Year 2020 was challenging due to the COVID-19 pandemic, nonetheless, with notebook computers in strong demand, the Group recorded a 33% increase in turnover to HK$1,279 million (2020: HK$961 million). Notebook computer sales were HK$632 million, representing 261% year-on-year growth (2020: HK$175 million), with sales volume near a quarter million units, evidencing the popularity and consumer acceptance of Alco's notebook computer brands.

During the Year, the Group's gross loss margin improved by 1.9 percentage points to -4.8% (2020: -6.7%), and net loss attributable to equity holders of the Company improved by 40% to HK$360 million (2020: HK$599 million). Certain sales orders were abandoned during the Year compelled by the global supply shortage of various electronic parts and components, and suppliers unable to timely deliver critical components, as such the Group's profitability was affected. Nevertheless, net loss attributable to equity holders of the Company reduced thanks mainly to the much higher quantity of notebook computers produced during the Year. For the same reason, fixed costs (i.e. those for manufacturing facilities, advertising and branding, and products engineering and development) had been diluted, and most importantly, the Group had stronger bargaining power in material cost negotiations.

Alco continued to adhere to its long-term growth strategy focusing on the developing and promoting notebook computers under the AVITA brand during the Year. At the same time, it also kept abreast of market trends and continued to develop a variety of popular notebook computer products, as well as LTE enabled tablets for markets and countries where WiFi is not commonly available in private homes. The COVID-19 pandemic has created a new paradigm of life for billions of people worldwide, with working from home a new norm taking root, notebook computers and tablets are benefiting from this.

Mr. Leung Wai Sing, Chairman and Chief Executive Officer of Alco, said, "It is very encouraging that we recorded a 261% surge in notebook computers sales, which is also a testament of our successful transformation into development of notebook computer brand business. We will put more resources into expediting development of our notebook computers business, and also strengthen our brands and adjust our product portfolio. Automation and using robots in production is another area Alco is investing in so that it could match the increase in notebook computer demand year on year. Heeding the growth path of AVITA notebook computers and the enquiries on private-label notebook computers recently received, we are cautiously optimistic that our notebook computer outputs would soon exceed one million units per year.

"In addition, we will be celebrating our 30th listing anniversary next year, which we see as a good time for us to looking for fresh prospects to driving Alco's growth in next decades. Thus, we are looking at investment opportunities that agree with rising technology trends such as IoT products, 5G enabled devices, edge computing and even electric mobility. We believe that with our relentless effort, and with an experienced management team and good market reputation, the Group is well-positioned and well-equipped to sustain development momentum albeit the challenging business environment."

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 leaveraging 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/

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