Financial Performance - The company reported a revenue of HKD 961.1 million for the fiscal year ending March 31, 2020, down 38% from HKD 1.545 billion in 2019[30]. - The net loss attributable to shareholders was HKD 599 million, compared to a net loss of HKD 563 million in 2019[30]. - The decline in sales was primarily due to uncertainties from the ongoing US-China trade war and the impact of COVID-19 on production and delivery in February and March[30]. - The company recognized an additional impairment of HKD 24 million on inventory, in addition to a provision of HKD 153 million made in previous years[32]. - A further impairment provision of HKD 136 million was made on various properties, plant and equipment, right-of-use assets, intangible assets, and receivables due to business losses[32]. - The fair value loss on investment properties was approximately HKD 18 million[32]. - The company does not recommend the payment of a final dividend for the fiscal year ending March 31, 2020[32]. Supply Chain and Market Challenges - The ongoing trade war and global economic weakness have led retailers to adopt smaller, more frequent orders, impacting production costs and sales[35]. - The company faced significant disruptions in its supply chain due to COVID-19, affecting its ability to deliver products to customers[36]. - The company faced significant challenges due to COVID-19, leading to a decline in consumer demand and economic downturn, particularly affecting its audio-visual products[39]. Growth Strategy and Market Expansion - Despite the challenges, the company continued to implement a long-term growth strategy, focusing on the development and promotion of over 20 laptop models under the AVITA, Nexstgo, Venturer, and Vaio brands[40]. - The company entered new markets including Bangladesh, the Middle East, the UK, Ireland, the US, Africa, Australia, and Papua New Guinea during the review year[40]. - The company received positive feedback on new laptop models launched in Q1 of the 2020/2021 fiscal year, with expected shipments in Q2 projected to be at least double that of the entire previous fiscal year[46]. - The surge in demand for laptops is attributed to the increase in remote work and online learning due to the pandemic[46]. - The company is collaborating closely with large distributors and international chains to meet the anticipated growth in laptop business and is negotiating bulk discounts with suppliers to improve gross margins[49]. - The company is increasing its online sales efforts, aiming for online sales to become a major contributor to total revenue in the near future[49]. - The company is investing in automation to enhance production efficiency and product quality, with over 100 robots currently in operation[52]. - The company is developing a range of smart furniture that integrates audio and video elements, targeting tech-savvy consumers[52]. - The company remains confident in its long-term business prospects despite ongoing challenges from the pandemic and geopolitical tensions[55]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[62]. - The company is investing in R&D for new technologies, with an allocated budget of $10 million for the upcoming year[62]. - Market expansion efforts include entering two new international markets, aiming for a 20% increase in market share by the end of the next fiscal year[62]. - The company has completed a strategic acquisition of a competitor, which is expected to enhance its product offerings and increase revenue by approximately 30%[62]. Corporate Governance and Management - The management team has a combined experience of over 150 years in the industry, ensuring strong leadership and strategic direction[62]. - The company has maintained a high board meeting attendance rate, with all directors present for 100% of the meetings held in the past year[69]. - The compensation committee has reviewed and approved a performance-based bonus structure, aligning with market standards and company objectives[78]. - The company has adhered to corporate governance codes, ensuring compliance with all relevant regulations and standards[67]. - The chairman and CEO roles are held by the same individual, which the board believes is beneficial due to his extensive industry experience[67]. - The audit committee held two meetings during the year ended March 31, 2020, with all members attending both meetings, resulting in a 100% attendance rate[82]. - The company paid HKD 2,380,000 for audit-related services and HKD 233,000 for tax compliance services to its auditor for the year ended March 31, 2020[91]. - The nomination committee held three meetings during the year ended March 31, 2020, with all members attending at least two meetings, achieving a high attendance rate[85]. - The board confirmed that it is responsible for preparing the financial statements in accordance with Hong Kong Financial Reporting Standards, ensuring the use of appropriate accounting policies[89]. - The internal audit department reviewed the effectiveness of internal controls related to the sales cycle, inventory, payroll, and fixed asset management during the year[96]. - The company has no predetermined dividend payout ratio, and the board considers various factors, including financial condition and operating performance, when declaring dividends[98]. Environmental, Social, and Governance (ESG) Initiatives - The company’s ESG report covers its performance in environmental, social, and governance aspects during the year ended March 31, 2020, focusing on its operations in Hong Kong and China[107]. - The company maintains a commitment to good corporate governance to ensure effective resource allocation and protect shareholder interests[101]. - The board of directors participated in professional training related to business development and regulatory updates during the review year[97]. - The company has established a shareholder communication policy to facilitate inquiries and feedback from shareholders and potential investors[99]. - The company reported a direct greenhouse gas emission of 64,284 kg in 2020, a decrease of 46.6% from 120,770 kg in 2019[122]. - Indirect greenhouse gas emissions (Scope 2) were recorded at 4,867,154 kg in 2020, down from 5,359,698 kg in 2019, representing a reduction of 9.2%[122]. - Water consumption decreased to 151,000 kg in 2020 from 199,275 kg in 2019, marking a reduction of 24.2%[122]. - The company achieved a significant reduction in nitrogen oxides (NOx) emissions, which fell to 259,250 kg in 2020 from 571,580 kg in 2019, a decrease of 54.6%[122]. - The company maintained compliance with local environmental laws, with no significant incidents reported during the reporting period[113]. - The company has implemented a resource and energy-saving management guideline to enhance operational efficiency and reduce carbon emissions[127]. - The company has established a dedicated environmental management committee to oversee environmental protection efforts, ensuring adherence to ISO 14001:2015 standards[113]. - The company encourages recycling and reusing waste materials, with hazardous and non-hazardous waste managed by qualified collectors[119]. - The company has committed to a paperless office initiative to reduce resource consumption and promote sustainability[127]. - The company has not set specific targets for key performance indicators during the reporting period but aims to align with industry standards and government regulations[111]. - In 2020, electricity consumption decreased to 6,083,942 kWh from 6,699,623 kWh in 2019, representing a reduction of approximately 9.2%[131]. - Paper consumption dropped significantly from 3,580 kg in 2019 to 1,390 kg in 2020, a decrease of about 61.2%[131]. - Water usage decreased from 249,094 tons in 2019 to 188,789 tons in 2020, reflecting a reduction of approximately 24.1%[131]. - Fuel consumption for vehicles reduced from 47,828 liters in 2019 to 25,612 liters in 2020, a decrease of about 46.6%[131]. Workforce and Training - The total number of employees decreased from 1,296 in 2019 to 961 in 2020, a reduction of approximately 25.9%[141]. - The percentage of male employees increased slightly from 58.6% in 2019 to 59.0% in 2020, while female employees decreased from 41.4% to 41.0%[141]. - The average service years for administrative staff decreased from 11.8 years in 2019 to 11.2 years in 2020[145]. - The company maintained a 100% rate of long-term employees, with no temporary or part-time staff reported[141]. - Employee turnover was noted to be high due to rapid economic development in certain regions, but the company considers the turnover rate to be within industry norms[149]. - In 2020, the number of employees participating in training was 723, representing 75.2% of the total workforce, an increase from 72.2% in 2019[163]. - Total training hours for male employees decreased to 15,300 from 20,698 in 2019, while female employees' training hours decreased to 10,728 from 15,245[163]. - The average training hours per employee for both male and female employees was 36 hours in 2020, down from 38.4 hours in 2019[163]. - The company provided at least 32 hours of annual training for employees at the manufacturing facility[166]. - The company emphasizes continuous learning and encourages employees to obtain professional qualifications in relevant fields[166]. Supplier and Community Engagement - The company conducted annual assessments of suppliers' working conditions and social responsibilities to ensure alignment with corporate values[159]. - The company maintained a supplier base of approximately 300, primarily from China, Hong Kong, and Taiwan, with no significant changes in supplier locations[172]. - The company has not employed any child labor or forced labor during the reporting period[168]. - There were no major safety incidents or injuries reported during the reporting period, indicating a strong safety record[160]. - The company has a strict internal policy to comply with labor laws and regulations, monitoring recruitment and promotion processes closely[167]. - No significant customer complaints or compensation claims were received regarding the quality of products and services during the reporting period[176]. - The company has implemented strict guidelines to prevent the dishonest or inappropriate use of intellectual property, ensuring compliance with relevant laws and regulations[177]. - The company actively participates in community activities, including blood donation and youth volunteer activities, and has employed 20 individuals from the local community[185]. - The company has established a whistleblowing policy encouraging employees, suppliers, and stakeholders to report any misconduct, with no significant violations reported during the period[184]. - The company adheres to all relevant anti-corruption laws and regulations, including the Prevention of Bribery Ordinance and the Criminal Law of the People's Republic of China[183]. - The company has a clear policy for handling and protecting data privacy, which all employees must comply with[178]. - The company ensures that all sales and marketing activities comply with applicable laws and standards related to health and safety, advertising, labeling, and privacy[179]. - The company is committed to corporate social responsibility and seeks to enhance its community engagement through various initiatives[185]. - The company has established an audit committee to strengthen corporate governance and regularly reviews internal controls and compliance issues[183]. - The company has not reported any significant incidents of fraud, bribery, or money laundering during the reporting period[184].
ALCO HOLD-NEW(00328) - 2020 - 年度财报