XIAMEN, China, Oct. 26, 2026 /PRNewswire/ -- Biddance AI Systems, Inc. (Nasdaq: BDAI) (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, 2026.
Ms. Xiaoyang Huang, Chief Executive Officer and Director of Biddance AI Systems, Inc., commented, "We are delighted with the robust year-over-year revenue growth achieved in the first half of the fiscal year. Our hardware and equipment sales served as the main revenue driver, providing solid support to the segment's expansion. Concurrently, we are aggressively seeking to expand our client base for our tax services."
First Half 2026 Financial Highlights
- Revenue was $1.23 million for the six months ended June 30, 2026 compared to $0.74 million for the same period of last year.
- Cost of revenue was $1.02 million for the six months ended June 30, 2026 compared to $0.57 million for the same period of last year.
- Gross profit was $0.20 million for the six months ended June 30, 2026 compared to $0.17 million for the same period of last year.
- Net loss was $1.37 million for the six months ended June 30, 2026 compared to a net loss of $0.92 million for the same period of last year.
First Half 2026 Financial Results
Revenue
Total revenues were $1.23 million for the six months ended June 30, 2026, compared to $0.74 million for the same period of last year. The revenue increase was mainly due to the increase in hardware sales.
Gross Profit and Gross Margin
Gross profit was $0.20 million for the six months ended June 30, 2026 compared to $0.17 million for the same period of last year.
Gross profit margin as a percentage of revenue decreased to 16.4% for the six months ended June 30, 2026 from 23.4% for the same period of last year.
Operating Expenses
Operating expenses were $2.00 million for the six months ended June 30, 2026, an increase of 31.7% from $1.52 million for the same period of last year. The increase in operating expense in 2026 was primarily due to the increase in general and administrative expenses.
Other Income
Total other income, net, was $0.33 million ($327,339) and $0.33 million ($330,596) for the six months ended June 30, 2026 and 2025, respectively.
Net Income (Loss)
As a result of the factors described above, net loss was $1.37 million for the six months ended June 30, 2026, compared to a net loss of $0.92 million for the comparable period of 2025.
Basic and Diluted Loss per Share
Basic and diluted loss per share was $0.16 for the six months ended June 30, 2026, compared to $0.11 for the same period of last year.
Cash Flow
Net cash used in operating activities was $1.08 million for the six months ended June 30, 2026, compared to net cash provided by operating activities of $1.15 million for the same period of last year.
Net cash provided by investing activities was $4.15 million for the six months ended June 30, 2026, compared to net cash used in investing activities of $0.23 million for the same period of last year.
Net cash provided by financing activities was $10.42 million for the six months ended June 30, 2026.
About Biddance AI Systems, Inc.
Biddance AI Systems, Inc. (formerly known as 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://www.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.
The following tables summarize our results of operations for the periods indicated:
BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Expressed in U.S. Dollars, except for the number of shares) | ||||||||
June 30, | December 31, | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 17,088,014 | $ | 3,611,999 | ||||
Short-term investments | 19,970,243 | 18,364,219 | ||||||
Accounts receivable, net | 5,350,006 | 5,407,989 | ||||||
Advances to suppliers, net | 4,422 | 290,680 | ||||||
Inventories, net | 85,568 | 79,411 | ||||||
Loans receivable | 589,528 | 6,020,220 | ||||||
Other receivable | 5,846,247 | 6,846,247 | ||||||
Prepaid expenses and other current assets | 10,507 | 171,661 | ||||||
Total current assets | 48,944,535 | 40,792,426 | ||||||
Non-current assets | ||||||||
Non-current accounts receivable, net | - | 1,027,421 | ||||||
Non-current loans receivable | - | 285,996 | ||||||
Property, equipment and software, net | 332,488 | 475,189 | ||||||
Total non-current assets | 332,488 | 1,788,606 | ||||||
Total Assets | $ | 49,277,023 | $ | 42,581,032 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 255,982 | $ | 292,065 | ||||
Loan payable – related party | - | 2,645,465 | ||||||
Deferred revenue | 65,298 | 73,059 | ||||||
Taxes payable | 1,832,077 | 1,795,736 | ||||||
Accrued expenses and other current liabilities | 160,776 | 148,342 | ||||||
Total current liabilities | 2,314,133 | 4,954,667 | ||||||
Non-current Liabilities | ||||||||
Deferred income tax liabilities, net | 1,559,142 | 1,616,053 | ||||||
Total non-current liabilities | 1,559,142 | 1,616,053 | ||||||
Total Liabilities | 3,873,275 | 6,570,720 | ||||||
Commitments and Contingencies | - | - | ||||||
Shareholders' Equity | ||||||||
Class A Ordinary Shares, US$0.375 par value; 800,000 shares authorized, | 299,948 | 2,111 | ||||||
Class B Ordinary Shares, US$0.0001 par value; 150,000,000 shares authorized, | 819 | 819 | ||||||
Additional paid-in capital | 35,040,217 | 24,920,060 | ||||||
Statutory reserve | 836,215 | 836,215 | ||||||
Retained earnings | 9,301,135 | 10,671,200 | ||||||
Accumulated other comprehensive loss | (74,586) | (420,093) | ||||||
Total Shareholders' Equity | 45,403,748 | 36,010,312 | ||||||
Total Liabilities and Shareholders' Equity | $ | 49,277,023 | $ | 42,581,032 | ||||
BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||
(Expressed in U.S. Dollars, except for the number of shares) | ||||||||
Six Months Ended | ||||||||
2026 | 2025 | |||||||
(Unaudited) | (Unaudited) | |||||||
Revenues | $ | 1,226,046 | $ | 741,541 | ||||
Cost of revenues | (1,024,835) | (567,675) | ||||||
Gross profit | 201,211 | 173,866 | ||||||
Operating expenses: | ||||||||
General and administrative | 2,002,067 | 1,519,128 | ||||||
Selling | 1,411 | 2,325 | ||||||
Total operating expenses | 2,003,478 | 1,521,453 | ||||||
Operating loss | (1,802,267) | (1,347,587) | ||||||
Other income (expense) | ||||||||
Net investment gain | 102,363 | 82,463 | ||||||
Interest income | 210,639 | 412,683 | ||||||
Interest expense | - | (153,049) | ||||||
Other income (expense), net | 14,337 | (11,501) | ||||||
Total other income, net | 327,339 | 330,596 | ||||||
Loss before income taxes | (1,474,928) | (1,016,991) | ||||||
Income tax benefit | (104,863) | (100,882) | ||||||
Net loss | $ | (1,370,065) | $ | (916,109) | ||||
Comprehensive loss | ||||||||
Net loss | $ | (1,370,065) | $ | (916,109) | ||||
Foreign currency translation gain | 345,507 | 236,419 | ||||||
Comprehensive loss | $ | (1,024,558) | $ | (679,690) | ||||
Loss per ordinary share | ||||||||
Basic and diluted | $ | (0.16) | $ | (0.11) | ||||
Weighted average number of ordinary shares outstanding | ||||||||
Basic and diluted* | 8,313,997 | 8,197,629 | ||||||
BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2026 and 2025 | ||||||||||||||||||||||||||||||||||||
(Expressed in U.S. Dollars, except for the number of shares) | ||||||||||||||||||||||||||||||||||||
Class A | Class B | Additional | Accumulated | Total | ||||||||||||||||||||||||||||||||
Number of | Amount | Number of | Amount | paid-in | Statutory | Retained | comprehensive | Shareholders' | ||||||||||||||||||||||||||||
Balance as of | 5,629 | $ | 2,111 | 8,192,000 | $ | 819 | $ | 24,920,060 | $ | 836,215 | $ | 10,491,058 | $ | (975,343) | $ | 35,274,920 | ||||||||||||||||||||
Foreign currency | - | - | - | - | - | - | - | 236,419 | 236,419 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (916,109) | - | (916,109) | |||||||||||||||||||||||||||
Balance as of | 5,629 | $ | 2,111 | 8,192,000 | $ | 819 | $ | 24,920,060 | $ | 836,215 | $ | 9,574,949 | $ | (738,924) | $ | 34,595,230 | ||||||||||||||||||||
Class A | Class B | Additional | Accumulated | Total | ||||||||||||||||||||||||||||||||
Number of | Amount | Number of | Amount | paid-in | Statutory | Retained | comprehensive | Shareholders' | ||||||||||||||||||||||||||||
Balance as of | 5,629 | $ | 2,111 | 8,192,000 | $ | 819 | $ | 24,920,060 | $ | 836,215 | $ | 10,671,200 | $ | (420,093) | $ | 36,010,312 | ||||||||||||||||||||
Foreign currency | - | - | - | - | - | - | - | 345,507 | 345,507 | |||||||||||||||||||||||||||
Issuance of ordinary | 794,232 | 297,837 | - | - | 10,120,157 | - | - | 10,417,994 | ||||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (1,370,065) | - | (1,370,065) | |||||||||||||||||||||||||||
Balance as of | 799,861 | $ | 299,948 | 8,192,000 | $ | 819 | $ | 35,040,217 | $ | 836,215 | $ | 9,301,135 | $ | (74,586) | $ | 45,403,748 | ||||||||||||||||||||
BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Expressed in U.S. Dollars) | ||||||||
Six Months Ended | ||||||||
2026 | 2025 | |||||||
(Unaudited) | (Unaudited) | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (1,370,065) | $ | (916,109) | ||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 154,064 | 145,775 | ||||||
Loss on disposal of property, plant and equipment | 1,433 | - | ||||||
Accrued interest income from loans, net | - | (104,790) | ||||||
Net investment gain | (55,640) | (66,820) | ||||||
Provision for expected credit losses of receivables | 506,980 | 482,621 | ||||||
Provision for obsolete inventories | 2,019 | 3,832 | ||||||
Deferred income tax | (105,252) | (100,882) | ||||||
Changes in operating assets and liabilities: | ||||||||
Short-term investments - trading securities | (1,312,113) | 2,427,711 | ||||||
Accounts receivable | 710,590 | 1,044,167 | ||||||
Advance to suppliers | 291,845 | (2,272,803) | ||||||
Inventories | (5,700) | 12,483 | ||||||
Prepaid expenses and other current assets | 164,540 | 265,122 | ||||||
Accounts payable | (42,330) | (50,983) | ||||||
Advance from customers | - | 291,466 | ||||||
Deferred revenue | (9,888) | (16,056) | ||||||
Tax payable | (18,497) | 5,781 | ||||||
Due to related parties | - | 16,546 | ||||||
Accrued expenses and other current liabilities | 7,798 | (13,461) | ||||||
Net cash (used in) provided by operating activities | (1,080,216) | 1,153,600 | ||||||
Cash flows from investing activities: | ||||||||
Loans to third parties | (291,443) | (413,645) | ||||||
Loans repayment by third parties | 3,439,030 | 137,882 | ||||||
Purchases of held-to-maturity investments | (1,000,000) | (1,650,000) | ||||||
Redemption of held-to-maturity investments | 2,000,000 | 700,000 | ||||||
Refund of deposit for acquisition | - | 1,000,000 | ||||||
Net cash provided by (used in) investing activities | 4,147,587 | (225,763) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of ordinary shares | 10,417,994 | - | ||||||
Net cash provided by financing activities | 10,417,994 | - | ||||||
Effect of exchange rate changes on cash | (9,350) | 33,690 | ||||||
Net increase in cash | 13,476,015 | 961,527 | ||||||
Cash and cash equivalents at the beginning of period | 3,611,999 | 7,236,798 | ||||||
Cash and cash equivalents at the end of period | $ | 17,088,014 | $ | 8,198,325 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for income taxes | $ | - | $ | - | ||||
Cash paid for interest | $ | - | $ | - | ||||
The accompanying notes are an integral part of these consolidated financial statements.
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SOURCE Biddance AI Systems, Inc.
