After a year of lower sales and profits, the directors of mobile phone distributor SIS Mobile Holdings say the outlook for this year is uncertain with weak market sentiment.

Furthermore, the demand for mobile products will be adversely affected by the global uncertainties and financial turmoil in Europe.

“The global economic downturn, lower demand for mobile products plus the recall of a flagship mobile phone model by one of our major vendors in October contributed to the lower sales revenue in the last quarter of last year,” the directors say in announcing the group’s audited consolidated results for the year ended December 31.
With the lowered sales and gross profit level, the group reduced its distribution costs and
administrative expenses last year. Improved management resulted in a reduction on inventory provision to HK$2.2 million (US$284,000) from HK$6.59 million.

However, with a strong balance sheet and experienced management team, the group says it is well positioned to explore and identify new opportunities. “We will continue to seek fresh opportunities in new segments such as Internet of Things (IOT), mobile services and so on while we continue to improve operation efficiency.”

For the financial year to December 31, revenue amounted to HK$616 million, a drop of 26 per cent from the previous year. The net loss attributable to owners of the company was HK$7.7 million after a net profit of HK$641,000 in 2015.

Distribution customers of SIS Mobile Holdings include wholesalers, telecommunications services companies and chain retailers in Hong Kong. SiS Mobile distributes such brands as Acer, Alcatel One Touch, Blackberry, Lenovo and Samsung.