Hitek Global Inc. Announces First Half of Fiscal Year 2024 Financial Results
Hitek Global (Nasdaq: HKIT) reported financial results for H1 2024, showing revenue of $1.83 million, down from $2.95 million in H1 2023. Despite lower revenue, gross profit margin improved to 52.0% from 50.9% year-over-year, driven by increased higher-margin software sales. The company reported operating loss of $0.37 million compared to operating income of $0.51 million in H1 2023. Net income decreased to $0.12 million ($0.01 per share) from $0.62 million ($0.05 per share) in the prior year period. Cash position stood at $7.22 million as of June 30, 2024.
Hitek Global (Nasdaq: HKIT) ha comunicato i risultati finanziari per il primo semestre del 2024, registrando ricavi di 1,83 milioni di dollari, in calo rispetto ai 2,95 milioni di dollari del primo semestre del 2023. Nonostante la diminuzione dei ricavi, il margine di profitto lordo è migliorato al 52,0% rispetto al 50,9% dell'anno precedente, grazie all'aumento delle vendite di software ad alto margine. L'azienda ha riportato una perdita operativa di 370.000 dollari rispetto a un reddito operativo di 510.000 dollari nel primo semestre del 2023. L'utile netto è diminuito a 120.000 dollari (0,01 dollari per azione) rispetto ai 620.000 dollari (0,05 dollari per azione) dello stesso periodo dell'anno precedente. La posizione di cassa ammontava a 7,22 milioni di dollari al 30 giugno 2024.
Hitek Global (Nasdaq: HKIT) informó los resultados financieros para el primer semestre de 2024, mostrando ingresos de 1,83 millones de dólares, una disminución desde los 2,95 millones de dólares en el primer semestre de 2023. A pesar de la disminución en los ingresos, el margen de ganancia bruta mejoró al 52,0% desde el 50,9% interanual, impulsado por un aumento en las ventas de software de mayor margen. La compañía reportó una pérdida operativa de 370.000 dólares en comparación con un ingreso operativo de 510.000 dólares en el primer semestre de 2023. El ingreso neto disminuyó a 120.000 dólares (0,01 dólares por acción) desde 620.000 dólares (0,05 dólares por acción) en el mismo período del año anterior. La posición de efectivo se situó en 7,22 millones de dólares al 30 de junio de 2024.
하이텍 글로벌 (Nasdaq: HKIT)은 2024년 상반기 재무 결과를 보고하며, 수익이 183만 달러에 달해, 2023년 상반기 295만 달러에서 감소했다고 밝혔습니다. 수익 감소에도 불구하고, 총 이익률은 작년 대비 52.0%에서 50.9%로 개선되었습니다. 이는 더 높은 마진의 소프트웨어 판매 증가에 의해 촉진되었습니다. 회사는 운영 손실이 37만 달러라고 보고했으며, 2023년 상반기에는 51만 달러의 운영 소득을 기록했습니다. 순이익은 12만 달러 (주당 0.01 달러)로 감소하여, 전년 동기 62만 달러 (주당 0.05 달러)에서 줄어들었습니다. 현금 보유액은 2024년 6월 30일 기준으로 722만 달러였습니다.
Hitek Global (Nasdaq: HKIT) a annoncé les résultats financiers pour le premier semestre 2024, avec des revenus de 1,83 million de dollars, en baisse par rapport à 2,95 millions de dollars au premier semestre 2023. Malgré la baisse des revenus, la marge brute a augmenté à 52,0% contre 50,9% d'une année sur l'autre, grâce à une hausse des ventes de logiciels à forte marge. L'entreprise a enregistré une perte d'exploitation de 370 000 dollars par rapport à un revenu d'exploitation de 510 000 dollars au premier semestre 2023. Le bénéfice net a diminué à 120 000 dollars (0,01 dollar par action) contre 620 000 dollars (0,05 dollar par action) au cours de la même période de l'année précédente. La position de liquidités s'élevait à 7,22 millions de dollars au 30 juin 2024.
Hitek Global (Nasdaq: HKIT) hat die Finanzergebnisse für das erste Halbjahr 2024 veröffentlicht, mit einem Umsatz von 1,83 Millionen Dollar, was einem Rückgang von 2,95 Millionen Dollar im ersten Halbjahr 2023 entspricht. Trotz des rückläufigen Umsatzes verbesserte sich die Bruttogewinnmarge auf 52,0% gegenüber 50,9% im Vorjahr, was auf gestiegene Softwareverkäufe mit höheren Margen zurückzuführen ist. Das Unternehmen meldete einen operativen Verlust von 370.000 Dollar im Vergleich zu einem operativen Gewinn von 510.000 Dollar im ersten Halbjahr 2023. Der Nettogewinn verringerte sich auf 120.000 Dollar (0,01 Dollar pro Aktie) von 620.000 Dollar (0,05 Dollar pro Aktie) im Vorjahreszeitraum. Die Cash-Position belief sich zum 30. Juni 2024 auf 7,22 Millionen Dollar.
- Gross profit margin increased to 52.0% from 50.9% year-over-year
- CIS software sales grew 6.1% to $0.82 million
- Other income increased to $0.66 million from $0.44 million
- Net cash from operations improved to $0.75 million from $0.20 million
- Revenue declined 38% to $1.83 million from $2.95 million
- Operating loss of $0.37 million vs operating income of $0.51 million last year
- Net income dropped 81% to $0.12 million from $0.62 million
- Hardware sales decreased 43% to $0.75 million
- Tax devices and services revenue fell 70% to $0.26 million
- Cash position decreased to $7.22 million from $9.31 million
Insights
The financial results reveal concerning trends for HKIT. Revenue declined significantly by
The shift in business mix toward higher-margin software sales hasn't been enough to offset volume declines. Net income collapsed
The implementation of China's Golden Tax Phase IV and Xiamen's shift to electronic invoices have severely disrupted HKIT's traditional revenue streams. The company's strategic pivot toward larger software clients shows promise but hasn't scaled quickly enough to compensate for legacy business erosion. Market conditions in China remain challenging, with the "sluggish economic environment" cited as impacting customer demand.
Rising G&A expenses and increased marketing spend signal the company's struggle to maintain growth. While management's focus on acquisitions could provide new growth vectors, the timing amid operational challenges and margin pressures raises concerns about capital allocation and integration execution.
Ms. Xiaoyang Huang, Chief Executive Officer and Director of Hitek Global Inc., commented, "We are pleased to report a solid performance for the first half of fiscal year 2024, as we continue to adapt to an evolving market environment. Despite facing challenges, particularly due to the implementation of Golden Tax Phase IV, which introduced new complexities for enterprises in managing their taxes, we have remained resilient. One of the key highlights of our financial performance is the increase in our gross profit margin, which rose to
First Half 2024 Financial Highlights
- Revenue was
$1.83 million $2.95 million - Gross profit was
$0.95 million $1.5 million - Gross profit margin as a percentage of revenue increased to
52.0% for the six months ended June 30, 2024 from50.9% for the same period of last year. - Basic and diluted earnings per share was
$0.01 $0.05
First Half 2024 Financial Results
Revenue
Total revenues were
- Revenue generated from hardware sales was
$0.75 million $1.31 million - Revenue generated from CIS software sales was
$0.82 million 6.1% from$0.78 million - Revenue generated from tax devices and services was
$0.26 million $0.86 million Xiamen tax authorities implemented the use of electronic invoices system to replace the prior tax control system.
Gross Profit and Gross Margin
Gross profit was
Gross profit margin as a percentage of revenue increased to
Operating Expenses
Operating expenses were
- Selling expenses were
$9,844 928.9% from$325 0.5% of total revenues for the six months ended June 30, 2024 and0.01% of total revenues in the comparable period of 2023. The increase results from marketing activities to attract new purchases from new and existing customers. - General and administrative expenses were
$1.32 million 32.7% from$0.99 million
Operating loss was
Other Income
Other income was
Net Income
As a result of the factors described above, net income was
Basic and Diluted Earnings per Share
Basic and diluted earnings per share was
Balance Sheet
As of June 30, 2024, the Company had cash of
Cash Flow
Net cash provided by operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
About Hitek Global Inc.
Hitek Global Inc., headquartered in
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.
For investor and media inquiries please contact:
Hitek Global Inc.
Investor Relations Department
Email: ir@xmhitek.com
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SOURCE HITEK GLOBAL INC
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