XIAMEN, China, April 24, 2026 /PRNewswire/ -- Hitek Global Inc. (Nasdaq: HKIT) (the "Company"), a China-based information technology consulting and solutions service provider, today announced its financial results for the fiscal year ended December 31, 2025.
Ms. Xiaoyang Huang, Chief Executive Officer and Director of Hitek Global Inc. commented, "Fiscal 2025 was a year of strategic progress and stabilized growth. Amid market pressures in tax devices and services, we returned to potential revenue growth driven by hardware growth and operational efficiency. "
Fiscal Year 2025 Financial Results
Revenue
Total revenue was approximately $6.5 million in fiscal year 2025, as compared to approximately $2.9 million in fiscal year 2024, primarily due to the increase in sale of selected safety monitoring equipment to petrochemical companies.
-- Revenue generated from hardware sales was approximately $6.1 million in
fiscal year 2025, as compared to approximately $1.7 million in fiscal
year 2024. The increase was due mainly to the increase in sales of
selected safety monitoring equipment to petrochemical companies, and such
increased sales drove a substantial growth in our hardware and equipment
revenue.
-- Revenue generated from Tax devices and service was approximately $0.3
million in fiscal year 2025, as compared to approximately $0.4 million in
fiscal year 2024. The decrease was due mainly to the tax bureau providing
free electronic invoices, which has negatively impacted demand for our
fee-based tax services.
-- Revenue generated from CIS software was approximately $0.2 million in
fiscal year 2025, as compared to approximately $0.8 million in fiscal
year 2024. The decrease was due mainly to our large customers reducing
their procurement, even though two gained new customers in 2025. As the
updated software can satisfy market demand and the Company is negotiating
more sales contracts with new customers, we expect software sales will
increase in the future.
Gross Profit and Gross Margin
Gross profit was approximately $0.7 million in fiscal year 2025, a decrease from approximately $1.0 million in fiscal year 2024. Our gross margin as a percentage of revenue decreased to 10.6% for the year ended December 31, 2025 from 34.6% for 2024. The decrease in gross margin was mainly due to the increase in hardware sales and the reduced proportion of software sales revenue in 2025, which historically had a gross margin in excess of 50%.
Operating Expenses
Operating expenses were approximately $2.5 million in fiscal year 2025, an increase from approximately $2.8 million in fiscal year 2024.
-- Selling expenses were $4,478 in fiscal year 2025, an increase by 161.0%
from $1,716 in fiscal year 2024. The increase in selling expense was
mainly attributable to the increase in one-off program marketing and
promotion expense.
-- General and administrative expenses decreased by 10.0% or $273,901 to
$2,477,412 for the year ended December 31, 2025 from $2,751,313 in 2024.
The decrease was mainly due to (1) the decrease of equity transaction
fees of $123,374, as we did not conduct any private placement or other
equity financing activities in 2025, as compared to one private placement
completed in 2024; and (2) the decrease of $138,972 in donation to an
education facility.
Other Income
Other income was $1,920,126 and $890,201 for years ended December 31, 2025 and 2024, respectively. The increase was primarily due to the increase in net investment income of approximately $1.0 million in 2025.
Net Income
Net income was $180,142 for the year ended December 31, 2025, an increase of $1,076,832 from net loss of $896,690 for 2024.
Balance Sheet
As of December 31, 2025, the Company had cash of $3.6 million, compared to $7.2 million as of December 31, 2024.
Cash Flow
Net cash used in operating activities was $1,535,849 for the year ended December 31, 2025. This was an increase of $847,311 compared to net cash used in operating activities of $688,538 in 2024.
Net cash used in investing activities was $2,109,565 for the year ended December 31, 2025. This was an decrease of $7,451,231 compared to net cash used in investing activities of $9,560,796 in 2024.
There was no financing activities during the year ended December 31, 2025. The net cash provided by financing activities for the year ended December 31, 2024 was $8.2 million attributable to a private placement.
About Hitek Global Inc.
Hitek Global Inc., headquartered in Xiamen, China, is an IT consulting and solutions service provider focusing on delivering services to business in various industry sectors in China. As of the date of this annual report, we have two lines of businesses-- 1) services to small and medium businesses ("SMEs"), which consists of Anti-Counterfeiting Tax Control System ("ACTCS") tax devices, ACTCS services, and 2) services to large businesses, which consists of hardware sales and software sales. We expect to actively develop our system integration services and online service platform in the near future. Our vision is to become a one-stop consulting destination for holistic IT and other business consulting services in China. For more information, visit the Company's website at http://www.xmhitek.com/.
Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential, " "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.
The following tables summarize our results of operations for the periods indicated:
HITEK GLOBAL INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
------------------------
2025 2024
----------- -----------
Assets
Current assets
Cash and cash equivalents $ 3,611,999 $ 7,236,798
Short-term investments 18,044,168 22,932,540
Accounts receivable, net 5,407,989 1,385,761
Advance to suppliers, net 290,680 11,315
Inventories, net 79,411 154,471
Loans receivable 6,020,220 958,996
Other receivable 6,846,247 -
Prepaid expenses and other current
assets 491,712 1,506,297
---------- ----------
Total current assets 40,792,426 34,186,178
---------- ----------
Non-current assets
Accounts receivable - non-current 1,027,421 2,227,089
Loan receivable - non-current 285,996 4,383,982
Property, equipment and software, net 475,189 744,941
---------- ----------
Total non-current assets 1,788,606 7,356,012
---------- ----------
Total Assets $42,581,032 $41,542,190
========== ==========
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 292,065 $ 255,950
Advance from customers - 11,034
Loan payable -- related party 2,645,465 479,498
Deferred revenue 73,059 55,720
Taxes payable 1,795,736 1,680,476
Accrued expenses and other current
liabilities 148,342 130,691
---------- ----------
Total current liabilities 4,954,667 2,613,369
---------- ----------
Non-current Liabilities
Loan payable -- related party - 2,054,992
Deferred income tax liabilities,
non-current 1,616,053 1,598,909
---------- ----------
Total non-current liabilities 1,616,053 3,653,901
---------- ----------
Total Liabilities 6,570,720 6,267,270
---------- ----------
Commitments and Contingencies - -
Shareholders' Equity
Class A Ordinary Shares, US$0.0001 par
value; 431,808,000 shares authorized,
21,107,364 shares issued and
outstanding as of December 31, 2025 and
2024. 2,111 2,111
Class B Ordinary Shares, US$0.0001 par
value; 58,192,000 shares authorized,
8,192,000 shares issued and outstanding
as of December 31, 2025 and 2024. 819 819
Additional paid-in capital 24,920,060 24,920,060
Statutory reserve 836,215 836,215
Retained earnings 10,671,200 10,491,058
Accumulated other comprehensive loss (420,093) (975,343)
---------- ----------
Total Shareholders' Equity 36,010,312 35,274,920
---------- ----------
Total Liabilities and Shareholders'
Equity $42,581,032 $41,542,190
========== ==========
The accompanying notes are an
integral part of these consolidated
financial statements.
HITEK GLOBAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
Years Ended December 31,
----------------------------------------
2025 2024 2023
------------ ------------ ------------
Revenues $ 6,536,184 $ 2,904,950 $ 4,563,731
Cost of revenues (5,845,713) (1,899,065) (2,642,491)
----------- ----------- -----------
Gross profit 690,471 1,005,885 1,921,240
----------- ----------- -----------
Operating
expenses:
General and
administrative 2,477,412 2,751,313 1,819,531
Selling 4,478 1,716 648
----------- ----------- -----------
Total operating
expenses 2,481,890 2,753,029 1,820,179
----------- ----------- -----------
Operating (loss)
income (1,791,419) (1,747,144) 101,061
----------- ----------- -----------
Other income
(expense)
Government
subsidies - - 569,928
Net investment
gain 1,382,934 336,241 330,552
Interest income 843,346 921,228 911,875
Interest expense (308,870) (313,937) (313,861)
Deregistration
cost - (104,127) -
Other income
(expense), net 2,716 50,796 (5,029)
----------- ----------- -----------
Total other
income, net 1,920,126 890,201 1,493,465
----------- ----------- -----------
Income (loss)
before provision
for income taxes 128,707 (856,943) 1,594,526
Income tax
(benefit)
expense (51,435) 39,747 546,885
----------- ----------- -----------
Net income (loss) $ 180,142 $ (896,690) $ 1,047,641
----------- ----------- -----------
Comprehensive
(loss) income
Net income (loss) $ 180,142 $ (896,690) $ 1,047,641
Foreign currency
translation gain
(loss) 555,250 (365,976) (330,116)
----------- ----------- -----------
Comprehensive
income (loss) $ 735,392 $(1,262,666) $ 717,525
=========== =========== ===========
Earnings (loss)
per ordinary
share
-- Basic and
diluted $ 0.01 $ (0.04) $ 0.08
=========== =========== ===========
Weighted average
number of
ordinary shares
outstanding
-- Basic and
diluted 21,107,364 20,603,614 13,257,469
=========== =========== ===========
The accompanying notes are an integral part of these
consolidated financial statements.
HITEK GLOBAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Years Ended December 31, 2025, 2024 and 2023
Class A Class B
Ordinary Ordinary Ordinary Accumulated
Shares* Shares* Shares* Additional other Total
---------------------- --------------- -------------------
Number Number Number
of of of paid-in Statutory Retained comprehensive Shareholders'
shares Amount shares Amount shares Amount capital reserve earnings loss Equity
------------ -------- ------- ------ --------- -------- ----------- ----------- ----------- --------------- ---------------
Balance as of
December 31,
2022 8,247,913 $ 1,099 - $ - - $ - $ 2,628,356 $ 836,215 $10,340,107 $ (279,251) $ 13,526,526
Shares issued 68,094 340 - - - - 14,093,195 - - - 14,093,535
Foreign currency
translation
adjustment - - - - - - - - - (330,116) (330,116)
Net income - - - - - - - - 1,047,641 - 1,047,641
----------- ------- ------- ----- --------- ---- ---------- ------- ---------- ----------- -----------
Balance as of
December 31,
2023 8,316,007 $ 1,439 - $ - - $ - $16,721,551 $ 836,215 $11,387,748 $ (609,367) $ 28,337,586
----------- ------- ------- ----- --------- ---- ---------- ------- ---------- ----------- -----------
Shares re-
designated and
re-classified (8,316,007) (1,439) 124,007 620 8,192,000 819 - - - - -
Issuance of
common stock
and warrants in
private
placement - - 298,140 1,491 - - 8,198,509 - - - 8,200,000
Foreign currency
translation
adjustment - - - - - - - - - (365,976) (365,976)
Net loss - - - - - - - - (896,690) - (896,690)
----------- ------- ------- ----- --------- ---- ---------- ------- ---------- ----------- -----------
Balance as of
December 31,
2024 - $ - 422,147 $2,111 8,192,000 $ 819 $24,920,060 $ 836,215 $10,491,058 $ (975,343) $ 35,274,920
----------- ------- ------- ----- --------- ---- ---------- ------- ---------- ----------- -----------
Foreign currency
translation
adjustment - - - - - - - - - 555,250 555,250
Net income - - - - - - - - 180,142 - 180,142
Balance as of
December 31,
2025 - $ - 422,147 $2,111 8,192,000 $ 819 $24,920,060 $ 836,215 $10,671,200 $ (420,093) $ 36,010,312
=========== ======= ======= ===== ========= ==== ========== ======= ========== =========== ===========
The accompanying notes are an integral part of these consolidated financial statements.
HITEK GLOBAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
-------------------------------------------
2025 2024 2023
------------- ------------- -------------
Cash flows from
operating
activities
Net income (loss) $ 180,142 $ (896,690) $ 1,047,641
Adjustments to
reconcile net
income (loss) to
net cash used in
operating
activities:
Depreciation 294,191 259,554 50,662
Amortization of
right-of-use
assets - - 3,167
Loss on disposal of
property, plant
and equipment - - 1,413
Accrued interest
income from loans,
net (134,261) (225,665) (102,418)
Net investment gain (998,244) (58,130) (208,626)
Provision for
(reversal of)
expected credit
losses of
receivables and
advance to
suppliers 344,715 366,736 (2,325)
Provision for
obsolete
inventories 485 - 5,559
Deferred income tax (51,435) 39,747 339,332
Changes in
operating assets
and liabilities:
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