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
