Hitek Global Inc. Announces Fiscal Year 2025 Financial Results
Rhea-AI Summary
Hitek Global (Nasdaq: HKIT) reported fiscal 2025 results for year ended December 31, 2025: revenue $6.5M vs $2.9M in 2024, driven by hardware sales of $6.1M. Gross profit was $0.7M with margin 10.6% vs 34.6% in 2024. Net income was $180,142 vs a loss of $896,690 in 2024. Cash was $3.6M at year-end vs $7.2M prior year. Operating cash used was $1.54M; investing cash used was $2.11M. Other income rose roughly $1.0M, mainly from investment income.
Positive
- Revenue increased to $6.5M from $2.9M
- Hardware sales grew to $6.1M in 2025
- Net income improved to $180,142 from a $896,690 loss
Negative
- Gross margin declined to 10.6% from 34.6%
- Cash balance decreased to $3.6M from $7.2M
- Net cash used in operating activities rose to $1.54M
News Market Reaction – HKIT
In the Apr 24 session, HKIT declined 1.00%, reflecting a mild negative market reaction. Argus tracked a peak move of +20.0% during that session. Argus tracked a trough of -10.0% from its starting point during tracking. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 29 | Annual earnings | Negative | +0.0% | Fiscal 2024 revenue decline and swing from profit to net loss. |
| Oct 28 | Interim earnings | Neutral | +2.7% | H1 2024 revenue drop but improved gross margin and positive net income. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Past earnings releases produced modest price moves, with one neutral and one small positive reaction despite weakening fundamentals in 2024.
Recent earnings history shows a deterioration in fiscal 2024 followed by partial recovery into 2025. Fiscal 2024 revenue fell to $2.9M with a net loss of $896,690, versus prior profitability in 2023. H1 2024 also showed lower revenue but stronger margins and reduced, yet positive, net income. Against this backdrop, fiscal 2025 results highlight a revenue rebound to $6.5M and a return to net income, but with sharply lower gross margin, continuing a shift in business mix versus earlier years.
Key Terms
private placement financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
- Revenue generated from hardware sales was approximately
$6.1 $1.7 - Revenue generated from Tax devices and service was approximately
$0.3 $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 $0.8
Gross Profit and Gross Margin
Gross profit was approximately
Operating Expenses
Operating expenses were approximately
- Selling expenses were
$4,478 in fiscal year 2025, an increase by161.0% 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 $2,477,412 $2,751 $123,374 $138,972
Other Income
Other income was
Net Income
Net income was
Balance Sheet
As of December 31, 2025, the Company had cash of
Cash Flow
Net cash used in operating activities was
Net cash used in investing activities was
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
About Hitek Global Inc.
Hitek Global Inc., headquartered in Xiamen,
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, | 2,111 | 2,111 | ||||||
Class B Ordinary Shares, | 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 | ||||||||||||
– 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 | |||||||||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Number | Amount | paid-in | Statutory | Retained | comprehensive | Shareholders' | ||||||||||||||||||||||||||||||||||
Balance as of | 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 | - | - | - | - | - | - | - | - | - | (330,116) | (330,116) | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Shares re- | (8,316,007) | (1,439) | 124,007 | 620 | 8,192,000 | 819 | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Issuance of | - | - | 298,140 | 1,491 | - | - | 8,198,509 | - | - | - | 8,200,000 | |||||||||||||||||||||||||||||||||
Foreign currency | - | - | - | - | - | - | - | - | - | (365,976) | (365,976) | |||||||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | - | (896,690) | - | (896,690) | |||||||||||||||||||||||||||||||||
Balance as of | - | $ | - | 422,147 | $ | 2,111 | 8,192,000 | $ | 819 | $ | 24,920,060 | $ | 836,215 | $ | 10,491,058 | $ | (975,343) | $ | 35,274,920 | |||||||||||||||||||||||||
Foreign currency | - | - | - | - | - | - | - | - | - | 555,250 | 555,250 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
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 | ||||||||||||
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) | |||||||||
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 | $ | 6,846,247 | $ | - | $ | - | ||||||
The accompanying notes are an integral part of these consolidated financial statements. | ||||||||||||
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SOURCE Hitek Global Inc.