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Chairman’s Statement

PROSPECTS

The global economy is expected to further
improve in the coming years, driven by
recoveries in investment, manufacturing and
trade, according to an International Monetary
Fund report. However, optimism must be
tempered by the possibility of changing
political landscape that invariably creates
uncertainty and downside risk. For anyone
involved in the electronics industry, intense
competition will remain the norm in the
foreseeable future, though that by no means
implies that opportunities are absent.

As an industry veteran, the Group has With regard to high value-added products,
overcome numerous troughs and cyclical in addition to developing more models
patterns in the past 48 years, including the of electric bicycles, we plan to introduce
recent and sudden spike in cost of critical within the second half of the 2017 calendar
components. Though not unscathed, we year Consumer Notebook PCs and B2B/
have nonetheless been resilient due to Commercial Notebook PCs in prices range
competitive strengths that have only grown of mid 1,000 US dollars. Furthermore, by the
more robust over the years, one of which beginning of 2018, All-In-One PC systems
is our management team that provides the in sizes ranging from 24” to 32” will also be
Group with sound guidance and direction. In introduced.
the coming year, we will continue to focus on
our three-pronged strategy of developing high
value-added products; further upgrading our
manufacturing facilities through automation and
robotization; and penetrating new markets with
new brands and/or new product categories.

10 ALCO HOLDINGS LIMITED ANNUAL REPORT 2017