The upcoming consolidation follows shareholder authorization granted during the November 2025 annual meeting, which empowered the board to implement reverse splits ranging from 1-for-40 to 1-for-5,000. Hitek previously executed a 1-for-50 split in April and a 1-for-3 split in late May. Following the latest adjustment, the par value of each Class A ordinary share will rise from $0.015 to $0.375.

No fractional shares will be issued; instead, any resulting fractions will be rounded up to the nearest whole share. The company expects the total number of outstanding Class A ordinary shares to decrease from 19,996,492 to approximately 799,860, while the Class B share count remains unchanged at 8,192,000. Hitek, which provides IT consulting and tax control systems for businesses in China, will maintain its total authorized share capital at $316,000, reclassifying its equity distribution to accommodate the new share values.