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Notes to the Consolidated Financial Statements

31st March 2015

30 DISCONTINUED OPERATION

During the year ended 31st March 2014, the Group sold the entire interest in Alco Plastic Products
Limited (“APPL”), a wholly owned subsidiary of the Company, to one of the APPL’s directors at a cash
consideration of HK$3,000,000. Full consideration was received in February 2014. The principal activity
of APPL was the manufacturing and selling of plastic products. Accordingly, the results of plastic
products business together with the related loss on disposal have been presented as a discontinued
operation in the consolidated financial statements for the year ended 31st March 2014.

(a) Analysis of the results of discontinued operation is as follows:

2014
Note HK$’000

Revenue 5 78,990
Cost of goods sold (95,099)
Gross loss (16,109)
Selling expenses (38)
Administrative expenses (2,112)
Other operating expenses (9,973)
Loss before income tax (28,232)
Income tax credit 2,330

Loss after income tax (25,902)
Loss on disposal of a subsidiary (277)
Loss from discontinued operation attributable
to equity holders of the Company (26,179)

(b) Analysis of the expenses of discontinued operation is as follows:

2014
HK$’000

Cost of inventories 64,508
Depreciation of property, plant and equipment 2,508
Employee benefit expenses (including APPL’s directors’ emoluments) 22,116
Gain on disposal of property, plant and equipment (793)
Operating lease rental in respect of land and buildings 1,367
Write-off/impairment of property, plant and equipment 3,748
Deferred income tax credit (2,330)

ALCO HOLDINGS LIMITED ANNUAL REPORT 2015 89