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.
AboutHitek 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 Companycautions 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 theSEC.
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
6,020,220 958,996
Loans receivable
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
1,788,606 7,356,012
Total non-current assets
$
42,581,032 $
41,542,190
Total Assets
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $
292,065 $
255,950
Advance from customers 11,034
2,645,465 479,498
Loan payable - related party
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, 2,111 2,111
21,107,364 shares issued and outstanding as of December 31, 2025 and 2024.
Class B Ordinary Shares, US$0.0001 par value; 58,192,000 shares authorized, 819 819
8,192,000 shares issued and outstanding as of December 31, 2025 and 2024.
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
2,481,890 2,753,029 1,820,179
Total operating expenses
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)
1,920,126 890,201 1,493,465
Total other income, net
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
Ordinary Class A Class B Additional Accumulated Total
Shares* Ordinary Ordinary other
Shares* Shares*
Number Amount Number Amount Number Amount paid-in Statutory Retained comprehensive Shareholders'
of of of capital reserve earnings loss Equity
shares shares shares
Balance as of 8,247,913 $
1,099
$
$ $
2,628,356 $
836,215 $
10,340,107 $
(279,251) $
13,526,526
December 31,
2022
Shares issued 68,094 340 14,093,195 14,093,535
Foreign currency (330,116) (330,116)
translation
adjustment
Net income 1,047,641 1,047,641
Balance as of 8,316,007 $
1,439
$
$ $
16,721,551 $
836,215 $
11,387,748 $
(609,367) $
28,337,586
December 31,
2023
Shares re- (8,316,007) (1,439) 124,007 620 8,192,000 819
designated and
re-classified
Issuance of 298,140 1,491 8,198,509 8,200,000
common stock
and warrants in
private
placement
Foreign currency (365,976) (365,976)
translation
adjustment
(896,690) (896,690)
Net loss
Balance as of
$ 422,147 $
2,111 8,192,000 $
819 $
24,920,060 $
836,215 $
10,491,058 $
(975,343) $
35,274,920
December 31,
2024
Foreign currency 555,250 555,250
translation
adjustment
Net income 180,142 180,142
Balance as of
$ 422,147 $
2,111 8,192,000 $
819 $
24,920,060 $
836,215 $
10,671,200 $
(420,093) $
36,010,312
December 31,
2025
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 344,715 366,736 (2,325)
and advance to suppliers
Provision for obsolete inventories 485 5,559
Deferred income tax (51,435) 39,747 339,332
Changes in operating assets and liabilities:
Short-term investments - trading securities 1,626,456 (2,612,671) (1,696,545)
Accounts receivable (2,982,936) 2,990,258 567,480
Accounts receivable - related party 390,197
Advance to suppliers (271,328) (8,175) 472,219
Deferred offering cost (130,134)
Inventories 79,126 59,802 194,872
Prepaid expenses and other current assets 295,234 65,672 (13,028)
Accounts payable 26,557 (265,203) (146,642)
Advance from customers (11,205) 6,640 4,632
Deferred revenue 14,497 (9,389) (787,062)
Taxes payable 40,552 (281,961) 291,578
Operating lease liabilities (3,167)
Due to related parties (584)
Accrued expenses and other current liabilities 11,605 (119,063) (340,133)
Net cash used in operating activities (1,535,849) (688,538) (61,912)
Cash flows from investing activities
Advance payment for software development (290,488) (339,309)
Loans to third parties (3,918,261) (2,899,088) (11,260,542)
Repayment from third-party loans 3,208,696 5,338,780 8,830,933
Prepayment for office renovation (150,156)
Purchases of property and equipment (186,499)
Purchases of held-to-maturity investments (11,600,000) (18,200,000) (11,000,000)
Redemption of held-to-maturity investments 9,200,000 7,500,000 7,159,018
Refund of (payment for) deposit for acquisition 1,000,000 (1,010,000)
Net cash used in investing activities (2,109,565) (9,560,796) (6,946,555)
Cash flows from financing activities:
Proceeds from issuance of ordinary shares 8,200,000 15,142,902
Net cash provided by financing activities 8,200,000 15,142,902
Effect of exchange rate changes on cash 20,615 (25,405) (26,058)
Net (decrease) increase in cash (3,624,799) (2,074,739) 8,108,377
Cash and cash equivalents at beginning of the year 7,236,798 9,311,537 1,203,160
Cash and cash equivalents at end of the year $
3,611,999 $
7,236,798 $
9,311,537
Supplemental disclosures of cash flow information:
Cash paid for income taxes
$ $
79,138 $
36,504
$ $
51,420 $
287,706
Cash paid for interest
Non-cash transactions:
Deferred offering cost
$
$ $
1,049,367
Recognition of other receivable upon termination of investment $
6,846,247
$
$
agreement related to short-term investments
The accompanying notes are an integral part of these consolidated financial statements.
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SOURCE Hitek Global Inc.
For Investor and Media Inquiries Please Contact: Tianyu Xia, Phone: +86 18519770823, Email: xiaty@xmhitek.com