Business segment information

12 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Business segment information

19 Business segment information

 (a) The Company is organized based on the products it offers. Under this organizational structure, the Company’s operations can be classified into three business segments, Scales, Pet Electronics Products and Others for the fiscal years ended March 31, 2016 and 2017.

Scales operations principally involve production and marketing of sensor-based scales products. These include bathroom, kitchen, office, jewelry, laboratory, postal and industrial scales that are used in consumer, commercial and industrial applications.  Revenue from scale products was 90% (2016: 93%) of overall revenue of the Company for the fiscal year ended March 31, 2017, and the Company expects that the revenue will decrease for the next 12 months as one of our major customers has discontinued purchasing from us effective June 2017.

Pet Electronics Products principally involve development and production of pet-related electronics products that are used in consumer applications.  Revenue from pet electronics products was 9% (2016: 6%) of overall revenue of the Company for the fiscal year ended March 31, 2017, and the Company expects that the revenue from pet electronics products will continue to contribute a similar level of revenue for the next 12 months.

The “Others” segment is a residual, which principally includes the activities of (i) tooling and mould charges for scales and pet electronics products, and (ii) sales of scrap materials.

The following table sets forth the percentage of net sales for each of the product lines mentioned above for the fiscal years ended March 31, 2015, 2016, and 2017:

	Year ended March 31,
Product Line	2015			2016			2017
Scales		89	%		93	%		90	%
Pet Electronics Products		10	%		6	%		9	%
Others		1	%		1	%		1	%
Total		100	%		100	%		100	%

The accounting policies of the Company’s reportable segments are the same as those described in the description of business and significant accounting policies.

Summarized financial information by business segment as of March 31, 2015, 2016 and 2017 is as follows:

	Net sales		Operating income		Identifiable assets as of March 31		Depreciation and amortization		Capital expenditure
	$ in thousands		$ in thousands		$ in thousands		$ in thousands		$ in thousands
2015
Scales & Others		25,911		414		16,172		968		1,472
Pet Electronics Products		3,033		48		1,893		114		173
Total operating segments		28,944		462		18,065		1,082		1,645
Corporate		-		-		7,712		294		-
Group		28,944		462		25,777		1,376		1,645
2016
Scales & Others		22,378		3,094		14,896		981		880
Pet Electronics Products		1,514		208		1,002		66		59
Total operating segments		23,892		3,302		15,898		1,047		939
Corporate		-		-		7,123		288		-
Group		23,892		3,302		23,021		1,335		939

2017
Scales & Others	15,814	2,865	12,782	947	262
Pet Electronics Products	1,662	301	1,343	99	27
Total operating segments	17,476	3,166	14,125	1,046	289
Corporate	-	-	6,841	271	-
Group	17,476	3,166	20,966	1,317	289

Operating income by segment equals total operating revenues less expenses directly attributable to the generation of the segment’s operating revenues.  Identifiable assets by segment are those assets that are used in the operation of that segment.  Corporate assets consist principally of cash and cash equivalents, investment in life insurance contracts, intangible assets, and other identifiable assets not related specifically to individual segments.

 (b) The Company primarily operates in Hong Kong and the PRC.  The manufacture of components and their assembly into finished products and research and development are carried out in the PRC.  As the operations are integrated, it is not practicable to distinguish the net income derived among the activities in Hong Kong, and the PRC.

Total property, plant and equipment, net by geographical areas are as follows:

	March 31,		March 31,
	2016		2017
	$ in thousands		$ in thousands
Hong Kong		1,159		1,126
The PRC		10,558		9,168
Total property, plant and equipment		11,717		10,294

 (c) The following is a summary of net export sales by geographical areas, which are defined by the final shipment destination, constituting 10% or more of total sales of the Company for the years ended March 31, 2015, 2016 and 2017:

	Year ended March 31,
	2015				2016				2017
	$ in thousands		%		$ in thousands		%		$ in thousands		%
United States		21,271		73		14,062		59		10,356		59
Germany		6,210		22		4,568		19		2,797		16
Netherlands		0		0		1,901		8		2,299		13
		27,481		95		20,531		86		15,452		88

(d) The following is a summary of net export sales by customers, constituting 10% or more of total sales of the Company for the years ended March 31, 2015, 2016 and 2017:

		Year Ended March 31,
		2015				2016				2017
Customers	Segment	$ in thousands		%		$ in thousands		%		$ in thousands		%
Fitbit, Inc.	Scales		10,593		37		14,145		59		8.472		48
Kern + Sohn GMBH	Scales		5,424		19		3,874		16		2,729		16
Pitney Bowes Inc.	Scales		2,476		8		1,969		8		2,435		14
Sunbeam Products, Inc.	Scales & Pet Electronics Products		6,879		24		1,738		7		1,563		9
			25,372		88		21,726		90		15,199		87