Investments in a jointly-controlled entity

3 Months Ended

Mar. 31, 2013

Equity Method Investments and Joint Ventures [Abstract]

Investments In Jointly Entity [Text Block]

Note 13. Investments in a jointly-controlled entity

In March 2012, the Company and Tomen Devices Corporation established ATMD (Hong Kong) Limited, a joint venture operating in Hong Kong. USmart’s contribution comprised cash of $3 million and own 30% equity interest of ATMD.

Particulars of the jointly-controlled entity are as follows:

		Percentage of
Name	Place of registration	Ownership interest			Voting power			Profit sharing			Principal activity
ATMD (Hong Kong) Limited	Hong Kong		30	%		30	%		30	%	Trading

All shareholding in the above entity are in ordinary shares or the equivalent and are stated to the nearest percentage point.

The following table illustrates the summarized financial information of the Company’s jointly-controlled entity:

	March 31, 2013			December 31, 2012
Share of jointly-controlled entity's assets and liabilities:
Current assets	$	28,179,625		$	23,490,550
Non-current assets		68,554			69,921
Current liabilities		(25,107,894	)		(20,742,164	)
Non-current liabilities		(3,490	)		0
	$	3,136,795		$	2,818,307
Share of jointly-controlled entity's results:
Net sales	$	31,338,207		$	48,674,460
Gross profit		733,977			698,848
Net profit (loss)	$	318,488		$	(181,693	)