XIAMEN, China, Oct. 26, 2026 /PRNewswire/ -- Biddance AI Systems, Inc. (Nasdaq: BDAI) (the "Company"), a China-based information technology consulting and solutions service provider, today announced its unaudited financial results for the six months ended June 30, 2026.
Ms. Xiaoyang Huang, Chief Executive Officer and Director of Biddance AI Systems, Inc., commented, "We are delighted with the robust year-over-year revenue growth achieved in the first half of the fiscal year. Our hardware and equipment sales served as the main revenue driver, providing solid support to the segment's expansion. Concurrently, we are aggressively seeking to expand our client base for our tax services."
First Half 2026 Financial Highlights
- Revenue was $1.23 million for the six months ended June 30, 2026 compared to $0.74 million for the same period of last year.
- Cost of revenue was $1.02 million for the six months ended June 30, 2026 compared to $0.57 million for the same period of last year.
- Gross profit was $0.20 million for the six months ended June 30, 2026 compared to $0.17 million for the same period of last year.
- Net loss was $1.37 million for the six months ended June 30, 2026 compared to a net loss of $0.92 million for the same period of last year.
First Half 2026 Financial Results
Revenue
Total revenues were $1.23 million for the six months ended June 30, 2026, compared to $0.74 million for the same period of last year. The revenue increase was mainly due to the increase in hardware sales.
Gross Profit and Gross Margin
Gross profit was $0.20 million for the six months ended June 30, 2026 compared to $0.17 million for the same period of last year.
Gross profit margin as a percentage of revenue decreased to 16.4% for the six months ended June 30, 2026 from 23.4% for the same period of last year.
Operating Expenses
Operating expenses were $2.00 million for the six months ended June 30, 2026, an increase of 31.7% from $1.52 million for the same period of last year. The increase in operating expense in 2026 was primarily due to the increase in general and administrative expenses.
Other Income
Total other income, net, was $0.33 million ($327,339) and $0.33 million ($330,596) for the six months ended June 30, 2026 and 2025, respectively.
Net Income (Loss)
As a result of the factors described above, net loss was $1.37 million for the six months ended June 30, 2026, compared to a net loss of $0.92 million for the comparable period of 2025.
Basic and Diluted Loss per Share
Basic and diluted loss per share was $0.16 for the six months ended June 30, 2026, compared to $0.11 for the same period of last year.
Cash Flow
Net cash used in operating activities was $1.08 million for the six months ended June 30, 2026, compared to net cash provided by operating activities of $1.15 million for the same period of last year.
Net cash provided by investing activities was $4.15 million for the six months ended June 30, 2026, compared to net cash used in investing activities of $0.23 million for the same period of last year.
Net cash provided by financing activities was $10.42 million for the six months ended June 30, 2026.
About Biddance AI Systems, Inc.
Biddance AI Systems, Inc. (formerly known as Hitek Global Inc.), headquartered in Xiamen, China, is an information technology ("IT") consulting and solutions service provider in China. The Company has two lines of business: 1) services to small and medium businesses, which consists of Anti-Counterfeiting Tax Control System ("ACTCS") tax devices, ACTCS services, and IT services, and 2) services to large businesses, which consists of hardware sales and software sales. The Company's 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:
BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars, except for the number of shares)
June 30, December 31,
2026 2025
(Unaudited)
Assets
Current assets
Cash and cash equivalents $
17,088,014 $
3,611,999
Short-term investments 19,970,243 18,364,219
Accounts receivable, net 5,350,006 5,407,989
Advances to suppliers, net 4,422 290,680
Inventories, net 85,568 79,411
Loans receivable 589,528 6,020,220
Other receivable 5,846,247 6,846,247
Prepaid expenses and other current assets 10,507 171,661
Total current assets 48,944,535 40,792,426
Non-current assets
Non-current accounts receivable, net 1,027,421
Non-current loans receivable 285,996
Property, equipment and software, net 332,488 475,189
Total non-current assets 332,488 1,788,606
Total Assets $
49,277,023 $
42,581,032
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $
255,982 $
292,065
Loan payable - related party 2,645,465
Deferred revenue 65,298 73,059
Taxes payable 1,832,077 1,795,736
Accrued expenses and other current liabilities 160,776 148,342
Total current liabilities 2,314,133 4,954,667
Non-current Liabilities
Deferred income tax liabilities, net 1,559,142 1,616,053
Total non-current liabilities 1,559,142 1,616,053
Total Liabilities 3,873,275 6,570,720
Commitments and Contingencies
Shareholders' Equity
Class A Ordinary Shares, US$0.375 par value; 800,000 shares authorized, 299,948 2,111
799,861 shares issued and outstanding as of June 30, 2026; 800,000 shares
authorized, 5,629 shares issued and outstanding as of December 31, 2025*
Class B Ordinary Shares, US$0.0001 par value; 150,000,000 shares authorized, 819 819
8,192,000 shares issued and outstanding
Additional paid-in capital 35,040,217 24,920,060
Statutory reserve 836,215 836,215
Retained earnings 9,301,135 10,671,200
Accumulated other comprehensive loss (74,586) (420,093)
Total Shareholders' Equity 45,403,748 36,010,312
Total Liabilities and Shareholders' Equity $
49,277,023 $
42,581,032
BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Expressed in U.S. Dollars, except for the number of shares)
Six Months Ended
June 30,
2026 2025
(Unaudited) (Unaudited)
Revenues $
1,226,046 $
741,541
Cost of revenues (1,024,835) (567,675)
Gross profit 201,211 173,866
Operating expenses:
General and administrative 2,002,067 1,519,128
Selling 1,411 2,325
Total operating expenses 2,003,478 1,521,453
Operating loss (1,802,267) (1,347,587)
Other income (expense)
Net investment gain 102,363 82,463
Interest income 210,639 412,683
Interest expense (153,049)
Other income (expense), net 14,337 (11,501)
Total other income, net 327,339 330,596
Loss before income taxes (1,474,928) (1,016,991)
Income tax benefit (104,863) (100,882)
Net loss $
(1,370,065) $
(916,109)
Comprehensive loss
Net loss $
(1,370,065) $
(916,109)
Foreign currency translation gain 345,507 236,419
Comprehensive loss $
(1,024,558) $
(679,690)
Loss per ordinary share
Basic and diluted $
(0.16) $
(0.11)
Weighted average number of ordinary shares outstanding
Basic and diluted* 8,313,997 8,197,629
BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Six Months Ended June 30, 2026 and 2025
(Expressed in U.S. Dollars, except for the number of shares)
Class A Class B Additional Accumulated Total
Ordinary Shares* Ordinary Shares other
Number of Amount Number of Amount paid-in Statutory Retained comprehensive Shareholders'
shares shares capital reserve earnings loss Equity
Balance as of 5,629 $
2,111 8,192,000 $
819 $
24,920,060 $
836,215 $
10,491,058 $
(975,343) $
35,274,920
December 31, 2024
Foreign currency 236,419 236,419
translation adjustment
Net loss (916,109) (916,109)
Balance as of 5,629 $
2,111 8,192,000 $
819 $
24,920,060 $
836,215 $
9,574,949 $
(738,924) $
34,595,230
June 30, 2025
(unaudited)
Class A Class B Additional Accumulated Total
Ordinary Shares* Ordinary Shares other
Number of Amount Number of Amount paid-in Statutory Retained comprehensive Shareholders'
shares shares capital reserve earnings loss Equity
Balance as of 5,629 $
2,111 8,192,000 $
819 $
24,920,060 $
836,215 $
10,671,200 $
(420,093) $
36,010,312
December 31, 2025
Foreign currency 345,507 345,507
translation adjustment
Issuance of ordinary 794,232 297,837 10,120,157 10,417,994
shares
Net loss (1,370,065) (1,370,065)
Balance as of 799,861 $
299,948 8,192,000 $
819 $
35,040,217 $
836,215 $
9,301,135 $
(74,586) $
45,403,748
June 30, 2026
(unaudited)
BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
Six Months Ended
June 30,
2026 2025
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net loss $
(1,370,065) $
(916,109)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization 154,064 145,775
Loss on disposal of property, plant and equipment 1,433
Accrued interest income from loans, net (104,790)
Net investment gain (55,640) (66,820)
Provision for expected credit losses of receivables 506,980 482,621
Provision for obsolete inventories 2,019 3,832
Deferred income tax (105,252) (100,882)
Changes in operating assets and liabilities:
Short-term investments - trading securities (1,312,113) 2,427,711
Accounts receivable 710,590 1,044,167
Advance to suppliers 291,845 (2,272,803)
Inventories (5,700) 12,483
Prepaid expenses and other current assets 164,540 265,122
Accounts payable (42,330) (50,983)
Advance from customers 291,466
Deferred revenue (9,888) (16,056)
Tax payable (18,497) 5,781
Due to related parties 16,546
Accrued expenses and other current liabilities 7,798 (13,461)
Net cash (used in) provided by operating activities (1,080,216) 1,153,600
Cash flows from investing activities:
Loans to third parties (291,443) (413,645)
Loans repayment by third parties 3,439,030 137,882
Purchases of held-to-maturity investments (1,000,000) (1,650,000)
Redemption of held-to-maturity investments 2,000,000 700,000
Refund of deposit for acquisition 1,000,000
Net cash provided by (used in) investing activities 4,147,587 (225,763)
Cash flows from financing activities:
Proceeds from issuance of ordinary shares 10,417,994
Net cash provided by financing activities 10,417,994
Effect of exchange rate changes on cash (9,350) 33,690
Net increase in cash 13,476,015 961,527
Cash and cash equivalents at the beginning of period 3,611,999 7,236,798
Cash and cash equivalents at the end of period $
17,088,014 $
8,198,325
Supplemental disclosures of cash flow information:
Cash paid for income taxes
$
$
Cash paid for interest
$
$
The accompanying notes are an integral part of these consolidated financial statements.
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SOURCE Biddance AI Systems, Inc.
For investor and media inquiries please contact: Biddance AI Systems, Inc., Investor Relations, Tianyu Xia, xiaty@xmhitek.com