Hitek Global Inc. Announces Fiscal Year 2024 Financial Results
Hitek Global reported a challenging fiscal year 2024, with total revenue declining to $2.9 million from $4.6 million in 2023. The company experienced a significant shift in its revenue streams, posting a net loss of $896,690 compared to a net income of $1,047,641 in 2023.
Key financial highlights:
- Hardware sales dropped to $1.7M from $2.4M
- Tax devices revenue decreased to $0.4M from $1.4M
- CIS software revenue showed slight growth to $0.8M from $0.76M
- Gross margin declined to 34.6% from 42.1%
- Cash position decreased to $7.2M from $9.3M
The company's transition reflects challenges in hardware sales and tax device services, offset partially by growth in their CIS software segment. Operating expenses increased to $2.8M from $1.8M, impacted by higher marketing costs and professional service fees from financing activities.
Hitek Global ha riportato un anno fiscale 2024 difficile, con un fatturato totale in calo a 2,9 milioni di dollari rispetto ai 4,6 milioni del 2023. L'azienda ha registrato un significativo cambiamento nelle sue fonti di ricavo, con una perdita netta di 896.690 dollari rispetto a un utile netto di 1.047.641 dollari nel 2023.
Punti chiave finanziari:
- Le vendite di hardware sono scese a 1,7 milioni di dollari da 2,4 milioni
- I ricavi dai dispositivi fiscali sono diminuiti a 0,4 milioni da 1,4 milioni
- I ricavi dal software CIS hanno mostrato una leggera crescita a 0,8 milioni da 0,76 milioni
- Il margine lordo è calato al 34,6% dal 42,1%
- La posizione di cassa è diminuita a 7,2 milioni da 9,3 milioni
La transizione dell’azienda riflette le difficoltà nelle vendite di hardware e nei servizi di dispositivi fiscali, parzialmente compensate dalla crescita nel segmento software CIS. Le spese operative sono aumentate a 2,8 milioni da 1,8 milioni, influenzate da maggiori costi di marketing e oneri per servizi professionali legati ad attività di finanziamento.
Hitek Global reportó un año fiscal 2024 desafiante, con ingresos totales que disminuyeron a 2.9 millones de dólares desde 4.6 millones en 2023. La compañía experimentó un cambio significativo en sus fuentes de ingresos, registrando una pérdida neta de 896,690 dólares en comparación con una ganancia neta de 1,047,641 dólares en 2023.
Puntos financieros clave:
- Las ventas de hardware cayeron a 1.7 millones desde 2.4 millones
- Los ingresos por dispositivos fiscales disminuyeron a 0.4 millones desde 1.4 millones
- Los ingresos por software CIS mostraron un ligero crecimiento a 0.8 millones desde 0.76 millones
- El margen bruto se redujo al 34.6% desde 42.1%
- La posición de efectivo bajó a 7.2 millones desde 9.3 millones
La transición de la empresa refleja desafíos en las ventas de hardware y servicios de dispositivos fiscales, parcialmente compensados por el crecimiento en su segmento de software CIS. Los gastos operativos aumentaron a 2.8 millones desde 1.8 millones, afectados por mayores costos de marketing y honorarios por servicios profesionales derivados de actividades financieras.
Hitek Global은 2024 회계연도에 어려운 시기를 겪었으며, 총 수익이 2023년 460만 달러에서 290만 달러로 감소했습니다. 회사는 수익 구조에 큰 변화를 겪었으며, 2023년 순이익 104만 7,641달러에서 순손실 89만 6,690달러를 기록했습니다.
주요 재무 하이라이트:
- 하드웨어 매출은 240만 달러에서 170만 달러로 감소
- 세금 장치 수익은 140만 달러에서 40만 달러로 감소
- CIS 소프트웨어 수익은 76만 달러에서 80만 달러로 소폭 증가
- 총이익률은 42.1%에서 34.6%로 하락
- 현금 보유액은 930만 달러에서 720만 달러로 감소
회사의 전환은 하드웨어 판매 및 세금 장치 서비스의 어려움을 반영하며, 일부는 CIS 소프트웨어 부문의 성장으로 상쇄되었습니다. 영업비용은 마케팅 비용 증가와 금융 활동 관련 전문 서비스 수수료 영향으로 180만 달러에서 280만 달러로 증가했습니다.
Hitek Global a connu une année fiscale 2024 difficile, avec un chiffre d'affaires total en baisse à 2,9 millions de dollars contre 4,6 millions en 2023. L'entreprise a connu un changement significatif dans ses sources de revenus, enregistrant une perte nette de 896 690 dollars contre un bénéfice net de 1 047 641 dollars en 2023.
Points financiers clés :
- Les ventes de matériel ont chuté à 1,7 million de dollars contre 2,4 millions
- Les revenus des dispositifs fiscaux ont diminué à 0,4 million contre 1,4 million
- Les revenus des logiciels CIS ont légèrement augmenté à 0,8 million contre 0,76 million
- La marge brute a diminué à 34,6 % contre 42,1 %
- La trésorerie a diminué à 7,2 millions contre 9,3 millions
La transition de l'entreprise reflète des difficultés dans les ventes de matériel et les services liés aux dispositifs fiscaux, partiellement compensées par la croissance de leur segment logiciel CIS. Les charges d'exploitation ont augmenté à 2,8 millions contre 1,8 million, impactées par des coûts marketing plus élevés et des frais de services professionnels liés aux activités de financement.
Hitek Global meldete ein herausforderndes Geschäftsjahr 2024, mit einem Gesamtumsatzrückgang auf 2,9 Millionen US-Dollar von 4,6 Millionen im Jahr 2023. Das Unternehmen verzeichnete eine signifikante Verschiebung seiner Einnahmequellen und einen Nettogewinn von -896.690 US-Dollar im Vergleich zu einem Nettogewinn von 1.047.641 US-Dollar im Jahr 2023.
Wichtige finanzielle Highlights:
- Hardware-Verkäufe sanken auf 1,7 Mio. USD von 2,4 Mio. USD
- Einnahmen aus Steuergeräten gingen auf 0,4 Mio. USD von 1,4 Mio. USD zurück
- CIS-Software-Umsatz zeigte ein leichtes Wachstum auf 0,8 Mio. USD von 0,76 Mio. USD
- Bruttomarge sank auf 34,6 % von 42,1 %
- Barmittelbestand verringerte sich auf 7,2 Mio. USD von 9,3 Mio. USD
Der Wandel des Unternehmens spiegelt Herausforderungen im Hardware-Verkauf und bei Steuergerätediensten wider, die teilweise durch Wachstum im CIS-Softwaresegment ausgeglichen wurden. Die Betriebskosten stiegen von 1,8 Mio. USD auf 2,8 Mio. USD, beeinflusst durch höhere Marketingkosten und professionelle Dienstleistungsgebühren aus Finanzierungsaktivitäten.
- CIS software revenue increased to $0.8M in 2024 from $0.76M in 2023
- Successful launch of updated CIS software in March 2024 with growth expectations
- Strong cash position with $7.2M as of December 31, 2024
- Secured $8.2M from financing activities in 2024
- Total revenue declined 37% to $2.9M from $4.6M in 2023
- Hardware sales decreased to $1.7M from $2.4M due to reduced customer demand
- Tax devices revenue dropped significantly to $0.4M from $1.4M
- Gross margin declined to 34.6% from 42.1%
- Operating expenses increased 55.6% to $2.8M from $1.8M
- Net loss of $896,690 in 2024 vs net income of $1.04M in 2023
- Cash position decreased to $7.2M from $9.3M year-over-year
- Operating cash flow worsened to -$688,538 from -$61,912 in 2023
- Credit losses increased by $362,972 due to terminated software project
Insights
Hitek Global's FY2024 shows concerning financial deterioration with 37% revenue decline and swing to net loss despite modest software growth.
Hitek Global's fiscal year 2024 results reveal significant financial deterioration across key metrics.
The sole positive indicator was CIS software revenue, which increased marginally to
Profitability metrics deteriorated substantially with gross profit dropping to
The company swung from
The company's performance indicates a challenging transition period where declining legacy business lines outpace growth in newer software offerings, creating significant near-term financial strain.
Ms. Xiaoyang Huang, Chief Executive Officer and Director of Hitek Global Inc. commented, "Fiscal year 2024 was a year of strategic transition for our company. While we are affected by changes in hardware and tax device sales, we are encouraged by the growth in our CIS software segment following its successful update. As we look ahead, we remain focused on expanding our software and services, driving innovation, and creating long-term value for our customers and shareholders."
Fiscal Year 2024 Financial Results
Revenue
Total revenue was approximately
- Revenue generated from hardware sales was approximately
$1.7 $2.4 - Revenue generated from Tax devices and service was approximately
$0.4 $1.4 million in fiscal year 2023. The decrease was due mainly toXiamen tax authorities implemented the use of electronic invoices system to replace the traditional tax control system. - Revenue generated from CIS software was approximately
$0.8 $0.76
Gross Profit and Gross Margin
Gross profit was approximately
Operating Expenses
Operating expenses were approximately
- Selling expenses were
$1,716 in fiscal year 2024, an increase by164.8% from$648 in fiscal year 2023. The increase in selling expense was mainly attributable to the increase in one-off program marketing and promotion expense. - General and administrative expenses increased by
51.3% or$931,782 $2,751,313 $1,819,531 $373,531 $362,972 $138,972
Other Income
Other income was
Net Income
Net loss was
Balance Sheet
As of December 31, 2024, the Company had cash of
Cash Flow
Net cash used in 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 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.
For Investor and Media Inquiries Please Contact:
Tianyu Xia
Phone: +86 18519770823
Email: xiaty@xmhitek.com
The following tables summarize our results of operations for the periods indicated:
HITEK GLOBAL INC. AND SUBSIDIARIES | ||||||||
Years Ended | ||||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash | $ | 7,236,798 | $ | 9,311,537 | ||||
Short-term investments | 22,932,540 | 8,837,445 | ||||||
Accounts receivable, net | 1,385,761 | 2,118,738 | ||||||
Advances to suppliers, net | 11,315 | 338,166 | ||||||
Inventories, net | 154,471 | 219,505 | ||||||
Loans receivable | 958,996 | 3,608,289 | ||||||
Prepaid expenses and other current assets | 1,506,297 | 352,919 | ||||||
Total current assets | 34,186,178 | 24,786,599 | ||||||
Non-current assets | ||||||||
Non-current accounts receivable | 2,227,089 | 4,597,214 | ||||||
Non-current advance to a third party | - | 410,509 | ||||||
Non-current loan receivable | 4,383,982 | 4,227,079 | ||||||
Property, equipment and software, net | 744,941 | 403,330 | ||||||
Operating lease right-of-use assets | - | 3,309 | ||||||
Long-term investments | - | 1,000,000 | ||||||
Total non-current assets | 7,356,012 | 10,641,441 | ||||||
Total Assets | $ | 41,542,190 | $ | 35,428,040 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 255,950 | $ | 532,130 | ||||
Advances from customers | 11,034 | 4,616 | ||||||
Loan payable | 479,498 | 493,159 | ||||||
Deferred revenue | 55,720 | 166,760 | ||||||
Taxes payable | 1,680,476 | 1,917,647 | ||||||
Accrued expenses and other current liabilities | 130,691 | 255,131 | ||||||
Operating lease liabilities | - | 3,309 | ||||||
Total current liabilities | 2,613,369 | 3,372,752 | ||||||
Non-current Liabilities | ||||||||
Loan payable, non-current | 2,054,992 | 2,113,539 | ||||||
Deferred income tax liabilities, non-current | 1,598,909 | 1,604,163 | ||||||
Total non-current liabilities | 3,653,901 | 3,717,702 | ||||||
Total Liabilities | 6,267,270 | 7,090,454 | ||||||
Commitments and Contingencies | - | - | ||||||
Shareholders' Equity | ||||||||
Ordinary Shares, par value | - | 1,439 | ||||||
Class A Ordinary Shares, | 2,111 | - | ||||||
Class B Ordinary Shares, | 819 | - | ||||||
Additional paid-in capital | 24,920,060 | 16,721,551 | ||||||
Statutory reserve | 836,215 | 836,215 | ||||||
Retained earnings | 10,491,058 | 11,387,748 | ||||||
Accumulated other comprehensive loss | (975,343) | (609,367) | ||||||
Total Shareholders' Equity | 35,274,920 | 28,337,586 | ||||||
Total Liabilities and Shareholders' Equity | $ | 41,542,190 | $ | 35,428,040 | ||||
HITEK GLOBAL INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||
Years Ended December 31, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Revenues | $ | 2,904,950 | $ | 4,563,731 | $ | 6,428,608 | ||||||
Cost of revenues | (1,899,065) | (2,642,491) | (2,891,565) | |||||||||
Gross profit | 1,005,885 | 1,921,240 | 3,537,043 | |||||||||
Operating expenses: | ||||||||||||
General and administrative | 2,751,313 | 1,819,531 | 1,472,648 | |||||||||
Selling | 1,716 | 648 | 437,185 | |||||||||
Total operating expenses | 2,753,029 | 1,820,179 | 1,909,833 | |||||||||
Operating (loss) income | (1,747,144) | 101,061 | 1,627,210 | |||||||||
Other income (expense) | ||||||||||||
Government subsidies | - | 569,928 | 9,838 | |||||||||
Net investment gain (loss) | 336,241 | 330,552 | (19,363) | |||||||||
Interest income | 921,228 | 911,875 | 545,555 | |||||||||
Interest expense | (313,937) | (313,861) | (285,353) | |||||||||
Deregistration cost | (104,127) | - | - | |||||||||
Other income (expense), net | 50,796 | (5,029) | (8,924) | |||||||||
Total other income, net | 890,201 | 1,493,465 | 241,753 | |||||||||
(Loss) income before provision for income taxes | (856,943) | 1,594,526 | 1,868,963 | |||||||||
Income tax expense | 39,747 | 546,885 | 453,218 | |||||||||
Net (loss) income | $ | (896,690) | $ | 1,047,641 | $ | 1,415,745 | ||||||
Comprehensive (loss) income | ||||||||||||
Net (loss) income | $ | (896,690) | $ | 1,047,641 | $ | 1,415,745 | ||||||
Foreign currency translation loss | (365,976) | (330,116) | (1,015,447) | |||||||||
Comprehensive (loss) income | $ | (1,262,666) | $ | 717,525 | $ | 400,298 | ||||||
(Loss) earnings per ordinary share | ||||||||||||
– Basic and diluted | $ | (0.04) | $ | 0.08 | $ | 0.13 | ||||||
Weighted average number of ordinary shares outstanding | ||||||||||||
– Basic and diluted | 20,603,614 | 13,257,469 | 10,987,679 | |||||||||
HITEK GLOBAL INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
Years Ended December 31, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Cash flows from operating activities | ||||||||||||
Net (loss) income | $ | (896,690) | $ | 1,047,641 | $ | 1,415,745 | ||||||
Adjustments to reconcile net (loss) income to net cash | ||||||||||||
Depreciation | 259,554 | 50,662 | 21,881 | |||||||||
Amortization of right-of-use assets | - | 3,167 | - | |||||||||
Loss on disposal of property, plant and equipment | - | 1,413 | - | |||||||||
Accrued interest income from loans, net | (225,665) | (102,418) | (21,699) | |||||||||
Net investment (gain) loss | (58,130) | (208,626) | 19,363 | |||||||||
Provision for (reversal of) expected credit losses of | 366,736 | (2,325) | (6,442) | |||||||||
Provision for obsolete inventories | - | 5,559 | 2,217 | |||||||||
Deferred income tax | 39,747 | 339,332 | 177,029 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Short-term investments – trading securities | (2,612,671) | (1,696,545) | 2,418,675 | |||||||||
Accounts receivable | 2,990,258 | 567,480 | (2,490,725) | |||||||||
Accounts receivable – related party | - | 390,197 | 499,933 | |||||||||
Advances to suppliers | (8,175) | 472,219 | 560,352 | |||||||||
Deferred offering cost | - | (130,134) | 60,000 | |||||||||
Inventories | 59,802 | 194,872 | (57,899) | |||||||||
Prepaid expenses and other current assets | 65,672 | (13,028) | 89,583 | |||||||||
Accounts payable | (265,203) | (146,642) | 225,198 | |||||||||
Advances from customers | 6,640 | 4,632 | - | |||||||||
Deferred revenue | (9,389) | (787,062) | 261,856 | |||||||||
Taxes payable | (281,961) | 291,578 | 488,419 | |||||||||
Operating lease liabilities | - | (3,167) | - | |||||||||
Due to related parties | - | (584) | (3,320) | |||||||||
Accrued expenses and other current liabilities | (119,063) | (340,133) | 163,884 | |||||||||
Net cash (used in) provided by operating activities | (688,538) | (61,912) | 3,824,050 | |||||||||
Cash flows from investing activities | ||||||||||||
Advance payment for software development | (290,488) | (339,309) | (117,617) | |||||||||
Loans to third parties | (2,899,088) | (11,260,542) | (5,498,997) | |||||||||
Repayment from third-party loans | 5,338,780 | 8,830,933 | 199,463 | |||||||||
Prepayment for office renovation | - | (150,156) | - | |||||||||
Purchases of property and equipment | - | (186,499) | - | |||||||||
Purchases of held-to-maturity investments | (18,200,000) | (11,000,000) | (1,932,080) | |||||||||
Redemption of held-to-maturity investments | 7,500,000 | 7,159,018 | - | |||||||||
Deposit for acquisition | (1,010,000) | - | - | |||||||||
Net cash used in investing activities | (9,560,796) | (6,946,555) | (7,349,231) | |||||||||
Cash flows from financing activities: | ||||||||||||
Borrowing from third parties | - | - | 2,749,498 | |||||||||
Proceeds from issuance of ordinary shares | 8,200,000 | 15,142,902 | - | |||||||||
Net cash provided by financing activities | 8,200,000 | 15,142,902 | 2,749,498 | |||||||||
Effect of exchange rate changes on cash | (25,405) | (26,058) | (112,465) | |||||||||
Net (decrease) increase in cash | (2,074,739) | 8,108,377 | (888,148) | |||||||||
Cash at beginning of the year | 9,311,537 | 1,203,160 | 2,091,308 | |||||||||
Cash at end of the year | $ | 7,236,798 | $ | 9,311,537 | $ | 1,203,160 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for income taxes | $ | 79,138 | $ | 36,504 | $ | 45,002 | ||||||
Cash paid for interest | 51,420 | 287,706 | 263,655 | |||||||||
Non-cash transactions: | ||||||||||||
Deferred offering cost | $ | - | $ | 1,049,367 | $ | - | ||||||
Operating right-of-use assets recognized for related | $ | - | $ | - | $ | 6,820 | ||||||
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SOURCE HITEK GLOBAL INC
FAQ
What caused Hitek Global (HKIT) revenue to drop from $4.6M to $2.9M in 2024?
How much did Hitek Global (HKIT) lose in fiscal year 2024?
Why did Hitek Global (HKIT) gross margin drop to 34.6% in 2024?
What is driving growth in Hitek Global's (HKIT) CIS software segment?
How much cash does Hitek Global (HKIT) have as of December 2024?
