Business segment information

12 Months Ended

Mar. 31, 2020

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, 2019 and 2020. 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 45% (2019: 67%) of overall revenue of the Company for the fiscal year ended March 31, 2020, and the Company expects that the revenue 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.

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 48% (2019: 14%) of overall revenue of the Company for the fiscal year ended March 31, 2020, 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 7% (2019: 19%) of overall revenue of the Company for the fiscal year ended March 31, 2020. The Shenzhen factory was rented to a third party with a lease term from August 1, 2013 to August 1, 2019; however, the rent terminated as at January 31, 2019. The Company expects that the revenue from rental and management will continue to contribute a similar level of revenue for the next 12 months.

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, 2018, 2019, and 2020:

	Year ended March 31,
Product Line	2018			2019			2020
Scales and Others		68	%		67	%		45	%
Pet Electronics Products		16	%		14	%		48	%
Rental and Management		16	%		19	%		7	%
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.

(a) Summarized financial information by business segment as of March 31, 2018, 2019 and 2020 is as follows:

	Net sales		Costs of Revenue		Operating income / (loss)			Identifiable assets as of March 31		Depreciation and amortization		Capital expenditure
	$ in thousands		$ in thousands		$ in thousands			$ in thousands		$ in thousands		$ in thousands
2018
Scales and Others		7,862		4,809		208			8,211		479		79
Pet Electronics Products		1,861		1,139		49			1,944		113		19
Rental and Management		1,800		1,010		(19	)		5,622		784		266
Total operating segments		11,523		6,958		238			15,777		1,376		364
Corporate		—		—		—			8,978		—		—
Group		11,523		6,958		238			24,755		1,376		364

2019
Scales and Others	6,686	4,340	(74	)	8,244	540	236
Pet Electronics Products	1,410	915	(16	)	1,739	115	67
Rental and Management	1,896	780	(450	)	4,716	479	289
Total operating segments	9,992	6,035	(540	)	14,699	1,134	592
Corporate	—	—	—		7,787	—	—
Group	9,992	6,035	(540	)	22,486	1,134	592

2020
Scales and Others	5,936	3,194	548		5,026	294	543
Pet Electronics Products	6,259	1,757	767		5,298	310	572
Rental and Management	901	739	(953	)	4,026	442	9
Total operating segments	13,096	5,690	362		14,350	1,046	1,124
Corporate	—	—	—		9,851	—	—
Group	13,096	5,690	362		24,201	1,046	1,124

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.

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

	March 31,		March 31,
	2019		2020
		$ in thousands		$ in thousands
Hong Kong		845		797
The PRC		8,746		8,642
Property, plant and equipment, net		9,591		9,439

(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, 2018, 2019 and 2020:

	Year ended March 31,
	2018				2019				2020
	$ in thousands		%		$ in thousands		%		$ in thousands		%
United States		4,807		42		3,184		32		7,453		57
Germany		3,621		31		3,760		38		3,613		28
The PRC		2,054		18		2,265		23		1,288		10
		10,482		91		9,209		93		12,354		95

(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, 2018, 2019 and 2020:

		Year Ended March 31,
		2018				2019				2020
Customers	Segment	$ in thousands		%		$ in thousands		%		$ in thousands		%
Customer A	Scales		3,579		31		3,715		37		3,573		27
Customer C	Scales		1,599		14		1,225		12		1,239		9
Customer B	Scales and Pet Electronics Products		1,662		14		1,027		10		313		2
Customer E	Rental and Management		1,050		9		996		10		—		—
Customer D	Scales		1,115		10		21		—		—		—
			9,005		78		6,984		69		5,125		38