Mobile-phone distributor Global Tech (Holdings) saw its share price take another beating yesterday after a mainland media report suggested its largest supplier Samsung was considering ending its exclusive distributorship on the mainland on certain handsets.
Global shares closed at 21.8 HK cents, down 12.8 per cent from the previous trading day and off 23 per cent in the past month.
Guangzhou-based 21st Century Economic Herald quoted a senior manager at Samsung's south China operation, Li Rensun, as saying the South Korean electronics giant was considering closing out its exclusive distribution arrangement with Global on certain handset models.
Samsung accounts for the majority of Global's revenues.
The report came several days after news about Global's former chairman Johnny Sze Tsang-fai's arrest by the Guangdong police for allegedly evading 104 million yuan (about HK$97.51 million) in taxes through a second set of accounting books at two of his privately controlled mobile-phone distribution firms.
A Global official said its business relationships with Samsung had not changed, and it was still Samsung's major distributor in Hong Kong, Taiwan and the mainland.
