Annual Report 2016
17
MANAGEMENT DISCUSSION AND ANALYSIS
STRATEGY AND PROSPECTS
Although further deterioration in the macroeconomic environment is not generally expected, the Chinese
government has finalized its 13th five-year plan (for 2016-2020 period) and lowered its forecast of the
GDP growth rate to 6.5% for the next five years, down from the 7.0% projected in the previous plan.
The Group expects this to have a dampening effect on overall consumer sentiment, which will affect the
electronics industry. As such, we expect the next 12 months to remain challenging with competition in
the industry intensifying further.
The Group will continue to be prudent in managing its operations while maintaining its cautious stance in
managing costs and sustaining a healthy liquidity position in order to support long-term growth.
EMPLOYEES AND REMUNERATION POLICIES
As at March 31, 2016, the Group had a workforce of 477 full-time employees (March 31, 2015: 480),
of which 37.1% worked in Hong Kong, 59.5% in the People’s Republic of China (the “PRC”) and the
remainder in Taiwan.
The Group actively pursues a strategy of recruiting, developing and retaining talented employees by
(i) providing them with regular training programmes to ensure that they are kept abreast of the latest
information pertaining to the products distributed by the Group, technological developments and market
conditions of the electronics industry; (ii) aligning employees’ compensation and incentives with their
performance; and (iii) providing them with a clear career path with opportunities for taking on additional
responsibilities and securing promotions.
While the Group’s employees in Hong Kong and Taiwan are required to participate in the mandatory
provident fund scheme and a defined contribution pension scheme respectively, the Group makes
contributions to various government-sponsored employee-benefit funds, including social insurance fund,
housing fund, basic pension insurance fund and unemployment, maternity and work-related insurance
funds for its employees in the PRC in accordance with the applicable PRC laws and regulations.
Further, the remuneration committee of the Company reviews and determines the remuneration and
compensation packages of the directors of the Company (the “Directors”) and senior management by
reference to the salaries paid by comparable companies, the time commitment and responsibilities of the
Directors and the performance of the Group.
