Segment Information

12 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

24. SEGMENT INFORMATION

The Company operates in two segments: Electronic Components and Others for the fiscal year ended March 31, 2014. 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 semiconductors (“CMOS”) CCMs primarily for sale to cellular phone and tablet manufacturers in the PRC. 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, 2014, 2013 and 2012.

As stated in note 18 – “Discontinued Operations”, the EMS and home appliance segments were discontinued effective in December 2013 and January 2012 respectively. The results of operations of the EMS segment and home appliance segment have been classified as “Income (Loss) from discontinued operations” on the face of the consolidated statement of operations and comprehensive income for all years presented. The home appliance segment profit for fiscal year ended March 31, 2013 represented sales of equipment and materials that had previously been written off.

(a) The following table provides operating financial information for the two reportable segments and discontinued segments:

	Home     Appliance#			Electronic     Components			EMS#			Others			Corporate			Combined
	US$			US$			US$			US$			US$			US$
As of or for the fiscal year ended March 31, 2014
Revenues from external customers		—			60,574,912			2,922,127			2,117,989			—			65,615,028
Capital expenditure		—			5,836,735			32,682			148,269			2,477			6,020,163
Interest income		—			—			—			—			822,826			822,826
Interest expense		—			(129,775	)		—			—			(7,913	)		(137,688	)
Depreciation and amortization		—			1,154,231			1,198,844			379,122			1,328,884			4,061,081
Segment profit (loss)		—			(1,107,157	)		(5,547,024	)*		(1,502,779	)		(2,398,597	)		(10,555,557	)
Total assets		—			42,999,530			52,202			1,160,087			55,456,124			99,667,943
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		—			—			—			—			1,663,714			1,663,714
Interest expense		—			(109,749	)		—			—			(49,799	)		(159,548	)
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		—			—			—			—			377,075			377,075
Interest expense		(2,402	)		(104,517	)		—			321			(177,402	)		(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 discussed in note 18, the EMS and home appliance segments were discontinued in December 2013 and in January 2012 respectively. The results of the operations have been classified as discontinued operations on the face of the consolidated statement of operations and comprehensive income.

* Impairment losses of US$1,944,571 and US$1,230,727 were recognized in income (loss) from discontinued operations for machineries and equipment that were used in the operations of the EMS segment and home appliance segment in fiscal 2014 and 2012. No impairment loss was recognized in fiscal 2013.

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

	2014		2013		2012
	US$		US$		US$
Australia		307,996		533,077		501,665
Europe		139,694		326,298		4,469,428
North America		23,735		49,423		47,969,847
Asia		65,143,603		80,174,586		70,596,126
Other regions		—		—		1,046
		65,615,028		81,083,384		123,538,112

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

	2014		2013		2012
	US$		US$		US$
Floor care products		—		—		51,056,019
Kitchen appliances		307,996		533,077		755,607
CCMs		59,795,999		63,913,523		53,094,225
Cellular phone assembly services		2,922,127		14,256,314		14,439,927
Others		2,588,906		2,380,470		4,192,334
		65,615,028		81,083,384		123,538,112

(d) Long-lived assets*

	March 31, 2014		March 31, 2013
	US$		US$
Hong Kong		91,792		150,734
Mainland China		29,148,590		29,404,484
		29,240,382		29,555,218

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

(e) Major customers

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

	2014		2013		2012
	US$		US$		US$
From continuing operations:
Lenovo Mobile Communication Technology Ltd. (“Lenovo”)		21,688,510		26,799,405		11,698,569
Wingtech Group (“Wingtech”)		8,000,133		4,477,345		225
From discontinued operations:
Electrolux S.A. and subsidiaries (“Electrolux”)		—		—		52,339,623

During the fiscal years ended March 31, 2014, 2013 and 2012, 33.0%, 33.0% and 9.5%, respectively of the Company’s combined net sales including discontinued operations were made to Lenovo, which is an unrelated customer. As of March 31, 2014, 2013 and 2012, 33.3%, 34.2% and 19.4%, 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, 2014, 2013 and 2012, 12.2%, 5.52% and 0.01%, respectively of the Company’s combined net sales including discontinued operations were made to Wingtech, which is an unrelated customer. As of March 31, 2014, 2013 and 2012, 13.8%, 5.8% and nil, respectively of the Company’s total accounts and bills receivable were from Wingtech. Wingtech is a customer of the Company’s electronic components segments.

During the fiscal years ended March 31, 2014, 2013 and 2012, 0.0%, 0.0% and 42.4%, respectively, of the Company’s combined net sales including discontinued operations were made to Electrolux, which is an unrelated customer. As of March 31, 2014, 2013 and 2012, no accounts and bills receivable were from Electrolux. Electrolux was the major customer of the Company’s home appliance segment.

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