Hitek Global Inc. Announces Fiscal Year 2022 Financial Results.

XIAMEN, China: Hitek Global Inc. (Nasdaq: HKIT) (the "Company"), a China-based information technology consulting and solutions service provider, today announced its financial results for the fiscal year ended December 31, 2022.

Ms. Xiaoyang Huang, Chief Executive Officer and Director of Hitek Global Inc. commented, "During the year of 2022, there were restrictions on the mobility and normal activities in place from time to time in China, in response to the COVID-19 pandemic. However, we maintained our revenue in fiscal year 2022 at the same level as last fiscal year, despite the challenging and uncertain market conditions. We also achieved a stable gross profit margin and a positive profit even after deducting the expenses relating to our initial public offering. With the lifting of pandemic restrictions in China in December 2022, we believe that we are well-positioned to become a future-ready company as we actively seek business opportunities."

Ms. Huang continued, "Currently, China is encouraging self-employment in various ways, and we are exploring opportunities in related markets accordingly. We firmly believe that our accumulated stable experience in serving small and micro enterprises, especially in the field of IT services, will always be the solid foundation for our long-term development. Additionally, we strive to enhance our capabilities to provide more comprehensive IT solutions and expand our service offerings to diversify our income streams in the near future."

Fiscal Year 2022 Financial Results

Revenue

Total revenues were $6.4 million in fiscal year 2022, slightly decreased from $6.5 million in fiscal year 2021, mainly due to decrease in revenue generated from tax devices and services sales, and partially offset by increase in revenue generated from hardware sales and software sales.

Revenue generated from hardware sales was $2.5 million in fiscal year 2022, increased by 2.9% to $2.4 million in fiscal year 2021, the increase was mainly from small retail sales.

Revenue generated from software sales was $2.1 million in fiscal year 2022, increased by 3.1% to $2.0 million in fiscal year 2021, the increase was due to increase of maintenance service revenue.

Revenue generated from tax devices and services was $1.8 million in fiscal year 2022, decreased by 8.5% to $2.0 million in fiscal year 2021. The decrease was due to the decline in demand of our tax devices and services because, according to a new policy effective since January...