Xiamen, China, October 26, 2026 / PRNewswire / -- Biddance AI Systems, Inc. (Nasdaq ticker: BDAI, hereinafter referred to as the "Company") today announced its unaudited financial results for the six months ending June 30, 2026. The Company is a IT consulting and solutions service provider headquartered in China.

Biddance AI Systems, Inc. CEO and Director Huang Xiaoyang stated: "We are very pleased with the strong year-on-year revenue growth achieved in the first half of this fiscal year. Hardware and equipment sales were the main drivers of revenue, providing strong support for the expansion of this business segment. At the same time, we are also actively expanding our customer base in tax services."

Financial Highlights for the First Half of 2026

• For the six months ending June 30, 2026, revenue amounted to 1.23 million US dollars, compared to 740,000 US dollars in the same period last year.
• For the six months ending June 30, 2026, the operating cost was $1.02 million, compared to $570,000 during the same period last year.
• For the six months ending June 30, 2026, the gross profit was $200,000, compared to $170,000 during the same period last year.
• For the six months ending June 30, 2026, the net loss was $1.37 million, compared to a net loss of $920,000 during the same period last year.

Financial Results for the First Half of 2026

Revenue

For the six months ending June 30, 2026, the total revenue was $1.23 million, compared to $740,000 in the same period last year. The increase in revenue was mainly due to an increase in hardware sales.

Gross Profit and Gross Margin

For the six months ending June 30, 2026, the gross profit was $200,000, compared to $170,000 in the same period last year. The gross margin decreased from 23.4% in the same period last year to 16.4%.

Operating Expenses

For the six months ending June 30, 2026, operating expenses amounted to $2 million, representing a 31.7% increase from $1.52 million in the same period last year. The rise in operating expenses in 2026 was mainly due to an increase in general and administrative costs.

Other income

For the six months ending June 30, 2026, the net amounts of other revenues were $327,339 and $330,596 respectively, remaining relatively stable compared to 2025.

Net Profit (Loss)

Affected by the aforementioned factors, the net loss for the six-month period ending June 30, 2026, was $1.37 million, compared to a net loss of $920,000 during the same period in 2025.

Basic and Diluted Loss per Share

For the six months ending June 30, 2026, the basic and diluted loss per share was $0.16, compared to $0.11 during the same period last year.

Cash flow

For the six months ending June 30, 2026, the net cash used for operating activities was $1.08 million, whereas in the same period last year, operating activities provided $1.15 million in net cash.

For the six months ending June 30, 2026, investment activities provided a net cash inflow of $4.15 million, compared to $230,000 in net cash used for investment activities during the same period last year.

For the six months ending June 30, 2026, financing activities provided a net cash of 10.42 million US dollars.

Regarding Biddance AI Systems, Inc.

Biddance AI Systems, Inc (formerly known as Hitek Global Inc). Headquartered in Xiamen, China, it is a company that provides information technology ("IT") consulting and solution services in China. The company has two business lines: 1) Services for small and medium-sized enterprises, including anti-counterfeiting tax control systems ("ACTCS"), tax equipment, ACTCS services, and IT services; 2) Services for large enterprises, including hardware sales and software sales. The company's vision is to become a one-stop comprehensive IT and other business consulting service destination in China. For more information, please visit the company's website: http:// www.xmhitek.com.

Forward-looking Statements

This announcement contains forward-looking statements as defined by the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Except for historical fact statements in this announcement, all other statements are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the company's current expectations and forecasts regarding future events and financial trends. The company believes that these factors may affect its financial condition, operating results, business strategy, and capital needs. Investors can identify these forward-looking statements through phrases such as "may," "will," "expected," "anticipated," "intended," "estimated," "planned," "believes," "potential," "continue," "might," etc. Except as required by law, the company has no obligation to update forward-looking statements to reflect subsequent events or circumstances or their expected changes. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot guarantee that these expectations will prove to be correct. The company reminds investors that actual results may differ significantly from the expected results and advises investors to refer to the company's registration statements and other documents submitted to the U.S. Securities and Exchange Commission (SEC) for other factors that may affect future performance.

The following table summarizes the operating results for the indicated period. The accompanying notes are an integral part of these consolidated financial statements.