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HKIT

Hitek Global Inc.

HKIT

Hitek Global Inc. • NASDAQ
$1.63 ▲ 3.16% (+0.05)
Market Cap $47.76 M
52w High $4.18
52w Low $1.15
Dividend Yield 0%
P/E -20.37
Volume 23.29K
Outstanding Shares 29.30M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q4-2024 $1.071M ▼ $1.428M ▲ $-1.018M ▼ -95.052% ▼ $-0.038 ▼ $-1.235M ▼
Q2-2024 $1.834M ▲ $1.206M ▲ $121.662K ▼ 6.635% ▼ $0.009 ▼ $565.034K ▲
Q4-2023 $1.616M ▼ $828.6K ▼ $425.668K ▼ 26.347% ▲ $0.03 ▼ $-371.164K ▼
Q2-2023 $2.948M ▼ $974.796K ▲ $621.974K ▼ 21.097% ▼ $0.043 ▼ $270.634K ▼
Q4-2022 $3.569M $820.934K $777.318K 21.777% $0.05 $1.114M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q4-2024 $30.169M ▲ $41.542M ▼ $6.267M ▼ $35.275M ▲
Q2-2024 $25.356M ▲ $43.504M ▲ $15.36M ▲ $28.145M ▼
Q4-2023 $18.149M ▲ $35.428M ▲ $7.09M ▼ $28.338M ▲
Q2-2023 $12.222M ▲ $33.182M ▲ $7.225M ▼ $25.957M ▲
Q4-2022 $5.494M $21.205M $7.679M $13.527M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q4-2024 $-1.018M ▼ $-1.443M ▼ $1.467M ▲ $0 ▼ $0 ▲ $-1.433M ▼
Q2-2024 $121.662K ▼ $729.272K ▲ $-11.028M ▼ $8.2M ▲ $-2.095M ▼ $719.41K ▲
Q4-2023 $425.668K ▼ $-262.782K ▼ $4.051M ▲ $0 ▼ $1.908M ▼ $-308.746K ▼
Q2-2023 $621.974K ▼ $200.87K ▲ $-10.997M ▼ $15.143M ▲ $2.146M ▲ $60.334K ▲
Q4-2022 $777.318K $-398.264K $286.782K $-338.924K $-1.935M $-398.264K

Five-Year Company Overview

Income Statement

Income Statement The business appears very small in scale, with revenue concentrated in a few narrow services and recently under pressure. Profitability has weakened: gross margins have come down and the latest year shows a net loss after several years of modest profits. Earnings per share have bounced around over time rather than following a clear upward path. Overall, the income statement suggests a company in transition, facing softer demand or pricing in its traditional tax‑related services while still lacking enough growth from newer offerings to offset that decline.

Balance Sheet

Balance Sheet The balance sheet looks simple and relatively clean, with no financial debt and a small base of assets funded mainly by equity. Cash on hand exists but does not appear to be large, which means the financial cushion is likely thin and leaves limited room for long periods of losses or heavy investment. The tiny scale of the balance sheet underlines that this is a micro‑sized company with constrained resources, even though it is not burdened by leverage.

Cash Flow

Cash Flow Reported cash flow figures are minimal, and there is no clear history of strong, recurring cash generation. Capital spending has been very light, which helps conserve cash but may also indicate limited investment capacity. The key issue is that there is not yet a visible pattern of cash being consistently generated from operations, so the durability of the business model in cash terms is still uncertain from the available data.

Competitive Edge

Competitive Edge Hitek operates in narrow niches within China: tax‑control systems for small businesses and data interface software for heavy industries. Its position in tax‑compliance services benefits from regulation that makes such systems mandatory, which creates a built‑in market, but it also ties the company closely to policy decisions it cannot control. Customer relationships and one‑stop service for hardware, software, and support are helpful, yet the overall competitive moat looks thin, with limited public evidence of strong technological differentiation versus other IT providers. In industrial data software, the company serves specific sectors, but the uniqueness of its solution compared with broader industrial software platforms is not clearly demonstrated in public information.

Innovation and R&D

Innovation and R&D Public disclosures give little detail on concrete new products, patents, or distinctive technologies. The company has mentioned using IPO proceeds for research and development, but so far there is limited visibility into what this spending has produced in terms of new offerings or clear technical advantages. The communication interface system could be a platform for innovation if expanded into more industries or enhanced with advanced analytics, but that potential remains mostly theoretical at this stage. Overall, Hitek appears more like a service and compliance‑oriented IT provider than a clearly innovation‑led software company in the way it is currently presented to the market.

Summary

Hitek Global is a very small, China‑focused IT services and software company whose financial profile has recently weakened, moving from modest profits to a loss as margins compress in its tax‑related business. Its balance sheet is simple and debt‑free but also small, limiting its buffer and investment power. The company’s edge comes mainly from operating in regulation‑driven niches and maintaining customer relationships rather than from clearly differentiated technology. Future performance will likely hinge on whether it can stabilize its legacy tax‑control revenue, grow its industrial software offering, and translate any R&D spending into visible, value‑adding products, all while navigating regulatory and competitive pressures in its home market.