HITECH GROUP AUSTRALIA LIMITED — AGM Information 2014

Nov 6, 2014

==> picture [281 x 142] intentionally omitted <==

HiTech Group Australia Limited 2014 Annual General Meeting - 7 November 2014

Chairman’s Address to Shareholders

Welcome to our 15th Annual General Meeting as a publicly listed company.

FY2014 Results

For the financial year ended 30 June, 2014, the company's operating revenue is $8,036,795, an increase of 9% over the previous corresponding period (pcp) . The permanent placement income was 45% lower and contracting revenue was 13.4% higher than the pcp.

Net loss after taxation (NLAT) is $150,658 (FY2013 net profit: $164,504 ). Gross Profit is $1,209,622, a decrease of 24% over pcp (FY2013: $1,589,917) due, mainly, to a decrease in permanent placement revenue and realised and unrealised losses from listed investments in the stock market.

Our Net tangible Assets (NTA) is $0.09 per share.

The decrease in profitability was mainly due to a decrease in permanent placement revenue and realised and unrealised losses from listed investments in the stock market.

HiTech continues to win new business and is increasing its client base steadily.

Outlook for FY2015

Our outlook for FY2015 is positive, depends on the prevailing economic conditions at the time and the demand for human talent from business and government.

For the first quarter FY2015, I am relighted to report that operating revenue increased substantially by 149% over pcp, mainly due to an increase in contracting revenue. Permanent placement revenue has decreased by 45%.

For the first quarter FY2015, Gross Profit increased by 133% to $519,705 (FY2014: $222,605 ), Operating Profit After Tax increased to $187,966 (FY2014: -$30,202). NPAT is -$43,914 (FY2014: $18,902). The lower NPAT was mainly due to theoretical accounting of unrealised (not actual) losses from listed investments in the stock market -which have fluctuated between profit and loss according to the state of the

market at the time.

Based on internal management accounts for the first quarter of FY2015, assuming similar market conditions and a recovery in our listed investments in the Australian stock market, the Group’s expected Revenue, Gross Profit and Operating Profit for the full financial year will be significantly higher . NPAT can't yet be predicted.

To sum up, despite the challenging market, HiTech remains resilient, with significant growing revenues, a strong balance sheet, solid cash reserves and no debt, as always.

We are determined to improve our profit 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

7 November 2014

2