Annual Report 2016
11
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS REVIEW
Revenue
The Group’s sales revenue had increased by 7.4% from HK$3,392.0 million for the year ended March 31,
2015 (“FY2015”) to HK$3,642.2 million for the year ended March 31, 2016 (“FY2016”).
Turnover by Market Segment Analysis
(in HK$’000)
FY2016
FY2015
Increase (Decrease)
%
%
%
Telecommunications
959,746 26.3%
650,794 19.2% 308,952 47.5%
Industrial
771,287 21.2%
770,067 22.7% 1,220
0.2%
Dealer
470,369 12.9%
495,653 14.6% (25,284)
–5.1%
Home Appliance
437,693 12.0%
463,904 13.6% (26,211)
–5.7%
Automotive
327,447
9.0%
268,436
7.9% 59,011 22.0%
Audio and Video
251,275
6.9%
253,211
7.5% (1,936)
–0.8%
EMS
189,177
5.2%
236,316
7.0% (47,139)
–19.9%
Lighting
123,220
3.4%
132,091
3.9% (8,871)
–6.7%
Others
112,032
3.1%
121,525
3.6% (9,493)
–7.8%
3,642,246 100.0%
3,391,997 100.0% 250,249
7.4%
In FY2016, we registered a year-on-year increase of 7.4% in revenue to HK$3,642.2 million.
The improvement in revenue was mainly driven by an improvement in the sales achieved by our
telecommunications and automotive segments, which benefitted from the rapidly expanding market share
of China’s domestic brand manufacturers. The Group’s long-time strategy to invest and focus on building
our network and coverage of the China market had given us the ability to take advantage of the rising
dominance of China branded products.
Telecommunications
The telecommunications segment is our largest revenue contributor. In FY2016, this segment achieved
a 47.5% surge in revenue to HK$959.7 million compared to FY2015. In 2015, the launch of the 4G
network in China had driven the demand for smartphones exponentially and this momentum continued
in 2016. Our focus on China’s domestic brand manufacturers coupled with our value added services to
our suppliers had enabled us to benefit from the market share expansion of these Chinese smartphone
makers. Although the outlook for the 2016 smartphone market appears very competitive and challenging,
we believe we are well positioned to achieve healthy sales revenue.
