Global Tech reports FY2014 loss as mobile phone repair revenue falls

Global Tech (Holdings) incurred a loss of HK$15.99 million (S$2.7 million) for the financial year ended Sept 30, 2014, compared to a net profit of HK$12.88 million made last year.

The investment holding company, which provides branding, marketing, distribution, and after-sale services in the mobile telecommunications industry primarily in Hong Kong, explained that the profit recorded for the 2013 reporting year was mainly attributable to the one-off write-back of provision for taxation previously made by the group. However, this one-off gain was not applicable to the 2014 reporting year.

Its turnover for the year of HK$89.79 million, was 18.78 per cent lower than the HK$110.55 million of revenue it had last year.

For the year, the group reported a loss of HK$0.003 cents per share, compared to the HK$0.002 cents it earned per share last year.

Global Tech said its board does not recommend the payment of any dividend for the year ended Sept 30, 2014.

The group recorded a loss from operations of approximately HK$16.0 million (2013:HK$40.1 million).

During the year, revenue generated from the provision of repair services decreased by 10.3 per cent year on year to approximately HK$81.9 million (2013: HK$91.3 million), as a result of lower demand for smartphone upgrading services.

Global Tech said that as mobile technology continues to disrupt the telecommunications sector, the group will stay alert to the game-changing trends and adjust its product and service offerings accordingly.