Page 84 -

Notes to the Consolidated Financial Statements

31st March 2016

28 NOTE TO CONSOLIDATION STATEMENT OF CASH FLOWS (CONTINUED)

(b) In the consolidated statement of cash flows, proceeds from disposal of properties, plant and
equipment comprise:

2016 2015
HK$’000 HK$’000

Net book amount (Notes 14 and 15) 271,126 6,259
Gain on disposal of plant and equipment (Note 7) 40 6,888
Gain on disposal of properties (Note 29) 221,318 –
Amortisation of deferred gain (Note 29) 1,454 –
Deferred gain (Note 29) 50,896 –

Proceeds from disposal of properties,
plant and equipment 544,834 13,147

Representing:
Proceeds from disposal of properties (Note 29) 533,769 –
Proceeds from disposal of plant and equipment 11,065 13,147
544,834 13,147

29 GAIN ON DISPOSAL OF PROPERTIES AND DEFERRED GAIN

In January 2016, Alco Electronics Limited (“AEL”), a wholly-owned subsidiary of the Company, entered
into a sale and purchase agreement with an independent third party, Lead Harvest Group Limited (“Lead
Harvest”), for the disposal of a self-occupied property (Note 14) and certain investment properties
(Note 15) in Quarry Bay with carrying values of HK$23,791,000 and HK$236,310,000, respectively, at
a total net consideration of HK$533,769,000. The transaction was completed on 29th February 2016
(“Completion Date”).

82 ALCO HOLDINGS LIMITED ANNUAL REPORT 2016