Hitek Global Inc. Announces Fiscal Year 2025 Financial Results

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.

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.

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

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

Additional paid-in capital

24,920,060

Statutory reserve

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

Ordinary

Shares*

Class A

Ordinary

Shares*

Class B

Ordinary

Shares*

Additional

Accumulated

other

Total

Number

Amount

Number

Amount

Number

Amount

paid-in

capital

Statutory

reserve

Retained

earnings

comprehensive

loss

Shareholders'

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)

Net income

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)

Net loss

(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

Net income

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:

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

Cash paid for interest

51,420

287,706

Non-cash transactions:

Deferred offering cost

1,049,367

Recognition of other receivable upon termination of investment

agreement related to short-term investments

6,846,247

The accompanying notes are an integral part of these consolidated financial statements.

SOURCE Hitek Global Inc.