HITECH GROUP AUSTRALIA LIMITED — AGM Information 2012

Oct 18, 2012

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HiTech Group Australia Limited 2012 Annual General Meeting - 19 October 2012

Chairman’s Address to Shareholders

Welcome to our 12th Annual General Meeting as a publicly listed company.

FY2012 Results

For the financial year ended 30 June, 2012, the company's operating revenue is $9,631,700, an increase of around 10% over the previous financial year. The permanent placement income is 36% lower and contracting revenue is 15% higher than the previous corresponding period. Net profit after taxation (NPAT) is $556,699 (FY11: $648,404). Gross Profit is $2,058,372 (FY11: $2,194,637).

The slight decrease in profitability was due to a reduction in high margin permanent placements and a loss on the sale of investments. Our Net tangible Assets (NTA) increased by 22% to $0.10. Cash at end of the year increased by 107% to $1,879,930.

HiTech remains quite profitable, with a strong balance sheet and no debt. HiTech continues to win new business and is increasing its client base steadily.

Outlook for FY2013

Our outlook for FY2013 is stable depending on the prevailing economic conditions at the time and the demand for human talent from business and government.

For the first quarter FY2013, I report that operating revenue decreased by 2%. compared with the previous corresponding period. Income from contracting income has remained consistent. The income from permanent placements has decreased by 54%. This reflects the caution that is present in the business community at the moment.

NPAT, for the first quarter, is $130,772, a small increase of 0.3% compared with the pcp. The higher NPAT was the result of a containment of costs .

The prospects for the full financial year seem reasonable depending on continuation of the current market conditions and a recovery in the demand for both permanent and contracting personnel.

Based on internal management accounts for the first quarter of FY2013, assuming similar market conditions and a recovery in the Australian stock market, the Group’s expected NPAT for the full financial year will be in the range of $0.4 to $0.7 million.

We continue to diversify into non-ICT areas and have increased our client base. We continue to win new business on all levels and have secured further long term ICT contractor supply agreements with key federal government departments.

To sum up, HiTech has improved revenue, remains quite profitable, resilient, with a strong balance sheet, solid cash reserves and no debt, as always.

We are determined to improve our results and will continue to do our best to improve overall performance and growth.

I thank you all for your support and commitment as shareholders, staff members, candidates, contractors and valued clients.

Ray Hazouri Chairman and Chief Executive Officer

19 October 2012

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