Segment Information

12 Months Ended

Mar. 31, 2012

Segment Information [Abstract]

SEGMENT INFORMATION

25. SEGMENT INFORMATION

The Company operates in four segments: Home Appliances, Electronic Components, Electronic Manufacturing Services (“EMS”) and Others. These segments are operated and managed as separate strategic business units that offer different products/services. The Company’s “Home Appliances” segment historically had been the core business of the Company and primarily involved in the manufacturing of electrical household appliances for branded marketers in North America and Europe. The Company’s “Electronic Components” segment produces complementary metal oxide semiconductor (“CMOS”) camera modules (“CCM’s”) primarily for sale to cellular phone and tablet manufacturers in Mainland China. The Company’s “Electronic Manufacturing Services” consists of surface mount technology (“SMT”) processing of printed circuit boards and assembly services for cellular phone marketers in Mainland China. The Company’s “Others” segment comprises a number of immaterial product lines and development programs that have not materialized to date into full product businesses. None of these units has ever individually met the quantitative thresholds for determining reportable segments. The chief operating decision maker evaluates the results of each segment in assessing performance and allocating resources among the segments.

There were no material intersegment sales or transfers during the fiscal years ended March 31, 2012, 2011 and 2010.

As stated in note 19 – “Discontinued Operations” of Notes to Consolidated Financial Statements, the Home Appliances segment was discontinued effective for January 2012. The results of operations of the Home Appliances segment has been classified as “Income (Loss) from discontinued operations” on the face of the consolidated statement of operations.

(a) The following table provides operating financial information for the four reportable segments:

	Home Appliances#			Electronic Components			EMS			Others			Corporate			Combined
	US$			US$			US$			US$			US$			US$
As of or for the fiscal year ended March 31, 2012
Revenues from external customers		53,885,407			54,431,519			14,439,926			781,260			—			123,538,112
Capital expenditure		240,763			226,277			273,926			73,281			—			814,247
Interest income		—			—			—			—			377,074			377,074
Interest expense		(2,403	)		(104,517	)		—			321			(177,401	)		(284,000	)
Depreciation and amortization		1,522,962			594,746			1,268,736			76,809			98,577			3,561,830
Segment profit (loss)		1,374,342	*		2,885,762			221,655			(640,020	)		(2,431,062	)		1,410,677
Total assets		313,033			34,554,319			11,614,176			739,106			61,819,375			109,040,009
As of or for the fiscal year ended March 31, 2011
Revenues from external customers		43,485,638			42,621,597			14,742,075			105,194			—			100,954,504
Capital expenditure		217,028			807,077			3,598,918			40,345			—			4,663,368
Interest income		—			—			—			—			498,837			498,837
Interest expense		—			(268,219	)		(2,604	)		—			308,173			37,350
Depreciation and amortization		1,599,996			557,353			971,836			62,690			140,261			3,332,136
Segment profit (loss)		(1,775,879	)		1,400,572			(695,296	)		(960,777	)		(1,981,591	)		(4,012,971	)
Total assets		22,234,345			23,809,159			15,066,413			703,412			58,122,805			119,936,134
As of or for the fiscal year ended March 31, 2010
Revenues from external customers		53,889,863			38,886,903			8,990,369			162,353			—			101,929,488
Capital expenditure		778,952			29,461			1,144,038			166,369			—			2,118,820
Interest income		—			—			—			—			282,746			282,746
Interest expense		(4	)		(65,356	)		(4,305	)		—			63,697			(5,968	)
Depreciation and amortization		2,224,742			534,343			647,932			164,697			207,188			3,778,902
Segment profit (loss)		3,124,689			2,857,538			1,901,374			(980,131	)		(3,437,139	)		3,466,331
Total assets		15,140,905			19,806,612			9,754,921			423,530			65,960,858			111,086,826

# As discussed in note 19, the Home Appliances segment was discontinued on January 15, 2012. The results of the operations has been classified as discontinued operations on the face of the statement of operations.

* An impairment loss of US$1,230,727 was recognized in the statement of operations for machinery that was used in the operation of the Home Appliances segment.

(b) Net sales including net sales of discontinued operations by geographic area based on the location of customers are as follows:

	2012		2011		2010
	US$		US$		US$
Australia		501,665		562,066		555,138
Europe		4,469,428		3,213,506		3,326,495
North America		47,969,847		38,808,728		49,212,523
Asia		70,596,126		58,360,791		48,422,656
Other regions		1,046		9,413		412,676
		123,538,112		100,954,504		101,929,488

(c) Net sales including net sales of discontinued operations by product/service type

	2012		2011		2010
	US$		US$		US$
Floor care products		51,056,019		40,013,087		51,922,848
Kitchen appliances		755,607		1,081,498		558,674
CCM’s		53,094,225		41,592,838		38,910,047
Cellular phone assembly services		14,439,927		14,648,779		8,990,369
Others		4,192,334		3,618,302		1,547,550
		123,538,112		100,954,504		101,929,488

(d) Long-lived assets*

	March 31, 2012		March 31, 2011
	US$		US$
Hong Kong		210,800		308,736
Mainland China		24,806,115		27,765,159
		25,016,915		28,073,895

* Long-lived assets represent land use rights and property, plant and equipment.

(e) Impairment of property, plant and equipment

The impairment losses of property, plant and equipment for the fiscal years ended March 31, 2012, 2011 and 2010, amounted to US$1,230,727, nil and US$4,786, respectively. The impairment loss for the fiscal years ended March 31, 2012 was included in “Income (loss) from discontinued operations”.

(f) Major customers

Customers accounting for 10% or more of the Company’s combined net sales are as follows:

	2012		2011		2010
	US$		US$		US$
From continuing operations:
Shenzhen ZTE Mobile Tech. Co., Ltd. (“ZTE”)		24,227,414		8,797,843		4,774,353
Shenzhen Tinno Mobile Technology Co. Ltd. (“Tinno”)		13,018,044		13,677,827		7,455,144
Lenovo Mobile Communication Technology Ltd. (“Lenovo”)		11,698,569		12,712,077		10,595,989
From discontinued operations:
Electrolux S.A. and subsidiaries (“Electrolux”)		52,339,623		42,006,085		52,870,164

During the fiscal years ended March 31, 2012, 2011 and 2010, 19.61%, 8.71% and 4.68%, respectively of the Company’s combined net sales including discontinued operations were made to ZTE, which is an unrelated customer. As of March 31, 2012, 2011 and 2010, 58.85%, 17.74% and 11.54%, respectively of the Company’s total accounts and bills receivable were from ZTE. ZTE is a customer of the Company’s electronic components segment.

During the fiscal years ended March 31, 2012, 2011 and 2010, 9.5%, 12.6% and 10.4%, respectively of the Company’s combined net sales including discontinued operations were made to Lenovo, which is an unrelated customer. As of March 31, 2012, 2011 and 2010, 19.4%, 19.2% and 26.4%, respectively of the Company’s total accounts and bills receivable were from Lenovo. Lenovo is a customer of the Company’s electronic components segment.

During the fiscal years ended March 31, 2012, 2011 and 2010, 10.5%, 13.61% and 7.3%, respectively of the Company’s combined net sales including discontinued operations were made to Tinno, which is an unrelated customer. As of March 31, 2012, 2011 and 2010, 3.4%, 9.6% and 10.0%, respectively of the Company’s total accounts and bills receivable were from Tinno. Tinno is a customer of the Company’s electronic components and EMS segments.

During the fiscal years ended March 31, 2012, 2011 and 2010, 42.4%, 41.6% and 51.9%, respectively, of the Company’s combined net sales including discontinued operations were made to Electrolux, which is an unrelated customer. As of March 31, 2012, 2011 and 2010, nil, 35.7% and 22.8%, respectively, of the Company’s total accounts and bills receivable were from Electrolux. Electrolux was the major customer of the Company’s home appliances segment.

The Company was a contract manufacturer of floor care products that are marketed by Electrolux under its respective brand names.