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HONG KONG, Nov 26, 2021 - (ACN Newswire) - Alco Holdings Limited ("Alco" or the "Group"; stock code: 00328), a world-leading manufacturer of electronic products, announced its interim results for the six months ended 30 September 2021 (the "Period"). During the Period, revenue from the Group's proprietary brand computer products business continued to surge, increasing by 49% year-on-year to HK$337 million. The Group has continued to seize the market growth potential of popular notebook products and the tremendous opportunities in regional markets that are in the process of internet development. This ability can be attributed to the support from customers and consumers as well as the success in brand building.
During the Period, although the sales volume of the self-branded computer business increased by more than 20% year-on-year to over 100,000 units, the pent-up demand still has not been satisfied due to components supply shortage. The Group has been reducing the traditional OEM and ODM businesses (audio-visual and other products); placing greater focus instead on its self-branded computer products, which consequently affected its business performance. During the Period, the Group's revenue decreased by 32% year-on-year to HK$400 million. Fortunately, riding on the operating leverage realised through the volume growth of self-branded computers, as well as the bulk purchasing resulted from continuing scale expansion, the Group succeeded in narrowing its *adjusted net loss and gross loss margin improved by 4.3 percentage point to 1.4%, thus demonstrating the resilience of its business.
During the Period, the Group continued to consider strategic investments in resources and facilities. Apart from developing and promoting AVITA branded notebooks, the Group has used market segments to drive profits, continued to upgrade the technologies of its LTE-enabled tablet(s) and optimised its sales network, in order to meet strong market demand from private homes that presently do not have wireless network access.
Mr. Leung Wai Sing, Chairman and Chief Executive Officer of Alco, said, "At Alco, we have always believed that new opportunities are only discovered when bold changes are made. We have been vigorously exploring high-growth markets and sectors with potential. The continuing favorable performance of our proprietary brand computer product business attests to the success of our transformation into a notebook brand business operation. In the future, the Group will further improve product quality and operational efficiency through automation and the use of robotics in production. While taking a multi-pronged approach towards internal control, it will flexibly respond to the diverse needs of different markets.
"With its leading market position and good brand reputation, Alco has weathered challenges from a multitude of economic cycles. Moreover, with sound business acumen, Alco has consistently identified investment opportunities that correspond with emerging technological trends, and which will also drive the Group's growth in the coming decades. Towards its 30th listing anniversary, the Group will continue to spare no effort to enhance its core strengths in manufacturing, operation and R&D, and strive to provide high-quality computer products through constant innovation and unwavering effort, in order to create long-term value for customers, shareholders and stakeholders."
About Alco Holdings Limited (Stock Code: 00328)
Founded in 1968, Alco is a world-leading manufacturer of electronics products. The Group has been listed on the Hong Kong Stock Exchange since 1992 and has been enjoying continuous success by leveraging its core competencies in manufacturing, operational efficiency, R&D as well as its exceptional commitment to quality. In order to keep ahead of the competition, it has been undergoing process of change and transformation for the development of products based on smart technologies and for launching its own-brand notebook computers. Alco's mission is to go beyond the limits of modern technologies to facilitate the digital revolution.
For details, please visit: www.alco.com.hk/
Topic: Press release summary
Source: Alco Holdings Limited
Sectors: Electronics
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From the Asia Corporate News Network
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