SCHEDULE: Rapid Proceed Amends Hitek Global Warrants, Caps Ownership at 9.99%

Rapid Proceed Limited has amended its warrants in Hitek Global Inc. to cap its beneficial ownership at 9.99% of Class A Ordinary Shares.

Summary

• Rapid Proceed Limited beneficially owns 2,140,881 Class A Ordinary Shares of Hitek Global Inc., representing 9.99% of the class.
• This ownership includes 1,818,000 Class A ordinary shares purchased in a private placement on July 29, 2024.
• Rapid Proceed also acquired warrants to purchase an additional 1,818,000 Class A ordinary shares on July 29, 2024.
• On September 23, 2025, the warrants were amended to include a 'Beneficial Ownership Blocker'.
• The Beneficial Ownership Blocker prevents the exercise of warrants if it would result in Rapid Proceed owning more than 9.99% of Hitek Global's Class A Ordinary Shares.
• Currently, 322,881 Class A ordinary shares underlying the warrants are exercisable within 60 days, subject to this blocker.
• An additional 1,495,119 Class A ordinary shares underlying warrants are not exercisable due to the Beneficial Ownership Blocker.
• The percentage ownership is based on 21,107,364 Class A ordinary shares outstanding, as reported in Hitek Global's latest 20-F filed on April 25, 2025.
• The acquisition was not for the purpose of changing or influencing control of Hitek Global Inc.

Sentiment

Score: 7

Explanation: The filing indicates a significant, stable, and passive investment by Rapid Proceed Limited, which can be seen as a positive signal of investor confidence without immediate control concerns. The beneficial ownership blocker provides clarity on the investor's intent and limits potential future dilution from warrant exercises beyond a certain point.

Positives

• Rapid Proceed Limited maintains a significant 9.99% stake, indicating continued investment interest in Hitek Global Inc.
• The Beneficial Ownership Blocker limits potential dilution from warrant exercises beyond a certain threshold for existing shareholders.

Negatives

• Rapid Proceed Limited is restricted from exercising 1,495,119 Class A ordinary shares underlying warrants due to the 9.99% beneficial ownership limitation, potentially limiting its upside from full warrant exercise.

Risks

• The Beneficial Ownership Blocker prevents Rapid Proceed Limited from increasing its stake beyond 9.99% through warrant exercise, potentially limiting its influence or future investment flexibility.

Future Outlook

The filing indicates Rapid Proceed Limited's intention to remain a passive investor, not seeking to change or influence the control of Hitek Global Inc., with its ownership capped at 9.99% through the Beneficial Ownership Blocker.

Management Comments

• Rapid Proceed Limited has not acquired the securities with any purpose, or with the effect, of changing or influencing the control of the Issuer, or in connection with or as a participant in any transaction having that purpose or effect.
• Huoyuan Chen disclaims beneficial ownership of these securities for all other purposes.

Industry Context

This filing is a standard disclosure of a significant passive investment, common in public markets. The implementation of a beneficial ownership blocker is a mechanism often used to comply with regulatory thresholds or to signal a passive investment intent, which can be viewed positively by companies seeking stable, non-activist shareholders.

Stakeholder Impact

• Shareholders: The beneficial ownership blocker provides clarity on the maximum ownership stake of Rapid Proceed Limited, potentially reducing concerns about an immediate change of control or excessive dilution from warrant exercises.

Next Steps

• N/A

Key Dates

Recommendation

This Schedule 13G/A filing primarily provides an update on a significant investor's passive stake and the implementation of a beneficial ownership limitation. It does not contain new operational or financial information that would fundamentally alter the investment thesis for Hitek Global Inc. The clarification of Rapid Proceed's passive intent and the ownership cap might offer some stability, but it doesn't present a compelling reason to buy or sell based solely on this disclosure.

Keywords

Hitek Global Inc., Rapid Proceed Limited, Schedule 13G, Beneficial Ownership, Class A Ordinary Shares, Warrants, Private Placement, SEC Filing, Shareholder Disclosure, Ownership Limitation