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 $0.005 per share. |
| ● | “Class B Ordinary Shares” are to the Class B Ordinary Shares of Hitek Global Inc., par value $0.0001 per share. |
| ● | “Companies Act” are to the Companies Act (As Revised) of the Cayman Islands. |
| ● | “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 WFOE. |
| ● | “HiTek HK” are to the Company’s wholly owned subsidiary, HiTek Hong Kong Ltd., a Hong Kong corporation. |
| ● | “HiTek”, or the “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. |
| ● | “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., 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. |
Our business is conducted via HiTek, a VIE entity in the PRC, using RMB, the currency of China. Our consolidated financial statements are presented in United States dollars (“USD”). In this annual report, we refer to assets, obligations, commitments and liabilities in our consolidated financial statements in USD. These dollar references are based on the exchange rate of RMB to USD, determined as of a specific date or for a specific period. Changes in the exchange rate will affect the amount of our obligations and the value of our assets in terms of USD which may result in an increase or decrease in the amount of our obligations (expressed in dollars) and the value of our assets.
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