Revenue and Income - Total revenues for the six months ended June 30, 2023, were $126,943,808, representing an increase of 7.9% compared to $118,047,910 for the same period in 2022[5]. - Net income attributable to shareholders for the six months ended June 30, 2023, was $11,319,387, a decrease of 20.1% from $14,171,433 in the same period of 2022[5]. - The company reported a gross profit of $19,841,416 for the six months ended June 30, 2023, down from $21,576,719 in the same period of 2022, a decline of 8.0%[5]. - Basic and diluted earnings per common share for the six months ended June 30, 2023, were $2.87, down from $3.60 in the same period of 2022, a decrease of 19.7%[5]. - Net income from continuing operations for June 2023 was $11,366,961, a decrease from $14,651,008 in June 2022, representing a decline of approximately 22.5%[8]. Cash and Assets - Cash and cash equivalents increased to $105,994,692 as of June 30, 2023, up from $63,901,329 as of December 31, 2022, reflecting a growth of 65.8%[2]. - Cash and cash equivalents at the end of June 2023 totaled $106,637,712, up from $91,793,258 at the end of June 2022, reflecting an increase of approximately 16.2%[9]. - Total current assets reached $288,155,530 as of June 30, 2023, compared to $230,894,809 as of December 31, 2022, indicating an increase of 24.9%[2]. - The company’s total non-current assets decreased to $31,825,889 as of June 30, 2023, from $52,524,972 as of December 31, 2022, a decline of 39.4%[2]. - The company’s total shareholders' equity increased to $192,914,925 as of June 30, 2023, compared to $189,796,868 as of December 31, 2022, reflecting a growth of 1.1%[3]. Liabilities and Expenses - Total liabilities increased to $127,066,494 as of June 30, 2023, from $93,622,913 as of December 31, 2022, marking a rise of 35.6%[2]. - Research and development expenses for the six months ended June 30, 2023, were $351,200, a decrease of 57.9% compared to $834,195 in the same period of 2022[5]. - Total depreciation and amortization for June 2023 was $1,294,166, significantly higher than $639,002 in June 2022, reflecting increased asset utilization[8]. Cash Flow Activities - Net cash provided by operating activities from continuing operations was $57,224,015 in June 2023, compared to a net cash used of $(30,063,383) in June 2022, indicating a significant turnaround[8]. - Net cash used in investing activities from continuing operations was $(7,016,381) in June 2023, a decrease from $24,141,221 in June 2022, indicating a shift in investment strategy[8]. - The company reported a net cash used in financing activities of $(8,150,101) in June 2023, compared to $9,628,342 in June 2022, indicating a change in financing approach[9]. Accounts and Tax - Accounts receivable increased to $(11,089,756) in June 2023 from $(4,310,119) in June 2022, indicating a potential increase in credit sales or collection issues[8]. - Cash paid for income taxes was $1,560,580 in June 2023, compared to $8,163,616 in June 2022, indicating a decrease in tax liabilities[9]. - The company experienced a loss from investments of $(7,296) in June 2023, compared to a gain of $218,929 in June 2022, highlighting a shift in investment performance[8]. - Proceeds from the sale of short-term investments amounted to $53,004,461 in June 2023, compared to $49,210,720 in June 2022, showing an increase of approximately 3.6%[8].

Revenue Performance - Total revenue for fiscal year 2022 reached $234.2 million, a 46% increase from $160.2 million in fiscal year 2021[3] - Revenue from the supply chain trading business surged by 110% to $143.4 million, up from $68.1 million in the previous year[3] - Total revenues for 2022 reached $234.17 million, a significant increase from $160.20 million in 2021, representing a growth of approximately 46%[21] Profitability - Gross profit decreased by 31% to $37.0 million, with a gross margin of 15.8% compared to 33.7% in the prior year[7] - Gross profit for 2022 was $37.05 million, down from $54.05 million in 2021, indicating a decline of about 31.5%[21] - Net income for fiscal year 2022 was $17.8 million, down from $30.5 million in the prior year[11] - Net income for 2022 was $17.62 million, compared to $30.38 million in 2021, reflecting a decrease of approximately 42%[21] - The company reported a comprehensive income of $5.04 million in 2022, down from $32.42 million in 2021, a decrease of approximately 84.5%[21] Expenses - Operating expenses increased by 22% to $19.3 million, primarily due to higher bad debt expenses[8] - Bad debt expenses rose significantly to $4.5 million from $0.3 million in the previous year, attributed to supplier defaults during COVID outbreaks[9] - Research and development expenses for 2022 were $1.56 million, slightly down from $1.60 million in 2021[21] Cash and Liquidity - Cash, cash equivalents, and restricted cash as of December 31, 2022, totaled $67.3 million, a decrease from $91.6 million in 2021[13] - Cash and cash equivalents decreased to $63.90 million in 2022 from $91.45 million in 2021, a decline of about 30%[18] - Total cash, cash equivalents, and restricted cash at the end of the period amounted to $67,318,573, down from $91,627,041 at the beginning[25] Assets and Liabilities - Total current assets increased to $230.89 million in 2022 from $227.80 million in 2021, a slight increase of about 1.4%[18] - Total liabilities rose to $93.62 million in 2022, up from $89.38 million in 2021, an increase of approximately 4.5%[18] Future Plans - The company aims to deepen its agricultural supply chain coverage to support China's rural revitalization strategy in the second half of 2023 and beyond[2] - The company plans to continue expanding its small and medium enterprise financing solutions and supply chain trading business to drive future growth[21] Cash Flow - Net cash used in operating activities from continuing operations was $(28,952,923), a significant decrease compared to $23,857,102 in the previous year[24] - Cash flows from investing activities provided $17,837,501, contrasting with $(25,250,787) in the prior year[24] - Cash paid for income taxes was $10,385,495, compared to $5,546,082 in the previous year[25] Other Financial Metrics - The company reported a net other income of $4.8 million, an increase from $2.6 million in the prior year[10] - The weighted average number of shares outstanding increased to 3,986,359 in 2022 from 2,150,683 in 2021, reflecting a significant increase due to the reverse share split[21] - The company reported a significant increase in accounts payable, totaling $7,693,011, compared to $33,620,611 in the previous year[24] - Proceeds from short-term bank loans were $445,831, down from $784,609 in the previous year[25] - The company made a capital contribution from non-controlling interest of $37,116, compared to $751,841 in the previous year[25] - The effect of exchange rate changes on cash and cash equivalents was $(4,848,722), contrasting with a gain of $294,928 in the previous year[25]

Foreign Exchange Risk - The company is exposed to foreign exchange risk as all consolidated sales and expenses are denominated in RMB, with a depreciation of approximately 2% in RMB against the U.S. dollar in 2022 [630]. - The company has not entered into any hedging transactions to mitigate foreign exchange risk [629]. Financial Position - As of December 31, 2022, the company had cash and cash equivalents totaling $35,911,261, primarily deposited in high credit quality financial institutions in China [633]. - The company believes that the risk of failure of the Chinese banks holding its cash is remote, as bank failures are uncommon in China [633]. - The company has no borrowings with variable rates and no long-term interest-bearing assets or liabilities as of December 31, 2022 [631]. Internal Control and Reporting - The company identified material weaknesses in internal control over financial reporting, including inadequate accounting personnel knowledgeable in U.S. GAAP and SEC reporting standards [641]. - The company did not file its annual report on Form 20-F for the year ended December 31, 2022, by the deadline due to the inability to finalize financial statements [642]. - Management is implementing remediation activities, including establishing a financial reporting team and enhancing training for accounting personnel on U.S. GAAP [644]. - Management's internal control remediation efforts are ongoing, but there is no assurance that all measures will be sufficient to address the identified weaknesses in a timely manner [645]. Inflation Impact - Inflationary factors may adversely affect operating results, although the company does not believe inflation has materially impacted its financial position to date [635].

Financial Performance - Revenue for the year ended December 31, 2019, was $21,103,114, a decrease of 16.5% from $25,290,060 in 2018 and a decrease of 28.0% from $29,200,445 in 2017[21] - Gross profit for 2019 was $8,056,621, representing a gross margin of approximately 38.2%, compared to 29.9% in 2018 and 35.7% in 2017[21] - Net income for 2019 was $2,739,990, a significant recovery from a net loss of $5,144,715 in 2018[21] Assets and Liabilities - Total assets increased to $84,799,257 in 2019 from $56,653,676 in 2018, reflecting a growth of 49.7%[22] - Total liabilities rose to $30,863,744 in 2019, up from $19,896,325 in 2018, indicating an increase of 55.2%[22] - Total shareholders' equity increased to $53,945,320 in 2019, compared to $36,757,351 in 2018, marking a growth of 46.7%[22] Research and Development - Research and development expenses for 2019 were $492,696, an increase of 37.3% from $358,411 in 2018[21] Customer Concentration - Three customers accounted for 24%, 21%, and 16% of total revenue in 2019, highlighting a reliance on a limited customer base[32] Debt and Financial Obligations - The company has approximately $0.9 million in bank loans outstanding as of December 31, 2019, down from $1.7 million in 2018, indicating a reduction in debt[30] - The company recorded a tax liability of $10,915,483 as of December 31, 2019, up from $9,085,746 in 2018, indicating a potential increase in tax obligations[24] Operational Risks - Rapid expansion could strain resources and operational infrastructure, potentially impairing the ability to meet increased demand[47] - The COVID-19 pandemic has resulted in significant operational challenges, including potential reductions in customer budgets and delays in project progress[51] - The company relies heavily on senior management and key personnel for operations and product development, with intense competition for qualified candidates[60][62] Intellectual Property - The company controls 34 patents in China related to valve production technology, with potential future royalty payments that could increase operational costs[70][71] - The company is dependent on intellectual property licenses from its Chief Executive Officer, which could be terminated, impacting commercialization efforts[67][68] Financial Services Segment - The financial services segment recorded a profit of approximately $1.5 million in 2019, but future profitability is uncertain due to potential increases in operating expenses[90] - The company relies on a limited number of third-party financial product providers, which significantly impacts revenue; losing a major provider could substantially reduce profitability[88] - The financial services segment operates in a highly competitive environment, with competitors potentially having more resources and better market adaptability[87] - The company has a limited operating history in the financial services market, making it difficult to evaluate future prospects and customer acquisition[80] - The financial services segment's success depends on maintaining strategic relationships with commercial banks and other financial institutions, which are crucial for growth[99] Regulatory and Legal Risks - The regulatory framework for local financial exchanges is evolving, and any restrictions could adversely affect the company's advisory services[84] - The company faces risks related to intellectual property infringement, which could disrupt operations and negatively impact financial results[78] - The company operates through contractual arrangements with variable interest entities (VIEs) to comply with PRC laws, which may not provide the same level of control as direct ownership[105] - There are substantial uncertainties regarding the interpretation and application of current or future PRC laws and regulations, which could adversely affect the company's operations[106] - The company may face material adverse tax consequences if the PRC tax authorities determine that its contractual arrangements were not entered into on an arm's length basis[121] Market and Economic Conditions - Recent scrutiny of U.S.-listed Chinese companies could harm the company's reputation and business operations, potentially impacting stock value[123] - Adverse changes in PRC government policies could negatively impact overall economic growth and reduce demand for the company's products[126] - The company’s business operations are primarily conducted in China, making it susceptible to economic, political, and legal developments in the region[127] - The PRC government has implemented policy measures to stimulate economic growth in response to recent downturns, which could impact the company's growth rate and strategy[127] Labor and Compliance - The Labor Contract Law in China imposes greater liabilities on employers, potentially increasing labor costs and affecting workforce management decisions[128] - The company incurs significant legal, accounting, and compliance costs as a public entity, which could negatively impact net income and liquidity[167] - The company has faced compliance issues with Nasdaq Listing Rules, including a minimum bid price requirement[196] Shareholder and Corporate Structure - The principal shareholder holds a majority of the voting power, allowing the company to potentially exempt itself from certain corporate governance requirements[182] - The Chief Executive Officer, Mr. Anyuan Sun, beneficially owns all 7,778,400 Class B common shares[219] Currency and Foreign Exchange - The company receives substantially all of its revenues in RMB, and any restrictions on currency conversion may affect its ability to pay dividends in foreign currencies[154] - For the years ended December 31, 2019, 2018, and 2017, the company reported foreign currency translation losses of $(0.6) million and $(1.8) million, and a gain of $2.2 million, respectively[157] - The company has not entered into any hedging transactions to mitigate exposure to exchange rate fluctuations, which may be limited in availability and effectiveness[157] Corporate History and Structure - Hebron Technology was established on May 29, 2012, as a holding company under the laws of the British Virgin Islands[206] - The company underwent two major corporate reorganizations, including the IPO Reorganization and the acquisition of financial advisory services in 2019[207] - The Xibolun Subsidiary Group focuses on the research, development, and manufacture of fluid equipment, particularly intelligent valves for clean industries in China[209] - The financial services segment began operations in July 2019, providing underwriting advisory services and banking product distribution[210] Stock and Shareholder Information - The trading price of Class A common shares has fluctuated between $0.72 and $9.00 per share for the year ended December 31, 2019[193] - The company does not intend to pay dividends for the foreseeable future, opting to retain earnings for business expansion[198] - Being a public company incurs additional expenses estimated between $500,000 and $1 million per year compared to when it was private[199] - The market price of Class A common shares may be volatile and could decline regardless of operating performance[192]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Symbol Name of each exchange on which registered Class A common shares, par value $0.001 per share HEBT Nasdaq FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR 12(G) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECU ...