HiTek Global Inc. Files 20-F Annual Report for Fiscal Year Ended December 31, 2023

TL;DR

<b>HiTek Global Inc. has filed its annual 20-F report for the fiscal year ending December 31, 2023, detailing its operations and financial status.</b>

AI Summary

HiTek Global Inc. (HKIT) filed a Foreign Annual Report (20-F) with the SEC on April 5, 2024. HiTek Global Inc. filed its annual report on Form 20-F for the fiscal year ended December 31, 2023. The company's Class A Ordinary Shares are traded on the NASDAQ Capital Market under the ticker symbol HKIT. The principal executive offices are located in Xiamen City, Fujian Province, People's Republic of China. Xiaoyang Huang serves as the Chief Executive Officer. The filing indicates the company is not a well-known seasoned issuer.

Why It Matters

For investors and stakeholders tracking HiTek Global Inc., this filing contains several important signals. This filing provides investors with a comprehensive overview of HiTek Global Inc.'s performance and financial health for the past fiscal year, crucial for investment decisions. As a 20-F filing, it offers insights into the company's business, risk factors, and management, which are essential for understanding its market position and future prospects.

Risk Assessment

Risk Level: low — HiTek Global Inc. shows low risk based on this filing. The filing is a standard annual report (20-F) and does not contain immediate, significant financial disclosures or events that would suggest a high-risk profile based solely on this document.

Analyst Insight

Review the detailed financial statements and risk factors within the 20-F filing to assess HiTek Global Inc.'s current financial health and potential investment risks.

Key Numbers

• 20231231 — Fiscal Year End (Conformed Period of Report)
• 20240405 — Filing Date (Filed As Of Date)
• 6,200,364 — Class A Ordinary Shares (Outstanding shares as of report date)
• 8,192,000 — Class B Ordinary Shares (Outstanding shares as of report date)

Key Players & Entities

• HiTek Global Inc. (company) — Registrant
• HKIT (company) — Trading Symbol
• NASDAQ Capital Market (company) — Exchange
• Xiaoyang Huang (person) — Chief Executive Officer
• Xiamen (company) — City of Principal Executive Offices
• Fujian Province (company) — Province of Principal Executive Offices
• People's Republic of China (company) — Country of Principal Executive Offices
• US$0.0001 (dollar_amount) — Par value of Class A Ordinary Shares

FAQ

Risk Factors

• Form 20-F Filing Requirements [low — regulatory]: The company is subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as indicated by the filing of a Form 20-F.

Industry Context

HiTek Global Inc. operates within the pre-packaged software industry, as indicated by its SIC code 7372.

Regulatory Implications

The company is required to file annual reports on Form 20-F, which are comprehensive disclosures for foreign private issuers under the U.S. Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements and management discussion and analysis (MD&A) section of the 20-F for detailed performance insights.
2. Review the risk factors section to understand potential challenges and uncertainties facing HiTek Global Inc.
3. Monitor future SEC filings for updates on the company's financial condition and strategic developments.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 20-F filing.
• 2024-04-05: Filing Date — Date the 20-F report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 20-F filing for the fiscal year ended December 31, 2023, providing a baseline for future comparative analysis.

Key Financial Figures

• $0.0001 — d Class A Ordinary Shares, par value US$0.0001 per share HKIT NASDAQ Capital Market

Filing Documents

• ea0202080-20f_hitek.htm (20-F) — 1876KB
• ea020208001ex1-3_hitek.htm (EX-1.3) — 240KB
• ea020208001ex2-1_hitek.htm (EX-2.1) — 1KB
• ea020208001ex2-2_hitek.htm (EX-2.2) — 47KB
• ea020208001ex11-2_hitek.htm (EX-11.2) — 191KB
• ea020208001ex12-1_hitek.htm (EX-12.1) — 7KB
• ea020208001ex12-2_hitek.htm (EX-12.2) — 7KB
• ea020208001ex13-1_hitek.htm (EX-13.1) — 3KB
• ea020208001ex13-2_hitek.htm (EX-13.2) — 3KB
• ea020208001ex15-1_hitek.htm (EX-15.1) — 4KB
• ea020208001ex97-1_hitek.htm (EX-97.1) — 34KB
• image_001.jpg (GRAPHIC) — 31KB
• image_002.jpg (GRAPHIC) — 22KB
• image_003.jpg (GRAPHIC) — 31KB
• fin_001.jpg (GRAPHIC) — 33KB
• fin_002.jpg (GRAPHIC) — 16KB
• fin_003.jpg (GRAPHIC) — 17KB
• ex2-1_001.jpg (GRAPHIC) — 634KB
• ex15-1_001.jpg (GRAPHIC) — 8KB
• ex15-1_002.jpg (GRAPHIC) — 7KB
• 0001213900-24-030818.txt (&nbsp;) — 10341KB
• hkit-20231231.xsd (EX-101.SCH) — 81KB
• hkit-20231231_cal.xml (EX-101.CAL) — 72KB
• hkit-20231231_def.xml (EX-101.DEF) — 387KB
• hkit-20231231_lab.xml (EX-101.LAB) — 591KB
• hkit-20231231_pre.xml (EX-101.PRE) — 377KB
• ea0202080-20f_hitek_htm.xml (XML) — 1025KB

Item

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No TABLE OF CONTENTS Page Number INTRODUCTORY NOTES ii

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS iii PART I 1 ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 1 ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 1 ITEM 3. KEY INFORMATION 1 ITEM 4. INFORMATION ON THE COMPANY 35 ITEM 4A. UNRESOLVED STAFF COMMENTS 43 ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 43 ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 61 ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 67 ITEM 8. FINANCIAL INFORMATION 68 ITEM 9. THE OFFER AND LISTING 68 ITEM 10. ADDITIONAL INFORMATION 68 ITEM 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 81 ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 81 PART II 82 ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 82 ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 82 ITEM 15.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 82 ITEM 16. [RESERVED] 83 ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT 83 ITEM 16B. CODE OF ETHICS 83 ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES 83 ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 83 ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 83 ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANTS 84 ITEM 16G. CORPORATE GOVERNANCE 84 ITEM 16H. MINE SAFETY DISCLOSURE 85 ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 85 ITEM 16J. INSIDER TRADING POLICIES 85 ITEM 16K. CYBERSECURITY 85 PART III 86 ITEM 17.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 86 ITEM 18.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 86 ITEM 19. EXHIBITS 87 i INTRODUCTORY NOTES Except as otherwise indicated by the context and for the purposes of this annual report only, references in this annual report to: "affiliated entities" are to our subsidiaries and variable interest entities ("VIE"); "China" or the "PRC" are to the People's Republic of China, excluding Taiwan for the purposes of this annual report only; "Class A Ordinary Shares" are to the Class A Ordinary Shares of Hitek Global Inc., par value $0.0001 per share. "Class B Ordinary Shares" are to the Class B Ordinary Shares of Hitek Global Inc., par value $0.0001 per share. "Haitian Weilai" are to Xiamen Haitian Weilai Technology Co., Ltd., a limited liability company organized under the laws of the PRC that is fully owned by Tian Dahai; "HiTek HK" are to the Company's wholly owned subsidiary, HiTek Hong Kong Ltd., a Hong Kong corporation; "HiTek", or "VIE entity", are to Xiamen Hengda HiTek Computer Network Co., Ltd., a limited liability company organized under the laws of the PRC, that we control via a series of contractual arrangements between WFOE and HiTek; "Huasheng" are to Xiamen Huasheng HiTek Computer Network Co., Ltd., a limited liability company organized under the laws of the PRC that function as HiTek's operating subsidiary; "Huoerguosi" are to Huoerguosi Hengda Information Technology Co., Ltd., a limited liability company organized under the laws of the PRC that function as HiTek's operating subsidiary; "Ordinary Shares" are to the Class A Ordinary Shares and Class B Ordinary Shares. "we", "us" or the "Company" are to Hitek Global Inc.; "WFOE" are to Tian Dahai (Xiamen) Information Technology Co. Ltd. ("Tian Dahai"), a limited liability company organized under the laws of the People's Republic of China (the "PRC"), which is wholly-owned by us through HiTek HK; and Our business is conducted via HiTek, a VIE entity in the PRC, using RMB, the currency of China. Our conso

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This annual report on Form 20-F contains forward-looking statements that reflect our current expectations and views of future events. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include, but are not limited to: the adverse effects of the COVID-19 pandemic on our business or the market price of our Class A Ordinary Shares; our goals and strategies; our future business development, financial condition and results of operations; our expectations regarding the market for our concrete products; our expectations regarding demand for and market acceptance of our nutraceutical and dietary supplements products; our plans to establish partnerships and develop new businesses; our plans to invest in our business; our relationships with our partners; our future business development, results of operations and financial condition; market conditions affecting our equity capital; change in macroeconomic conditions; competition in our industry; and relevant government policies and regulations relating to our industry. We would like to caution you not to place undue reliance on these forward-looking statements and you should read these statements in conjunction with the risk factors disclosed in "Item 3. Key Information—D. Key Information—Risk Factors." Those risks are not exhaustive. We operate in an evolving environment. New risks emerge f

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable.

KEY INFORMATION

ITEM 3. KEY INFORMATION Our Corporate Structure We are an offshore holding company incorporated in the Cayman Islands. As a holding company with no material operations, our operations were conducted in China by (i) Haitian Weilai, our indirect subsidiary, (ii) the VIE, Hitek and the VIE's subsidiaries, Huasheng and Huoerguosi. Neither we nor our subsidiaries own any equity interests in the VIE. WFOE, the VIE and the shareholders of the VIE entered into a series of contractual arrangements, also known as the "VIE Agreements", pursuant to which we are able to consolidate the financial results of the VIE in our consolidated financial statements because we are deemed as the primary beneficial of the VIE under generally accepted accounting principles in the U.S. ("U.S. GAAP"), and this structure involves unique risks to investors. The following diagram illustrates our corporate structure as of the date of this annual report. All percentages in the following diagram reflect the voting ownership interests instead of the equity interests held by each of our shareholders given that each holder of Class B Ordinary Shares will be entitled to 15 votes per one Class B Ordinary Share and each holder of Class A Ordinary Shares will be entitled to one vote per one Class A Ordinary Share: (1) The equity of HiTek is 44.74% owned by Xiaoyang Huang, our Chief Executive Officer; 29.83% owned by Shenping Yin, our Chairman of the Board; 2.35% owned by Bo Shi, our Chief Technology Officer; 0.78% owned by Zhishuang Wang; 0.78% owned by Liuqing Huang; 3.02% owned by Jingru Li; 4.99% owned by Mian Tang; 2.0% owned by Ce Tian; 2.0% owned by Xianfeng Lin; 7.55% owned by Inner Mongolia Guangxin Investment Co., Ltd., a Chinese company of which its equity is 80% owned by Wei Cui, 10% owned by Yi Cui and 10 % owned by Lei Gao; 1.96% owned by Baotou Zhongzhe Hengtong Technology Co., Ltd., a Chinese company of which its equity is 95% owned by Jing Kong and 5% owned by Qingxia Kong. 1 The VI

View Full Filing

View this 20-F filing on SEC EDGAR