Financial Performance - The Group recorded a 54% decrease in turnover from HK$1,279 million in 2021 to HK$591 million in 2022[21]. - Net loss attributable to shareholders increased by 65% from HK$360 million in 2021 to HK$595 million in 2022[21]. - The company reported a revenue of HKD 591,292,000 for the year ended March 31, 2022, a decrease of 53.7% compared to HKD 1,278,686,000 in the previous year[189]. - The cost of goods sold was HKD 887,290,000, resulting in a gross loss of HKD 295,998,000, compared to a gross loss of HKD 62,308,000 in the prior year[189]. - The total operating expenses, including selling, administrative, and R&D expenses, amounted to HKD 572,046,000, an increase from HKD 351,918,000 in the previous year[189]. - The company incurred a loss before tax of HKD 594,594,000, compared to a loss of HKD 360,639,000 in the previous year, reflecting a significant decline in financial performance[189]. - Basic and diluted loss per share was HKD 82.2, compared to HKD 49.8 in the previous year, indicating a worsening of the company's financial position[189]. - The total comprehensive loss for the year was HKD 603,109,000, compared to HKD 350,734,000 in the previous year, highlighting increased financial challenges[193]. - The company has not provided sufficient evidence to support the cash flow forecasts necessary for a going concern assessment, raising uncertainties about its ability to continue operations[180]. - The independent auditor's report indicated a significant uncertainty regarding the company's ability to continue as a going concern due to its financial position[176]. Impairments and Asset Management - An impairment of HK$198 million was made on aged raw materials due to the cessation of producing certain AV and non-profitable products[23]. - A further impairment provision of HK$29.5 million was made on certain property, plant and equipment, right-of-use assets, intangible assets, and trade and other receivables[23]. - The company has recognized impairment losses on various assets, including property, plant, and equipment, totaling HKD 4,194,000, which reflects ongoing operational difficulties[189]. Operational Challenges - The Group faced operational challenges due to a lack of working capital and the sudden passing of its former chairman, which disrupted business plans[26]. - The demand for laptops surged initially during COVID-19, but the supply chain for critical components was severely disrupted[27]. - The Group began to lay off excess workers and sublet unused factory space due to ongoing sales declines and overcapacity[27]. - The company is exploring different strategies to create more value from its factories, such as leasing or selling production facilities and machinery[29]. - The group is negotiating debt restructuring with banks, with HKD 285,000,000 in bank and other borrowings due within one year, of which approximately HKD 214,359,000 is overdue[86]. Strategic Initiatives - The Group's strategy has shifted focus to developing its own brand notebook business, moving away from traditional OEM/ODM business[22]. - Significant investments in advertising and promotions for AVITA, Nexstgo, and VAIO notebook computers impacted profitability[23]. - The company aims to minimize losses and achieve positive cash flow as quickly as possible[29]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[44]. - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase market penetration[44]. - The company has invested HKD 50 million in R&D for new technologies, aiming to improve product efficiency by 30%[44]. Governance and Compliance - The board of directors has approved a new corporate governance policy to enhance accountability and transparency[46]. - The independent non-executive directors have confirmed their independence, ensuring compliance with regulatory requirements[52]. - The audit committee has held two meetings during the year to review the group's financial performance and internal control systems, ensuring compliance and risk management[69]. - The company has established a remuneration committee to review and recommend compensation policies for directors and senior management, ensuring transparency and alignment with company objectives[66]. - The company has adopted a nomination policy outlining the selection criteria and procedures for board candidates, aiming to enhance the board's effectiveness[73]. - All directors confirmed compliance with the trading code for securities transactions as of March 31, 2022, indicating adherence to governance standards[64]. Financial Position and Liquidity - As of March 31, 2022, the group's total liabilities exceeded its current assets, with total liabilities of approximately HKD 524,320,000 and current liabilities of about HKD 272,923,000[82]. - The group reported a net loss of approximately HKD 594,594,000 and a net cash outflow from operating activities of about HKD 138,984,000 for the year ended March 31, 2022[82]. - The company's bank balance and cash were only approximately HKD 10,202,000 as of March 31, 2022, indicating significant liquidity concerns[176]. - The group plans to sell non-current assets to generate cash inflow and alleviate liquidity pressure[91]. - The company will continue to take proactive measures to address its liquidity issues and will announce any significant developments in accordance with listing rules and securities regulations[95]. Employee and Stakeholder Relations - The company recognizes the importance of maintaining good relationships with employees, customers, and suppliers for achieving long-term business goals[120]. - The group employed approximately 625 staff as of March 31, 2022, down from 950 in 2021, with compensation plans based on market terms and individual qualifications[132].
ALCO HOLD-NEW(00328) - 2022 - 年度财报