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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.

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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.