XIAMEN,
China, Oct. 28, 2024 /PRNewswire/ -- Hitek Global
Inc. (Nasdaq: HKIT) (the "Company"), a China-based information technology consulting
and solutions service provider, today announced its unaudited
financial results for the six months ended June 30, 2024.
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 52.0% for the six months ended June 30,
2024, compared to 50.9% in the same period last year. This
improvement reflects our successful shift toward higher-margin
revenue streams, especially in software sales, which continue to
grow as we cater to larger clients. As we move forward, we are also
actively expanding into new business modules to strengthen our
market position. We are exploring strategic acquisitions and
partnerships, particularly in the technical services, which we
believe will offer immense growth potential. These moves are
aligned with our long-term vision. By leveraging our expertise and
seizing these emerging opportunities, we are confident in our
ability to drive sustainable growth and deliver greater value to
our shareholders."
First Half 2024 Financial Highlights
- Revenue was $1.83 million for the
six months ended June 30, 2024
compared to $2.95 million for the
same period of last year.
- Gross profit was $0.95 million
for the six months ended June 30,
2024 compared to $1.5 million
for the same period of last year.
- Gross profit margin as a percentage of revenue increased to
52.0% for the six months ended June 30,
2024 from 50.9% for the same period of last year.
- Basic and diluted earnings per share was $0.01 for the six months ended June 30, 2024 compared to $0.05 for the same period of last year.
First Half 2024 Financial Results
Revenue
Total revenues were $1.83 million
for the six months ended June 30,
2024, compared to $2.95
million for the same period of last year.
- Revenue generated from hardware sales was $0.75 million for the six months ended
June 30, 2024, compared to
$1.31 million for the same period of
last year. The hardware sales decrease was mainly due to the
decrease in our customers' demands affected by the sluggish
economic environment.
- Revenue generated from CIS software sales was $0.82 million for the six months ended
June 30, 2024, increased by 6.1% from
$0.78 million for the same period of
last year. CIS software sales increased mainly due to the increase
in software sales to large customers.
- Revenue generated from tax devices and services was
$0.26 million for the six months
ended June 30, 2024, compared to
$0.86 million for the same period of
last year. Tax devices and service sales decreased due to new
policies that 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 $0.95 million for
the six months ended June 30, 2024
compared to $1.5 million for the same
period of last year.
Gross profit margin as a percentage of revenue increased to
52.0% for the six months ended June 30,
2024 from 50.9% for the same period of last year. This was
mainly due to the increase of software sales, which has a
relatively high gross profit margin compared with other revenue
streams.
Operating Expenses
Operating expenses were $0.99
million for the six months ended June
30, 2024, decreased by 8.0% from $1.08 million for the same period of last
year.
- Selling expenses were $9,844 for
the six months ended June 30, 2024,
increased by 2,928.9% from $325 for
the same period of last year. Selling expenses were 0.5% of total
revenues for the six months ended June 30,
2024 and 0.01% 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 for the six months ended
June 30, 2024, increased by 32.7%
from $0.99 million for the same
period of last year. The increase was mainly due to the increase in
consulting fees for financing.
Operating loss was $0.37 million
for the six months ended June 30,
2024 compared to operating income of $0.51 million for the comparable period of 2023.
The decrease in operating income in 2024 was primarily due to the
decrease in revenue and increase of general and administrative
expenses.
Other Income
Other income was $0.66 million and
$0.44 million for the six months
ended June 30, 2024 and 2023,
respectively. The increase was primarily due to the increase in
interest income from loan receivables and increase of net
investment income.
Net Income
As a result of the factors described above, net income was
$0.12 million for the six months
ended June 30, 2024, compared to
$0.62 million for the comparable
period of 2023.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share was $0.01 for the six months ended June 30, 2024, compared to $0.05 for the same period of last year.
Balance Sheet
As of June 30, 2024, the Company
had cash of $7.22 million, compared
to $9.31 million as of December 31, 2023.
Cash Flow
Net cash provided by operating activities was $0.75 million for the six months ended
June 30, 2024, compared to
$0.20 million for the same period of
last year.
Net cash used in investing activities was $11.03 million for the six months ended
June 30, 2024, compared to
$11.00 million for the same period of
last year.
Net cash provided by financing activities was $8.20 million for the six months ended
June 30, 2024, compared to
$15.14 million for the same period of
last year.
About Hitek Global Inc.
Hitek Global Inc., headquartered in Xiamen, China, is an information technology
("IT") consulting and solutions service provider in China. The Company has two lines of business:
1) services to small and medium businesses, which consists of
Anti-Counterfeiting Tax Control System ("ACTCS") tax devices, ACTCS
services, and IT services, and 2) services to large businesses,
which consists of hardware sales and software sales. The Company's
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://ir.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.
For investor and media inquiries please contact:
Hitek Global Inc.
Investor Relations Department
Email: ir@xmhitek.com
View original
content:https://www.prnewswire.com/news-releases/hitek-global-inc-announces-first-half-of-fiscal-year-2024-financial-results-302288405.html
SOURCE HITEK GLOBAL INC
