Segment Information

12 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Information

24. SEGMENT INFORMATION

The Company operates in three segments: Electronic Components, Electronic Manufacturing Services (“EMS”) and Others for the fiscal year ended 2013. These segments are operated and managed as separate strategic business units that offer different products/services. The Company’s “Electronic Components” segment produces complementary metal oxide semiconductor (“CMOS”) CCMs primarily for sale to cellular phone and tablet manufacturers in Mainland China. The Company’s EMS 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, 2013, 2012 and 2011.

As stated in note 18 – “Discontinued Operations” of Notes to Consolidated Financial Statements, the Home Appliance segment was discontinued effective in January 2012. The results of operations of the Home Appliance segment have been classified as “Income (Loss) from discontinued operations” on the face of the consolidated statement of operations and comprehensive income. The segment profit for fiscal year ended March 31, 2013 represented sales of equipments and materials that had previously been written off.

(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, 2013
Revenues from external customers		—			65,188,724			14,256,314			1,638,346			—			81,083,384
Capital expenditure		—			6,484,577			767,186			358,813			3,055			7,613,631
Interest income		—			—			—			—			839,557			839,557
Interest expense		—			(109,749	)		—			—			774,358			664,609
Depreciation and amortization		—			554,337			1,336,208			223,915			1,328,267			3,442,727
Segment profit (loss)		725,773			3,687,547			(3,314,836	)		(1,182,894	)		(1,878,891	)		(1,963,301	)
Total assets		34			29,618,065			16,203,482			1,114,654			61,289,608			108,225,843
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 discussed in note 18, the Home Appliance segment was discontinued on January 15, 2012. The results of the operations has been classified as discontinued operations on the face of the consolidated statement of operations and comprehensive income.

* An impairment loss of US$1,230,727 was recognized in the consolidated statement of operations and comprehensive income for machinery that was used in the operation of the Home Appliances segment in 2012. No impairment loss was recognized in 2013 and 2011.

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

	2013		2012		2011
	US$		US$		US$
Australia		533,077		501,665		562,066
Europe		326,298		4,469,428		3,213,506
North America		49,423		47,969,847		38,808,728
Asia		80,174,586		70,596,126		58,360,791
Other regions		—		1,046		9,413
		81,083,384		123,538,112		100,954,504

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

	2013		2012		2011
	US$		US$		US$
Floor care products		—		51,056,019		40,013,087
Kitchen appliances		533,077		755,607		1,081,498
CCMs		63,913,523		53,094,225		41,592,838
Cellular phone assembly services		14,256,314		14,439,927		14,648,779
Others		2,380,470		4,192,334		3,618,302
		81,083,384		123,538,112		100,954,504

(d) Long-lived assets*

	March 31, 2013		March 31, 2012
	US$		US$
Hong Kong		150,734		210,800
Mainland China		29,404,484		24,806,115
		29,555,218		25,016,915

* 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, 2013, 2012 and 2011, amounted to nil, US$1,230,727 and nil, respectively. The impairment loss for the fiscal year 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:

	2013		2012		2011
	US$		US$		US$
From continuing operations:
ZTE Corporation (“ZTE”)		9,011,148		24,227,414		8,797,843
Shenzhen Tinno Mobile Technology Co. Ltd. (“Tinno”)		8,636,784		13,018,044		13,677,827
Lenovo Mobile Communication Technology Ltd. (“Lenovo”)		26,799,405		11,698,569		12,712,077
Dongguan Huabel Electronic Technology Co. Ltd. (“Huabel”)		9,799,379		5,245		109
From discontinued operations:
Electrolux S.A. and subsidiaries (“Electrolux”)		—		52,339,623		42,006,085

During the fiscal years ended March 31, 2013, 2012 and 2011, 11.1%, 19.6% and 8.7%, respectively of the Company’s combined net sales including discontinued operations were made to ZTE, which is an unrelated customer. As of March 31, 2013, 2012 and 2011, 11.2%, 58.9% and 17.7%, respectively of the Company’s total accounts and bills receivable were from ZTE. ZTE is a customer of the Company’s electronic components and EMS segments.

During the fiscal years ended March 31, 2013, 2012 and 2011, 33.0%, 9.5% and 12.6%, respectively of the Company’s combined net sales including discontinued operations were made to Lenovo, which is an unrelated customer. As of March 31, 2013, 2012 and 2011, 34.2%, 19.4% and 19.2%, 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, 2013, 2012 and 2011, 10.7%, 10.5% and 13.61%, respectively of the Company’s combined net sales including discontinued operations were made to Tinno, which is an unrelated customer. As of March 31, 2013, 2012 and 2011, 3.2%, 3.4% and 9.6%, 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, 2013, 2012 and 2011, 12.0%, 0.00% and 0.00%; respectively of the Company’s combined net sales including discontinued operations were made to Huabel, which is an unrelated customer. As of March 31, 2013, 2012 and 2011, 25.3%, nil and nil, respectively of the Company’s total accounts and bills receivable were from Huabel. Huabel is a customer of the Company’s electronic components segments.

During the fiscal years ended March 31, 2013, 2012 and 2011, 0.0%, 42.4% and 41.6%, respectively, of the Company’s combined net sales including discontinued operations were made to Electrolux, which is an unrelated customer. As of March 31, 2013, 2012 and 2011, nil, nil and 35.7%, 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.