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Chairman’s Statement

REVIEW OF OPERATIONS

Against a backdrop of a recovering US economy,
consumption sentiment has modestly improved during
the past financial year. Segments of the retail sector
have in turn enjoyed a pickup in consumer demand.
The Group has experienced higher demand as well; in
particular, our new range of tablet products featuring
Bluetooth-enabled wireless keyboards has performed
encouragingly. Produced since the second half of
2014, these devices have enjoyed strong demand
ever since. It is worth noting as well that since these
products have a relatively higher entry barrier, they
are therefore less susceptible to competitive price
pressure. Aside from this star performer, sound bars even more automation has been introduced to the
systems that complement many of today’s flat-panel Group’s various production lines, which helps reduce
TVs have continued to represent stable revenue substantially our reliance on direct labour. Similarly,
sources for the Group as they remain essential robots have been brought in to handle warehouse
products for those who enjoy a completely immersive and logistics-related activities, i.e. loading and
entertainment experience. Still other products that unloading, palletising and depalletising, thus further
make up the Group’s current portfolio include DVD lifting efficiency in these areas as well.
players, Blu-ray players, and DVD/BD home theatre
systems. Furthermore, a restructuring of the workforce was
conducted during the year, which, even though
Besides a solid product portfolio that is regularly resulted in a one-time severance payment of HK$20
re v i e w e d a n d re f i n e d , d e v e l o p m e n t a n d million, nevertheless led to an immediate saving in
enhancement extend to the Group’s production, staff costs. Such cost saving will in turn benefit the
which is under constant scrutiny by management. Group over the long run.
While we have benefited from the consolidation of
all manufacturing activities since our relocation to
Houjie Town in mid-2013, the Group has further
increased efforts to raise productivity, particularly
in view of the ongoing rise in cost of labour and
persistent shortage of skilled workers. Consequently,

ALCO HOLDINGS LIMITED ANNUAL REPORT 2015 5