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Chairman’s Statement

Chairman’s Statement

GROUP RESULTS AND DIVIDENDS

On behalf of the Board of Directors, I hereby
present the financial results of Alco Holdings
Limited and its subsidiaries for the year ended
31st March 2017.

For the year under review, the Group recorded
turnover of HK$2.1 billion (2016: HK$2.9 billion)
and profit attributable to shareholders of HK$73.9
million (2016: HK$506 million). The significant
declines were principally due to the lacklustre
business environment, compounded by dramatic
cost increases for critical components including
TFT-LCD panels and memory ICs, which are used
in certain electronic products of the Group. Such
price increases could not be readily shifted to
Alco’s customers owing to intense competition in
the market. Another major reason for the decline
in profit was the lack of one-off gain recorded in
the year under review (2016: the Group reported
a gain of HK$221 million from the disposal of
properties).

6 ALCO HOLDINGS LIMITED ANNUAL REPORT 2017