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Notes to the Consolidated Financial Statements

31st March 2017

5 REVENUE AND SEGMENT INFORMATION (CONTINUED)

(a) Segment analysed by products (Continued)

(1) Management assesses the performance of the operating segments based on a measure of operating profit. Other information
provided is measured in a manner consistent with that in the consolidated financial statements.

(2) Segment assets consist primarily of property, plant and equipment, leasehold land and land use rights, intangible assets, trade
receivable, prepayments, deposits, other receivables, inventories and operating cash and exclude items such as investment
properties, current income tax recoverables and deferred tax assets.

(3) Segment liabilities comprise operating liabilities and exclude items such as certain corporate borrowings, current income tax
liabilities, dividend payable and deferred gain.

(4) Capital expenditure comprises additions to property, plant and equipment and intangible assets.

(b) Segment analysed by geographical areas

The segment revenue for the years ended 31st March 2017 and 2016 are as follows:

2017 2016
HK$’000 HK$’000

North America 2,079,543 2,849,657
Europe 8,740 2,528
Asia 4,643 24,282
Others 7,216 2,637

2,100,142 2,879,104

The analysis of revenue by geographical segment is based on the destination to which the
shipments are made. Primarily all of the assets and capital expenditure for the year ended 31st
March 2017 and 2016 were located or utilised in the PRC or Hong Kong.

Details of the customers accounting for 10% or more of total revenue are as follows:

2017 2016
HK$’000 HK$’000

Customer A 1,951,321 2,644,764

ALCO HOLDINGS LIMITED ANNUAL REPORT 2017 77