Business segment information

12 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Business segment information

19 Business segment information

 (a) The Company has four business segments, Scales, Pet Electronics Products, Rental and Management and Others for the fiscal years ended March 31, 2017 and 2018.  The Chief Operating Decision Maker, identified as the Chief Executive Officer and Chief Financial Officer, reviews these segment results when making decisions about allocating revenues and assessing the performance of the Company.

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 68% (2017: 83%) of overall revenue of the Company for the fiscal year ended March 31, 2018, 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 16% (2017: 9%) of overall revenue of the Company for the fiscal year ended March 31, 2018, 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.

Rental and Management involve leasing out part of our factories and machinery to third parties.  The management decided to identify and expand the rental and management segment during the fiscal year ended March 31, 2018 with the signing of an agreement with Fangda, a property developer in Shenzhen, to cooperate in reconstructing and redeveloping the Shenzhen factory to generate more rental revenue in the future.  Revenue from rental and management was 16% (2017: 8%) of overall revenue of the Company for the fiscal year ended March 31, 2018, and the Company expects that the revenue from rental and management will increase for the next 12 months with additional revenue from leasing out two new factory buildings in our Xinxing facility.

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 segment information in the years ended March 31, 2016 and 2017 have been restated in order to conform with the change in segment reporting in the year ended March 31, 2018.

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, 2016, 2017, and 2018:

	Year ended March 31,
Product Line	2016			2017			2018
Scales and Others		88	%		83	%		68	%
Pet Electronics Products		6	%		9	%		16	%
Rental and Management		6	%		8	%		16	%
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, 2016, 2017 and 2018 is as follows:

	Net sales		Operating income / (loss)			Identifiable assets as of March 31		Depreciation and amortization		Capital expenditure
	$ in thousands		$ in thousands			$ in thousands		$ in thousands		$ in thousands
2016
Scales & Others		22,378		2,922			13,311		614		880
Pet Electronics Products		1,514		197			901		41		59
Rental and Management		1,478		183			4,714		680		-
Total operating segments		25,370		3,302			18,926		1,335		939
Corporate		-		-			4,095		-		-
Group		25,370		3,302			23,021		1,335		939
2017
Scales & Others		15,814		2,916			10,355		515		262
Pet Electronics Products		1,662		307			1,089		54		27
Rental and Management		1,476		(57	)		5,465		748		-
Total operating segments		18,952		3,166			16,909		1,317		289
Corporate		-		-			4,057		-		-
Group		18,952		3,166			20,966		1,317		289

2018
Scales & Others	7,862	208		8,211	479	79
Pet Electronics Products	1,861	49		1,944	113	19
Rental and Management	1,800	(19	)	5,622	784	266
Total operating segments	11,523	238		15,777	1,376	364
Corporate	-	-		8,978	-	-
Group	11,523	238		24,755	1,376	364

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,
	2017		2018
	$ in thousands		$ in thousands
Hong Kong		1,126		1,092
The PRC		9,168		9,342
Total property, plant and equipment		10,294		10,434

 (c) The following is a summary of net revenue by geographical areas constituting 10% or more of total revenue of the Company for the years ended March 31, 2016, 2017 and 2018:

	Year ended March 31,
	2016				2017				2018
	$ in thousands		%		$ in thousands		%		$ in thousands		%
United States		14,062		55		10,356		55		4,807		42
Germany		4,568		18		2,797		15		3,621		31
The PRC		2,737		11		1,590		8		2,054		18
Netherlands		1,901		8		2,299		12		87		1
		23,268		92		17,042		90		10,569		92

(d) The following is a summary of net revenue by customers constituting 10% or more of total revenue of the Company for the years ended March 31, 2016, 2017 and 2018:

		Year Ended March 31,
		2016				2017				2018
Customers	Segment	$ in thousands		%		$ in thousands		%		$ in thousands		%
Customer A	Scales		3,874		15		2,729		14		3,579		31
Customer B	Scales & Pet Electronics Products		1,738		7		1,563		8		1,662		14
Customer C	Scales		1,969		8		2,435		13		1,599		14
Customer D	Scales		14,145		56		8,472		45		1,115		10
			21,726		86		15,199		80		7,955		69