Page 8 -

Chairman’s Statement

PROSPECTS

Recent signs suggest that the US economy is indeed
achieving an upswing, which will help spur the
recovery of the global economy. Hence, while there
are still many challenges that all members of the
consumer electronics industry must face, including
high labour and manufacturing related expenses and
intense competition, a turnaround appears on the
horizon. Consequently, the Group will seek to build
on the gains made during the latest financial year,
leveraging prudent strategies that strive ultimately for
long-term sustainable growth.

The current success of our tablet products highlights close attention and timely enhancement. While
the significant opportunities available in this business further bolstering our current portfolio, we will
segment. We will therefore direct still greater continue to refine our product mix and at the same
energies towards expanding our presence in this time constantly examine market trends so as to
market. In particular, building on the momentum introduce still more new and exciting products.
of the popularity of the Group’s 7-inch, 10-inch,
and 11-inch tablets, we will further strengthen our Also requiring our close and constant attention will
Infotainment/I.T. products portfolio by planning to be raising production efficiency and curbing costs.
introduce larger size tablets. The Group is also While our consolidated production facility in Houjie
evaluating the possibility of developing traditional Town is fully operational and steps made to increase
laptop/notebook PCs. automation have achieved the desired results,
improving manufacturing efficiency remains an ongoing
Certainly, the products that have served as the task and one that will continue to be of high priority.
foundation supporting the Group’s development
in recent years, such as high-value sound bar and While raising efficiency, controlling expenses
sound stand systems will continue to receive our and enhancing our product mix have been often
emphasised, it is worth noting as well that the Group is
constantly exploring new markets to penetrate. Though
the North American market has been our traditional
stronghold, we have gained footholds, even though
not very significant at the moment, in other markets
and this has contributed to our rise in turnover. We will
therefore continue to find opportunities to enter new
borders so as to enhance our performance as well as
achieve a more balanced geographical presence.

6 ALCO HOLDINGS LIMITED ANNUAL REPORT 2015