Huadi International Group Co., Ltd. Files Annual Report on Form 20-F

TL;DR

<b>Huadi International Group Co., Ltd. has filed its annual report on Form 20-F for the fiscal year ending September 30, 2023, detailing its operational and financial status.</b>

AI Summary

Huadi International Group Co., Ltd. (HUDI) filed a Foreign Annual Report (20-F) with the SEC on February 5, 2024. Huadi International Group Co., Ltd. filed its annual report on Form 20-F for the fiscal year ended September 30, 2023. The company's ordinary shares trade on the Nasdaq Capital Market under the symbol HUDI. As of September 30, 2023, Huadi International Group had 14,259,182 ordinary shares outstanding. The principal executive offices are located at No. 1688 Tianzhong Street, Longwan District, Wenzhou, Zhejiang Province, People's Republic of China. The company contact person is Huisen Wang, CEO, reachable at +86-057786598888 or Huadi@huadigroup.com.

Why It Matters

For investors and stakeholders tracking Huadi International Group Co., Ltd., this filing contains several important signals. This filing provides investors with a comprehensive overview of Huadi International Group's performance and financial health for the fiscal year 2023, enabling informed investment decisions. The report confirms the company's listing on the Nasdaq Capital Market, which is crucial for maintaining its public trading status and access to capital markets.

Risk Assessment

Risk Level: low — Huadi International Group Co., Ltd. shows low risk based on this filing. The filing is a routine annual report (20-F) and does not contain new material events or significant financial disclosures that would indicate a change in risk profile.

Analyst Insight

Review the full 20-F filing for detailed financial statements, risk factors, and management discussion to understand the company's performance and outlook.

Key Numbers

• 14,259,182 — Ordinary Shares Outstanding (As of September 30, 2023)
• 2023-09-30 — Fiscal Year End (Covered by the annual report)
• 2024-02-05 — Filing Date (Date the 20-F was filed)
• 001-39904 — SEC File Number (Commission file number for Huadi International Group Co., Ltd.)

Key Players & Entities

• Huadi International Group Co., Ltd. (company) — Filer of the 20-F report
• HUDI (company) — Trading symbol for Huadi International Group Co., Ltd. ordinary shares
• Nasdaq Capital Market (company) — Exchange where HUDI ordinary shares are registered
• Huisen Wang (person) — CEO and Company Contact Person
• September 30, 2023 (date) — Fiscal year end date
• 2024-02-05 (date) — Filing date of the report
• 14,259,182 (dollar_amount) — Number of ordinary shares outstanding as of September 30, 2023

Forward-Looking Statements

• Huadi International will continue to maintain its listing on the Nasdaq Capital Market. (Huadi International Group Co., Ltd.) — high confidence, target: September 30, 2024
• The company will file its next annual report (20-F) for the fiscal year ending September 30, 2024, by early February 2025. (Huadi International Group Co., Ltd.) — high confidence, target: February 2025

FAQ

Industry Context

Huadi International Group Co., Ltd. operates within the steel pipe and tubes manufacturing industry, as indicated by its SIC code 3317.

Regulatory Implications

The company is subject to the reporting requirements of the U.S. Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934, filing an annual report on Form 20-F.

What Investors Should Do

1. Thoroughly review the financial statements and management's discussion and analysis within the 20-F for detailed insights into the company's financial health.
2. Examine the risk factors section for any new or evolving risks that could impact the company's future performance.
3. Monitor future SEC filings for updates on the company's operations, financial results, and any strategic developments.

Year-Over-Year Comparison

This filing is the annual report on Form 20-F for the fiscal year ended September 30, 2023, and follows the standard reporting requirements for foreign private issuers.

Key Financial Figures

• $1.00 — tember 30, 2023, 2022, and 2021 were US $1.00 for RMB 7.2960, RMB 7.1135, and RMB 6.
• $100 billion — addressed by China are (i) a mandatory $100 billion reduction in the China/United States tr
• $300 billion — e deficit and (ii) limiting the planned $300 billion Chinese government support for advanced
• $34 billion — States initially imposed 25% tariffs on $34 billion worth of Chinese goods, including agric
• $250 billion — 8, the United States imposed tariffs on $250 billion worth of Chinese products and has threa
• $325 billion — products and has threatened tariffs on $325 billion more. In response, China imposed tariff
• $110 billion — . In response, China imposed tariffs on $110 billion worth of U.S. goods, and threatened qua
• $679,210 — 2023 and 2022, we purchased a total of $679,210 and $4,649,636, respectively, raw mater
• $4,649,636 — 2, we purchased a total of $679,210 and $4,649,636, respectively, raw materials from Taizh
• $239,640 — 30, 2023, and 2022, we sold a total of $239,640 and $1,990,329 of piping products to Ta
• $1,990,329 — d 2022, we sold a total of $239,640 and $1,990,329 of piping products to Taizhou Huadi, re

Filing Documents

• f20f2023_huadiinter.htm (20-F) — 1817KB
• f20f2023ex2-1_huadiinter.htm (EX-2.1) — 57KB
• f20f2023ex8-1_huadiinter.htm (EX-8.1) — 4KB
• f20f2023ex11-2_huadiinter.htm (EX-11.2) — 43KB
• f20f2023ex12-1_huadiinter.htm (EX-12.1) — 10KB
• f20f2023ex12-2_huadiinter.htm (EX-12.2) — 10KB
• f20f2023ex13-1_huadiinter.htm (EX-13.1) — 4KB
• f20f2023ex13-2_huadiinter.htm (EX-13.2) — 4KB
• f20f2023ex15-1_huadiinter.htm (EX-15.1) — 2KB
• f20f2023ex15-2_huadiinter.htm (EX-15.2) — 4KB
• f20f2023ex97-1_huadiinter.htm (EX-97.1) — 27KB
• image_001.jpg (GRAPHIC) — 53KB
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• image_016.jpg (GRAPHIC) — 90KB
• ex15-1_001.jpg (GRAPHIC) — 24KB
• 0001213900-24-009988.txt (&nbsp;) — 8197KB
• hudi-20230930.xsd (EX-101.SCH) — 76KB
• hudi-20230930_cal.xml (EX-101.CAL) — 52KB
• hudi-20230930_def.xml (EX-101.DEF) — 333KB
• hudi-20230930_lab.xml (EX-101.LAB) — 598KB
• hudi-20230930_pre.xml (EX-101.PRE) — 351KB
• f20f2023_huadiinter_htm.xml (XML) — 759KB

Item 18

Item 17 Item 18 If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to 240.10D-1(b). If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes No (APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS) Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No Table of Contents Page PART I Item 1. Identity of Directors, Senior Management and Advisers 1 Item 2. Offer Statistics and Expected Timetable 1 Item 3. Key Information 1 Item 4. Information on the Company 28 Item 4A. Unresolved Staff Comments 51 Item 5. Operating and Financial Review and Prospects 51 Item 6. Directors, Senior Management and Employees 63 Item 7. Major Shareholders and Related Party Transactions 72 Item 8. Financial Information 74 Item 9. The Offer and Listing 75 Item 10. Additional Information 76 Item 11.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 93 Item 12.

Description of Securities Other than Equity Securities

Description of Securities Other than Equity Securities 94 PART II Item 13. Defaults, Dividend Arrearages and Delinquencies 95 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 95 Item 15.

Controls and Procedures

Controls and Procedures 95 Item 15T.

Controls and Procedures

Controls and Procedures 96 Item 16. [Reserved] 96 Item 16A. Audit Committee Financial Expert 96 Item 16B. Code of Ethics 96 Item 16C. Principal Accountant Fees and Services 96 Item 16D. Exemptions from the Listing Standards for Audit Committees 97 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 97 Item 16F. Change in Registrant's Certifying Accountant 97 Item 16G. Corporate Governance 98 Item 16H. Mine Safety Disclosure 98 Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 98 Item 16J. Insider trading policies 98 Item 16K. Cyber Security 98 PART III Item 17.

Financial Statements

Financial Statements 99 Item 18.

Financial Statements

Financial Statements 99 Item 19. Exhibits 99 i Conventions Used in this Annual Report Except where the context otherwise requires and for purposes of this annual report on Form 20-F only: "China" or "PRC" refers to the People's Republic of China, and only in the context of describing PRC rules, laws, regulations, regulatory authority, and any PRC entities or citizens under such rules, laws and regulations, and other legal or tax matters in this report, excludes Hong Kong, Macau and Taiwan; "Huadi International" refers to Huadi International Group Co., Ltd. (also referred to as ), a Cayman Islands exempted company; "HK Beach" refers to Hong Kong Beach Limited (also referred to as ), a Hong Kong company and a wholly owned subsidiary of Yongqiang Tuoxing; "Huadi Steel" refers to Huadi Steel Group Limited (also referred to as ), a PRC company and a 99% owned subsidiary of Wenzhou Hongshun; "Huadi Songyang" refers to Huadi (Songyang) Co., Ltd. (also referred to as ), a PRC company and a wholly owned subsidiary of HK Beach; "PRC operating entities" refers to Huadi Steel and Huadi Songyang; "RMB" or "Renminbi" refers to the legal currency of China; "SEC" refers to the Securities and Exchange Commission of the United States; "Wenzhou Hongshun" refers to Hongshun Stainless Steel Limited (also referred to as ), a PRC company and a wholly owned subsidiary of HK Beach; "We," "us," "our company," "Company," and "our" refer to Huadi International Group Co., Ltd. and its subsidiaries; and "Yongqiang Tuoxing" refers to Yongqiang Tuoxing Limited (also referred to as ), a British Virgin Islands company and a wholly owned subsidiary of Huadi International. This annual report contains translations of certain RMB amounts into U.S. dollar amounts at a specified rate solely for the convenience of the reader. All reference to "U.S. dollars," "USD," "US$" or "$" are to United States dollars. The exchange rates in effect as of September 30, 2023, 2022, and 20

Identity of Directors,

Item 1. Identity of Directors, Senior Management and Advisers Not applicable for annual reports on Form 20-F.

Offer Statistics

Item 2. Offer Statistics and Expected Timetable Not applicable for annual reports on Form 20-F.

Key Information

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. You should consider carefully the following risk factors, as well as the other information contained in this annual report, before making an investment in our ordinary shares. Any of the risk factors described below could significantly and negatively affect our financial position, results of operations or cash flows. 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. Import tariffs, other trade barriers, and protectionist policies could negatively affect steel prices and our exports to international markets, particularly the United in foreign steel markets. For example, our PRC operating entities might anticipate a significant increase in the cost of goods to be sold to the United States as a result of tariffs on steel and steel products imports imposed by the US government. 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. 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. Ther

View Full Filing

View this 20-F filing on SEC EDGAR