Discontinued Operation - Mobile Handset Business
During the Year, the Group disposed of the mobile handset business to its parent company, the Haier
Group, for a total consideration of approximately HK$420 million in June 2006. This business, being
classified as discontinued operation in the financial statements, contributed HK$103 million in net
profit to the Group for the Year (representing a gain on the disposal less loss of this business up to the
date of disposal). The disposal enabled the Group to focus on improving its core competencies in the
white goods businesses and to better direct resources to such businesses.