Company Summary: Yunhong Green CTI Ltd.

Business Operations

• Core Activities:
  • Develops, produces, distributes, and sells consumer products primarily in the United States and internationally.
  • Produces film products for commercial and industrial uses.

Main Product Lines

1. Novelty Products

   • Foil and latex balloons.
   • Related gift items.
   • Foil balloons are metalized (often nylon or polyester with aluminum coatings) and can be printed with graphics and messages.
   • Latex balloons are sourced externally; the Company resells them.
   • Distributed in the U.S., Canada, Mexico, and other countries.
   • Main retail outlets: grocery stores, drugstores, discount chains, gift shops, party stores, florists, balloon decorators.
   • Approximately 64% of 2024 revenues.

2. Flexible Films for Packaging

   • Laminated and printed films for food and other commercial packaging.
   • Custom film solutions for specific customer needs.
   • Both laminated and printed films produced in-house.
   • 5% of 2024 revenues.

3. Balloon-Inspired Gifts & Other Products

   • Gift containers with candy and balloons.
   • Launched expanded offerings in 2014.
   • 31% of 2024 revenues.

Revenue & Financial Highlights

• 2024 Revenue: $17.95 million
• 2023 Revenue: $17.80 million
• Gross Profit (2024): $3.6 million
• Net Loss (2024): $1.5 million
• Principal Customers:
  • Wal-Mart: ~$6.48 million (36% of revenues)
  • Dollar Tree Stores: ~$8.57 million (47% of revenues)
• Employees: 52 full-time employees (as of December 31, 2024)
• Main Markets: United States and multiple international markets including Canada, Mexico, Europe, and Australia.

Business Strategy & Development

• Focus on core product lines—foil balloons and related products—aiming for growth and profitability.
• Leverage technology, patents, and proprietary designs.
• Develop new products, improve existing offerings, and explore new technological materials like compostable and biodegradable options.
• Expand sales channels via distributors, retail chains, and leveraging the Yunhong China Group.
• Maintain a lean manufacturing operation, with automated production efforts initiated to address labor costs and efficiency.

Manufacturing & Operations

• Facilities: Two main Illinois locations, each around 69,000 sq. ft.
• Operations include lamination, printing, converting film to balloons and containers, and assembly.
• Raw materials include polyethylene, nylon, polyester films, inks, and candy.
• Production of foil balloons began in 1978; latex balloons since 1985.

Key Risks

• Highly competitive industry; main competitors include Anagram International, Pioneer Balloon, Convertidora International, and Betallic.
• Raw material costs fluctuate significantly.
• Supply chain disruptions and inflation impact profitability.
• Dependence on principal customers (Wal-Mart and Dollar Tree) poses risks if they reduce purchases.
• Helium prices and availability impact helium-filled balloon sales.
• Recent global health crises have posed challenges to operations and market demand.

Corporate Details

• Employees: 52 full-time.
• Ownership: 25.9 million shares outstanding as of March 20, 2025.
• Stock Exchange: Listed on NASDAQ under symbol "YHGJ."
• Revenue (2024): Approximately $17.95 million with a net loss of $1.5 million.
• Major Customers: Walmart (36%) and Dollar Tree (47%).
• Number of Shareholders: About 400 record shareholders, with around 30 beneficial owners.
• Management: Led by CEO Jana M. Schwan with long-term experience in operations, sales, and product development; Chairman is Yubao Li.

Additional Information

• Engaged in research, design, and innovation for new products and materials.
• Holds patents and trademarks related to balloon and film products.
• Operates with significant debt, including credit facilities and related-party notes.
• Recent ventures include acquiring assets in China via stock issuance, with operations to begin in those units.

In summary, Yunhong Green CTI Ltd. is a manufacturer largely focused on balloons and flexible film packaging, with a broad international distribution network, significant relationships with major retail chains, and ongoing efforts in innovation and new material development.