Alco Holdings Limited provided earnings guidance for the year ended March 31, 2022. For the year, the company expected that the Group will incur consolidated net loss within the range of approximately HKD 500 million to HKD 550 million for the year ended 31 March 2022 compared to the consolidated net loss of HKD 360.4 million for the year ended 31 March 2021. Based on the information currently available, the Directors are of the preliminary view that the expected consolidated net loss of the Group may be attributable to: COVID-19 led to global surge of freight and cargo charges during the period.

Significant drop of sales of the Group due to the continuous COVID-19 and Omicron pandemic. The production has been affected by the global supply shortage and delayed delivery time of certain critical parts and components and as a result, Company was unable to accept certain sales orders intended to be placed by customers, which in turn affected revenue and profitability. Significant reduction of sales revenue, due to strategic migration since 2017 from traditional OEM/ODM manufacturing business for AV and other electronic consumer products to self-branded computers.

As at the 6-month period ended 30 September 2021, the ratio of traditional OEM/ODM manufacturing business only accounted for approximately 16% of the Group's total sales revenue. Substantial increase in impairment losses in inventory, trade and other receivables.