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INVESTMENT PROPERTIES

9 Months Ended

Mar. 31, 2013

INVESTMENT PROPERTIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

The following table presents the Company’s investment in properties in China and Malaysia as of March 31, 2013. The exchange rate is based on the exchange rate as of March 31, 2013 published by the Monetary Authority of Singapore.

		Investment Amount			Investment Amount
	Investment Date	(RMB)			(U.S. Dollars)
Purchase of rental property – Property I - MaoYe	01/04/2008		5,554			894
Purchase of rental property – Property II - JiangHuai	01/06/2010		3,600			579
Purchase of rental property – Property III - Fu Li	01/06/2010		4,025			647
Gross investment in rental property			13,179			2,120
Accumulated depreciation on rental property			(2,137	)		(343	)
Net investment in property – China			11,042			1,777

		Investment Amount			Investment Amount
	Investment Date	(RM)			(U.S. Dollars)
Purchase of rental property – Penang Property I	31/12/2012		681			219
Gross investment in rental property			681			219
Accumulated depreciation on rental property			(267	)		(93	)
Net investment in property – Malaysia			414			126

Rental Property I

In fiscal 2008, Trio-Tech (Chongqing) Co. Ltd. (“TTCQ”) entered into a Memorandum Agreement with MaoYe Property Ltd. to purchase an office space in Chongqing, China, for a total cash purchase price of RMB 5,554, or approximately $894 based on the exchange rate as of March 31, 2013. TTCQ rented this property to a third party on July 13, 2008. The term of the rental agreement was five years.

Property purchased from Mao Ye generated a rental income of $22 and $65 for the three and nine months ended March 31, 2013, and $20 and $59 respectively for the same periods in the last fiscal year, respectively.

Rental Property II

In fiscal 2010, TTCQ purchased eight units of commercial property in Chongqing, China, from Chongqing JiangHuai Real Estate Development Co., Ltd, for a total purchase price of RMB 3,600, or approximately $579 based on the exchange rate as of March 31, 2013. TTCQ rented these commercial units to a third party until the agreement expired in January 2012. TTCQ is currently looking for a suitable tenant to rent the premises.

The lease agreement for the property purchased from JiangHuai expired in January 2012 and did not generate any rental income for the three and nine months ended March 31, 2013. However it generated a rental income of $10 and $66 respectively for the same periods in the last fiscal year. Management reviewed this asset for impairment and, based on the market value of the property as compared to the carrying value, concluded that there was no need to impair the property.

Other Properties III – Fu Li

In fiscal 2010, TTCQ entered into a Memorandum Agreement with Chongqing Fu Li Real Estate Development Co. Ltd., to purchase two commercial properties totaling 311.99 square meters (“office space”) located in Jiang Bei District Chongqing. The total purchase price committed and paid was RMB 4,025, or approximately $647 based on the exchange rate as of March 31, 2013. The construction was completed and the property was handed over during April 2012 and the title deed was received during the third quarter of fiscal 2013. TTCQ currently rents its office premises from a third party.

Property purchased from Fu Li generated a rental income of $11 and $31 for the three and nine months ended March 31, 2013, respectively, and this property did not generate any rental income for the same periods in the last fiscal year.

Penang Property I

Since the market value of the factory building in Penang, Malaysia is increasing significantly, during the second quarter of fiscal 2013 Trio-Tech Malaysia (TTM) changed plans to sell and decided to hold the factory building in Penang as an investment rental property. Hence, TTM re-classified the factory building to investment property at the end of the second quarter of fiscal 2013, which had a net book value of $126.

Summary

Total rental income for all investment properties in China was $33 and $96 for the three and nine months ended March 31, 2013, respectively, and was $30 and $125, respectively, for the same period in the last fiscal year.

Depreciation expenses for all investment properties in China was $26 and $78 for the three and nine months ended March 31, 2013, respectively, and were $18 and $54, respectively, for the same periods in the last fiscal year.