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Notes to the Consolidated Financial Statements

31st March 2018

5 REVENUE AND SEGMENT INFORMATION

Revenues recognised during the year are as follows:

2018 2017
HK$’000 HK$’000
(Restated)

AV products 2,067,912 2,100,142
Notebook products 12,795 –

2,080,707 2,100,142

(a) Segment analysed by products

The chief operating decision-makers have been identified as the executive directors and senior
management who directly report to directors of the Group. The executive directors and senior
management reviewed the Group’s internal reporting to assess performance and allocate
resources. A management approach has been used for the operating segment reporting.

The Group mainly operates in the People’s Republic of China (the “PRC”), Taiwan and Hong
Kong and is principally engaged in designing, manufacturing and selling of consumer electronic
products.

During the year, the Group diversified its development focus from the existing traditional consumer
electronic products, including audio, video and tablet products (collectively, the “AV products”),
to commercial notebook and personal computers (the “Notebook products”). As a result of
such change in the business strategy, the chief operating decision-makers’ review on the
Group’s segment performance and resource allocation has changed over that in prior years. The
comparative segment information for the year ended 31st March 2017 has been reclassified to
align with the presentation of the latest segment information disclosure as a result of such change:

AV products – Design, manufacture and sale of AV products

Notebook products – Design, manufacture and sale of notebook products

The Group’s inter-segment transactions mainly consist of sale of assembly parts and Notebook
products among subsidiaries. The transactions were entered into under normal commercial terms
and conditions that would also be available to unrelated third parties.

86 ALCO HOLDINGS LIMITED ANNUAL REPORT 2018