famous Traders” to Huadi Steel and recognized the “Huadi (Steel)” as a famous trade name in Zhejiang Province.
This certificate is valid until June 25, 2021. 47 ● On January 30, 2015, Zhejiang Provincial Bureau of Administration for Industry and Commerce issued a certificate of “Zhejiang Famous Traders” to Huadi Steel and recognized the “Huadi (Steel)” as a famous trade name in Zhejiang Province.
In the event that the foreign investor fails to make corrections within the specified time limit, the provisions above regarding the circumstance that a foreign investor invests in the prohibited field or industry shall apply. 45 Pursuant to the Foreign Investment Law and the Implementing Rules, and the Information Reporting Measures for Foreign Investment jointly promulgated by the MOFCOM and the SAMR, which took effect on January 1, 2020, a foreign investment information reporting system shall be established and foreign investors or foreign-invested enterprises shall report investment information to competent commerce departments of the government through the enterprise registration system and the enterprise credit information publicity system, and the administration for market regulation shall forward the above investment information to the competent commerce departments in a timely manner.
In the event that the foreign investor fails to make corrections within the specified time limit, the provisions above regarding the circumstance that a foreign investor invests in the prohibited field or industry shall apply. 57 Pursuant to the Foreign Investment Law and the Implementing Rules, and the Information Reporting Measures for Foreign Investment jointly promulgated by the MOFCOM and the SAMR, which took effect on January 1, 2020, a foreign investment information reporting system shall be established and foreign investors or foreign-invested enterprises shall report investment information to competent commerce departments of the government through the enterprise registration system and the enterprise credit information publicity system, and the administration for market regulation shall forward the above investment information to the competent commerce departments in a timely manner.
Any violation of Circular 142 may result in severe penalties, including substantial fines. In November 2012, SAFE promulgated the Circular of Further Improving and Adjusting Foreign Exchange Administration Policies on Foreign Direct Investment , which substantially amends and simplifies the current foreign exchange procedure.
Any violation of Circular 142 may result in severe penalties, including substantial fines. 58 In November 2012, SAFE promulgated the Circular of Further Improving and Adjusting Foreign Exchange Administration Policies on Foreign Direct Investment , which substantially amends and simplifies the current foreign exchange procedure.
As of the date of this annual report, our granted land use rights for our properties as follows: Location Type of Right Area Usage Period of Usage Room 602, Building 2, Longlian Building, No.167 Luodong North Street, Yongzhong Street, Longwan District land use right/property (structure)ownership Land use right area 46.9 m 2 /property area 599.34 m 2 Commercial and financial land/office space The right to use land ends on November 22, 2051 Room 702, Building 2, Longlian Building, No.167 Luodong North Street, Yongzhong Street, Longwan District land use right/property (structure)ownership Land use right area 46.9 m 2 /property area 599.34 m 2 Commercial and financial land/office space The right to use land ends on November 22, 2051 Room 701, Building 2, Longlian Building, No.167 Luodong North Street, Yongzhong Street, Longwan District land use right/property (structure)ownership Land use right area 46.9 m 2 /property area 599.34 m 2 Commercial and financial land/office space The right to use land ends on November 22, 2051 Room 601, Building 2, Longlian Building, No.167 Luodong North Street, Yongzhong Street, Longwan District land use right/property (structure)ownership Land use right area 46.95 m 2 /property area 599.97 m 2 Commercial and financial land/office space The right to use land ends on November 22, 2051 Location Type (Usage) Area Termination date No.1688 Tianzhong Road, Yongzhong Street, Longwan District Industrial land 24,433.83m 2 September 29, 2055 Yongqiang High-tech Industrial Park Industrial land 28,536.23m 2 December 13, 2051 No. 213 Haibin Street, Sanan Village, Haibin Street, Longwan District Industrial land 5,350.66m 2 April 6, 2047 37 Intellectual Property Trademark As of the date of this annual report, we have the right to use the following trademarks: No.
As of the date of this annual report, our granted land use rights for our properties as follows: Location Type of Right Area Usage Period of Usage Room 602, Building 2, Longlian Building, No.167 Luodong North Street, Yongzhong Street, Longwan District land use right/property (structure)ownership Land use right area 46.9 m 2 /property area 599.34 m 2 Commercial and financial land/office space The right to use land ends on November 22, 2051 Room 702, Building 2, Longlian Building, No.167 Luodong North Street, Yongzhong Street, Longwan District land use right/property (structure)ownership Land use right area 46.9 m 2 /property area 599.34 m 2 Commercial and financial land/office space The right to use land ends on November 22, 2051 Room 701, Building 2, Longlian Building, No.167 Luodong North Street, Yongzhong Street, Longwan District land use right/property (structure)ownership Land use right area 46.9 m 2 /property area 599.34 m 2 Commercial and financial land/office space The right to use land ends on November 22, 2051 Room 601, Building 2, Longlian Building, No.167 Luodong North Street, Yongzhong Street, Longwan District land use right/property (structure)ownership Land use right area 46.95 m 2 /property area 5 99.97 m 2 Commercial and financial land/office space The right to use land ends on November 22, 2051 Location Type (Usage) Area Termination date No.1688 Tianzhong Road, Yongzhong Street, Longwan District Industrial land 24,433.83m 2 September 29, 2055 Yongqiang High-tech Industrial Park Industrial land 28,536.23m 2 December 13, 2051 No. 213 Haibin Street, Sanan Village, Haibin Street, Longwan District Industrial land 5,350.66m 2 April 6, 2047 49 Intellectual Property Trademark As of the date of this annual report, we have the right to use the following trademarks: No.
The product is manufactured by drawing a steel billet over a mandrel through a precision ground die, creating a tube with uniform grain structure, hardness, and a high degree of dimensional accuracy. 30 Unlike welded pipe, CDS pipe creates a seamless connection and is ideal for more stressful applications requiring higher quality, increased mechanical properties, uniformity, strength, and soundness.
The product is manufactured by drawing a steel billet over a mandrel through a precision ground die, creating a tube with uniform grain structure, hardness, and a high degree of dimensional accuracy. 42 Unlike welded pipe, CDS pipe creates a seamless connection and is ideal for more stressful applications requiring higher quality, increased mechanical properties, uniformity, strength, and soundness.
Besides, revenue in the summer months is relatively lower than in other periods throughout the year, as purchase orders and production level fell due to high temperature. 31 Our Suppliers and Raw Material Input Our primary raw material input is stainless steel billet. There are over 150 grades of stainless steel, of which 15 are most commonly used.
Besides, revenue in the summer months is relatively lower than in other periods throughout the year, as purchase orders and production level fell due to high temperature. 43 Our Suppliers and Raw Material Input Our primary raw material input is stainless steel billet. There are over 150 grades of stainless steel, of which 15 are most commonly used.
Our management team and senior management intend to remain with us in the capacity of officers and/or directors, which will provide helpful continuity in advancing our strategic and growth goals. 34 Award-Winning Products and Operation We have received numerous nationally recognized industry awards as well and province recognized awards.
Our management team and senior management intend to remain with us in the capacity of officers and/or directors, which will provide helpful continuity in advancing our strategic and growth goals. 46 Award-Winning Products and Operation We have received numerous nationally recognized industry awards as well and province recognized awards.
Ours products are widely applied in the power generating systems which require high quality and resistance against corrosion and pressure as the consequence for any leakage could be severe. China has been the largest market over the past several years for the electric energy pipe section.
Our products are widely applied in power generating systems which require high quality and resistance against corrosion and pressure as the consequence for any leakage could be severe. China has been our largest market over the past several years for the electric energy pipe section.
Utility Models are also sometimes called “Utility Patents” or “Petty Patents” in other countries. Utility patents are protected under PRC laws for a term of 10 years. 40 Domain As of the date of this annual report, we have the following domain registrations issued in the PRC. No.
Utility Models are also sometimes called “Utility Patents” or “Petty Patents” in other countries. Utility patents are protected under PRC laws for a term of 10 years. 52 Domain As of the date of this annual report, we have the following domain registrations issued in the PRC. No.
Automotive We manufacture and supply pipes for hydraulic mechanism components in automotive such as brake systems, steering columns and axles.
Automotive We manufacture and supply pipes for hydraulic mechanism components in automotives such as brake systems, steering columns and axles.
The Implementing Rules introduce a see-through principle and further provide that foreign-invested enterprises that invest in the PRC shall also be governed by the Foreign Investment Law and the Implementing Rules. 44 The Foreign Investment Law and the Implementing Rules provide that a system of pre-entry national treatment and negative list shall be applied for the administration of foreign investment.
The Implementing Rules introduce a see-through principle and further provide that foreign-invested enterprises that invest in the PRC shall also be governed by the Foreign Investment Law and the Implementing Rules. 56 The Foreign Investment Law and the Implementing Rules provide that a system of pre-entry national treatment and negative list shall be applied for the administration of foreign investment.
We also sell a significant portion to automotive manufacturers for oil and hydraulic piping products used in engine and braking systems. India Our major customer in India is a leading power company whom we have partnered with for more than 10 years. We primarily supply CDS pipe made of various stainless steel materials for applications in thermal power generating systems.
We also sell a significant portion to automotive manufacturers for oil and hydraulic piping products used in engine and braking systems. India Our major customer in India is a leading power company with whom we have partnered with for over 10 years. We primarily supply CDS pipe made of various stainless steel materials for applications in thermal power generating systems.
Steel pipe with fasteners Huadi Steel Utility Patent 201922057948.1 7/17/2020 21. Seamless steel pipe Huadi Steel Utility Patent 201922059650.4 7/17/2020 22. Steel pipe Huadi Steel Utility Patent 201922059702.8 7/17/2020 23. Seamless steel pipe Huadi Steel Utility Patent 201922057670.8 9/15/2020 39 No. Patent Name Owner Category Patent Code. Authorization Date 24.
Steel pipe with fasteners Huadi Steel Utility Patent 201922057948.1 7/17/2020 21. Seamless steel pipe Huadi Steel Utility Patent 201922059650.4 7/17/2020 22. Steel pipe Huadi Steel Utility Patent 201922059702.8 7/17/2020 23. Seamless steel pipe Huadi Steel Utility Patent 201922057670.8 9/15/2020 51 No. Patent Name Owner Category Patent Code. Authorization Date 24.
The certificate was renewed on December 24, 2022 and valid for another 3 years. ● In January 2019, Zhejiang Provincial Department of Commerce awarded Huadi Steel Zhejiang export brand, valid from 2019 to 2021. ● On June 26, 2020, the China Association of Manufacturing Enterprises and the China Industrials Information Statistics Association issued the “200 Best Benefits for Chinese Manufacturing Enterprises” Certificate, proving that Huadi Steel was rated as “200 Best Benefits for Chinese Manufacturing Enterprises in 2020” by the China Association of Manufacturing Enterprises, the China Industrials Information Statistics Association and Focus China.com, ranking 200th.
The certificate was renewed on December 29, 2025 and valid for another 3 years. ● In January 2019, Zhejiang Provincial Department of Commerce awarded Huadi Steel Zhejiang export brand, valid from 2019 to 2021. ● On June 26, 2020, the China Association of Manufacturing Enterprises and the China Industrials Information Statistics Association issued the “200 Best Benefits for Chinese Manufacturing Enterprises” Certificate, proving that Huadi Steel was rated as “200 Best Benefits for Chinese Manufacturing Enterprises in 2020” by the China Association of Manufacturing Enterprises, the China Industrials Information Statistics Association and Focus China.com, ranking 200th.
CRRC, one of the world’s largest suppliers of rail transit equipment, is our biggest customer for this market section for piping component used in fluid conveyance and hydraulic mechanical systems. Other Industrial Applications Our other industrial applications primarily consist of product applications in pharmaceutical, medical, chemical and food industries.
CRRC, one of the world’s largest suppliers of rail transit equipment, is our biggest customer for the market section of piping components used in fluid conveyance and hydraulic mechanical systems. Other Industrial Applications Our other industrial applications primarily consist of product applications in pharmaceutical, medical, chemical and food industries.
Our major customers consist of the China National Petroleum Corporation and Sinopec, one of the world’s largest oil and gas companies and CRRC, one of the world’s largest suppliers of rail transit equipment. United States We primarily sell to the US through our dealers for engineering and pharmaceutical equipment piping products.
Our major customers consist of the China National Petroleum Corporation and Sinopec, one of the world’s largest oil and gas companies and CRRC, one of the world’s largest suppliers of rail transit equipment. United States We primarily sell our engineering and pharmaceutical equipment piping products to the United States through our network of dealers.
The following tables present revenues by category of activity and geographic areas for the years ended September 30, 2024, 2023, and 2022.
The following tables present revenues by category of activity and geographic areas for the years ended September 30, 2025, 2024, and 2023.
The Company had no significant customer during the year ended September 30, 2023. The Company had no significant customer during the year ended September 30, 2023. There was one customer accounted for a significant portion of total accounts receivable for the year ended September 30, 2023, which combined accounted for 20.95% of the Company’s total accounts receivable.
The Company had no significant customer during the year ended September 30, 2023. The Company had no significant customer during the year ended September 30, 2023. There was one customer accounted for a significant portion of total accounts receivable for the year ended September 30, 2023, which combined accounted for 22.00% of the Company’s total accounts receivable.
This certificate is valid until July 2025. ● In January 2023, Zhejiang Provincial Department of Commerce awarded Huadi Steel Zhejiang export brand, valid from 2023 to 2025. ● In February 2023, Longwan District Committee of the Communist Party of China in Wenzhou, Longwan District People’s Government of Wenzhou, High-tech District Working Committee of the Communist Party of China in Wenzhou, Management Committee of High-tech District in Wenzhou awarded Huadi Steel “Top 100 enterprises of Longwan District and High-tech District in 2022”. ● In September 2023, Zhejiang Provincial Bureau of Administration for Market Regulation awarded Huadi Steel “Zhejiang AAA Level Enterprise with excellent credit standing”.
This certificate is valid until July 2025. ● In January 2023, Zhejiang Provincial Department of Commerce awarded Huadi Steel Zhejiang export brand, valid from 2023 to 2025. ● In February 2023, Longwan District Committee of the Communist Party of China in Wenzhou, Longwan District People’s Government of Wenzhou, High-tech District Working Committee of the Communist Party of China in Wenzhou, Management Committee of High-tech District in Wenzhou awarded Huadi Steel “Top 100 enterprises of Longwan District and High-tech District in 2022”. ● In September 2023, Zhejiang Provincial Bureau of Administration for Market Regulation awarded Huadi Steel “Zhejiang AAA Level Enterprise with excellent credit standing”, valid for 3 years. ● In November 2023, Department of Science and Technology of Zhejiang Provincial issued a certificate of “Zhejiang High-tech Enterprise Research and Development Center” to Huadi Steel.
There were three suppliers that have significant concentration of total accounts payable for the year ended September 30, 2024, which accounted for 32.01%, 31.45% and 10.39% of the Company’s total accounts payable. For the year ended September 30, 2023, two suppliers accounted for 25.98% and 12.39% of the Company’s total purchase.
There were three suppliers that have significant concentration of total accounts payable for the year ended September 30, 2024, which accounted for 31.96%, 31.40% and 13.32% of the Company’s total accounts payable. For the year ended September 30, 2023, two suppliers accounted for 25.98% and 12.39% of the Company’s total purchase.
There was four suppliers that have significant concentration (over 10%) of total accounts payable for the year ended September 30, 2023, which accounted for 24.45%, 23.32%, 17.17% and 14.62% of the Company’s total accounts payable. For the year ended September 30, 2022, two suppliers accounted for 26.71% and 18.06% of the Company’s total purchase.
There was four suppliers that have significant concentration (over 10%) of total accounts payable for the year ended September 30, 2023, which accounted for 24.45%, 23.32%, 17.17% and 14.62% of the Company’s total accounts payable.
For the years ended September 30, 2024 and 2023, we invested $2,239,397 and $2,550,777, respectively, in new products development and improvements in existing processes. Legal Proceedings We had been subject to legal proceedings in the past, but have since resolved these.
For the years ended September 30, 2025 and 2024, we invested $2,166,881 and $2,239,220, respectively, in new products development and improvements in existing processes. Legal Proceedings We had been subject to legal proceedings in the past, but have since resolved these.
Based on the foregoing, if we provide funding to our wholly foreign owned subsidiaries through shareholder loans, the balance of such loans shall not exceed the Total Investment and Registered Capital Balance and we will need to register such loans with SAFE or its local branches in the event that the Current Foreign Debt Mechanism applies, or the balance of such loans shall be subject to the Risk-Weighted Approach and the Net Asset Limits and we will need to file the loans with SAFE in its information system in the event that the Notice No. 9 Mechanism applies.
Enterprises shall file with SAFE in its capital item information system after entering into a cross-border financing agreement, but no later than three business days before making a withdrawal. 59 Based on the foregoing, if we provide funding to our wholly foreign owned subsidiaries through shareholder loans, the balance of such loans shall not exceed the Total Investment and Registered Capital Balance and we will need to register such loans with SAFE or its local branches in the event that the Current Foreign Debt Mechanism applies, or the balance of such loans shall be subject to the Risk-Weighted Approach and the Net Asset Limits and we will need to file the loans with SAFE in its information system in the event that the Notice No. 9 Mechanism applies.
The certificate was issued on December 4, 2019 and valid for 3 years.
The certificate was issued on December 24, 2022 and valid for 3 years.
Foreign currency transactions under the capital account are still subject to limitations and require approvals from, or registration with, the SAFE and other relevant PRC governmental authorities. 46 In addition, the Notice of the General Affairs Department of SAFE on The Relevant Operation Issues Concerning the Improvement of the Administration of Payment and Settlement of Foreign Currency Capital of Foreign-invested Enterprises , or Circular 142, which was promulgated on August 29, 2008 by SAFE, regulates the conversion by foreign-invested enterprises of foreign currency into Renminbi by restricting how the converted Renminbi may be used.
In addition, the Notice of the General Affairs Department of SAFE on The Relevant Operation Issues Concerning the Improvement of the Administration of Payment and Settlement of Foreign Currency Capital of Foreign-invested Enterprises , or Circular 142, which was promulgated on August 29, 2008 by SAFE, regulates the conversion by foreign-invested enterprises of foreign currency into Renminbi by restricting how the converted Renminbi may be used.
While the prices of such raw materials may vary greatly from time to time, we believe we could hedge such risk by adjusting our price or absorb the higher cost at times if necessary. For the year ended September 30, 2024, three suppliers accounted for 31.45%, 13.77% and 10.39% of the Company’s total raw material purchase.
While the prices of such raw materials may vary greatly from time to time, we believe we could hedge such risk by adjusting our price or absorb the higher cost at times if necessary. For the year ended September 30, 2025, one supplier accounted for 20.85% of the Company’s total purchase.
Jiutai agreed to pay Huadi Steel for settle the case for RMB 832,249 on installment payment on April 26, 2023. On the same day, Tuoketuo District People’s Court issued the Civil Mediation Statement.
On April 26, 2023, Jiutai agreed to pay Huadi Steel for settle the case for a total of RMB 980,543 payable in installment payments. On the same day, Tuoketuo District People’s Court issued the Civil Mediation Statement.
The United Arab Emirates Our two major customers in the United Arab Emirates are leading master distributor of seamless stainless steel and high nickel alloys tubes and fittings. We primarily supply seamless pipe made of various stainless steel materials. 33 During the year ended September 30, 2024, two customers accounted for 10.23% and 10.15% of total revenue.
The United Arab Emirates Our two major customers in the United Arab Emirates are leading master distributor of seamless stainless steel and high nickel alloys tubes and fittings. We primarily supply seamless pipe made of various stainless steel materials. 45 The Company had no significant customers during the year ended September 30, 2025.
As of September 30, 2024, amount due from these two customers included in accounts receivable was $5,532,011 and $3,596,848, respectively, representing 3.84% and 2.50% of total accounts receivable, respectively. There was one customer accounted for a significant portion of total accounts receivable for the year ended September 30, 2024, which combined accounted for 16.16% of the Company’s total accounts receivable.
As of September 30, 2024, amount due from these two customers included in accounts receivable was $788,305 and $512,547, respectively, representing 4.00% and 2.60% of total accounts receivable, respectively. There was one customer accounted for a significant portion of total accounts receivable for the year ended September 30, 2024, which combined accounted for 16.82% of the Company’s total accounts receivable.
Sales and Marketing We have sold our products to over 20 countries and regions over the world as shown below. 32 We generated 80.89% of our sales revenue from China market where our manufacturing facility locates in during the fiscal year 2024. For the same period, US and Singapore account for 10.36% and 5.07% of our total revenues respectively.
Sales and Marketing We have sold our products to over 20 countries and regions over the world as shown below. 44 We generated 85.18% of our sales revenue from China market where our manufacturing facility locates in during the fiscal year 2025. For the same period, US and India account for 9.97% and 2.24% of our total revenues respectively.
Profits retained from prior fiscal years may be distributed together with distributable profits from the current fiscal year. Regulations Related to Foreign Investment The establishment, operation, and management of companies in China are mainly governed by the PRC Company Law, as most recently amended in 2018, which applies to both PRC domestic companies and foreign-invested companies.
Regulations Related to Foreign Investment The establishment, operation, and management of companies in China are mainly governed by the PRC Company Law, as most recently amended in 2018, which applies to both PRC domestic companies and foreign-invested companies.
Year Ended September 30, 2024 2023 2022 US$ % US$ % US$ % Steel piping products 73,635,012 99.1 % 83,113,259 98.6 % 74,702,625 97.8 % Production services to third entities 635,417 0.9 % 1,219,041 1.4 % 1,663,523 2.2 % Total 74,270,429 100 % 84,332,300 100 % 76,366,148 100 % 29 September 30, 2024 Sales Amount (In USD) As % of Sales Top 5 Geographic Areas: China $ 60,079,920 80.89 % USA 7,690,895 10.36 % Singapore 3,767,180 5.07 % The United Arab Emirates 776,416 1.05 % India 748,168 1.01 % Other foreign countries 1,207,850 1.62 % September 30, 2023 Sales Amount (In USD) As % of Sales Top 5 Geographic Areas: China $ 73,744,662 87.45 % USA 7,146,478 8.47 % India 1,596,243 1.89 % Mexico 577,416 0.68 % Australia 385,111 0.46 % Other foreign countries 882,390 1.05 % September 30, 2022 Sales Amount (In USD) As % of Sales Top 5 Geographic Areas: China $ 64,787,186 84.69 % USA 7,628,332 9.97 % Taiwan 1,296,863 1.70 % Australia 1,191,512 1.56 % Marshall Islands 730,039 0.95 % Other foreign countries 868,364 1.13 % Our Products and Services We offer a comprehensive range of products to provide the benefits of a “design-build shop” to approximately 400 steel pipe and tube customers with numerous customer relationships of over 16 years.
Year Ended September 30, 2025 2024 2023 US$ % US$ % US$ % Steel piping products 62,487,643 99.4 % 73,635,012 99.1 % 83,113,259 98.6 % Production services to third entities 407,968 0.6 % 635,417 0.9 % 1,219,041 1.4 % Total 62,895,611 100 % 74,270,429 100 % 84,332,300 100 % September 30, 2025 Sales Amount (In USD) As % of Sales Top 5 Geographic Areas: China $ 53,572,505 85.18 % USA 6,267,793 9.97 % India 1,407,889 2.24 % Singapore 400,632 0.64 % Australia 370,226 0.59 % Other foreign countries 876,566 1.38 % 41 September 30, 2024 Sales Amount (In USD) As % of Sales Top 5 Geographic Areas: China $ 60,079,920 80.89 % USA 7,814,677 10.52 % Singapore 3,767,180 5.07 % The United Arab Emirates 776,416 1.05 % India 748,168 1.01 % Other foreign countries 1,084,068 1.46 % September 30, 2023 Sales Amount (In USD) As % of Sales Top 5 Geographic Areas: China $ 73,744,662 87.45 % USA 7,146,478 8.47 % India 1,596,243 1.89 % Mexico 577,416 0.68 % Australia 385,111 0.46 % Other foreign countries 882,390 1.05 % Our Products and Services We offer a comprehensive range of products to provide the benefits of a “design-build shop” to approximately 400 steel pipe and tube customers with numerous customer relationships of over 17 years.
Execute Pricing Strategy to Pass Through Underlying Costs We believe we have a track record of managing underlying commodity price exposure through our price negotiation, raw material procurement and inventory management program.
In doing so, we are focused on accurate demand planning and have invested in systems to enhance this function. Execute Pricing Strategy to Pass Through Underlying Costs We believe we have a track record of managing underlying commodity price exposure through our price negotiation, raw material procurement and inventory management program.
Huadi Steel received the first installment of RMB 200,000 on January, 24, 2023. 41 Chinese Laws and Regulations Recent Regulatory Actions by the PRC Government We are aware that, recently, the PRC government initiated a series of regulatory actions and statements to regulate business operations in China with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement.
As advised by our PRC counsel, Zhejiang Dongou Law Firm, the risk of Huadi Steel Industry Group Co., Ltd. losing this case is relatively small. 53 Chinese Laws and Regulations Recent Regulatory Actions by the PRC Government We are aware that, recently, the PRC government initiated a series of regulatory actions and statements to regulate business operations in China with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement.
A type of anti bending and compression resistant stainless steel pipe Huadi Steel Utility Patent 202322747766.3 5/14/2024 As of the date of this annual report, we have 8 invention patents and 39 utility patents, which were granted for new technical solutions or improvement with a lower degree of ‘inventiveness’ than Invention patents, i.e., products with a new shape or structural physical features.
A heat-resistant stainless steel tube and its processing technology Huadi Steel Utility Patent 202311324345.8 1/2/2026 As of the date of this annual report, we have 8 invention patents and 47 utility patents, which were granted for new technical solutions or improvement with a lower degree of ‘inventiveness’ than invention patents, i.e., products with a new shape or structural physical features.
Pursuant to the Emergency Notice on Practicing Principles of the State Council Executive Meeting and Stabilizing Work on Collecting Social Insurance Premiums, promulgated by the Ministry of Human Resources and Social Security on September 21, 2018, local authorities are prohibited from organizing the centralized settlement of historical unpaid social insurance premiums of enterprises.
If such employer fails to make the overdue contributions within such time limit, the relevant administrative department may impose a fine equivalent to one to three times the overdue amount. 61 Pursuant to the Emergency Notice on Practicing Principles of the State Council Executive Meeting and Stabilizing Work on Collecting Social Insurance Premiums, promulgated by the Ministry of Human Resources and Social Security on September 21, 2018, local authorities are prohibited from organizing the centralized settlement of historical unpaid social insurance premiums of enterprises.
As a result, we are able to serve as a “design-build shop” for many of our customers with numerous customer relationships of over 15 years in length.
Our Competitive Strengths Solutions Provider to Our Customers, With Commitment to Differentiated Service We are committed to offering our customers superior product diversity, quality and reliability. As a result, we are able to serve as a “design-build shop” for many of our customers with numerous customer relationships of over 15 years in length.
Property, plants and equipment See “ - B. Business Overview - Properties and Facilities. ” Item 4A. Unresolved Staff Comments None. Item 5.
Property, plants and equipment See “ - B. Business Overview - Properties and Facilities. ”
We may also be subject to penalties and sanctions imposed by the PRC regulatory agencies, including the CSRC if we fail to comply with such rules and regulations, which would likely adversely affect the ability of our securities to be listed on the U.S. exchange, which would likely cause the value of our securities to significantly decline or become worthless.
We may also be subject to penalties and sanctions imposed by the PRC regulatory agencies, including the CSRC if we fail to comply with such rules and regulations, which would likely adversely affect the ability of our securities to be listed on the U.S. exchange, which would likely cause the value of our securities to significantly decline or become worthless. 55 Regulation on Product Liability The principal legal provisions on product liability are set out under the Product Quality Law of the PRC issued by the Standing Committee of the National People’s Congress, or SCNPC, on February 22, 1993 and was recently amended on December 29, 2018.
Under the current regulatory regime in the PRC, foreign-invested enterprises in the PRC may pay dividends only out of their retained earnings, if any, determined in accordance with PRC accounting standards and regulations.
Under these laws, regulations and rules, wholly foreign-owned enterprises (“WFOEs”) in China may pay dividends only out of their accumulated profits, if any, determined in accordance with the PRC accounting standards and regulations.
Focus on Efficient Manufacturing and Cost Management We strive for continued operational excellence with the goal of providing high-quality products at competitive prices. Our operating personnel continually examine costs and profitability by product, plant and region. Our goal is to maximize operational benchmarks by leveraging skilled manufacturing and supply chain management processes.
We believe that warehouse, transportation and shipping logistics and speed of delivery represents a key area of commercial differentiation relative to our competitors. 48 Focus on Efficient Manufacturing and Cost Management We strive for continued operational excellence with the goal of providing high-quality products at competitive prices. Our operating personnel continually examine costs and profitability by product, plant and region.
In addition to managing underlying commodity prices, more recently we have had success in sharing transportation costs with our customers through our product pricing strategies, particularly for our electrical conduit products.
In addition to managing underlying commodity prices, more recently we have had success in sharing transportation costs with our customers through our product pricing strategies, particularly for our electrical conduit products. We believe there is opportunity to implement this pricing strategy for our other products as well. Properties and Facilities Real Property There is no private land ownership in China.
Focus on Key Supplier Relationships We believe that our relationships with our key suppliers provide a competitive advantage in serving our customers. Our ability to provide our suppliers with accurate information regarding our future demands is critical to this relationship. In doing so, we are focused on accurate demand planning and have invested in systems to enhance this function.
Our goal is to maximize operational benchmarks by leveraging skilled manufacturing and supply chain management processes. Focus on Key Supplier Relationships We believe that our relationships with our key suppliers provide a competitive advantage in serving our customers. Our ability to provide our suppliers with accurate information regarding our future demands is critical to this relationship.
Compared to Circular 19, Circular 16 not only provides that, in addition to foreign exchange capital, foreign debt funds and proceeds remitted from foreign listings should also be subject to the discretional foreign exchange settlement, but also lifted the restriction, that foreign exchange capital under the capital accounts and the corresponding Renminbi capital obtained from foreign exchange settlement should not be used for repaying the inter-enterprise borrowings (including advances by the third party) or repaying the bank loans in Renminbi that have been sub-lent to the third party. 47 The Notice of the People’s Bank of China on Matters concerning the Macro-Prudential Management of Full-Covered Cross-Border Financing, or PBOC Notice No. 9, issued by the PBOC on January 12, 2017, provides that within a transition period of one year from January 12, 2017, the foreign invested enterprises may adopt the currently valid foreign debt management mechanism, or Current Foreign Debt Mechanism, or the mechanism as provided in PBOC Notice No. 9, or Notice No. 9 Foreign Debt Mechanism, at their own discretion.
Compared to Circular 19, Circular 16 not only provides that, in addition to foreign exchange capital, foreign debt funds and proceeds remitted from foreign listings should also be subject to the discretional foreign exchange settlement, but also lifted the restriction, that foreign exchange capital under the capital accounts and the corresponding Renminbi capital obtained from foreign exchange settlement should not be used for repaying the inter-enterprise borrowings (including advances by the third party) or repaying the bank loans in Renminbi that have been sub-lent to the third party.
Optimize Our Portfolio and Product Mix to be Responsive to Market Conditions We seek to maintain flexibility to adjust our product mix and rapidly respond to changing market conditions. While prioritizing our highest margin products, we regularly evaluate our portfolio of assets to ensure that our offerings are responsive to prevailing market conditions.
While prioritizing our highest margin products, we regularly evaluate our portfolio of assets to ensure that our offerings are responsive to prevailing market conditions. We will assess and pursue opportunities to utilize, optimize and grow production capacity to capitalize on market opportunities.
We believe this can be accomplished through acquisitions and organic initiatives, including offering new products, serving additional end markets, actively participating in domestic bidding projects, and increasing customer penetration and geographic coverage. As part of our business strategy, we evaluate acquisition opportunities from time to time.
Our management team is focused on expanding market share, which we believe will generate operating leverage and improved financial performance. We believe this can be accomplished through acquisitions and organic initiatives, including offering new products, serving additional end markets, actively participating in domestic bidding projects, and increasing customer penetration and geographic coverage.
Jiutai agreed to pay Huadi Steel for settle the case for RMB 980,543 on installment payment on April 26, 2023. On the same day, Tuoketuo District People’s Court issued the Civil Mediation Statement. On August 7, 2023, as Jiutai failed to pay the first installment, Huadi Steel filed an application for enforcement with the Tuoketuo District People’s Court.
On April 26, 2023, Jiutai agreed to pay Huadi Steel to settle the case for a total of RMB 832,249 payable in multiple installments. On the same day, Tuoketuo District People’s Court issued the Civil Mediation Statement. Huadi Steel received the first installment of RMB 200,000 on January, 24, 2023.
Our emphasis on manufacturing processes, quality control testing and product development helps us deliver a high-quality product to our customers. We focus on providing superior customer service through our geographic manufacturing footprint and continued development of our proprietary, vendor managed AIM system, as well as our experienced sales forces.
We focus on providing superior customer service through our geographic manufacturing footprint and continued development of our proprietary, vendor managed AIM system, as well as our experienced sales forces. We also seek to provide high-quality customer service through continued warehouse optimization, including increased digitization and automation of certain systems to debottleneck loading and dispatch logistics and improve truck availability.
We will assess and pursue opportunities to utilize, optimize and grow production capacity to capitalize on market opportunities. Provide Superior Quality Products and Customer Service Our products play a critical role in a variety of construction, infrastructure, equipment and safety applications.
Provide Superior Quality Products and Customer Service Our products play a critical role in a variety of construction, infrastructure, equipment and safety applications. Our emphasis on manufacturing processes, quality control testing and product development helps us deliver a high-quality product to our customers.
A patent is valid for a twenty-year term for an invention and a ten-year term for a utility model or design, starting from the application date.
A patent is valid for a twenty-year term for an invention and a ten-year term for a utility model or design, starting from the application date. We have obtained 47 patents, all of which we have ownership of, including a number of those that were originally under the ownership of certain individuals affiliated with our Company through ownership transfer.
Our Business Strategies Our primary objective is to create value by sustaining growth in earnings and cash flows from operating activities over various economic cycles. To achieve this objective, we strive to improve our cost structure, provide high quality service and products, expand our product offerings and increase our market share.
We believe our national and province-level awards, reflect widespread recognition of our innovative products, national- recognized reputation as well as success in our industry. Our Business Strategies Our primary objective is to create value by sustaining growth in earnings and cash flows from operating activities over various economic cycles.
There was one supplier that have significant concentration (over 10%) of total accounts payable for the year ended September 30, 2022, which accounted for 72.62% of the Company’s total accounts payable.
There was one customer accounted for a significant portion of total accounts receivable for the year ended September 30, 2025, which accounted for 11.30% of the Company’s total accounts receivable. During the year ended September 30, 2024, two customers accounted for 10.23% and 10.15% of total revenue.
A high-pressure resistant stainless steel pipe Huadi Steel Utility Patent 202322747763.X 6/7/2024 47.
A high-pressure resistant stainless steel pipe Huadi Steel Utility Patent 202322747763.X 6/7/2024 47. A type of anti bending and compression resistant stainless steel pipe Huadi Steel Utility Patent 202322747766.3 5/14/2024 48. A pressure resistant seamless stainless steel pipe Huadi Steel Utility Patent 202421620487.9 3/28/2025 49. A reinforced seamless stainless steel pipe Huadi Steel Utility Patent 202421611817.8 4/11/2025 50.
To the date the Annual Report was available to issue, the enforcement was still in implementation stage.
On August 7, 2023, as Jiutai failed to pay the first installment, Huadi Steel filed an application for enforcement with the Tuoketuo District People’s Court. To the date the Annual Report was available to issue, the enforcement was still in implementation stage.
Expand Leading Market Positions We believe that our leading market position and scale are our most compelling competitive strengths. Our management team is focused on expanding market share, which we believe will generate operating leverage and improved financial performance.
To achieve this objective, we strive to improve our cost structure, provide high quality service and products, expand our product offerings and increase our market share. Expand Leading Market Positions We believe that our leading market position and scale are our most compelling competitive strengths.
We believe there is opportunity to implement this pricing strategy for our other products as well. 36 Properties and Facilities Real Property There is no private land ownership in China. Individuals and entities are permitted to acquire land use rights for specific purposes.
Individuals and entities are permitted to acquire land use rights for specific purposes.
Removed
The Company sold a substantial portion of products to one customer (10.67% of total revenues) during the year ended September 30, 2022. As of September 30, 2022, the amount due from this customer included in accounts receivable was $6,144,633, representing 24.31% of total accounts receivable.
Added
There were three suppliers that have significant concentration of total accounts payable for the year ended September 30, 2025, which accounted for 26.32%, 18.48% and 14.02% of the Company’s total accounts payable. For the year ended September 30, 2024, three suppliers accounted for 31.45%, 13.77% and 10.39% of the Company’s total raw material purchase.
Removed
There was no other significant concentration (over 10%) of accounts receivable for the year ended September 30, 2022. Our Competitive Strengths Solutions Provider to Our Customers, With Commitment to Differentiated Service We are committed to offering our customers superior product diversity, quality and reliability.
Added
As part of our business strategy, we evaluate acquisition opportunities from time to time. Optimize Our Portfolio and Product Mix to be Responsive to Market Conditions We seek to maintain flexibility to adjust our product mix and rapidly respond to changing market conditions.
Removed
Valid for 3 years. ● In November 2023, Department of Science and Technology of Zhejiang Provincial issued a certificate of “Zhejiang High-tech Enterprise Research and Development Center” to Huadi Steel. 35 We believe our national and province-level awards, reflect widespread recognition of our innovative products, national- recognized reputation as well as success in our industry.
Added
PRC 7 Huadi Steel 3371731 March 13, 2034 Steel pipe; steel plate; metal valve (non-machine parts); highway anti-collision metal fence; steel wire; metal ring; hardware; metal flange; metal pipe joint; ordinary metal buckle PRC 8 Huadi Steel 6110349 December 13, 2029 Keywords steel template; wire metal pole; steel wire; gasket (filler); metal head; metal wire; metal mooring buoy; metal ore; metal tablet; metal coin box; PRC 50 No.
Removed
We also seek to provide high-quality customer service through continued warehouse optimization, including increased digitization and automation of certain systems to debottleneck loading and dispatch logistics and improve truck availability. We believe that warehouse, transportation and shipping logistics and speed of delivery represents a key area of commercial differentiation relative to our competitors.
Added
Cold rolled stainless steel pipe post-treatment equipment and processing technology Huadi Steel Utility Patent 202410914363.X 5/13/2025 51. A low-temperature resistant composite stainless steel pipe Huadi Steel Utility Patent 202421616608.2 4/1/2025 52. A double-layer stainless steel pipe Huadi Steel Utility Patent 202322575199.80 6/28/2025 53. High strength small-diameter stainless steel pipe Huadi Steel Utility Patent 202422641101.9 8/1/2025 54.
Removed
Regulation on Product Liability The principal legal provisions on product liability are set out under the Product Quality Law of the PRC issued by the Standing Committee of the National People’s Congress, or SCNPC, on February 22, 1993 and was recently amended on December 29, 2018.
Added
A seamless stainless steel pipe that can be fitted and fixed Huadi Steel Utility Patent 202422627362.50 8/5/2025 55.
Removed
Additional Information - D. Exchange Controls .” Regulation on Dividend Distributions Our PRC subsidiary, Wenzhou Hongshun Stainless Steel Limited, is a wholly foreign-owned enterprise under the PRC law.
Added
To the date the Annual Report was available to issue, the enforcement was still in implementation stage. On July 17, 2025, Huadi Steel engaged Zhejiang Jiaruicheng Law Firm to provide legal services for the case of a sales contract dispute between Huadi Steel and Xinjiang Hesheng Silicon Industry New Materials Co., Ltd.
Removed
The principal laws and regulations regulating the dividend distribution of dividends by foreign-invested enterprises in the PRC include the Company Law of the PRC, as amended in 2004, 2005 and 2013, the Wholly Foreign-owned Enterprise Law promulgated in 1986 and amended in 2000 and 2016 and its implementation regulations promulgated in 1990 and subsequently amended in 2001 and 2014, the Equity Joint Venture Law of the PRC promulgated in 1979 and subsequently amended in 1990, 2001 and 2016 and its implementation regulations promulgated in 1983 and subsequently amended in 1986, 1987, 2001, 2011 and 2014, and the Cooperative Joint Venture Law of the PRC promulgated in 1988 and amended in 2000 and 2017 and its implementation regulations promulgated in 1995 and amended in 2014 and 2017.
Added
(“Hesheng”), demanding that Hesheng pay for purchases of goods from Huadi Steel of RMB 670,676 and bear the litigation costs of the case. To the date the Annual Report was available to issue, the case has been officially filed by the Intermediate People’s Court of Urumqi and has not yet been heard in court.
Removed
A PRC company is required to set aside as statutory reserve funds at least 10% of its after-tax profit, until the cumulative amount of such reserve funds reaches 50% of its registered capital unless laws regarding foreign investment provide otherwise. A PRC company shall not distribute any profits until any losses from prior fiscal years have been offset.
Added
On November 20, 2025, Wang chaosong, an employee of Huadi Steel, filed a complaint with the Longwan District People’s Court in Wenzhou, Zhejiang Province, demanding that Huadi Steel discharge the labor contract and pay for employment injury insurance of his level-7 disability of RMB 397,600. To the date the Annual Report was available to issue, no judgment has been made.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

23 edited+3 added−4 removed59 unchanged
Biggest changeIn the event of a breach or termination causing loss to our company by the employee, the employee shall pay all economic loss we had incurred as a result. 62 Election of Officers Our executive officers are appointed by, and serve at the discretion of, our board of directors, including our Chief Executive Officer Huisen Wang and Chief Financial Officer Jianping Xiang.
Biggest changeIn the event of a breach or termination causing loss to our company by the employee, the employee shall pay all economic loss we had incurred as a result.
(3) Di Wang is deemed to beneficially own 8,336,000 ordinary shares through Yongqiang Donghai Limited, a British Virgin Islands company holding 8,336,000 shares of our ordinary shares. Di Wang has the sole voting and dispositive power of all the shares held by Yongqiang Donghai Limited through certain entrustment agreement with the shareholders of Yongqiang Donghai Limited.
(3) Di Wang is deemed to beneficially own 8,336,000 of our ordinary shares through Yongqiang Donghai Limited, a British Virgin Islands company holding 8,336,000 of our ordinary shares. Di Wang has the sole voting and dispositive power of all the shares held by Yongqiang Donghai Limited through certain entrustment agreement with the shareholders of Yongqiang Donghai Limited.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted for our directors, officers or persons controlling our company under the foregoing provisions, we have been informed that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. 66 Involvement in Certain Legal Proceedings To the best of our knowledge, as of the date of this annual report, none of our directors or officers has been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors, nor has any been a party to any judicial or administrative proceeding during the past five years that resulted in a judgment, decree or final order enjoining the person from future violations of, or prohibiting activities subject to, federal or state securities laws, or a finding of any violation of federal or state securities laws, except for matters that were dismissed without sanction or settlement.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted for our directors, officers or persons controlling our company under the foregoing provisions, we have been informed that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. 79 Involvement in Certain Legal Proceedings To the best of our knowledge, as of the date of this annual report, none of our directors or officers has been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors, nor has any been a party to any judicial or administrative proceeding during the past five years that resulted in a judgment, decree or final order enjoining the person from future violations of, or prohibiting activities subject to, federal or state securities laws, or a finding of any violation of federal or state securities laws, except for matters that were dismissed without sanction or settlement.
We believe his expertise in the industry and public company experience can help us enhance our corporate governance standard. 61 Songlin Li , Independent Director Mr. Li is the Chairman of Wenzhou Stainless Steel Industry Association and he has been working as the Chairman of Zhejiang Fengye Group Co., Ltd. since 2002.
We believe his expertise in the industry and public company experience can help us enhance our corporate governance standard. Songlin Li , Independent Director Mr. Li is the Chairman of Wenzhou Stainless Steel Industry Association and he has been working as the Chairman of Zhejiang Fengye Group Co., Ltd. since 2002.
In addition, the Board believes that Mr. Huang qualifies as a “financial expert” as defined by the SEC rules and therefore appointed him as the chairman of the Audit Committee. Jiancong Huang, Independent Director Mr. Huang is the Chief Executive Officer and Chairman of the Board of ZK International Group Co., Ltd. (Nasdaq: ZKIN). Mr.
In addition, the Board believes that Mr. Huang qualifies as a “financial expert” as defined by the SEC rules and therefore appointed him as the chairman of the Audit Committee. 74 Jiancong Huang, Independent Director Mr. Huang is the Chief Executive Officer and Chairman of the Board of ZK International Group Co., Ltd. (Nasdaq: ZKIN). Mr.
Nomination Committee The purpose of the Nomination Committee shall be to review and make recommendations to the Board regarding matters concerning corporate governance; review the composition of and evaluate the performance of the Board; recommend persons for election to the Board and evaluate director compensation; review the composition of committees of the Board and recommend persons to be members of such committees; review and maintain compliance of committee membership with applicable regulatory requirements; and review conflicts of interest of members of the Board and corporate officers. 64 Duties of Directors Under Cayman Islands law, our directors have a duty to act honestly, in good faith and with a view to our best interests.
Nomination Committee The purpose of the Nomination Committee shall be to review and make recommendations to the Board regarding matters concerning corporate governance; review the composition of and evaluate the performance of the Board; recommend persons for election to the Board and evaluate director compensation; review the composition of committees of the Board and recommend persons to be members of such committees; review and maintain compliance of committee membership with applicable regulatory requirements; and review conflicts of interest of members of the Board and corporate officers. 77 Duties of Directors Under Cayman Islands law, our directors have a duty to act honestly, in good faith and with a view to our best interests.
(4) Jueqin Wang is deemed to beneficially own 1,664,000 ordinary shares through Yongqiang Maituo Limited, a British Virgin Islands company holding 1,664,000 shares of our ordinary shares. Jueqin Wang has the sole voting and dispositive power of all the shares held by Yongqiang Maituo Limited. 68
(4) Jueqin Wang is deemed to beneficially own 1,664,000 of our ordinary shares through Yongqiang Maituo Limited, a British Virgin Islands company holding 1,664,000 of our ordinary shares. Jueqin Wang has the sole voting and dispositive power of all the shares held by Yongqiang Maituo Limited. 81
Compensation The following table presents summary information regarding the total compensation awarded to, earned by, or paid to each of the named executive officers and directors for services rendered to us for the fiscal year ended September 30, 2024.
Compensation The following table presents summary information regarding the total compensation awarded to, earned by, or paid to each of the named executive officers and directors for services rendered to us for the fiscal year ended September 30, 2025.
Employees We had 355, 362 and 360 employees for our continuing operations in 2024, 2023, and 2022 fiscal years, respectively. The majority of our employees are full-time and have signed employment agreements for one year, renewable with substantially the same terms on mutual agreements. Our employees are not represented by a labor organization or covered by a collective bargaining agreement.
Employees We had 362, 355 and 362 employees for our continuing operations in 2025, 2024, and 2023 fiscal years, respectively. The majority of our employees are full-time and have signed employment agreements for one year, renewable with substantially the same terms on mutual agreements. Our employees are not represented by a labor organization or covered by a collective bargaining agreement.
People’s Republic of China. 60 Di Wang , Chairman of the Board and Director Mr. Wang has been serving as the Chairman of the Board of Huadi International since inception. Mr. Wang is also the founder and Chairman of the Board of Huadi Steel. Mr. Wang has extensive experience in manufacturing and managing manufacturing plants.
People’s Republic of China. 73 Di Wang , Chairman of the Board and Director Mr. Wang has been serving as the Chairman of the Board of Huadi International since inception. Mr. Wang is also the founder and Chairman of the Board of Huadi Steel. Mr. Wang has extensive experience in manufacturing and managing manufacturing plants.
In computing the number of ordinary shares beneficially owned by a person listed below and the percentage ownership of such person, ordinary shares underlying options, warrants or convertible securities held by each such person that are exercisable or convertible within 60 days of January 16, 2025 are deemed outstanding, but are not deemed outstanding for computing the percentage ownership of any other person.
In computing the number of ordinary shares beneficially owned by a person listed below and the percentage ownership of such person, ordinary shares underlying options, warrants or convertible securities held by each such person that are exercisable or convertible within 60 days of January 13, 2026 are deemed outstanding, but are not deemed outstanding for computing the percentage ownership of any other person.
(1) Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the ordinary shares. All shares represent only ordinary shares held by shareholders as no options are issued or outstanding. (2) Calculation based on 14,279,182 ordinary shares issued and outstanding as of January 16, 2025.
(1) Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the ordinary shares. All shares represent only ordinary shares held by shareholders as no options are issued or outstanding. (2) Calculation based on 14,299,182 ordinary shares issued and outstanding as of January 13, 2026.
Share Ownership The following table sets forth information with respect to beneficial ownership of our ordinary shares as of the date of this annual report: ● Each person who is known by us to beneficially own more than 5% of our outstanding ordinary shares; ● Each of our director, director nominees and named executive officers; and ● All directors and named executive officers as a group. 67 The number and percentage of ordinary shares beneficially owned are based on 14,279,182 ordinary shares issued and outstanding as of January 16, 2025.
Share Ownership The following table sets forth information with respect to beneficial ownership of our ordinary shares as of the date of this annual report: ● Each person who is known by us to beneficially own more than 5% of our outstanding ordinary shares; ● Each of our director, director nominees and named executive officers; and ● All directors and named executive officers as a group. 80 The number and percentage of ordinary shares beneficially owned are based on 14,299,182 ordinary shares issued and outstanding as of January 13, 2026.
The following table sets forth the average numbers of our employees, categorized by function for the period indicated. 2024 fiscal 2023 fiscal 2022 fiscal Department year year year Production 164 158 127 Technical 75 75 75 Sales 34 50 63 Quality Control 33 23 35 Administration 23 26 32 Accounting 12 12 13 Trade 3 4 7 Procurement 5 8 5 Security 6 6 3 Total 355 362 360 As required by PRC laws and regulations, we participate in various employee social security plans for our employees that are administered by local PRC governments, including housing, pension, medical insurance and unemployment insurance.
The following table sets forth the average numbers of our employees, categorized by function for the period indicated. 2025 fiscal 2024 fiscal 2023 fiscal Department year year year Production 160 164 158 Technical 75 75 75 Sales 15 34 50 Quality Control 37 33 23 Administration 45 23 26 Accounting 9 12 12 Trade 3 3 4 Procurement 5 5 8 Security 13 6 6 Total 362 355 362 As required by PRC laws and regulations, we participate in various employee social security plans for our employees that are administered by local PRC governments, including housing, pension, medical insurance and unemployment insurance.
Our board of directors may exercise all the powers of the company to borrow money and to mortgage or charge our undertakings and property or any part thereof, to issue debentures, debenture stock and other securities whenever money is borrowed or as security for any debt, liability or obligation of the company or of any third party. 65 Qualification There are no membership qualifications for directors.
Our board of directors may exercise all the powers of the company to borrow money and to mortgage or charge our undertakings and property or any part thereof, to issue debentures, debenture stock and other securities whenever money is borrowed or as security for any debt, liability or obligation of the company or of any third party.
Directors and Senior Management The following table provides information regarding our executive officers and directors as of the date of this annual report: Name Age Position(s) Di Wang 77 Chairman of the Board and Director Huisen Wang 65 Chief Executive Officer Jianping Xiang 46 Chief Financial Officer Jueqin Wang 51 Director Songlin Li (1)(2)(3) 54 Independent Director, Chair of the Compensation Committee Jiancong Huang (1)(2)(3) 59 Independent Director, Chair of the Nomination Committee He “Henry” Huang (1)(2)(3) 51 Independent Director, Chair of the Audit Committee (1) Member of the Audit Committee (2) Member of the Compensation Committee (3) Member of the Nominating Committee The business address of each of the officers and directors is No. 1688 Tianzhong Street, Longwan District, Wenzhou, Zhejiang Province.
Directors and Senior Management The following table provides information regarding our executive officers and directors as of the date of this annual report: Name Age Position(s) Di Wang 78 Chairman of the Board and Director Huisen Wang 66 Chief Executive Officer Jianping Xiang 47 Chief Financial Officer Jueqin Wang 52 Director Songlin Li (1)(2)(3) 55 Independent Director, Chair of the Compensation Committee Jiancong Huang (1)(2)(3) 60 Independent Director, Chair of the Nomination Committee He “Henry” Huang (1)(2)(3) 52 Independent Director, Chair of the Audit Committee (1) Member of the Audit Committee (2) Member of the Compensation Committee (3) Member of the Nomination Committee The business address of each of the officers and directors is No. 1688 Tianzhong Street, Longwan District, Wenzhou, Zhejiang Province.
Named Executive Officers and Directors Amount of Beneficial Ownership (1) Percentage Ownership (2) Directors and Named Executive Officers: Di Wang (3) 8,336,000 58.38 % Jueqin Wang (4) 1,664,000 11.65 % Huisen Wang 0 0 % Jianping Xiang 40,000 0.28 % He “Henry” Huang 2,000 0.01 % Songlin Li 0 0 % Jiancong Huang 0 0 % All directors and executive officers as a group (5 persons) 10,042,000 70.33 % 5% Beneficial Owners: Yongqiang Donghai Limited (3) 8,336,000 58.38 % Yongqiang Maituo Limited (4) 1,664,000 11.65 % * Less than 1% of our total outstanding shares.
Named Executive Officers and Directors Amount of Beneficial Ownership (1) Percentage Ownership (2) Directors and Named Executive Officers: Di Wang (3) 8,336,000 58.30 % Jueqin Wang (4) 1,664,000 11.64 % Huisen Wang 0 0 % Jianping Xiang 60,000 0.42 % He “Henry” Huang 2,000 0.01 % Songlin Li 0 0 % Jiancong Huang 0 0 % All directors and executive officers as a group (5 persons) 10,062,000 70.37 % 5% Beneficial Owners: Yongqiang Donghai Limited (3) 8,336,000 58.30 % Yongqiang Maituo Limited (4) 1,664,000 11.64 % * Less than 1% of our total outstanding shares.
Shareholders will be given specific information on how he/she can direct communications to the officers and directors of the Company at our annual shareholders’ meetings. All communications from stockholders are relayed to the members of the board.
Shareholders will be given specific information on how he/she can direct communications to the officers and directors of the Company at our annual shareholders’ meetings.
Name and Principal Position Salary ($) Bonus ($) Stock Awards ($) All Other Compensation ($) Total ($) Jianping Xiang, Chief Financial Officer 14,110 21,348 49,000 - 84,458 Huisen Wang, Chief Executive Officer 15,463 14,103 - - 29,566 Di Wang, Chairman of the Board 15,463 14,103 - - 29,566 Jueqin Wang, Director 15,463 2,998 - - 18,461 He “Henry” Huang, Independent Director 20,000 - - - 20,000 Jiancong Huang, Independent Director - - - - - Songlin Li, Independent Director - - - - - Clawback Policy On December 1, 2023, the Board adopted an Executive Compensation Recovery Policy (the “Clawback Policy”) providing for the recovery of certain incentive-based compensation from current and former executive officers of the Company in the event the Company is required to restate any of its financial statements filed with the SEC under the Exchange Act in order to correct an error that is material to the previously-issued financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period.
Name and Principal Position Salary ($) Bonus ($) Stock Awards ($) All Other Compensation ($) Total ($) Jianping Xiang, Chief Financial Officer 12,902 16,638 29,400 - 58,940 Huisen Wang, Chief Executive Officer 12,783 11,092 - - 23,875 Di Wang, Chairman of the Board 12,783 11,092 - - 23,875 Jueqin Wang, Director 12,783 - - - 12,783 He “Henry” Huang, Independent Director 20,000 - - - 20,000 Jiancong Huang, Independent Director - - - - - Songlin Li, Independent Director - - - - - 75 Clawback Policy On December 1, 2023, the Board adopted an Executive Compensation Recovery Policy (the “Clawback Policy”) providing for the recovery of certain incentive-based compensation from current and former executive officers of the Company in the event the Company is required to restate any of its financial statements filed with the SEC under the Exchange Act in order to correct an error that is material to the previously-issued financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period.
Our directors may be elected by a resolution of our board of directors, or by an ordinary resolution of our shareholders. Each of our directors will hold office until the expiration of his or her term as provided in the written agreement with our company, if any, and until his or her successor has been elected or appointed.
Each of our directors will hold office until the expiration of his or her term as provided in the written agreement with our company, if any, and until his or her successor has been elected or appointed.
There is no family relationship among any of our directors or executive officers. Board of Directors Our board of directors currently consists of five (5) directors, a majority of whom are independent as such term is defined by the Nasdaq Capital Market.
Board of Directors Our board of directors currently consists of five (5) directors, a majority of whom are independent as such term is defined by the Nasdaq Capital Market.
Terms of Directors and Officers All directors hold office until the next annual meeting of shareholders at which they would be recommended for re-election by the shareholders and until their successors have been duly elected and qualified. Officers are elected by and serve at the discretion of the board of directors.
There are no other arrangements or understandings pursuant to which our directors are selected or nominated. 78 Terms of Directors and Officers All directors hold office until the next annual meeting of shareholders at which they would be recommended for re-election by the shareholders and until their successors have been duly elected and qualified.
Further, there are no share ownership qualifications for directors unless so fixed by us in a general meeting. There are no other arrangements or understandings pursuant to which our directors are selected or nominated.
Qualification There are no membership qualifications for directors. Further, there are no share ownership qualifications for directors unless so fixed by us in a general meeting.
Removed
Board Diversity The matrix below provides certain highlights of the composition of our Board members based on self-identification as of September 30, 2024: Board Diversity Matrix (As of September 30, 2024) Country of Principal Executive Offices People’s Republic of China Foreign Private Issuer Yes Disclosure Prohibited Under Home Country Law No Total Number of Directors 5 Part I: Gender Identity Female Male Non-Binary Did Not Disclose Gender Directors 0 5 0 0 Part II: Demographic Background Underrepresented Individual in Home Country Jurisdiction 0 LGBTQ+ 0 Did Not Disclose Demographic Background 0 As of September 30, 2024, we did not have at least one diverse director because we have not yet identified a suitable candidate.
Added
Election of Officers Our executive officers are appointed by, and serve at the discretion of, our board of directors, including our Chief Executive Officer Huisen Wang and Chief Financial Officer Jianping Xiang. There is no family relationship among any of our directors or executive officers.
Removed
We are mindful of the benefit that diversity can provide in maximizing the effectiveness and decision-making abilities of our board. In this regard, we will continue our search for a suitable candidate.
Added
All communications from stockholders are relayed to the members of the board. 76 Board Committees Our board of directors has established an audit committee, a compensation committee and a nomination committee and adopted a charter for each of the three committees.
Removed
In searches for new director candidates, we will consider the level of diversity, including representation of underrepresented individuals and female representation, on the board, which will be one of several factors used in the search process.
Added
Officers are elected by and serve at the discretion of the board of directors. Our directors may be elected by a resolution of our board of directors, or by an ordinary resolution of our shareholders.
Removed
Further, we will continuously monitor the level of diversity and recruit qualified diverse candidates, including underrepresented individuals and/or female candidates, as part of our overall recruitment and selection process to fill openings, as the need arises, through vacancies, growth or otherwise. 63 Board Committees Our board of directors has established an audit committee, a compensation committee and a nominating and corporate governance committee and adopted a charter for each of the three committees.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

12 edited+2 added−5 removed7 unchanged
Biggest changeThe borrowing was made in previous years to support the Company’s operations, which was unsecured, due on demand, and interest free. 69 2022 Fiscal year During the year ended September 30, 2022, the Company purchased a total of $4,649,636 raw materials from Taizhou Huadi, and sold a total of $1,990,329 piping products to Taizhou Huadi.
Biggest changeDuring the year ended September 30, 2025, the Company repaid RMB 350,000 ($48,527 in USD) to Jueqin Wang. The borrowing was made in previous years to support the Company’s operations, which was unsecured, due on demand, and interest free.
Also, the Company sold a total of $7,343 steel materials and refunded $390,513 to Huadi Material which was paid in advance by Huadi Material in the year ended September 30, 2023. As of September 30, 2024, the Company had no advance balance from this entity.
As of September 30, 2024, the Company had advance balance of $692,485 to this entity. Also, the Company sold a total of $7,343 steel materials and refunded $390,513 to Huadi Material which was paid in advance by Huadi Material in the year ended September 30, 2023. As of September 30, 2024, the Company had no advance balance from this entity.
During the year ended September 30, 2023, the Company received $623,629 in advance from Wenzhou Maituo for piping products. During the year ended September 30, 2023, the Company leased an office to Huashang with annual rent amounted $26,235, and the Company recorded $19,550 rental income. As of September 30, 2023, the Company had advance balance of $6,462 from this entity.
As of September 30, 2023, the Company had advance balance of $385,605 from this entity. During the year ended September 30, 2023, the Company received $623,629 in advance from Wenzhou Maituo for piping products. During the year ended September 30, 2023, the Company leased an office to Huashang with annual rent amounted $26,235, and the Company recorded $19,550 rental income.
(5) The balances with the related part are unsecured, interest free with no specific repayment terms. The amount is non-trade nature. As of the date of this annual report, the amount due to Jueqin Wang has been $308,908. 70 Employment Agreements See “ Item 6. Directors, Senior Management and Employees - C. Board Practices - Employment Agreements. ” C.
(3) The balances with the related part are unsecured, interest free with no specific repayment terms. The amount is non-trade nature. As of the date of this annual report, the amount due to Jueqin Wang has been $255,344. 83 Employment Agreements See “ Item 6. Directors, Senior Management and Employees - C. Board Practices - Employment Agreements. ” C.
Related Party Balances Net outstanding balances with related parties consisted of the following as of this annual report and September 30, 2024 and 2023: Accounts Name of related parties 2024 2023 Accounts payable Taizhou Huadi Industrial Ltd. (1) $ - $ 3,692,394 Advance to suppliers Taizhou Huadi Material Technology Co.
Related Party Balances Net outstanding balances with related parties consisted of the following as of this annual report and September 30, 2025 and 2024: Accounts Name of related parties 2025 2024 Advance to suppliers, net Taizhou Huadi Material Technology Co. $ - $ 692,485 Accounts payable Taizhou Huadi Material Technology Co.
As of the date of this annual report, the amount due to Wenzhou Maituo has been $nil. (4) The balances with the related part are rental fees advance from Huashang. The amount is non-trade nature. As of the date of this annual report, the amount due to Huashang has been $nil.
As of the date of this annual report, the amount payable to Huadi Material has been $462. (2) The balances with the related part are rental fees advance from Huashang. The amount is non-trade nature. As of the date of this annual report, the amount due to Huashang has been $nil.
These raw materials primarily consisted of stainless steel bars and stainless steel strips. As of September 30, 2022, the Company had outstanding accounts payable of $2,439,105 to this entity. During the year ended September 30, 2022, the Company sold a total of $122,666 steel materials to Taizhou Huadi Material Technology Co.
These raw materials primarily consisted of stainless steel bars and stainless steel strips. As of September 30, 2023, the Company had outstanding accounts payable of $3,692,394 to this entity. During the year ended September 30, 2023, the Company sold a total of $520 steel materials to Huadi Material.
(“Wenzhou Maituo”) An entity controlled by Meiling Wang Jueqin Wang Principal shareholder of the Company Di Wang Principal shareholder of the Company Yiyu Wang Immediate family member of majority shareholder of the Company Meiling Wang Immediate family member of majority shareholder of the Company Bing Zhang Principal shareholder of the Company Related Party Tranctions 2024 Fiscal year During the year ended September 30, 2024, the Company purchased a total of $1,832 raw materials from Taizhou Huadi.
(“Wenzhou Maituo”) An entity controlled by Meiling Wang Jueqin Wang Chairman of the Board and Director Di Wang Principal shareholder of the Company Yiyu Wang Immediate family member of majority shareholder of the Company Meiling Wang Immediate family member of majority shareholder of the Company Related Party Transactions 2025 Fiscal year During the year ended September 30, 2025, the Company purchased a total of $2,456,896 raw materials from Taizhou Huadi and fully paid.
During the year ended September 30, 2024, the Company purchased $666,114 raw materials from Huadi Material and paid a total of $1,427,247. As of September 30, 2024, the Company had advance balance of $692,485 to this entity.
The Company paid a total of $3,741,463 to Taizhou Huadi for raw materials purchased in recent years. As of September 30, 2024, the Company had no account payable balance due to this entity. During the year ended September 30, 2024, the Company purchased $666,114 raw materials from Huadi Material and paid a total of $1,427,247.
As of September 30, 2022, the Company had advance balance of $395,498 from this entity. During the year ended September 30, 2022, the Company net borrowed RMB 1,000,000 ($140,578 in USD), from Di Wang as working capitals to support the Company’s operations. The borrowing is unsecured, due on demand, and interest free.
As of September 30, 2023, the Company had advance balance of $6,462 from this entity. During the year ended September 30, 2023, the Company repayment RMB 2,000,000 ($274,123 in USD) to Di Wang. The borrowing was made in previous years to support the Company’s operations, which was unsecured, due on demand, and interest free.
These raw materials primarily consisted of stainless steel bars and stainless steel strips. The Company paid a total of $3,741,463 to Taizhou Huadi for raw materials purchased in recent years. As of September 30, 2024, the Company had no account payable balance due to this entity.
These raw materials primarily consisted of stainless steel bars and stainless steel strips. As of September 30, 2025, the Company had no account payable balance due to this entity. During the year ended September 30, 2025, the Company received a refund of $674,228 from Huadi Material due to changes in production plan.
(4) (5,650 ) (6,462 ) Due to related parties – noncurrent portion Jueqin Wang (5) (308,908 ) (317,680 ) (1) The balances with the related party are payables for raw materials. The amount is trade nature. As of the date of this annual report, the amount due to Taizhou Huadi has been $nil.
(1) (462 ) - Advance from customer Huashang Micro Finance Co. (2) (7,131 ) (5,650 ) Due to related parties - noncurrent portion Jueqin Wang (3) (255,344 ) (308,908 ) (1) The balances with the related part are payables to Huadi Material for raw materials. The amount is trade nature.
Removed
These raw materials primarily consisted of stainless steel bars and stainless steel strips. As of September 30, 2023, the Company had outstanding accounts payable of $3,692,394 to this entity. Besides, the Company borrowed $6,858,500 from Taizhou Huadi as working capitals to support the Company’s operations. The borrowing was unsecured, due on demand, and interest free.
Added
As of September 30, 2025, the Company had outstanding accounts payable of $462 to this entity. During the year ended September 30, 2025, the Company leased an office to Huashang with annual rent amounted $27,407, and the Company recorded $25,865 rental income. As of September 30, 2025, the Company had advance balance of $7,131 from this entity.
Removed
As of September 30, 2023, the borrowing has been fully repaid. During the year ended September 30, 2023, the Company sold a total of $520 steel materials to Huadi Material. As of September 30, 2023, the Company had advance balance of $385,605 from this entity.
Added
As of September 30, 2025, the company had outstanding balance of $255,344 to Jueqin Wang. 82 2024 Fiscal year During the year ended September 30, 2024, the Company purchased a total of $1,832 raw materials from Taizhou Huadi. These raw materials primarily consisted of stainless steel bars and stainless steel strips.
Removed
During the year ended September 30, 2023, the Company repayment RMB 2,000,000 ($274,123 in USD) to Di Wang.
Removed
(2) 692,485 - Advance from customer Taizhou Huadi Material Technology Co. (2) - (385,605 ) Advance from customer Wenzhou Maituo International Trade Ltd. (3) - (623,629 ) Advance from customer Huashang Micro Finance Co.
Removed
(2) The balances with the related part are advances to Huadi Material for raw materials. The amount is trade nature. As of the date of this annual report, the amount advance to Huadi Material has been $692,485. (3) The balances with the related part are advances from Huadi Material for steel pipes. The amount is trade nature.