Hitek Global Inc. Announces Fiscal Year 2022 Financial Results
Ms.
Fiscal Year 2022 Financial Results
Revenue
Total revenues were
- Revenue generated from hardware sales was
$2.5 million 2.9% to$2.4 million - Revenue generated from software sales was
$2.1 million 3.1% to$2.0 million - Revenue generated from tax devices and services was
$1.8 million 8.5% to$2.0 million January 2021 , as a new policy was enacted inJanuary 2021 that the new taxpayers inXiamen can obtain tax Ukeys (USB security keys) from the PRC tax authorities for free to issue electronic invoices themselves.
Gross Profit and Gross Margin
Gross profit was
Operating Expenses
Operating expenses were
- Selling expenses were
$437,185 471.7% from$76,477 - General and administrative expenses were
$1.5 million 13.4% from$1.7 million $0.1 million $0.3 million
Other Income
Other income was
Net Income
Net income was
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were
Balance Sheet
As of
Cash Flow
Net cash provided by operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
On
About Hitek Global Inc.
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:
Ascent Investor Relations LLC
Phone: +1 917-609-0333
Email: tina.xiao@ascent-ir.com
HITEK GLOBAL INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
As of | ||||||||
2022 | 2021 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash | $ | 1,203,160 | $ | 2,091,308 | ||||
Short-term investments | 4,290,348 | 5,197,015 | ||||||
Accounts receivable, net | 3,271,218 | 2,357,114 | ||||||
Accounts receivable - related party, net | 399,465 | 414,639 | ||||||
Advances to suppliers, net | 481,769 | 1,110,923 | ||||||
Inventories, net | 430,670 | 409,021 | ||||||
Deferred offering cost | 917,446 | 1,026,567 | ||||||
Loan receivable | 1,013,157 | 204,441 | ||||||
Prepaid expenses and other current assets | 94,925 | 156,111 | ||||||
Total current assets | 12,102,158 | 12,967,139 | ||||||
Non-current assets | ||||||||
Non-current accounts receivable | 4,209,546 | 3,134,361 | ||||||
Non-current accounts receivable - related party | - | 548,395 | ||||||
Non-current advance to a third party | 421,679 | 333,717 | ||||||
Non-current loan receivable | 4,342,100 | - | ||||||
Property, equipment and software, net | 122,967 | 156,761 | ||||||
Operating lease right-of-use assets | 6,641 | - | ||||||
Total non-current assets | 9,102,933 | 4,173,234 | ||||||
Total Assets | $ | 21,205,091 | $ | 17,140,373 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 696,734 | $ | 518,739 | ||||
Loan payable | 506,578 | - | ||||||
Deferred revenue | 977,054 | 784,530 | ||||||
Taxes payable | 1,671,322 | 1,299,147 | ||||||
Due to related parties | 598 | 4,163 | ||||||
Accrued expenses and other current liabilities | 348,167 | 181,925 | ||||||
Operating lease liabilities | 3,242 | - | ||||||
Total current liabilities | 4,203,695 | 2,788,504 | ||||||
Non-current Liabilities | ||||||||
Loan payable, non-current | 2,171,050 | - | ||||||
Deferred income tax liabilities, non-current | 1,300,421 | 1,225,641 | ||||||
Operating lease liabilities, non-current | 3,399 | - | ||||||
Total non-current liabilities | 3,474,870 | 1,225,641 | ||||||
Total Liabilities | 7,678,565 | 4,014,145 | ||||||
Commitments and Contingencies | ||||||||
Shareholders' Equity | ||||||||
Ordinary Shares*, par value | 1,099 | 1,099 | ||||||
Additional paid-in capital | 2,628,356 | 2,628,356 | ||||||
Statutory reserve | 836,215 | 767,207 | ||||||
Retained earnings | 10,340,107 | 8,993,370 | ||||||
Accumulated other comprehensive (loss) income | (279,251) | 736,196 | ||||||
Total Shareholders' Equity | 13,526,526 | 13,126,228 | ||||||
Total Liabilities and Shareholders' Equity | $ | 21,205,091 | $ | 17,140,373 | ||||
* | Retrospectively restated for effect of Reverse Split. |
HITEK GLOBAL INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||
Years Ended | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Revenues | $ | 6,428,608 | $ | 6,461,163 | $ | 5,804,727 | ||||||
Cost of revenues | (2,891,565) | (2,581,218) | (2,633,455) | |||||||||
Gross profit | 3,537,043 | 3,879,945 | 3,171,272 | |||||||||
Operating expenses: | ||||||||||||
General and administrative | 1,472,648 | 1,699,934 | 1,415,484 | |||||||||
Selling | 437,185 | 76,477 | 2,012 | |||||||||
Total operating expenses | 1,909,833 | 1,776,411 | 1,417,496 | |||||||||
Operating income | 1,627,210 | 2,103,534 | 1,753,776 | |||||||||
Other income (expense) | ||||||||||||
Government subsidies | 9,838 | 6,883 | 101,965 | |||||||||
Net investment (loss) income | (19,363) | 103,375 | 99,574 | |||||||||
Financial income (expense), net | 250,172 | (2,190) | 2,607 | |||||||||
Other, net | 1,106 | 608 | 179 | |||||||||
Total other income | 241,753 | 108,676 | 204,325 | |||||||||
Net Income before provision for income taxes | 1,868,963 | 2,212,210 | 1,958,101 | |||||||||
Income tax expense | 453,218 | 542,853 | 269,242 | |||||||||
Net income | $ | 1,415,745 | $ | 1,669,357 | $ | 1,688,859 | ||||||
Comprehensive income | ||||||||||||
Net income | $ | 1,415,745 | $ | 1,669,357 | $ | 1,688,859 | ||||||
Foreign currency translation (loss) gain | (1,015,447) | 290,407 | 521,914 | |||||||||
Comprehensive income | $ | 400,298 | $ | 1,959,764 | $ | 2,210,773 | ||||||
Earnings per ordinary share | ||||||||||||
– Basic and diluted | $ | 0.13 | $ | 0.15 | $ | 0.15 | ||||||
Weighted average number of ordinary shares outstanding | ||||||||||||
– Basic and diluted | 10,987,679 | 10,987,679 | 10,987,679 | |||||||||
* | Retrospectively restated for effect of Reverse Split. |
HITEK GLOBAL INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
Years Ended December31, | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Operating Activities | ||||||||||||
Net income | $ | 1,415,745 | $ | 1,669,357 | $ | 1,688,859 | ||||||
Adjustments to reconcile net income to net cash (used in) provided by | ||||||||||||
Depreciation and amortization | 21,881 | 355,738 | 378,594 | |||||||||
Loss on disposal of property, plant and equipment | 94 | |||||||||||
Interest income | (21,699) | (6,525) | (6,522) | |||||||||
Net investment loss (gain) | 19,363 | (103,375) | (99,574) | |||||||||
(Reversal of) doubtful accounts of receivables and advances to suppliers | (6,442) | (123,754) | (33,519) | |||||||||
(Reversal of) provision for obsolete inventories | 2,217 | (5,317) | 6,783 | |||||||||
Deferred income tax | 177,029 | 340,624 | 242,296 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Short-term investment –trading securities | 2,418,675 | (2,625,216) | (174,379) | |||||||||
Accounts receivable | (2,490,725) | (1,100,056) | 934,525 | |||||||||
Accounts receivable - related party | 499,933 | 578,157 | 186,223 | |||||||||
Advances to suppliers | 560,352 | (184,369) | (848,649) | |||||||||
Deferred offering cost | 60,000 | 155,915 | (335,898) | |||||||||
Inventory | (57,899) | (276,672) | 397,603 | |||||||||
Prepaid expenses and other current assets | 89,583 | 769,913 | (673,019) | |||||||||
Due from related party | 708 | |||||||||||
Accounts payable | 225,198 | 127,422 | 172,025 | |||||||||
Deferred revenue | 261,856 | 12,089 | (58,463) | |||||||||
Taxes payable | 488,419 | 327,807 | 159,464 | |||||||||
Due to related parties | (3,320) | 1,062 | 2,843 | |||||||||
Accrued expenses and other current liabilities | 163,884 | (127,375) | (7,144) | |||||||||
Net cash provided by (used in) operating activities | 3,824,050 | (214,575) | 1,932,850 | |||||||||
Investing Activities | ||||||||||||
Advance payment for software development | (117,617) | (25,582) | (285,346) | |||||||||
Loans to third parties | (5,498,997) | (356,595) | (144,925) | |||||||||
Repayment from third-party loans | 199,463 | 317,059 | - | |||||||||
Purchases of held-to-maturity investments | (1,932,080) | (1,240,329) | (2,463,732) | |||||||||
Redemption of held-to-maturity Investments | - | 1,705,453 | 2,028,956 | |||||||||
Net cash (used in) provided by investing activities | (7,349,231) | 400,006 | (865,047) | |||||||||
Financing activities: | ||||||||||||
Borrowing from third parties | 2,749,498 | - | - | |||||||||
Net cash provided by financing activities | 2,749,498 | - | - | |||||||||
Effect of exchange rate changes on cash and equivalents | (112,465) | 44,323 | 17,531 | |||||||||
Net (decrease) increase in cash | (888,148) | 229,754 | 1,085,334 | |||||||||
Cash and equivalents at beginning of year | 2,091,308 | 1,861,554 | 776,220 | |||||||||
Cash and equivalents at end of year | $ | 1,203,160 | $ | 2,091,308 | 1,861,554 | |||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for income taxes | $ | 45,002 | $ | 32,646 | 26,300 | |||||||
Non-cash transactions: | ||||||||||||
Operating right-of-use assets recognized for related operating lease | $ | 6,820 | $ | - | - | |||||||
View original content:https://www.prnewswire.com/news-releases/hitek-global-inc-announces-fiscal-year-2022-financial-results-301810353.html
SOURCE
