HITECH GROUP AUSTRALIA LIMITED — AGM Information 2016

Nov 24, 2016

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HiTech Grou Australia Limited p

– 25 November 2016 2016 Annual General Meeting

Chairman’s Address to Shareholders

Welcome to our 17th Annual General Meeting as a publicly listed company.

FY2016 Results: Another Record Year !

For the financial year ended 30 June 2016, the consolidated entity’s operating revenue is $18,322,169, an increase of 21% over the previous corresponding period (pcp).

Gross Profit is $3,892,918, an increase of 22% over pcp (FY15: $3,180,051).

Net profit after taxation (NPAT) is $2,171,768 (FY15: $807,721) due mainly to an in increase in contracting revenue.

Earnings before interest, taxes, depreciation and amortization (EBITDA) is $3,139,789 (FY15: $1,348,972).

Our Net Tangible Assets (NTA) are $0.19 per share, an increase of 58% over pcp (FY15: $0.12).

Cash, as at 30 June 2016, was $4,408,703, an increase of 140% over pcp (FY15: $1,838,730).

The directors have declared a fully franked dividend of 2 cents per share. The dividend was paid on 23 September, 2016 to shareholders registered on close of business on 9 September, 2016. Total amount is $620,000. This represents a dividend yield of 3.6% at the current share price of 55 cents.

The HiTech Group is stronger than ever with a strong balance sheet and no debt which is unique in our industry.

We are committed to improving our revenues and profitability which are at record high. Our major revenue is still generated from our core ICT recruitment business and we are active in non-ICT areas of recruitment. We have been active in securing clients all around Australia to expand our client base.

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We are ready to take advantage of market opportunities, potential accretive acquisitions to increase stakeholder returns. The future for HiTech has never looked brighter.

The directors extend their appreciation to all our team members for their efforts during the year.

Outlook for FY2017 is significantly positive and optimistic

Our outlook for FY2017 is significantly positive and optimistic -depending on the prevailing economic conditions at the time and the demand for human talent from the private sector and government.

Based on internal management accounts for the period up to end of October 2017, the Group’s expected Revenue, Gross Profit and Operating Profit for the first half of FY2017 will be 10-20% higher than pcp .

We expect continuing similar significant growth for the full year FY2017 .

Exact results can't yet be predicted but we will keep the market updated as required.

To sum up, HiTech remains resilient, with significant growing revenues, profit, 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 am delighted with the results of Q1. It is a great start for the year! The future is bright. HiTech will do better than ever.

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

Ray Hazouri Chairman

25 November 2016

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