{"url_path":"/sec/hlp/10-k/2026/item-7","section_key":"item-7","section_title":"Item 7 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-13","source_url":"https://www.sec.gov/Archives/edgar/data/1855557/0001213900-26-055737-index.html","accession_number":"0001213900-26-055737","cik":"0001855557","ticker":"HLP","issuer_name":"Hongli Group Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1855557/0001213900-26-055737-index.html","primary_entity_key":"0001855557","primary_entity_name":"Hongli Group Inc."},"word_count":939,"has_tables":true,"body_markdown":"Item 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS\n\n \n\nA. Major Shareholders\n\n \n\nThe following tables set forth certain information\nwith respect to the beneficial ownership of our Ordinary Shares for:\n\n \n\n \n●\neach shareholder known by\nus to be the beneficial owner of more than 5% of our outstanding Ordinary Shares;\n\n \n \n \n\n \n●\neach of our directors;\n\n \n\n \n●\neach of our named executive\nofficers; and\n\n \n\n \n●\nall of our directors and executive\nofficers as a group.\n\n \n\nThe beneficial ownership of our Ordinary Shares\nis determined in accordance with the rules of the SEC and generally includes any shares over which a person exercises sole or shared\nvoting or investment power, and includes the Ordinary Shares issuable pursuant to share options that are exercisable within 60 days of\nthe date of this Annual Report. Ordinary Shares issuable pursuant to share options are deemed outstanding for computing the percentage\nof the person holding such options but are not outstanding for computing the percentage of any other person. As of the date of this\nAnnual Report, there were no Ordinary Shares issuable pursuant to share options exercisable within 60 days thereof.\n\n \n\nThe percentage of beneficial ownership owned is based on 74,738,750\nOrdinary Shares outstanding as of the date of May 6, 2026.\n\n \n\n  \nOrdinary\nShares Beneficially Owned \n\n  \nNumber  \nPercent \n\n**Directors and Executive\nOfficers(1):** \n   \n  \n\nJie Liu(2)(3) \n 6,787,517  \n 9.\n082%\n\nXiangmei Zeng \n -  \n - \n\nChenglong Yang \n -  \n - \n\nChuang Chen \n -  \n - \n\nJunwei Shao \n -  \n - \n\n**All\ndirectors and executive officers as a group (5 individuals):**** **\n** ****6,787,517**** **** **\n** ****9.\n082****%**\n\n5% Shareholders: \n    \n   \n\nHongli\nDevelopment Limited(3) \n 6,787,517  \n 9.082%\n\nPHOENIX\nGATEWAY ALLIANCE LIMITED(4) \n 5,970,000  \n 7.988%\n\nATLAS\nGLOBAL GROUP LIMITED(5) \n 5,850,000  \n 7.827%\n\nSOLARIS\nPRIME INTERNATIONAL LIMITED(6) \n 5,830,000  \n 7.801%\n\n \n\n(1)Unless\notherwise indicated, the business address of each of the individuals is No. 777, Daiyi Road, Changle County, Weifang City, Shandong Province,\nChina, 262400.\n\n \n\n(2)\nJie Liu is the CEO and Chairman of the Board of Hongli Cayman.\n\n \n\n(3)\nRepresenting 6,787,517 Ordinary\nShares held by Hongli Development Limited, a British Virgin Islands company, which is owned by Mr. Yuanqing Liu, Mr. Jie Liu, and\nMrs. Ronglan Sun. Pursuant to certain proxy agreements, the person having voting, dispositive or investment powers over Hongli Development\nLimited is Mr. Jie Liu. The registered address of Hongli Development Limited is Ritter House, Wickham Cay II, PO Box 3170, Road Town,\nTortola VG 1110, British Virgin Islands.\n\n \n\n103\n\n \n\n \n\n(4)\nRepresents 5,970,000 ordinary\nshares held by PHOENIX GATEWAY ALLIANCE LIMITED, which is 100% owned by Wei Zhang. The address of PHOENIX GATEWAY ALLIANCE LIMITED\nis Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands.\n\n \n \n\n(5)\nRepresents 5,850,000 ordinary shares held by ATLAS GLOBAL GROUP LIMITED, which is 100% owned by Zefeng Zhang. The address of ATLAS GLOBAL GROUP LIMITED is Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola,\nVG1110, British Virgin Islands.\n\n \n \n\n(6)\nRepresents 5,830,000 ordinary shares held by SOLARIS\nPRIME INTERNATIONAL LIMITED, which is 100% owned by Maochun Hu. The address of SOLARIS PRIME INTERNATIONAL LIMITED is Vistra\nCorporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands.\n\n \n\nWe are not aware of any arrangement that may,\nat a subsequent date, result in a change of control of our Company.\n\n \n\nB. Related Party Transactions \n\n** **\n\n**Contractual Arrangements among the Hongli HK, Hongli WFOE and Hongli\nShandong.**\n\n \n\nSee “Item 4. INFORMATION ON THE COMPANY\n- A. History and Development of the Company - Our Corporate History and Structure.”\n\n** **\n\n**Employment Agreements**\n\n \n\nSee “Item 6. DIRECTORS, SENIOR MANAGEMENT\nAND EMPLOYEES - B. Compensation of Directors and Executive Officers - Employment Agreements and Indemnification Agreements.”\n\n** **\n\n**Share Compensation Plan**\n\n \n\nSee “Item 6. DIRECTORS, SENIOR MANAGEMENT\nAND EMPLOYEES - B. Compensation of Directors and Executive Officers - Share Compensation Plans.”\n\n** **\n\nMaterial Transactions with Related Parties\n\n \n\nThe relationship and the nature of related party\ntransactions are summarized as follows:\n\n \n\n**Name of the related\nparties**\n \n**Nature\nof the relationship**\n \n\nJie Liu\n \nCEO and Chairman of the Company\n \n\nJian Liu\n \nVice president of the Company\n \n\nYuanqing Liu\n \nFamily member of the CEO, Father of the CEO\n \n\nRonglan Sun\n \nFamily member of the CEO, Mother of the CEO\n \n\nHongyu Hao\n \nFamily member of the CEO and Vice President of Purchase Department\n \n\nYuanxiang Liu\n \nFamily member of the CEO, Uncle of the CEO\n \n\nLi Liu\n \nFamily member of the CEO, Sister of the CEO\n \n\nYongqing Dong\n \nFamily member of the CEO\n \n\n \n\nCertain loans were guaranteed by the CEO, Jie Liu, and the family members\nof the CEO, Yuanqing Liu, Ronglan Sun and Hongyu Hao.\n\n \n\n104\n\n \n\n \n\n*Amount due from related parties:*\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \nUS$  \nUS$ \n\nJie Liu(1) \n 356,556  \n - \n\nJian Liu(5) \n 20  \n - \n\nTotal \n 356,576  \n - \n\n \n\nAmount due to related parties:\n\n \n\n  \nAs of December 31, \n\n  \n2025  \n2024 \n\n  \nUS$  \nUS$ \n\nJie Liu(2)(3)(5) \n -  \n (17,875)\n\nHongyu Hao(5) \n -  \n (629)\n\nYongqing Dong(4) \n (4,207) \n (2,743)\n\nTotal \n (4,207) \n (21,247)\n\n \n\nRelated parties transactions:\n\n \n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\n  \nUS$  \nUS$  \nUS$ \n\nAdvance to related parties(1) \n (410,017) \n -  \n (351,924)\n\nRepayment from related parties(1) \n 423,930  \n 346,238  \n - \n\nAdvances from related parties(2) \n -  \n 1,064,327  \n 4,566,368 \n\nRepayments to related parties(2) \n -  \n (1,041,097) \n (5,127,251)\n\nSale of a vehicle to a related party(3) \n 19,868  \n -  \n - \n\nPurchase of freight service(4) \n 16,751  \n -  \n - \n\n \n\n(1)\nThe Company made interest-free loan to Jie Liu, which is due on demand, and received repayment for the loan.\n\n \n \n\n(2)\nThe Company received interest-free loan from Jie Liu, which is due on demand, and made repayment for the loan.\n\n \n \n\n(3)\nThe Company sold a vehicle to Jie Liu.\n\n \n \n\n(4)\nThe Company received freight service from Yongqing Dong.\n\n \n \n\n(5)\nThe Company made reimbursement to Jie Liu, Jian Liu, Hongyu Hao, Yuanqing Liu, and Yuanxiang Liu.\n\n \n\nC. Interests of Experts and Counsel\n\n \n\nNot applicable."}