Page 12 - ar2012

10 WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
OPERATIONS REVIEW
FY2013 YEAR IN REVIEW
FY2013 was a volatile and challenging year for the supply
chain industry, especially for companies involved in the
fast-moving electronics business.
During the financial year in review, global sentiment
and demand for electronics continued to be affected by
persistent economic issues in the US and Eurozone and
this had an adverse impact on China’s export trade. In
addition, the Chinese government’s economic tightening
measures as wel l as the end of var ious subsidy
programs created uncertainties that made conditions
even more challenging for us.
Due to the lack of visibility, customers turned to placing
more short - term orders to meet just their near- term
needs, leading to shorter manufacturing cycles and
exacerbating the imbalance between demand and
supply.
As a resul t of weaker demand, some component
manufacturers t r immed down thei r capaci ty and
maintained a lower overall inventory level across the
entire supply chain. To ensure that we have sufficient
inventory to meet the needs of our key customers, we
strengthened our inventory management and kept
inventories at a reasonable level. Our experience in the
field and our strong and long term relationships with our
suppliers were key factors that contributed to our ability
to fulfill our customers’ requirements.
Under such circumstances, we registered revenue of
HK$1,667.4 million in the first half of FY2013, which
was 6.7% lower than the corresponding period in
FY2012. In the second half of the financial year, even
though the market did not show any signs of recovery,
KWOK CHAN CHEUNG
Deputy Chairman and Managing Director