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Report of the Directors

Report of the Directors

The directors submit their report together with the audited financial statements for the year ended 31st March
2015.

PRINCIPAL ACTIVITIES AND SEGMENT ANALYSIS

The principal activity of the Company is investment holding. The activities of the subsidiaries are set out in
Note 35 to the consolidated financial statements.

Analysis of the Group’s performance for the year by product and geographical area is set out in Note 5 to the
consolidated financial statements.

RESULTS AND APPROPRIATIONS

The results of the Group for the year are set out in the consolidated income statement on pages 26 and 27.

The directors have declared an interim dividend of HK3 cents per ordinary share, totalling HK$17,381,000.

The directors recommended the payment of a final dividend of HK10 cents per ordinary share, totalling
HK$57,937,000.

LIQUIDITY AND FINANCIAL RESOURCES

The Group’s total equity and total equity per share as at 31st March 2015 were HK$1,926 million (2014:
HK$1,856 million) and HK$3.32 (2014: HK$3.20) respectively.

The Group maintains a strong financial position. As at 31st March 2015, we had cash and deposits of
HK$888 million. After deducting bank loans of HK$52 million, we had net cash of HK$836 million. The Group
has adequate liquidity for future working capital requirements.

As at 31st March 2015, our inventory was HK$404 million (2014: HK$353 million). We take a cautious
approach to monitor the inventory level especially during this environment with uncertainty.

Trade receivables balance as at 31st March 2015 was HK$533 million (2014: HK$590 million). As it is our
policy to deal with creditworthy customers and to adopt a prudent credit policy, credit risk is kept at minimal.

Trade payables balance as at 31st March 2015 was HK$460 million (2014: HK$523 million).

As at 31st March 2015, we had banking facilities of HK$1,150 million (2014: HK$1,596 million), of which
HK$52 million (2014: HK$130 million) were utilised. The used facilities of HK$52 million shall be payable in the
first year.

ALCO HOLDINGS LIMITED ANNUAL REPORT 2015 15