Yunhong Green Cti Ltd. (NASDAQ: YHGJ)

Yunhong Green CTI Ltd. produces film products for novelty, packaging and container applications. The company manufactures foil balloons and most of its film products at its plant in Lake Barrington, Illinois. It purchases latex balloons from an unrelated vendor and distributes them in the United States to customers that prefer a combined solution for foil and latex balloons. Yunhong Green CTI Ltd. also makes films for packaging and custom product applications and flexible containers for packaging and consumer storage. The company markets balloon inspired gifts, which consist of balloons and candy arranged to look like a flower bouquet, and related accessories primarily in the United States. It has created a subsidiary to develop biodegradable and compostable materials sourced from partners in Asia.

Yunhong Green CTI Ltd. generates revenue from the sale of foil balloons, film products and other items. Foil balloons account for the largest share of sales, representing about 80% of quarterly revenue in recent periods. Film products, which include packaging and custom application films, contribute roughly 8% of sales. Other revenue comes from balloon inspired gift products and related accessories, making up the remaining 12%. The company sells almost all of its products to customers in the United States, with a small portion of film products also going to international buyers. Revenue is recognized when goods are shipped and title passes to the buyer.

Yunhong Green CTI Ltd. operates in a competitive niche that includes manufacturers of foil balloons, packaging films and novelty gift items. The company faces numerous competitors, some of which are larger producers with broader product lines. Its competitive advantages stem from domestic production of foil balloons and most film products at its Illinois facility, which allows shorter lead times and greater control over quality. The ability to offer customers a combined foil and latex balloon solution also differentiates the firm from suppliers that handle only one type of balloon. Additionally, the company’s focus on biodegradable and compostable materials, developed through its Asian partners, addresses growing demand for environmentally friendly products.

Yunhong Green CTI Ltd. serves a concentrated customer base consisting primarily of distributors and retailers in the United States. The company’s top two customers, referred to as Customer A and Customer B, each accounted for more than ten percent of total sales in recent periods. In the nine months ended September 30, 2025, Customer A represented about 50% of revenue and Customer B about 28%. The top three customers together contributed roughly 82% of sales while the top ten accounted for approximately 93% of revenue. This concentration indicates that the firm’s performance is closely tied to the purchasing patterns of a limited number of accounts.