Business segment information

12 Months Ended

Mar. 31, 2016

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, 2015 and 2016.

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 93% (2015: 89%) of overall revenue of the Company for the fiscal year ended March 31, 2016, and the Company expects that the revenue from scale products will continue to contribute a similar level of revenue for the next 12 months.

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 6% (2015: 10%) of overall revenue of the Company for the fiscal year ended March 31, 2016, 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 yearsended March 31, 2014, 2015, and 2016:

	Year ended March 31,
Product Line	2014			2015			2016
Scales		95	%		89	%		93	%
Pet Electronics Products		4	%		10	%		6	%
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, 2014, 2015 and 2016 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
2014
Scales & Others		29,837		281		23,279		1,035		2,762
Pet Electronics Products		1,468		14		1,145		51		136
Total operating segments		31,305		295		24,424		1,086		2,898
Corporate		-		-		7,716		289		-
Group		31,305		295		32,140		1,375		2,898
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

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,
	2015		2016
	$ in thousands		$ in thousands
Hong Kong		1,194		1,159
The PRC		11,290		10,558
Total property, plant and equipment		12,484		11,717

(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, 2014, 2015 and 2016:

	Year ended March 31,
	2014				2015				2016
	$ in thousands		%		$ in thousands		%		$ in thousands		%
United States		25,203		81		21,271		73		14,062		59
Germany		4,688		15		6,210		22		4,568		19
		29,891		96		27,481		95		18,630		78

(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, 2014, 2015 and 2016:

		Year ended March 31,
		2014				2015				2016
Customers	Segment	$ in thousands		%		$ in thousands		%		$ in thousands		%
Sunbeam Products, Inc.	Scales & Pet Electronics Products		14,080		45		6,879		24		1,738		7
Fitbit, Inc.	Scales		10,396		33		10,593		37		14,145		59
Kern + Sohn GMBH	Scales		2,762		9		5,424		19		3,874		16
			27,238		87		22,896		80		19,757		82