Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jun. 30, 2016shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Hollysys Automation Technologies, Ltd. |
Entity Central Index Key | 1,357,450 |
Current Fiscal Year End Date | --06-30 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Trading Symbol | HOLI |
Entity Common Stock, Shares Outstanding | 59,598,099 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 229,095 | $ 207,834 |
Time deposits with maturities over three months | 42,368 | 49,650 |
Restricted cash | 27,592 | 25,337 |
Accounts receivable, net of allowance for doubtful accounts of $34,259 and $42,471 as of June 30, 2015 and 2016, respectively | 237,179 | 252,538 |
Costs and estimated earnings in excess of billings, net of allowance for doubtful accounts of $8,850 and $6,383 as of June 30, 2015 and 2016, respectively | 189,928 | 165,337 |
Other receivables, net of allowance for doubtful accounts of $638 and $1,302 as of June 30, 2015 and 2016, respectively | 13,358 | 12,471 |
Advances to suppliers | 11,661 | 15,286 |
Amounts due from related parties | 28,012 | 39,077 |
Inventories | 36,401 | 34,706 |
Prepaid expenses | 569 | 594 |
Income tax recoverable | 4,488 | 596 |
Deferred tax assets | 6,659 | 3,214 |
Total current assets | 827,310 | 806,640 |
Non-current assets: | ||
Restricted cash | 402 | 3,994 |
Prepaid expenses | 13 | 13 |
Property, plant and equipment, net | 79,938 | 80,222 |
Prepaid land leases | 10,773 | 11,649 |
Acquired intangible assets, net | 856 | 1,693 |
Investments in equity investees | 18,714 | 12,512 |
Investments in cost investees | 4,108 | 4,464 |
Goodwill | 59,847 | 59,918 |
Deferred tax assets | 2,195 | 2,581 |
Total non-current assets | 176,846 | 177,046 |
Total assets | 1,004,156 | 983,686 |
Current liabilities: | ||
Short-term bank loans | 3,051 | 16,295 |
Current portion of long-term loans | 6,833 | 14,111 |
Accounts payable | 106,833 | 105,292 |
Construction costs payable | 647 | 1,159 |
Deferred revenue | 82,004 | 138,587 |
Accrued payroll and related expenses | 13,193 | 11,982 |
Income tax payable | 4,917 | 5,732 |
Warranty liabilities | 6,782 | 7,310 |
Other tax payables | 18,069 | 20,147 |
Accrued liabilities | 44,439 | 31,299 |
Amounts due to related parties | 1,645 | 1,713 |
Deferred tax liabilities | 8,913 | 5,888 |
Current portion of acquisition-related consideration | 0 | 15,081 |
Total current liabilities | 297,326 | 374,596 |
Long-term loans | 20,508 | 20,551 |
Deferred tax liabilities | 59 | 77 |
Warranty liabilities | 3,578 | 3,077 |
Total non-current liabilities | 24,145 | 23,705 |
Total liabilities | 321,471 | 398,301 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 58,358,521 and 59,598,099 shares issued and outstanding as of June 30, 2015 and 2016, respectively | 60 | 58 |
Additional paid-in capital | 215,403 | 192,768 |
Statutory reserves | 36,533 | 30,248 |
Retained earnings | 430,627 | 318,441 |
Accumulated other comprehensive income | (8,467) | 37,585 |
Total Hollysys Automation Technologies Ltd. stockholders’ equity | 674,156 | 579,100 |
Noncontrolling interests | 8,529 | 6,285 |
Total equity | 682,685 | 585,385 |
Total liabilities and equity | $ 1,004,156 | $ 983,686 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Allowance for doubtful accounts, accounts receivable | $ 42,471 | $ 34,259 |
Allowance for doubtful accounts of costs and estimated earnings in excess of billings | 6,383 | 8,850 |
Allowance for doubtful accounts, other receivables | $ 1,302 | $ 638 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 59,598,099 | 58,358,521 |
Common stock, shares outstanding (in shares) | 59,598,099 | 58,358,521 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net revenues | |||
Integrated contract revenue (including revenue from related parties of $4,659, $22,544 and $3,871 for the years ended June 30, 2014, 2015 and 2016, respectively) | $ 477,790 | $ 481,006 | $ 478,261 |
Product sales (including revenue from related parties of $1,629, $2,014 and $868 for the years ended June 30, 2014,2015 and 2016, respectively) | 54,546 | 39,762 | 31,922 |
Revenue from services (including revenue from related parties of $497, $19 and nil for the years ended June 30, 2014, 2015 and 2016, respectively) | 11,989 | 10,611 | 11,149 |
Total net revenues | 544,325 | 531,379 | 521,332 |
Costs of integrated contracts (including purchases from related parties of $364, $419 and $22 for the years ended June 30, 2014, 2015 and 2016 respectively) | 310,545 | 300,332 | 330,039 |
Costs of products sold (including purchases from related parties of nil, nil and $370 for the years ended June 30, 2014, 2015 and 2016 respectively) | 24,023 | 12,547 | 11,580 |
Costs of services rendered | 4,031 | 4,098 | 4,090 |
Gross profit | 205,726 | 214,402 | 175,623 |
Operating expenses | |||
Selling (including expenses from related parties of $1,953, $914 and $517 for the years ended June 30, 2014, 2015 and 2016 respectively) | 25,637 | 26,263 | 28,258 |
General and administrative | 45,832 | 50,786 | 39,716 |
Goodwill impairment charge | 0 | 1,855 | 0 |
Research and development | 36,564 | 35,779 | 36,486 |
VAT refunds and government subsidies | (22,890) | (30,388) | (27,244) |
Total operating expenses | 85,143 | 84,295 | 77,216 |
Income from operations | 120,583 | 130,107 | 98,407 |
Other (expenses) income, net (including other income from related parties of $65, $41 and nil for the years ended June 30, 2014, 2015 and 2016, respectively) | 4,061 | 2,601 | (6,452) |
Foreign exchange gain (loss) | (299) | (6,765) | 794 |
Gain on disposal of an equity investee | 0 | 80 | 0 |
Share of net (losses) income of equity investees | 7,834 | (2,910) | (2,692) |
Interest income | 5,858 | 3,686 | 3,253 |
Interest expenses | (1,404) | (1,821) | (1,998) |
Dividend income from a cost investee | 1,109 | 249 | 0 |
Income before income taxes | 137,742 | 125,227 | 91,312 |
Income tax expenses | 14,238 | 26,040 | 19,861 |
Net income | 123,504 | 99,187 | 71,451 |
Less: net income attributable to noncontrolling interests | 5,033 | 2,660 | 1,831 |
Net income attributable to Hollysys Automation Technologies Ltd. | 118,471 | 96,527 | 69,620 |
Other comprehensive income, net of tax of nil | |||
Translation adjustments | (48,841) | (1,386) | 2,146 |
Comprehensive income | 74,663 | 97,801 | 73,597 |
Less: comprehensive income attributable to noncontrolling interests | 2,244 | 2,701 | 1,837 |
Comprehensive income attributable to Hollysys Automation Technologies Ltd. | $ 72,419 | $ 95,100 | $ 71,760 |
Net income per ordinary share: | |||
Basic (in dollars per share) | $ 2 | $ 1.65 | $ 1.2 |
Diluted (in dollars per share) | $ 1.97 | $ 1.61 | $ 1.19 |
Shares used in income per share computation: | |||
Weighted average number of ordinary shares | 59,170,050 | 58,612,596 | 57,926,333 |
Weighted average number of diluted ordinary shares | 60,611,456 | 60,134,203 | 58,426,642 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Parenthetical] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Integrated contract revenue from related parties | $ 3,871 | $ 22,544 | $ 4,659 |
Products sales revenue from related parties | 868 | 2,014 | 1,629 |
Costs of integrated contracts purchase from related parties | 22 | 419 | 364 |
Sales Of Goods and Services To Related Parties Amount | 517 | 914 | 1,953 |
Related Party Costs | 0 | 0 | |
Sales Revenue For Services From Related Parties | 0 | 19 | 497 |
Costs and Expenses, Related Party | $ 0 | $ 41 | $ 65 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Cash flows from operating activities: | ||||
Net income | $ 123,504 | $ 99,187 | $ 71,451 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation of property, plant and equipment | 6,266 | 8,508 | 7,051 | |
Amortization of prepaid land leases | 281 | 197 | 245 | |
Amortization of intangible assets | 818 | 4,454 | 5,413 | |
Allowance for doubtful accounts | 10,918 | 17,418 | 10,545 | |
(Gain) loss on disposal of property, plant and equipment | 224 | 598 | (132) | |
Impairment loss on share of a cost investment | 0 | 0 | 325 | |
Goodwill impairment charge | 0 | 1,855 | 0 | |
Share of net losses (income) of equity investees | (7,834) | 2,910 | 2,692 | |
Dividends received from a cost investee | 0 | (249) | 0 | |
Gain on disposal of investment in an equity investee | 0 | (80) | 0 | |
Share-based compensation expenses | 3,860 | 2,492 | 2,986 | |
Deferred income tax (benefit) expenses | (462) | 4,846 | (5,427) | |
Acquisition-related consideration adjustments | (1,745) | (166) | 8,920 | |
Accretion of convertible bond discount | 230 | 192 | 0 | |
Fair value adjustments of a bifurcated derivative | 93 | 35 | 0 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (16,413) | (7,675) | (88,593) | |
Costs and estimated earnings in excess of billings | (36,971) | 10,527 | (38,810) | |
Inventories | (4,607) | 560 | (806) | |
Advances to suppliers | 2,497 | (3,690) | (2,959) | |
Other receivables | (2,481) | (1,928) | 697 | |
Deposits and other assets | (674) | (13,375) | (5,142) | |
Due from related parties | 8,226 | (15,205) | 2,776 | |
Accounts payable | 8,272 | (25,836) | 24,161 | |
Deferred revenue | (47,637) | 7,556 | 63,348 | |
Accruals and other payable | 5,015 | 6,897 | 7,979 | |
Cash dividends received from equity investees | 0 | 0 | 2,408 | |
Due to related parties | 351 | (2,301) | 1,899 | |
Income tax payable | (4,558) | (6,153) | 6,762 | |
Other tax payables | (436) | (7,622) | 5,489 | |
Net cash provided by operating activities | 46,737 | 83,952 | 83,278 | |
Cash flows from investing activities: | ||||
Time deposits placed with banks | (107,118) | (33,416) | (18,881) | |
Purchases of property, plant and equipment | (7,887) | (4,553) | (8,359) | |
Proceeds from disposal of investment in an equity investee | 0 | 80 | 0 | |
Maturity of time deposits | 112,013 | 11,551 | 11,588 | |
Proceeds from disposal of property, plant and equipment | 74 | 794 | 866 | |
Cash contributions to an equity investee | 0 | 0 | (3,904) | |
Cash contributions to a cost investee | 0 | 0 | (1,030) | |
Acquisition of a subsidiary, net of cash acquired | 0 | (14,600) | (5,510) | |
Dividends received from a cost investee | 0 | 249 | 0 | |
Proceeds from sale of shares of a subsidiary | [1] | 464 | 0 | 0 |
Net cash used in investing activities | (2,454) | (39,895) | (25,230) | |
Cash flows from financing activities: | ||||
Proceeds from short-term bank loans | 4,138 | 25,074 | 14,583 | |
Repayments of short-term bank loans | (17,020) | (12,631) | (13,826) | |
Proceeds from long-term bank loans | 2,606 | 0 | 108 | |
Repayments of long-term bank loans | (9,681) | (8,813) | (9,192) | |
Proceeds from convertible bond | 0 | 20,000 | 0 | |
Convertible bond issuance cost | 0 | (349) | 0 | |
Proceeds from exercise of options | 5,441 | 1,280 | 0 | |
Payment of dividends | 0 | (23,300) | 0 | |
Proceeds from issuance of shares of a subsidiary | [1] | 7,736 | 0 | 0 |
Net cash (used in) provided by financing activities | (6,780) | 1,261 | (8,327) | |
Effect of foreign exchange rate changes | (16,242) | 357 | 209 | |
Net increase in cash and cash equivalents | 21,261 | 45,675 | 49,930 | |
Cash and cash equivalents, beginning of year | 207,834 | 162,159 | 112,229 | |
Cash and cash equivalents, end of year | 229,095 | 207,834 | 162,159 | |
Supplementary disclosures of cash flow information: | ||||
Interest | 1,048 | 1,855 | 1,842 | |
Income tax | 19,099 | 26,183 | 17,613 | |
Supplementary disclosures of significant non-cash transactions: | ||||
Acquisition of property, plant and equipment included in construction costs payable and accrued liabilities | 4,439 | 484 | 1,989 | |
Issuance of ordinary shares as purchase consideration in connection with the acquisition of Bond | $ 13,336 | $ 15,231 | $ 0 | |
[1] | The respective issuances and sales of shares of a subsidiary were not completed as of June 30, 2016 (note 25). |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Ordinary shares [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total Hollysys Automation Technologies Ltd. Stockholders' Equity [Member] | Noncontrolling Interest [Member] | |
Balance at Jun. 30, 2013 | $ 415,475 | $ 58 | $ 170,779 | $ 23,146 | $ 182,873 | $ 36,872 | $ 413,728 | $ 1,747 | |
Balance (in shares) at Jun. 30, 2013 | 57,554,824 | ||||||||
Share-based compensation | 2,986 | $ 0 | 2,986 | 0 | 0 | 0 | 2,986 | 0 | |
Net income for the year | 71,451 | 0 | 0 | 0 | 69,620 | 0 | 69,620 | 1,831 | |
Appropriations to statutory reserves | 0 | 0 | 0 | 142 | (142) | 0 | 0 | 0 | |
Translation adjustments | 2,146 | 0 | 0 | 0 | 0 | 2,141 | 2,141 | 5 | |
Balance at Jun. 30, 2014 | 492,058 | $ 58 | 173,765 | 23,288 | 252,351 | 39,013 | 488,475 | 3,583 | |
Balance (in shares) at Jun. 30, 2014 | 57,554,824 | ||||||||
Share-based compensation | 2,492 | $ 0 | 2,492 | 0 | 0 | 0 | 2,492 | 0 | |
Issuance of ordinary shares upon exercise of options | 1,280 | $ 0 | [1] | 1,280 | 0 | 0 | 0 | 1,280 | 0 |
Issuance of ordinary shares upon exercise of options (in shares) | 142,500 | ||||||||
Exercise of share-based compensation on restricted shares issued to directors | 0 | $ 0 | [1] | 0 | 0 | 0 | 0 | 0 | 0 |
Exercise of share-based compensation on restricted shares issued to directors (in shares) | 12,500 | ||||||||
Issuance of Incentive Shares and Premium Shares for Bond (Note 3) | 15,231 | $ 0 | [1] | 15,231 | 0 | 0 | 0 | 15,231 | 0 |
Issuance of Incentive Shares and Premium Shares for Bond (Note 3) (in shares) | 648,697 | ||||||||
Net income for the year | 99,187 | $ 0 | 0 | 0 | 96,527 | 0 | 96,527 | 2,660 | |
Appropriations to statutory reserves | 0 | 0 | 0 | 7,137 | (7,137) | 0 | 0 | 0 | |
Dividend paid | (23,300) | 0 | 0 | 0 | (23,300) | 0 | (23,300) | 0 | |
Other | (177) | 0 | 0 | (177) | 0 | 0 | (177) | ||
Translation adjustments | (1,386) | 0 | 0 | 0 | 0 | (1,428) | (1,428) | 42 | |
Balance at Jun. 30, 2015 | 585,385 | $ 58 | 192,768 | 30,248 | 318,441 | 37,585 | 579,100 | 6,285 | |
Balance (in shares) at Jun. 30, 2015 | 58,358,521 | ||||||||
Share-based compensation | 3,860 | $ 0 | 3,860 | 0 | 0 | 0 | 3,860 | 0 | |
Issuance of ordinary shares upon exercise of options | 5,441 | $ 1 | 5,440 | 0 | 0 | 0 | 5,441 | 0 | |
Issuance of ordinary shares upon exercise of options (in shares) | 612,000 | ||||||||
Issuance of Incentive Shares and Premium Shares for Bond (Note 3) | 13,336 | $ 1 | 13,335 | 0 | 0 | 0 | 13,336 | 0 | |
Issuance of Incentive Shares and Premium Shares for Bond (Note 3) (in shares) | 627,578 | ||||||||
Net income for the year | 123,504 | $ 0 | 0 | 0 | 118,471 | 0 | 118,471 | 5,033 | |
Appropriations to statutory reserves | 0 | 0 | 0 | 6,285 | (6,285) | 0 | 0 | 0 | |
Translation adjustments | (48,841) | 0 | 0 | 0 | 0 | (46,052) | (46,052) | (2,789) | |
Balance at Jun. 30, 2016 | $ 682,685 | $ 60 | $ 215,403 | $ 36,533 | $ 430,627 | $ (8,467) | $ 674,156 | $ 8,529 | |
Balance (in shares) at Jun. 30, 2016 | 59,598,099 | ||||||||
[1] | The share capital increase for the issuance of ordinary shares upon exercise of options, restricted share and Incentive and Premium Shares for Bond are less than $1. |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - ORGANIZATION AND BUSINESS BACKGROUND Hollysys Automation Technologies Ltd. (“Hollysys” or the “Company”), formerly known as HLS Systems International Ltd., was established under the laws of the British Virgin Islands (“BVI”) on February 6, 2006, for the purpose of merging with Chardan North China Acquisition Corporation (“Chardan”), a blank check company incorporated in Delaware, United States of America, and to hold 100 74.11 60 On September 7, 2007, the shareholders of Chardan approved the Share Exchange Transaction. As a result, Chardan merged with and into Hollysys to complete the re-domestication merger and Hollysys consummated the Share Exchange Transaction with GTH. Upon completion of the Share Exchange Transaction, Hollysys owned 100 74.11 60 40 On July 1, 2009, the Company acquired 1.78 18,000 2,639 75.89 On December 23, 2009, the Company entered into a share sale and purchase agreement with Unionway Resources Limited (“Unionway”), a company incorporated in the BVI, pursuant to which, among other things, the Company acquired 24.11 67,634 9,917 4,413,948 53,012 100 On July 1, 2011, the Company acquired 100 On May 9, 2012, Concord Solution (HK) Limited was established to provide integrated automation products and services. It is 100 10 On July 24, 2012, Hangzhou Hollysys System Engineering Co., Ltd. was established to provide integrated automation products and services. It is 100 50,000 In December 2012, the Company disposed of its 51 113 On January 10, 2013, Hollysys International Pte. Ltd. was established under the law of Singapore for the purpose of acquiring Bond Corporation Pte. Ltd. It is 100 20,000 On February 21, 2013, Concord M Design and Engineering Company Limited was established to undertake potential projects in Macau. It is 100 25 On April 1, 2013, the Company acquired 100 On March 31, 2014, Hollysys Automation India Private Limited (“HAIP”) was established as part of the effort the Company made to increase its presence and explore the market in India. HAIP mainly provides integrated solution products to the customers. On December 15, 2014, Hollycon (Italy) Pte. Ltd. (“Hollycon Italy”) was established as part of the effort the Company made to explore the overseas market. The newly setup subsidiary mainly manufactures and sells medical automation equipment. On January 31, 2015, the Company liquidated HaoTong, which is a subsidiary 100% indirectly owned by the Company. HaoTong was insignificant to the Company and thus the results of HaoTong were not presented as discontinued operations. On November 24, 2015, the Company established Concord Electrical Contracting, Ltd. (“CECL”) to explore the overseas market in Qatar. CCPL has a 49 51 95 Name of company Place of Date of Percentage of ownership Principal activities Directly Indirectly Gifted Time Holdings Limited (“GTH”) BVI September 21, 2005 100 % - Investment holding Clear Mind Limited (“Clear Mind”) BVI November 29, 2007 - 100 % Investment holding World Hope Enterprises Limited (“World Hope”) Hong Kong September 17, 2007 - 100 % Investment holding Beijing Helitong Science & Technology Exploration Co., Ltd. (“Helitong”) The People’s Republic of China (“PRC”) January 25, 2008 - 100 % Investment holding Hollysys Group Co., Ltd. (“Hollysys Group”) PRC December 17, 2007 - 100 % Investment holding Hollysys (Beijing) Investment Co., Ltd. (“Hollysys Investment”) PRC April 15, 2011 - 100 % Investment management Beijing Hollysys PRC May 13, 2008 - 100 % Provision of integrated automation products and services Hangzhou Hollysys Automation Co., Ltd. (“Hangzhou Hollysys”) PRC September 24, 2003 - 100 % Provision of integrated automation products and services Hangzhou Hollysys System Engineering Co., Ltd. (“Hangzhou System”) PRC July 24, 2012 - 100 % Provision of integrated automation products and services Beijing Hollysys Electronics Technology Co., Ltd. (“Hollysys Electronics”) PRC June 4, 2010 - 100 % Manufacture components of automation products for members of Hollysys Beijing Hollycon Medicine & Technology Co., Ltd. (“Hollycon”) PRC June 4, 2010 - 51 % Manufacture and sale of medical automation equipment Beijing Hollysys Co., Ltd. (“Beijing Hollysys”) PRC September 25, 1996 - 100 % Provision of integrated automation products and services Xi’an Hollysys Co., Ltd. (“Xi'an Hollysys”) PRC March 9, 2011 - 100 % Research and development Hollysys International Pte. Limited (“HI”) Singapore January 10, 2013 100 % - Investment holding Hollycon (Italy) Pte. Ltd. ("Hollycon Italy") Italy December 15, 2014 - 99 % Manufacture and sale of medical automation equipment Hollysys (Asia Pacific) Pte. Limited (“HAP”) Singapore October 23, 1997 - 100 % Provision of integrated automation products and services Hollysys Automation India Private Limited (“HAIP”) India March 31, 2014 - 100 % Provision of automation products Concord Corporation Pte. Ltd. (“CCPL”) Singapore March 10, 2008 - 100 % Provision of mechanical and electrical solutions and installation services Concord Electrical Pte. Ltd. (“CEPL”) Singapore May 25, 1984 - 100 % Provision of mechanical and electrical solutions and installation services Concord Electrical Sdn. Bhd. (“CESB”) Malaysia May 13, 1994 - 100 % Provision of mechanical and electrical solutions and installation services Concord Solution (HK) Limited (“CSHK”) Hong Kong May 9, 2012 - 100 % Provision of mechanical and electrical solutions and installation services Concord M Design and Engineering Company Limited (“CMDE”) Macau February 21, 2013 - 100 % Provision of mechanical and electrical solutions and installation services Concord Electrical Contracting LLC (“CECL”) Qatar November 24, 2015 - 49 % Provision of mechanical and electrical solutions and installation services Bond Corporation Pte. Ltd. (“BCPL”) Singapore November 1, 2012 - 100 % Investment holding Bond M & E Pte. Ltd. (“BMSG”) Singapore March 6, 1981 - 100 % Provision of mechanical and electrical solutions and installation services Bond M & E Sdn. Bhd. (“BMJB”) Malaysia October 25, 1983 - 100 % Provision of mechanical and electrical solutions and installation services Bond M & E (KL) Sdn. Bhd. (“BMKL”) Malaysia October 24, 1989 - 100 % Provision of mechanical and electrical solutions and installation services The Company is principally engaged in the manufacture, sale and provision of integrated automation systems and services, mechanical and electrical solution services and installation services in the PRC, Hong Kong, Southeast Asia and the Middle East through its operating subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances are eliminated upon consolidation. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management evaluates estimates, including those related to the expected total costs of integrated contracts, expected gross margins of integrated solution contracts, allowance for doubtful accounts, fair values of share options, fair value of bifurcated derivative, purchase price allocation and contingent consideration with respect to business combinations, warranties, valuation allowance of deferred tax assets and impairment of goodwill and other long-lived assets. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ materially from those estimates. The Company, GTH, Clear Mind and World Hope’s functional currency is the United States dollars (“US dollars” or “$”); whereas the Company’s subsidiaries use the primary currency of the economic environment in which their operations are conducted as their functional currency. Renminbi (“RMB”) is determined to be the functional currency of all PRC subsidiaries; Singapore dollar (“SGD”) is determined to be the functional currency of HI, HAP, CCPL, CEPL, BCPL and BMSG; Malaysian Ringgit (“MYR”) is determined to be the functional currency of CESB, BMJB and BMKL; and United Arab Emirates Dirham (“AED”), Hong Kong dollar (“HKD”), Macau Pataca (“MOP”), Indian Rupee (“INR”), Euro (“EUR”) and Qatar Riyal (“QAR”) are the functional currencies of Dubai, CSHK, CMDE, HAIP, Hollycon Italy and CECL, respectively. The Company uses the US dollars as its reporting currency. The Company translates the assets and liabilities into US dollars using the rate of exchange prevailing at the balance sheet date, and the statements of comprehensive income are translated at average rates during the reporting period. Adjustments resulting from the translation of financial statements from the functional currency into US dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. Transactions dominated in currencies other than the functional currency are translated into functional currency at the exchange rates prevailing on the transaction dates, and the exchange gains or losses are reflected in the consolidated statements of comprehensive income for the reporting period. Transactions denominated in foreign currencies are measured into the functional currency at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are re-measured at the exchange rates prevailing at the balance sheet date. Exchange gains and losses are included in earnings, except for those raised from intercompany transactions with investment nature, which are recorded in other comprehensive income. For the years ended June 30, 2014, 2015 and 2016, the Company recorded foreign exchange gain (loss), net of $ 794 (6,765) (299) The Company accounts for its business combinations using the purchase method of accounting in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is based on various assumptions and valuation methodologies requiring considerable management judgment. The most significant variables in these valuations are discount rates, terminal values, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets and forecasted cash flows over that period. Acquisition-related costs are recognized as general and administrative expenses in the statements of comprehensive income as incurred. Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. All highly liquid investments that are readily convertible to known amounts of cash with original stated maturities of three months or less are classified as cash equivalents. Time deposits with original maturities over three months consist of deposits placed with financial institutions with original maturity terms from four months to one year. As of June 30, 2016, $ 35,318 7,042 8 29,051 14,721 5,878 Restricted cash mainly consists of the cash deposited in banks pledged for performance guarantees, or bank loans. These cash balances are not available for use until these guarantees are expired or cancelled, or the loans are repaid. Integrated solutions contracts Revenues generated from designing, building, and delivering customized integrated industrial automation systems are recognized over the contractual terms based on the percentage of completion method. The contracts for designing, building, and delivering customized integrated industrial automation systems are legally enforceable and binding agreements between the Company and customers. The duration of contracts depends on the contract size and ranges from 6 5 Revenue generated from mechanical and electrical solution contracts for the construction or renovation of buildings, rail or infrastructure facilities are also recognized over the contractual terms based on the percentage of completion method. The contracts for mechanical and electrical solution services are legally enforceable and binding agreements between the Company and customers. The duration of contracts depends on the contract size and the complexity of the construction work and ranges from 6 3 In accordance with ASC 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts (“ASC 605-35”), recognition is based on an estimate of the income earned to date, less income recognized in earlier periods. Extent of progress toward completion is measured using the cost-to-cost method where the progress (the percentage complete) is determined by dividing costs incurred to date by the total amount of costs expected to be incurred for the integrated solutions contract. Revisions in the estimated total costs of integrated solutions contracts are made in the period in which the circumstances requiring the revision become known. Provisions, if any, are made in the period when anticipated losses become evident on uncompleted contracts. The Company reviews and updates the estimated total costs of integrated solutions contracts at least semi-annually. The Company accounts for revisions to contract revenue and estimated total costs of integrated solution contracts, including the impact due to approved change orders, in the period in which the facts that cause the revision become known as changes in estimates. Unapproved change orders are considered claims. Claims are recognized only when it has been awarded by customers. Excluding the impact of change orders, if the estimated total costs of integrated solution contracts, which were revised during the years ended June 30, 2014, 2015 and 2016, had been used as a basis of recognition of integrated contract revenue since the contract commencement, net income for the years ended June 30, 2014, 2015 and 2016 would have been decreased by $ 4,436 26,232 30,270 0.08 0.45 0.51 0.08 0.44 0.50 The Company combines a group of contracts as one project if they are closely related and are, in substance, parts of a single project with an overall profit margin. The Company segments a contract into several projects, when they are of different business substance, for example, with different business negotiation, solutions, implementation plans and margins. Revenue in excess of billings on the contracts is recorded as costs and estimated earnings in excess of billings. Billings in excess of revenues recognized on the contracts are recorded as deferred revenue until the above revenue recognition criteria are met. The Company generally recognizes 100 Product sales Revenue generated from sales of products is recognized when the following four revenue recognition criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the selling price is fixed or determinable, and (iv) collectability is reasonably assured. Service rendered The Company has in recent years extended its service offerings as described below. The Company mainly provides two types of services: Revenue from one-off services: the Company provides different types of one-off services, including on-site maintenance service and training services which are generally completed on site within a few working days. Revenue is recognized when the Company has completed all the respective services described in the contracts, there is persuasive evidence of an arrangement, the fee is fixed or determinable and collection is reasonably assured. Revenue from services covering a period of time: the Company also separately sells extended warranties to their integrated solution customers for a fixed period. Such arrangements are negotiated separately from the corresponding integrated solution system and are usually entered into upon the expiration of the warranty period attached to the integrated solution contract. During the extended warranty period, the Company is responsible for addressing issues related to the system. Part replacement is not covered in such services. The Company recognizes revenue on a pro-rata basis over the contractual term. Inventories are composed of raw materials, work in progress, purchased and manufactured finished goods and low value consumables. Inventories are stated at the lower of cost or market. The Company elected to change the inventory costing method from the “first-in first-out method” to the weighted average cost method. The Company believes the weighted average cost method is preferable because it more closely aligns with the physical flow of inventory and the information system calculates inventory at weighted average cost. The impact of the change in accounting principle was immaterial to all periods presented and thus, not applied retrospectively. The Company assesses the lower of cost or market for non-saleable, excess or obsolete inventories based on its periodic review of inventory quantities on hand and the latest forecasts of product demand and production requirements from its customers. The Company writes down inventories for non-saleable, excess or obsolete raw materials, work-in-process and finished goods by charging such write-downs to cost of integrated contracts and/or costs of products sold. Warranties represent a major term under an integrated contract, which will last, in general, for one to three years or otherwise specified in the terms of the contract. The Company accrues warranty liabilities under an integrated contract as a percentage of revenue recognized, which is derived from its historical experience, in order to recognize the warranty cost for an integrated contract throughout the contract period. In addition, the Company estimates whether or not the accrued warranty liabilities are adequate by considering specific conditions that may arise and the number of contracts under warranty period at each reporting date. The Company adjusts the accrued warranty liabilities in line with the results of its assessment. Performance of the integrated contracts will often extend over long periods and the Company’s right to receive payments depends on its performance in accordance with the contractual agreements. There are different billing practices in the PRC and overseas operating subsidiaries including Concord and Bond. For the Company’s PRC subsidiaries, billings are issued based on milestones specified in contracts negotiated with customers. In general, there are four milestones: 1) project commencement, 2) system manufacturing and delivery, 3) installation, trial-run and customer acceptance, and 4) expiration of the warranty period. The amounts to be billed at each milestone are specified in the contract. All contracts have the first milestone, but not all contracts require prepayments. The length of each interval between two continuous billings under an integrated contract varies depending on the duration of the contract (under certain contracts, the interval lasts more than a year) and the last billing to be issued for an integrated solution contract is scheduled at the end of a warranty period. For Concord and Bond, billing claims rendered are subject to the further approval and certification of the customers or their designated consultants. Payments are made to Concord or Bond based on the certified billings according to the payment terms mutually agreed between the customers and Concord or Bond. Certain amounts are retained by the customer and payable to Concord and Bond upon satisfaction of final quality inspection or at the end of the warranty period. The retained amounts which were recorded as accounts receivable were $ 9,653 10,380 10,848 The Company does not require collateral from its customers. Based on the prevailing collection practices in China, it is a reasonable expectation for the enterprises in the automation industry to take over one year to collect the accounts receivable in full. The Company does not charge interest for late payments by its customers. The Company periodically reviews the status of contracts and decides how much of an allowance for doubtful accounts should be made based on factors surrounding the credit risk of customers and historical experience. The Company sets up a doubtful account for a customer based on the aging of the outstanding amount as well as the customer’s credit worthiness. Property, plant and equipment, other than construction in progress, are recorded at cost and are stated net of accumulated depreciation and impairment, if any. Buildings 30 - 50 Machinery 5 10 Software 3 5 Vehicles 5 6 Electronic and other equipment 3 10 Construction in progress represents uncompleted construction work of certain facilities which, upon completion, management intends to hold for production purposes. In addition to costs under construction contracts, other costs directly related to the construction of such facilities, including duty and tariff, equipment installation and shipping costs, and borrowing costs are capitalized. Depreciation commences when the asset is placed in service. Maintenance and repairs are charged directly to expenses as incurred, whereas betterment and renewals are capitalized in their respective accounts. When an item is retired or otherwise disposed of, the cost and applicable accumulated depreciation are removed and the resulting gain or loss is recognized for the reporting period. Prepaid land lease payments, for the land use right of three parcels of land in the PRC, three parcels of leasehold land in Malaysia and one parcel of leasehold land in Singapore, are initially stated at cost and are subsequently amortized on a straight-line basis over the lease terms of 49 88 Acquired intangible assets are carried at cost less accumulated amortization and any impairment. Intangible assets acquired in a business combination are recognized initially at fair value at the date of acquisition. Intangible assets, except for which are estimated to have an indefinite useful life, are amortized using a straight-line method. Intangible assets estimated to have an indefinite useful life are not amortized but tested for impairment annually or more frequently when indicators of impairment exist. Category Estimated useful life Customer relationship 57 - 60 Order backlog 21 33 Residual values are considered nil. Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired. The Company’s goodwill outstanding at June 30, 2016 was related to the acquisition of Concord and Bond (see note 3). In accordance with ASC 350, Intangibles, Goodwill and Other Goodwill is tested for impairment on June 30 in each year. The Company performs a qualitative assessment to determine if it is more likely than not that the fair value of each identified reporting unit is less than its carrying amount. If this is the case, the Company is not required to calculate the fair value of its reporting unit(s) and perform the two-step impairment test. However, if the Company concludes otherwise, the first step of the two-step impairment test is performed by comparing the carrying value of its reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. The Company recognizes an impairment charge for the amount by which the carrying amount of goodwill exceeds its implied fair value. For the year ended June 30, 2015, the Company recorded an impairment charge of $ 1,855 Impairment of long-lived assets other than goodwill The Company evaluates its long-lived assets or asset group including acquired intangibles with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of a group of long-lived assets may not be fully recoverable. When these events occur, the Company evaluates the impairment by comparing the carrying amount of the assets to future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the asset group over its fair value, generally based upon discounted cash flows or quoted market prices. There was no impairment loss for the periods presented. All shipping and handling fees charged to customers are included in net revenue. Shipping and handling costs incurred are included in cost of integrated contracts and/or costs of products sold as appropriate. The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Company adopted ASC 740, Income Taxes , Research and development costs consist primarily of salaries, bonuses and benefits for research and development personnel. Research and development costs also include travel expenses of research and development personnel as well as depreciation of hardware equipment and software tools and other materials used in research and development activities. Research and development costs are expensed as incurred. Software development costs are also expensed as incurred as the costs qualifying for capitalization have been insignificant. Pursuant to the laws and regulations of the PRC, the Company remits 17 3 5,792 7,593 6,085 5,103 2,191 2,886 Under the corporate law and relevant regulations in the PRC, all of the subsidiaries of the Company located in the PRC are required to appropriate a portion of its retained earnings to statutory reserve. All subsidiaries located in the PRC are required to appropriate 10 In accordance with ASC 280, Segment reporting Comprehensive income is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. In accordance with ASC 220, Comprehensive Income The Company accounts for its equity investments under either the cost method or the equity method by considering the Company’s rights and ability to exercise significant influence over the investees. Under the cost method, investments are initially carried at cost. In the event that the fair value of the investment falls below the initial cost and the decline is considered as other-than-temporary, the Company recognizes an impairment charge, equal to the difference between the cost basis and the fair value of the investment. A variety of factors are considered when determining if a decline in fair value below carrying value is other than temporary, including, among others, the financial condition and prospects of the investee. The investments in entities over which the Company has the ability to exercise significant influence are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20 50 Under the equity method, original investments are recorded at cost and adjusted by the Company’s share of undistributed earnings or losses of these entities, by the amortization of any basis difference between the amount of the Company’s investment and its share of the net assets of the investee, and by dividend distributions or subsequent investments. Unrealized inter-company profits and losses related to equity investees are eliminated. An impairment charge, being the difference between the carrying amount and the fair value of the equity investee, is recognized in the consolidated statements of comprehensive income when the decline in value is considered other than temporary. The impairment loss on investment in cost investees for the years ended June 30, 2014, 2015 and 2016 were $325, nil and nil, respectively. There was no impairment loss on investments in equity investees for the years ended June 30, 2014, 2015 and 2016, respectively. Interest incurred on borrowings for the Company’s construction of facilities and assembly line projects during the active construction period are capitalized. The capitalization of interest ceases once a project is substantially complete. The amount to be capitalized is determined by applying the weighted-average interest rate of the Company’s outstanding borrowings to the average amount of accumulated capital expenditures for assets under construction during the year and is added to the cost of the underlying assets and amortized over their respective useful lives. Income per share is computed in accordance with ASC 260, Earnings Per Share The Company accounts for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation For share-based awards that are subject to performance-based vesting conditions in addition to time-based vesting, the Company recognizes the estimated fair value of performance-based awards, net of estimated forfeitures, as share-based compensation expense over the vesting period based upon the Company’s determination of whether it is probable that the performance-based criteria will be achieved. At each reporting period, the Company reassesses the probability of achieving the performance-based criteria. Determining whether the performance-based criteria will be achieved involves judgment, and the estimate of share-based compensation expense may be revised periodically based on changes in the probability of achieving the performance-based criteria. Revisions are reflected in the period in which the estimate is changed. If the performance-based criteria are not met, no share-based compensation expense is recognized, and, to the extent share-based compensation expense was previously recognized, such share-based compensation expense is reversed. The Company has adopted ASC 820, Fair Value Measurements and Disclosures Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Leases have been classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. Minimum contractual rental from leases are recognized on a straight-line basis over the non-cancelable term of the lease. With respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue commences when the customer assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Contingent rental revenue is accrued when the contingency is removed. Concentration of credit risk Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents, time deposits with original maturities over three months, restricted cash, accounts receivable, other receivables and amounts due from related parties. The maximum exposure of such assets to credit risk is their carrying amounts as of the balance sheet date. As of June 30, 2016, substantially all of the Company’s cash and cash equivalents and time deposits with original maturities exceeding three months were managed by financial institutions located in the PRC, Singapore, Malaysia and Dubai, which management believes are of high credit quality. Accounts receivable, other receivables and amounts due from related parties are typically unsecured and the risk with respect to accounts receivable is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances. The Company has no customer that individually comprised 10 Concentration of business and economic risk A majority of the Company’s net revenue and net income are derived in the PRC. The Company’s operations may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 20 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC’s political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective. Concentration of currency convertibility risk A majority of the Company’s businesses are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. Concentration of foreign currency exchange rate risk The Company’s exposure to foreign currency exchange rate risk primarily relates to monetary assets or liabilities held in foreign currencies. Since July 21, 2005, the RMB has been permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. On June 19, 2010, the People’s Bank of China announced the end of the RMB’s de facto peg to USD, a policy which was instituted in late 2008 in the face of the global financial crisis, to further reform the RMB exchange rate regime and to enhance the RMB’s exchange rate flexibility. The exchange rate floating bands will remain the same as previously announced in the inter-bank foreign exchange market. The depreciation of the US dollars against RMB was approximately 0.42 0.64 8.68 For the years ended June 30, 2014, 2015 and 2016, the net foreign currency translation gains (losses) resulting from the translation of RMB and SGD functional currencies to the U.S. dollar reporting currency recorded in other comprehensive income was $ 2,146 (1,386) (48,841) In January 2015, FASB issued ASU No. 2015-01, Income StatementExtraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”) Subtopic 225-20, Income StatementExtraordinary and Unusual Items In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs In July 2015, FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In August 2015, the FASB issued Accounting Standards Update 2015-14, which defers the effective date of ASU 2014-09 Revenue from Contracts with Customers (Topic 606) In September 2015, the FASB issued ASU No. 2015-16 (“ASU 2015-16”), Business Combinations (Topic 805) Simplifying the Accounting for Measurement Period Adjustments In November 2015, the FASB issued ASU No. 2015-17 (“ASU 2015-17”), Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases On March 30, 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS Acquisition of Bond On April 1, 2013, the Company acquired 100 73,000 73,805 1) Cash consideration of $ 36,500 16,390 5,510 14,600 ; he cash consideration installments due in September 2013 and September 2014 5,383 13,286 2) Share consideration consisting of 1,407,907 16,909 3) Incentive shares issuable to the selling shareholders (“Incentive Shares for Bond”) in two equal installments with acquisition-date fair values of $ 10,941 10,896 First installment Second installment Basis of performance target Net income for the year ending December 31, 2013 Net income for the year ending December 31, 2014 Target net income $ 8,806 $ 10,567 Nominal value of shares $ 10,950 $ 10,950 Referencing share price to achieve the nominal value of shares Average closing price of the Company’s shares during the trading days from October 1 to December 31, 2013 Average closing price of the Company’s shares during the trading days from October 1 to December 31, 2014 4) Premium shares issuable to the selling shareholders (“Premium Shares for Bond”) are capped at 15 3,300 20 CAGR performance target Premium shares issuable 21% 3 22% 6 23% 9 24% 12 25% and above 15 As the Incentive Shares for Bond and Premium Shares for Bond are not subject to any service condition of the selling shareholders, they were determined to be within the scope of ASC 820 (note 15). In accordance with ASC 815, “ Derivatives and Hedging 21,837 25,112 20 25 Considerations Fair value as at 1) Cash consideration (i) $ 35,059 2) Ordinary shares 16,909 3) Incentive Shares for Bond (ii) 21,837 4) Premium Shares for Bond (iii) - Total consideration $ 73,805 (i) The cash installments of $ 16,390 5,510 14,600 648,697 461,107 (iii) Bond also achieved the performance target of 25 166,471 April 1, 2013 Cash and cash equivalents $ 4,460 Time deposits with original maturities over three months 7,486 Restricted cash 242 Accounts receivable 9,966 Cost and estimated earnings in excess of billings 6,340 Other receivables 886 Advances to suppliers 110 Inventories 133 Deferred tax assets 105 Assets held for sale 2,951 Property, plant and equipment 4,891 Prepaid land leases 5,884 Intangible assets 14,359 Investments in equity investees 261 Total identifiable assets acquired 58,074 Short-term bank loans 5,532 Accounts payable 8,654 Deferred revenue 2,315 Income tax payable 1,015 Other tax payable 142 Accrued liabilities 314 Deferred tax liabilities 3,791 Long-term bank loans 2,257 Total liabilities assumed 24,020 Net identifiable assets acquired 34,054 Goodwill 39,751 Net assets acquired $ 73,805 The fair value of accounts receivable acquired was $ 9,966 10,720 754 The identified intangible assets include acquired customer relationship of $ 2,900 57 11,459 21 33 The goodwill, which is not tax deductible, is primarily attributable to synergies expected to be achieved from the acquisition, and was assigned to the mechanical and electrical solutions segment. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | INVENTORIES June 30, 2015 2016 Raw materials $ 12,857 $ 12,975 Work in progress 8,157 12,770 Finished goods 13,692 10,656 $ 34,706 $ 36,401 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 5 - ACCOUNTS RECEIVABLE June 30, 2015 2016 Accounts receivable $ 286,797 $ 279,650 Allowance for doubtful accounts (34,259) (42,471) $ 252,538 $ 237,179 June 30, 2014 2015 2016 Balance at the beginning of year $ 20,103 $ 25,691 $ 34,259 Additions 7,604 13,907 12,000 Written off (2,104) (5,499) (714) Translation adjustment 88 160 (3,074) Balance at the end of year $ 25,691 $ 34,259 $ 42,471 |
COSTS AND ESTIMATED EARNINGS IN
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS | 12 Months Ended |
Jun. 30, 2016 | |
Costs In Excess Of Billings and Billings In Excess Of Costs Incurred [Abstract] | |
Costs In Excess Of Billings and Billings In Excess Of Costs Incurred [Text Block] | COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS June 30, 2015 2016 Contracts costs incurred plus estimated earnings $ 827,955 $ 887,037 Less: Progress billings (653,768) (690,726) Cost and estimated earnings in excess of billings 174,187 196,311 Less: Allowance for doubtful accounts (8,850) (6,383) $ 165,337 $ 189,928 As of June 30, 2015 and 2016, balances of $ 29,752 36,387 1,895 4,034 June 30, 2014 2015 2016 Balance at the beginning of year $ 2,362 $ 5,839 $ 8,850 Additions 3,471 3,085 (1,823) Written off - (122) - Translation adjustment 6 48 (644) Balance at the end of the year $ 5,839 $ 8,850 $ 6,383 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 7 - PROPERTY, PLANT AND EQUIPMENT June 30, 2015 2016 Buildings $ 72,643 $ 71,037 Machinery 7,594 8,148 Software 6,263 7,377 Vehicles 4,012 3,886 Electronic and other equipment 25,942 23,704 Construction in progress 1,159 5,753 $ 117,613 $ 119,905 Less: Accumulated depreciation (37,391) (39,967) $ 80,222 $ 79,938 Total property, plant and equipment with carrying values of $ 1,161 1,014 Buildings with a total carrying value of $ 3,479 3,976 Buildings and vehicles with a total carrying value of $ 32,077 28,984 Construction in progress consists of capital expenditures and capitalized interest charges related to the construction of facilities and assembly line projects and, in addition, as of June 30, 2016, the expenditures related to the Company’s information system constructions. The depreciation expenses for the years ended June 30, 2014, 2015 and 2016 were $ 7,051 8,508 6,266 Assets leased to others under operating leases June 30, 2015 2016 Buildings leased to others - at original cost $ 10,962 $ 10,086 Less: accumulated depreciation (3,808) (3,725) Buildings leased to others - net $ 7,154 $ 6,361 |
PREPAID LAND LEASES
PREPAID LAND LEASES | 12 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Land Leases [Text Block] | PREPAID LAND LEASES June 30, 2015 2016 Prepaid land leases $ 13,362 $ 12,641 Less: Accumulated amortization (1,713) (1,868) $ 11,649 $ 10,773 The amortization for the years ended June 30, 2014, 2015 and 2016 were $ 245 197 281 Of the total prepaid land leases, $ 5,112 4,593 Year ending June 30, 2017 $ 268 2018 268 2019 268 2020 268 2021 268 $ 1,340 |
ACQUIRED INTANGIBLE ASSETS, NET
ACQUIRED INTANGIBLE ASSETS, NET | 12 Months Ended |
Jun. 30, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets Disclosure [Text Block] | NOTE 9 - ACQUIRED INTANGIBLE ASSETS, NET June 30, 2015 2016 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 3,155 (1,652) 1,503 $ 3,151 (2,308) 843 Order backlog 11,862 (11,672) 190 11,848 (11,835) 13 $ 15,017 (13,324) 1,693 $ 14,999 (14,143) 856 The customer relationships and order backlog were related to Concord and Bond, which were acquired on July 1, 2011 and April 1, 2013, respectively. The amortization for the years ended June 30, 2014, 2015 and 2016 were $ 5,413 4,454 814 1.3 1.0 1.3 Year ending June 30, 2017 $ 575 2018 281 2019 - 2020 - 2021 - $ 856 |
GOODWILL
GOODWILL | 12 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure [Text Block] | NOTE 10 - GOODWILL June 30, 2015 2016 Balance at beginning of year $ 66,640 $ 59,918 Goodwill impairment charge (1,855) - Translation adjustment (4,867) (71) Balance at the end of year $ 59,918 $ 59,847 Concord, as a component of the M&E operating segment, is considered to be a reporting unit for goodwill impairment purposes as Concord constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of Concord. The amount of goodwill allocated to Concord was $ 25,141 25,111 1,855 23,288 23,258 Estimating the fair value of Concord requires the Company to make assumptions and estimates regarding its future plans, market share, industry and economic conditions of the various geographical areas in which it operates which includes Singapore, Malaysia and the Middle East. In applying the discounted cash flow approach, key assumptions include the amount and timing of future expected cash flows, terminal value growth rates and appropriate discount rates. The Company estimates future expected cash flows for each geographical area in which it operates and calculates the net present value of those estimated cash flows using risk adjusted discount rates ranging from 13.5 16.4 15.0 16.9 2 2 1.0 3,018 3,527 1.0 1,871 1,611 There are uncertainties surrounding the amount and timing of future expected cash flows as they may be impacted by negative events such as a slowdown in the mechanical and electrical engineering sector, deteriorating economic conditions in the geographical areas Concord operates in, political, economic and social uncertainties in the Middle East, increasing competitive pressures and fewer than expected mechanical and electrical solution contracts awarded to Concord. These events can negatively impact demand for Concord’s services and result in actual future cash flows being less than forecasted or delays in the timing of when those cash flows are expected to be realized. Further, the timing of when actual future cash flows are received could differ from the Company’s estimates, which are based on historical trends and does not factor in unexpected delays in project commencement or execution. The Company also performed a qualitative assessment with respect to Bond, the other reporting unit, to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount. By identifying the most relevant drivers of fair value and significant events, and weighing the identified factors, the Company concluded that it was more likely than not that the fair value of the reporting unit exceeded its carrying amount of $ 36,633 36,589 |
INVESTMENTS IN EQUITY AND COST
INVESTMENTS IN EQUITY AND COST INVESTEES | 12 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment [Text Block] | NOTE 11 - INVESTMENTS IN EQUITY AND COST INVESTEES June 30, 2015 Interest Long-term Share of Advance to Total Equity method China Techenergy Co., Ltd. 40.00 % $ 9,814 (5,953) 48 3,909 Beijing Hollysys Electric Motor Co., Ltd. 40.00 % 866 3,722 - 4,588 Beijing IPE Biotechnology Co., Ltd. 23.39 % 1,613 2,185 - 3,798 Beijing Hollysys Machine Automation Co., Ltd. 30.00 % 491 (491) - - Southcon Development Sdn Bhd. 30.00 % 238 (21) - 217 $ 13,022 (558) 48 12,512 Cost method Shenhua Hollysys Information Technology Co., Ltd. 20.00 % $ 2,593 - - 2,593 Heilongjiang Ruixing Technology Co., Ltd. 8.31 % 1,773 - - 1,773 Zhongjijing Investment Consulting Co., Ltd. 5.00 % - - - - Zhejiang Sanxin Technology Co., Ltd. 6.00 % 98 - - 98 $ 4,464 - - 4,464 June 30, 2016 Interest Long-term Share of Advance Total Equity method China Techenergy Co., Ltd. 40.00 % $ 9,030 1,077 44 10,151 Beijing Hollysys Electric Motor Co., Ltd. 40.00 % 797 3,961 - 4,758 Beijing IPE Biotechnology Co., Ltd. 23.39 % 1,484 2,213 - 3,697 Beijing Hollysys Machine Automation Co., Ltd. 30.00 % 452 (452) - - Southcon Development Sdn Bhd. 30.00 % 224 (116) - 108 $ 11,987 6,683 44 18,714 Cost method Shenhua Hollysys Information Technology Co., Ltd. 20.00 % $ 2,387 - - 2,387 Heilongjiang Ruixing Technology Co., Ltd. 6.00 % 1,631 - - 1,631 Zhongjijing Investment Consulting Co., Ltd. 5.00 % - - - - Zhejiang Sanxin Technology Co., Ltd. 6.00 % 90 - - 90 $ 4,108 - - 4,108 For the year ended June 30, 2014, the Company recognized an impairment loss of RMB 2,000 325 The Company holds a 20 1) Only one out of the five board representatives is elected by the Company and the remaining 80 2) Key management of Shenhua Information including the chief executive officer, chief financial officer, chief operating officer and head of accounting are all appointed by the other shareholder. 3) Based on the articles of association of Shenhua Information, there are no matters that require unanimous approval of all shareholders and there are no participating rights for noncontrolling shareholders. 249 In April 2016, the Company’s equity interest in Heilongjiang Ruixing Technology Co., Ltd. was diluted from 8.31 6 For the year ended June 30, 2016, the Company recorded dividend income and a receivable of $ 1,109 |
WARRANTY LIABILITIES
WARRANTY LIABILITIES | 12 Months Ended |
Jun. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Disclosure [Text Block] | NOTE 12 - WARRANTY LIABILITIES June 30, 2015 2016 Beginning balance $ 7,616 $ 10,387 Expense accrued 6,647 3,876 Expense incurred (3,924) (3,075) Translation adjustment 48 (828) $ 10,387 $ 10,360 Less: current portion of warranty liabilities (7,310) (6,782) Long-term warranty liabilities $ 3,077 $ 3,578 |
SHORT-TERM BANK LOANS
SHORT-TERM BANK LOANS | 12 Months Ended |
Jun. 30, 2016 | |
Short-Term Debt [Abstract] | |
Short-term Debt [Text Block] | SHORT-TERM BANK LOANS On June 30, 2015, the Company’s short-term bank borrowings consisted of revolving bank loans of $ 16,295 1.5 5.12 1.78 19,202 18,041 1,161 On June 30, 2016, the Company’s short-term bank borrowings consisted of revolving bank loans of $ 3,051 0.8 5.12 1.5 3,757 2,743 1,014 For the years ended June 30, 2014, 2015, and 2016, interest expenses on short-term bank loans amounted to $ 5 286 211 As of June 30, 2015, the Company had available lines of credit from various banks in the PRC and Malaysia amounting to $ 230,074 68,435 161,639 4,512 3,479 As of June 30, 2016, the Company had available lines of credit from various banks in the PRC, Singapore and Malaysia amounting to $ 205,129 72,592 132,537 3,754 3,976 |
LONG-TERM LOANS
LONG-TERM LOANS | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM LOANS June 30, 2015 2016 RMB denominated loan (i) 8,996 - USD denominated loan (ii) 4,794 4,770 MYR denominated loan (iii) 936 830 SGD denominated loan (iv) 364 1,939 Convertible Bond (v) $ 19,572 $ 19,802 34,662 27,341 Less: current portion (14,111) (6,833) $ 20,551 $ 20,508 i. The RMB denominated loan is repayable in three installments with the last installment due on March 29, 2016. It carried an annual interest rate of 5.94 35,091 32,420 ii. The USD denominated loan is repayable in one installment by July 31, 2017. It carries an annual interest rate of 4.3 5,136 4,515 iii. The MYR denominated loans are repayable in 2 to 82 installments with the last installment due in Aril 2023. For the year ended June 30, 2016, the effective interest rates ranged from 2.3 7.15 1,258 1,019 iv. The SGD denominated loans are repayable in 10 to 64 installments with the last installment due on March 15, 2020. For the year ended June 30, 2016, the effective interest rates ranged from 2.6 2.8 840 3,148 v. Convertible Bond On May 30, 2014, the Company entered into a Convertible Bond agreement with International Finance Corporation ("IFC"), under which the Company borrowed $ 20,000 2.1 0.5 Conversion rate The initial conversion rate at the time of the agreement is 38 ordinary shares per $1, and the initial conversion price is $26.35 per share. the Company paid out a cash dividend of $0.40 per share in March 2015, the conversion rate and conversion price was adjusted to 38.84 ordinary shares per $1 and $25.75 per share, respectively. Conversion The Convertible Bond has both voluntary and mandatory conversion terms. IFC may at its option convert, in $ 1,000 According to the Convertible Bond agreement, 50% of the principal amount of the Convertible Bond then outstanding will be mandatorily converted into ordinary shares of the Company at the conversion rate and conversion price then in effect if at any time, with respect to the period of 30 consecutive trading days ending at such time, the volume weighted average prices for 20 trading days or more in such 30 consecutive trading day period is equal to or more than 150% of the conversion price in effect at such time. In addition, 100% of the principal amount of the Convertible Bond then outstanding will be mandatorily converted into ordinary shares at the conversion rate and conversion price then in effect if at any time, with respect to the period of 30 consecutive trading days ending at such time, the volume weighted average prices for 20 trading days or more in such 30 consecutive trading day period is equal to or more than 200% of the conversion price in effect at such time. Non-conversion compensation feature In the event that there remains any outstanding principal of the Convertible Bond not converted by IFC into ordinary shares at the maturity date, the Company shall pay to IFC an additional amount equal to 4% of such outstanding principle (“non-conversion compensation feature”). Registration rights agreement The Company has filed a shelf-registration statement with the United States Securities and Exchange Commission with respect to the resale of any ordinary shares issued or issuable upon conversion of the Convertible Loan. The Company shall maintain the effectiveness of the registration statement for so long as any registrable securities remain issued and outstanding. In the event that the registration statement is not declared effective or ceases to remain continuously effective such that IFC is not able to utilize the prospectus to resell its ordinary shares, the Company shall pay a penalty equal to 0.5 5 The Company paid up-front fees related to the issuance of the Convertible Bond amounting to $ 349 For fiscal year 2015 and 2016, the accretion of the Convertible Bond discount was $ 192 230 Year ending June 30, 2017 $ 6,992 2018 345 2019 19,885 2020 67 2021 and onwards 52 $ 27,341 For the years ended June 30, 2014, 2015, and 2016, interest expenses of long-term loans incurred amounted to $ 2,791 1,535 1,193 1,998 1,535 1,193 793 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 15 - FAIR VALUE MEASUREMENT Financial instruments include cash and cash equivalents, time deposits with maturities over three months, accounts receivable, other receivables, amounts due to or from related parties, accounts payable, short-term bank loans, long-term bank loans and bifurcated derivative. The carrying values of these financial instruments, other than long-term bank loans and a bifurcated derivative (which is a recurring fair value measurement), approximate their fair values due to their short-term maturities. The carrying value of the Company’s long-term bank loans other than the Convertible Bond approximates its fair value as the long-term bank loans are subject to floating interest rates. These assets and liabilities, excluding cash and cash equivalents (which fall into level 1 of the fair value hierarchy), fall into level 2 of the fair value hierarchy. The carrying value of the Convertible Bond is $ 19,572 19,802 21,452 17,835 June 30, 2015 Quoted Significant Significant (Level 1) (Level 2) (Level 3) Total Liabilities: Non-conversion compensation feature related to the Convertible Bond (i) $ - $ - $ 305 $ 305 Acquisition-related consideration (ii) 15,081 - - 15,081 Total liabilities measured at fair value on a recurring basis $ 15,081 $ - $ 305 $ 15,386 June 30, 2016 Quoted prices Significant Significant (Level 1) (Level 2) (Level 3) Total Liabilities: Non-conversion compensation feature related to the Convertible Bond (i) $ - $ - $ 398 $ 398 Total liabilities measured at fair value on a recurring basis $ - $ - $ 398 $ 398 (i) The non-conversion compensation feature represents the fair value of the non-conversion compensation feature (note 14). The Company engaged an independent third-party appraiser to assist with the valuation of the feature. The Company is ultimately responsible for the fair value of the non-conversion compensation feature recorded in the consolidated financial statements. The Company adopted the binomial model to assess the fair value of such feature as of year-end. The non-conversion compensation feature is equal to the difference between the fair value of the whole Convertible Bond with the non-conversion compensation feature and the whole Convertible Bond without the non-conversion feature. The significant unobservable inputs used in the fair value measurement of the non-conversion compensation feature includes the risk-free rate of return, expected volatility, expected life of the Convertible Bond and expected ordinary dividend yield. The changes in fair value of the non-conversion compensation feature during fiscal year 2015 and 2016 are shown in the following table. Fair value measurements as of (Level 3) Non-conversion compensation feature Balance as at June 30, 2015 $ 305 Change in fair-value (included within other expenses, net) 93 Balance as of June 30, 2016 $ 398 (ii) Acquisition-related consideration represents the fair value of Incentive Shares and Premium Shares for Bond (note 3). The fair value of the contingent consideration in connection with the acquisition was estimated using probability-weighted discounted cash flow models. Key assumptions include discount rate, a percent weighted-probability of Bond achieving net income performance targets and a percent weighted-probability of Bond achieving CAGR performance targets. As of June 30, 2015, Bond has achieved the net income performance target and the CAGR performance target. In addition, the referencing share price was determinable as of December 31, 2014 and the remaining input to the fair value of the Incentive and Premium Shares for Bond is the Company’s share price on the date of issuance, which is observable from an active market. Therefore, the fair value measurement of the acquisition-related consideration is transferred from Level 3 to Level 1 on December 31, 2014. In December 2015, all the remaining incentive shares and premium shares consideration were issued. As of June 30, 2015 and June 30, 2016, the fair value of the acquisition-related consideration in connection with Bond totaled $ 15,081 June 30, 2015 Quoted prices in Significant other Significant (Level 1) (Level 2) (Level 3) Total Assets: Goodwill (i) $ - $ - $ 23,285 $ 23,285 Total assets measured at fair value on a non-recurring basis $ - $ - $ 23,285 $ 23,285 (i) The Company’s goodwill of $ 23,285 36,633 1,855 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | STOCKHOLDERS’ EQUITY In August 2010, the Board of Directors adopted the 2010 Rights Plan. The 2010 Rights Plan provides for a dividend distribution of one preferred share purchase (the “Right”), for each outstanding ordinary share. Each Right entitles the shareholder to buy one share of the Class A Preferred Stock at an exercise price of $ 160 20 20 50 On May 30, 2013, October 29, 2014, and December 9, 2015, pursuant to the terms of the acquisition of Bond, the Company issued 1,407,907 648,697 627,578 On February 9, 2015, the Company declared a special cash dividend of $ 0.40 |
SHARE-BASED COMPENSATION EXPENS
SHARE-BASED COMPENSATION EXPENSES | 12 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | SHARE-BASED COMPENSATION EXPENSES On September 20, 2007, the Company adopted the 2006 Stock Plan (the “2006 Plan”) which allows the Company to offer a variety of incentive awards to employees, officers, directors and consultants. Options to purchase 3,000,000 On May 14, 2015, the Board of Directors approved the 2015 Equity Incentive Plan (the “2015 Equity Plan”). The 2015 Equity Plan provided for 5,000,000 Share options The Company granted 696,000 Performance options Performance share options granted in 2012 (“2012 Performance Options”) On February 20, 2012, performance share options to purchase 1,476,000 9.29 · For 60,000 36 30,000 60,000 60,000 36 60 206 72 · For 1,416,000 15 20 944,000 24 48 20 25 236,000 48 25 236,000 48 1,416,000 283,200 283,200 849,600 24 36 48 EPS Threshold Number of vested options Months after the grant date 24 months 36 months 48 months Over 15% but below 20% 944,000 283,200 283,200 377,600 Equal or over 20% but below 25% Additional 236,000 - - 236,000 25% or above Additional 236,000 - - 236,000 Total 283,200 283,200 849,600 The options will remain exercisable from the vesting date until the 60 month anniversary of the grant date. The EPS threshold was met as of June 30, 2014 for all of the 1,416,000 and will vest over requisite service periods of 24 48 1,222 1,530 251 2012 Performance Number of Weighted Weighted average Aggregate intrinsic Outstanding at June 30, 2015 1,333,500 $ 8.89 1.64 $ 20,189 Exercised (612,000) $ 8.89 Outstanding at June 30, 2016 721,500 $ 8.89 0.64 $ 6,118 Vested and expected to vest at June 30, 2016 721,500 8.89 0.64 6,118 Exercisable at June 30, 2016 721,500 8.89 0.64 6,118 The aggregated intrinsic value of the 2012 Performance Options exercised during the years ended June 30, 2014, 2015 and 2016 was nil, $ 2,383 6,026 The aggregated vested-date fair value of 2012 Performance Options vested during years ended June 30, 2014, 2015, 2016 is $ 5,480 6,497 15,650 The Company recorded share-based compensation expense relating to 2012 performance share options of $ 2,654 1,602 251 The Company paid out a cash dividend of $ 0.40 For options granted on Risk-free rate of return 0.71 % Expected life (in years) 4.17 Weighted average expected volatility 62.64 % Expected dividends - Weighted average risk-free rate of return for periods within the contractual life of the option is based on the U.S. treasury yield curve in effect at the time of grant. Expected option life is estimated based on historical options exercise pattern in accordance with ASC 718 . Performance options granted in 2015 (“2015 Performance Options”) On May 14, 2015, certain employees of the Company were granted share-based compensation awards totaling 1,740,000 22.25 On the 24, 36, 48 month anniversary of the grant date, 30 30 40 1,160,000 15 48 50 580,000 50 580,000 Moreover, for option grantees who are responsible for individual businesses, they have to meet the following additional criteria in each year, from fiscal years 2015 to 2017, to exercise the options in that particular year. The annual revenue growth rate compared to prior fiscal year must equal to or exceed 15%, 5%, 15% and 50% respectively for industrial automation (“IA”), rail transportation (“Rail”), mechanical and electrical solutions (“M&E”) and medical (“Medical”) revenue streams. EPS Threshold Number of vested Months after the grant date 24 36 48 Annual growth rate over 15% but below 20% 1,160,000 348,000 348,000 464,000 CAGR equals or over 20% but below 25% Additional 290,000 - - 290,000 CAGR equals 25% or above Additional 290,000 - - 290,000 Total 348,000 348,000 1,044,000 The 2015 Performance Options will remain exercisable from the vesting date until the 60 month anniversary of the grant date. The EPS threshold and the revenue growth thresholds for Rail and Medical were met for fiscal years ended June 30, 2015 and 2016, however, the revenue growth thresholds of IA and M&E was not achieved. The Company expects the annual growth rate of Non-GAAP diluted EPS for fiscal year 2017 will fall between 15 20 950,000 1,740,000 2015 Performance Number of Weighted Weighted average Aggregate intrinsic Outstanding as at June 30, 2015 and 2016 1,740,000 22.25 3.87 - Vested and expected to vest at June 30, 2016 950,000 22.25 3.87 - Exercisable at June 30, 2016 - $ - - $ - The weighted averaged grant-date fair value of the 2015 performance options granted in fiscal year 2015 was $ 22.22 There was no 2015 performance options vested or exercised during fiscal year 2015 and 2016. The Company recorded share-based compensation expense relating to the 2015 performance options in the amount of $ 471 3,190 10,293 6,033 4.87 3.87 For the 2015 performance options, the Company engaged an independent third-party appraiser to assist with the valuation of the option. The Company has adopted the binomial option pricing model to assess the fair value as of the valuation date. For options granted on Risk-free rate of return 1.51 % Weighted average expected volatility 53.42 % Expected life (in years) 5 years Expected ordinary dividend yield nil Historically the Company adopted the Black-Scholes-Merton option pricing model to evaluate the fair value of share-based compensation awards. During the year ended June 30, 2015, the Company granted new performance options to its employees. The Company engaged an independent third-party appraiser to assist with the derivation of the fair value of the share-based compensation awards. The Company is ultimately responsible for the determination of all amounts related to share-based compensation recorded in the consolidated financial statements. Based on the information available, the Company concluded that the binomial option pricing model, a lattice model, will yield a better estimation of the fair value compared to the Black-Scholes-Merton option pricing model, which is a closed-form model. Hence, the Company changed the option-valuation technique to the binomial option pricing model for new share-based compensation awards granted after July 1, 2014 in accordance with ASC 718-10-55-20. Restricted shares During the year ended June 30, 2011, the Company granted 67,500 15,000 22,500 30,000 During the year ended June 30, 2014, the Company granted 52,500 Number of restricted shares Weighted average grant-date fair value Un-vested at June 30, 2015 31,875 23.95 Vested (17,500) 23.95 Un-vested at June 30, 2016 14,375 23.95 The aggregated grant-date fair value of restricted shares vested during the years ended June 30, 2014, 2015 and 2016 were $ 290 419 419 290 419 419 274 0.66 |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 18 - EMPLOYEE BENEFITS The Company contributes to a state pension scheme run by the Chinese government in respect of its employees in China, a central provision fund run by the Singapore government in respect of its employees in Singapore, and an employment provident fund in respect of its employees in Malaysia. The expenses related to these plans were $ 16,150 17,018 18,235 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 19 - INCOME TAX BVI Hollysys, and its subsidiaries, namely GTH and Clear Mind, are incorporated in the BVI and are not subject to income tax under the relevant regulations. Singapore HI, HAP, CCPL, CEPL, BCPL and BMSG, the Company’s wholly owned subsidiaries incorporated in Singapore, are subject to Singapore corporate tax at a rate of 17 Malaysia CESB, BMJB, and BMKL, the Company’s wholly owned subsidiaries incorporated in Malaysia, are subject to Malaysia corporate income tax at a rate of 25 Dubai CCPL Dubai, the branch of the Company’s wholly owned subsidiary, CCPL, is a tax exempt company incorporated in Dubai, and no tax provision has been made for each of the years ended June 30, 2014, 2015 and 2016. Hong Kong World Hope and CSHK, the Company’s wholly owned subsidiaries incorporated in Hong Kong, are subject to Hong Kong profits tax at a rate of 16.5 sustained taxable losses Macau CMDE, the Company’s wholly owned subsidiary incorporated in Macau, is subject to the Macau corporate income tax at a rate of 12 300 India HAIP, the Company’s wholly owned subsidiary incorporated in India, is subject to India corporate tax at a rate of 30 Italy HollyCon Italy, 99% owned by the Company and was incorporated in Italy, is subject to corporate income tax at the rate of 27.5 3.9 This company is subject to the Qatar Corporate income tax at a rate of 10 its date of incorporation to PRC The Company’s subsidiaries incorporated in the PRC are subject to PRC enterprise income tax (“EIT”) on their respective taxable incomes as adjusted in accordance with relevant PRC income tax laws. The PRC statutory EIT rate is 25 The Company’s PRC subsidiaries are subject to the statutory tax rate except for the followings: Beijing Hollysys Beijing Hollysys was certified as a High and New Technology Enterprise (“HNTE”) which provides a preferential EIT rate of 15 calendar years from 2014 to 2016. Further, Beijing Hollysys was qualified for the Key Software Enterprise status in 2016 and was entitled to a preferential tax rate 10 for calendar year 2015. Beijing Hollysys will be subject to the statutory tax rate of 25 Hangzhou Hollysys Hangzhou Hollysys was certified as a HNTE which provides a preferential EIT rate 15 calendar years from 2014 to 2016. Further, Hangzhou Hollysys was qualified for the Key Software Enterprise status in 2016 and was entitled to a preferential tax 10 for calendar year 2015. Hangzhou Hollysys will be subject to the statutory tax rate of 25 Year ended June 30, 2014 2015 2016 PRC $ 97,931 $ 134,657 $ 142,900 Non-PRC (6,619) (9,430) (5,158) $ 91,312 $ 125,227 $ 137,742 Year ended June 30, 2014 2015 2016 Current income tax expense PRC 22,055 16,074 10,590 Singapore 2,966 1,151 235 Hong Kong - 2,279 2,776 Malaysia 267 1,690 1,099 $ 25,288 $ 21,194 $ 14,700 Deferred income tax (benefit) expense PRC (4,868) 5,834 (196) Singapore (1,982) (894) (181) Hong Kong - - Malaysia 1,423 (94) (85) $ (5,427) 4,846 (462) $ 19,861 $ 26,040 $ 14,238 25 and the actual income tax expenses is as follows: Year ended June 30, 2014 2015 2016 Income before income taxes $ 91,312 $ 125,227 $ 137,742 Expected income tax expense at statutory tax rate in the PRC 22,828 31,307 34,436 Effect of different tax rates in various jurisdictions 2,709 1,286 2,109 Effect of preferential tax treatment (5,027) (12,453) (12,296) Effect of non-taxable income (5,747) (6,770) (4,985) Effect of additional deductible research and development expenses (2,604) (2,772) (4,716) Effect of non-deductible expenses 6,379 8,402 5,569 Effect of change in tax rate - (4,191) (6,613) Change in valuation allowance 2,075 1,475 540 Tax rate differential on deferred tax items (2,193) 3,139 (587) Withholding tax on dividend paid by subsidiaries 1,381 6,028 1,252 Recognition of temporary difference not recognized in previous years 284 323 - Others (224) 266 (471) Total $ 19,861 $ 26,040 $ 14,238 Had the above preferential tax treatment not been available, the tax charge would have been increased by $ 5,027 12,453 12,296 0.09 0.21 0.21 0.09 0.21 0.20 June 30, 2015 2016 Deferred tax assets, current Allowance for doubtful accounts $ 6,885 $ 9,838 Inventory provision 148 205 Provision for contract loss 430 917 Long-term assets 14 13 Deferred revenue 5,737 3,522 Deferred subsidies 570 1,020 Warranty liabilities 1,109 1,322 Recognition of intangible assets 107 57 Accrued payroll 899 960 Net operating loss carry forward 5,843 6,361 Valuation allowance (5,796) (6,307) Total deferred tax assets, current $ 15,946 $ 17,908 Deferred tax liabilities, current Costs and estimated earnings in excess of billings $ (12,685) $ (16,068) Recognition of intangible assets (1,246) (1,060) PRC dividend withholding tax (4,653) (3,010) Others (36) (24) Total deferred tax liabilities, current $ (18,620) $ (20,162) Net deferred tax assets, current $ 3,214 $ 6,659 Net deferred tax liabilities, current $ (5,888) $ (8,913) Deferred tax assets, non-current Long-term assets $ 522 $ 699 Deferred subsidies 1,739 2,642 Recognition of intangible assets 63 (16) Warranty liabilities 452 874 Total deferred tax assets, non-current $ 2,776 $ 4,199 Deferred tax liabilities, non-current Share of net gains of equity investees $ 99 $ (1,733) Intangible assets and other non-current assets (371) (330) Total deferred tax liabilities, non-current $ (272) $ (2,063) Net deferred tax assets-non-current $ 2,581 $ 2,195 Net deferred tax liabilities-non-current $ (77) $ (59) As of June 30, 2016 the Company had incurred net losses of approximately $ 1,927 34,004 1,116 1,927 The Company operates mainly through its PRC subsidiaries and the valuation allowance is considered on an individual entity basis. Under the EIT Law and the implementation rules, profits of the Company’s PRC subsidiaries earned on or after January 1, 2008 and distributed by the PRC subsidiaries to a foreign holding company are subject to a withholding tax at 10 2,320,060 355,454 2,907,542 447,025 200,000 30,100 3,117 As of June 30, 2015 and June 30, 2016, the total amounts of undistributed earnings generated from the Company’s PRC subsidiaries for which no withholding tax has been accrued were $ 268,793 372,040 20,508 30,832 As of June 30, 2015 and June 30, 2016, the undistributed retained earnings generated from periods prior to January 1, 2008 were $ 63,716 63,716 The Chinese tax law grants the tax authorities the rights to further inspect companies’ tax returns retroactively in a three year period (up to five years under certain special conditions), which means theoretically the tax authorities can still review the PRC subsidiaries’ tax returns for the years ended December 31, 2011 through 2015. The tax law also states that companies will be liable to additional tax, interest charges and penalties if errors are found in their tax returns and such errors have led to an underpayment of tax. Determining income tax provisions involves judgment on the future tax treatment of certain transactions. The Company performed a self-assessment and concluded that there was no significant uncertain tax position requiring recognition in its financial statements. The tax treatment of such transactions is reconsidered periodically to take into account all changes in tax legislations. Where the final tax outcome of these transactions is different from the amounts that were initially recorded, such difference will impact the income tax and deferred tax provisions in the year in which such determination is made. There were no material interest or penalties incurred for and as of the years ended June 30, 2014, 2015 and 2016, respectively. |
INCOME PER SHARE
INCOME PER SHARE | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 20 - INCOME PER SHARE Year ended June 30, 2014 2015 2016 Numerator: Net income attributable to the Company - basic $ 69,620 $ 96,527 $ 118,471 Net income attributable to the Company - diluted (i) $ 69,620 $ 96,877 $ 119,121 Denominator: Weighted average ordinary shares outstanding used in computing basic income per share 57,926,333 58,612,596 59,170,050 Effect of dilutive securities Convertible Bond - 644,850 776,800 Share options 482,623 839,425 642,184 Restricted shares 17,686 37,332 22,422 Weighted average ordinary shares outstanding used in computing diluted income per share 58,426,642 60,134,203 60,611,456 Income per share - basic $ 1.20 1.65 2.00 Income per share - diluted $ 1.19 1.61 1.97 (i) For the year ended June 30, 2015 and 2016, interest accretion related to the Convertible Bond of $ 350 650 Vested and unissued restricted shares of 60,625 58,726 75,066 For the year ended June 30, 2014, as the performance target was achieved for the first installment of the Incentive Shares for Bond, hence 648,697 461,107 166,471 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 21 - RELATED PARTY TRANSACTIONS The related party relationships and related party transactions are listed as follows: Related party relationships Name of related parties Relationship with the Company Shenhua Hollysys Information Technology Co., Ltd. (“Shenhua Information”) 20 China Techenergy Co., Ltd. (“China Techenergy”) 40 Beijing Hollysys Electric Motor Co., Ltd. (“Electric Motor”) 40 Beijing Hollysys Machine Automation Co., Ltd. (“Hollysys Machine”) 30 Heilongjiang Ruixing Technology Co., Ltd. (“Heilongjiang Ruixing”) 6 June 30, 2015 2016 China Techenergy $ 34,472 $ 22,579 Shenhua Information 3,447 2,995 Hollysys Machine 1,158 1,367 Heilongjiang Ruixing - 1,071 $ 39,077 $ 28,012 The Company’s management believes that the collection of amounts due from related parties is reasonably assured and accordingly, no provision had been made for these balances. June 30, 2015 2016 China Techenergy $ 837 $ 1,170 Shenhua Information 818 358 Electric Motor 49 112 Hollysys Machine 9 5 $ 1,713 $ 1,645 Purchases of goods and services from: Year ended June 30, 2014 2015 2016 Hollysys Machine $ 1,980 $ 914 $ 555 Electric Motor 14 50 354 Shenhua Information 323 368 - China Techenergy - 1 - $ 2,317 $ 1,333 $ 909 Sales of goods and integrated solutions to: Year ended June 30, 2014 2015 2016 China Techenergy $ 3,136 $ 21,936 $ 3,657 Shenhua Information 2,726 2,128 847 Hollysys Machine 921 512 235 Electric Motor 2 1 - $ 6,785 $ 24,577 $ 4,739 Operating lease income from: Year ended June 30, 2014 2015 2016 Hollysys Machine $ 65 $ 41 $ 40 The Company sells automation control systems to China Techenergy which is used for non-safety operations control in the nuclear power industry. China Techenergy incorporates the Company’s non-safety automation control systems with their proprietary safety automated control systems to provide an overall automation and control system for nuclear power stations in China. The Company is not a party to the integrated sales contracts executed between China Techenergy and its customers. The Company’s pro rata shares of the intercompany profits and losses are eliminated until realized through a sale to outside parties, as if China Techenergy were a consolidated subsidiary. The Company sells automation control systems to Shenhua Information which is used for operations control in the information automation industry. Shenhua Information incorporates the Company’s automation control systems with their proprietary automated remote control systems to provide an overall automation and control system to its customers. The Company is not a party to the integrated sales contracts executed between Shenhua Information and its customers. The Company’s pro rata shares of the intercompany profits and losses are eliminated until realized through a sale to an outside party as if Shenhua Information were a consolidated subsidiary. The Company engages Hollysys Machine to sell the Company’s products to end customers. The Company pays commission to Hollysys Machine in exchange for its services. The amount of the commission is determined based on the value of the products sold by Hollysys Machine during the year. Amounts due from and due to the related parties relating to the above transactions are unsecured, non-interest bearing and repayable on demand. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 22 - COMMITMENTS AND CONTINGENCIES Operating lease commitments The Company leases premises under various operating leases. Rental expenses under operating leases included in the consolidated statements of comprehensive income were $ 2,067 1,492 1,811 Years ending June 30, Minimum lease payments 2017 $ 1,429 2018 441 2019 138 2020 84 2021 and onwards 15 Total minimum lease payments $ 2,107 The Company’s lease arrangements have no renewal or purchase options, rent escalation clauses, restriction or contingent rents and are all conducted with third parties. Capital commitments As of June 30, 2016, the Company had approximately $ 1,796 Purchase obligation As of June 30, 2016, the Company had $ 156,090 Performance guarantee and standby letters of credit The Company had stand-by letters of credit of $ 40,800 58,747 27,994 Guarantees. Both the performance guarantees and the stand-by letters of credit are for the Company’s commitment of its own future performance, and the outcome of which is within its own control. As a result, performance guarantees and stand-by letters of credit are subject to ASC 460 disclosure requirements only. |
OPERATING LEASES AS LESSOR
OPERATING LEASES AS LESSOR | 12 Months Ended |
Jun. 30, 2016 | |
Leases [Abstract] | |
Operating Leases Of Lessor Disclosure [Text Block] | NOTE 23 - OPERATING LEASES AS LESSOR On April 3, 2013, Beijing Hollysys entered into an operating lease agreement to lease out one of its buildings located in Beijing. The lease term is for a period of 10 Year ending June 30, Minimum lease payments 2017 $ 1,464 2018 1,508 2019 1,553 2020 1,600 2021 1,648 Total minimum lease payments to be received in the next five years $ 7,773 The minimum lease payment receivable after five years is $ 3,741 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 24 - SEGMENT REPORTING The chief operating decision makers have been identified as the Chairman, Chief Executive Officer and Chief Financial Officer of the Company. The Company organizes its internal financial reporting structure based on its main product and service offerings. Based on the criteria established by ASC 280, Segment Reporting Year ended June 30, 2014 IA Rail M&E Miscellaneous Consolidated Revenues from external customers $ 224,366 178,134 108,846 9,986 521,332 Costs of revenue 143,645 104,055 93,459 4,550 345,709 Gross profit $ 80,721 74,079 15,387 5,436 175,623 Year ended June 30, 2015 IA Rail M&E Miscellaneous Consolidated Revenues from external customers $ 213,252 193,274 110,030 14,823 531,379 Costs of revenue 119,520 97,503 93,452 6,502 316,977 Gross profit $ 93,732 95,771 16,578 8,321 214,402 Year ended June 30, 2016 IA Rail M&E Miscellaneous Consolidated Revenues from external customers $ 182,901 240,310 95,277 25,837 544,325 Costs of revenue 113,314 131,043 82,900 11,342 338,599 Gross profit $ 69,587 109,267 12,377 14,495 205,726 The Company’s assets are shared among the segments thus no assets have been designated to specific segments. Year ended June 30, 2014 2015 2016 Revenues: PRC $ 393,596 $ 410,644 $ 443,256 Non-PRC (including Hong Kong) 127,736 120,735 101,069 $ 521,332 $ 531,379 $ 544,325 June 30, 2015 2016 Long-lived assets other than goodwill and acquired intangible assets PRC $ 95,779 $ 100,454 Non-PRC (including Hong Kong) 13,068 13,079 $ 108,847 $ 113,533 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 25 - SUBSEQUENT EVENTS In July 2016, the Company’s subsidiary, Hollycon, issued shares for an aggregate cash consideration of $ 30,943 7,736 0.6 464 51 30 On August 11, 2016, the Board of Directors approved a regular cash dividend policy pursuant to which future cash dividends are expected to be paid to holders of the Company’s ordinary shares on an annual basis out of funds legally available for such purpose. The declaration and payment of future dividends including the dividend for 2016 will be at the discretion of the Board of Directors. |
ENDORSEMENT OF NOTE RECEIVABLES
ENDORSEMENT OF NOTE RECEIVABLES | 12 Months Ended |
Jun. 30, 2016 | |
Endorsement Of Note Receivables [Abstract] | |
Endorsement Of Note Receivables [Text Block] | NOTE 26 - ENDORSEMENT OF NOTE RECEIVABLES The Company endorsed bank acceptance bills to its suppliers as a way of settling accounts payable. The total endorsed but not yet due bank acceptance bills amounted to $ 37,669 31,991 Transfer and Servicing |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Jun. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 27 - CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY Under the PRC laws and regulations, the Company’s PRC subsidiaries’ ability to transfer net assets in the form of dividend payments, loans, or advances are restricted. The amount restricted was RMB 497,789 73,209 538,113 79,500 The following represents condensed unconsolidated financial information of the parent company only: June 30, 2015 2016 ASSETS Current assets: Cash and cash equivalents $ 8,437 $ 8,571 Time deposits with original maturities over three months 14,721 - Amounts due from subsidiaries 114,311 72,303 Prepaid expenses 50 63 Total current assets 137,519 80,937 Investments in subsidiaries 532,136 669,326 Total assets $ 669,655 $ 750,263 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accrued payroll and related expense $ 18 $ 9 Accrued liabilities 323 426 Amounts due to subsidiaries 70,642 55,869 Total current liabilities 70,983 56,304 Long-term loan 19,572 19,802 Total liabilities 90,555 76,106 Equity: Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 58,358,521 and 59,598,099 shares issued and outstanding as of June 30, 2015 and 2016, respectively 58 60 Additional paid-in capital 192,768 215,403 Retained earnings 348,689 467,160 Accumulated other comprehensive income (loss) 37,585 (8,466) Total equity 579,100 674,157 Total liabilities and equity $ 669,655 $ 750,263 Year Ended June 30, 2014 2015 2016 General and administrative expenses $ 3,721 $ 3,169 $ 4,484 Loss from operations (3,721) (3,169) (4,484) Other expense, net - (35) (93) Interest income - 1 80 Interest expenses - (463) (705) Foreign exchange gains (losses) 263 238 (719) Equity in profit of subsidiaries $ 73,078 $ 99,955 $ 124,392 Income before income taxes 69,620 96,527 118,471 Income tax expenses - - - Net income 69,620 96,527 118,471 Other comprehensive income, net of tax of nil Translation adjustment 2,140 (1,427) (46,052) Comprehensive income $ 71,760 $ 95,100 $ 72,419 Year ended June 30, 2014 2015 2016 Net cash used in operating activities $ - $ (397) $ (1,697) Net cash used in investing activities - $ (4,402) $ 11,390 Net cash provided by financing activities $ - $ 13,236 $ (9,559) Net increase in cash and cash equivalents $ - $ 8,437 $ 134 Cash and cash equivalents, beginning of year $ - $ - $ 8,437 Cash and cash equivalents, end of year $ - $ 8,437 $ 8,571 Basis of presentation For the presentation of the parent company only condensed financial information, the Company records its investment in subsidiaries under the equity method of accounting as prescribed in ASC 323, InvestmentsEquity Method and Joint Ventures |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles Of Consolidation and Basis Of Presentation [Policy Text Block] | Principles of consolidation and basis of presentation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances are eliminated upon consolidation. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Use of Estimates, Policy [Policy Text Block] | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management evaluates estimates, including those related to the expected total costs of integrated contracts, expected gross margins of integrated solution contracts, allowance for doubtful accounts, fair values of share options, fair value of bifurcated derivative, purchase price allocation and contingent consideration with respect to business combinations, warranties, valuation allowance of deferred tax assets and impairment of goodwill and other long-lived assets. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ materially from those estimates. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency translations and transactions The Company, GTH, Clear Mind and World Hope’s functional currency is the United States dollars (“US dollars” or “$”); whereas the Company’s subsidiaries use the primary currency of the economic environment in which their operations are conducted as their functional currency. Renminbi (“RMB”) is determined to be the functional currency of all PRC subsidiaries; Singapore dollar (“SGD”) is determined to be the functional currency of HI, HAP, CCPL, CEPL, BCPL and BMSG; Malaysian Ringgit (“MYR”) is determined to be the functional currency of CESB, BMJB and BMKL; and United Arab Emirates Dirham (“AED”), Hong Kong dollar (“HKD”), Macau Pataca (“MOP”), Indian Rupee (“INR”), Euro (“EUR”) and Qatar Riyal (“QAR”) are the functional currencies of Dubai, CSHK, CMDE, HAIP, Hollycon Italy and CECL, respectively. The Company uses the US dollars as its reporting currency. The Company translates the assets and liabilities into US dollars using the rate of exchange prevailing at the balance sheet date, and the statements of comprehensive income are translated at average rates during the reporting period. Adjustments resulting from the translation of financial statements from the functional currency into US dollars are recorded in stockholders’ equity as part of accumulated other comprehensive income. Transactions dominated in currencies other than the functional currency are translated into functional currency at the exchange rates prevailing on the transaction dates, and the exchange gains or losses are reflected in the consolidated statements of comprehensive income for the reporting period. Transactions denominated in foreign currencies are measured into the functional currency at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are re-measured at the exchange rates prevailing at the balance sheet date. Exchange gains and losses are included in earnings, except for those raised from intercompany transactions with investment nature, which are recorded in other comprehensive income. For the years ended June 30, 2014, 2015 and 2016, the Company recorded foreign exchange gain (loss), net of $ 794 (6,765) (299) |
Business Combinations Policy [Policy Text Block] | Business combinations The Company accounts for its business combinations using the purchase method of accounting in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is based on various assumptions and valuation methodologies requiring considerable management judgment. The most significant variables in these valuations are discount rates, terminal values, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets and forecasted cash flows over that period. Acquisition-related costs are recognized as general and administrative expenses in the statements of comprehensive income as incurred. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. All highly liquid investments that are readily convertible to known amounts of cash with original stated maturities of three months or less are classified as cash equivalents. |
Time Deposits With Original Maturities Over Three Months [Policy Text Block] | Time deposits with original maturities over three months Time deposits with original maturities over three months consist of deposits placed with financial institutions with original maturity terms from four months to one year. As of June 30, 2016, $ 35,318 7,042 8 29,051 14,721 5,878 |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted cash Restricted cash mainly consists of the cash deposited in banks pledged for performance guarantees, or bank loans. These cash balances are not available for use until these guarantees are expired or cancelled, or the loans are repaid. |
Revenue Recognition, Policy [Policy Text Block] | Integrated solutions contracts Revenues generated from designing, building, and delivering customized integrated industrial automation systems are recognized over the contractual terms based on the percentage of completion method. The contracts for designing, building, and delivering customized integrated industrial automation systems are legally enforceable and binding agreements between the Company and customers. The duration of contracts depends on the contract size and ranges from 6 5 Revenue generated from mechanical and electrical solution contracts for the construction or renovation of buildings, rail or infrastructure facilities are also recognized over the contractual terms based on the percentage of completion method. The contracts for mechanical and electrical solution services are legally enforceable and binding agreements between the Company and customers. The duration of contracts depends on the contract size and the complexity of the construction work and ranges from 6 3 In accordance with ASC 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts (“ASC 605-35”), recognition is based on an estimate of the income earned to date, less income recognized in earlier periods. Extent of progress toward completion is measured using the cost-to-cost method where the progress (the percentage complete) is determined by dividing costs incurred to date by the total amount of costs expected to be incurred for the integrated solutions contract. Revisions in the estimated total costs of integrated solutions contracts are made in the period in which the circumstances requiring the revision become known. Provisions, if any, are made in the period when anticipated losses become evident on uncompleted contracts. The Company reviews and updates the estimated total costs of integrated solutions contracts at least semi-annually. The Company accounts for revisions to contract revenue and estimated total costs of integrated solution contracts, including the impact due to approved change orders, in the period in which the facts that cause the revision become known as changes in estimates. Unapproved change orders are considered claims. Claims are recognized only when it has been awarded by customers. Excluding the impact of change orders, if the estimated total costs of integrated solution contracts, which were revised during the years ended June 30, 2014, 2015 and 2016, had been used as a basis of recognition of integrated contract revenue since the contract commencement, net income for the years ended June 30, 2014, 2015 and 2016 would have been decreased by $ 4,436 26,232 30,270 0.08 0.45 0.51 0.08 0.44 0.50 The Company combines a group of contracts as one project if they are closely related and are, in substance, parts of a single project with an overall profit margin. The Company segments a contract into several projects, when they are of different business substance, for example, with different business negotiation, solutions, implementation plans and margins. Revenue in excess of billings on the contracts is recorded as costs and estimated earnings in excess of billings. Billings in excess of revenues recognized on the contracts are recorded as deferred revenue until the above revenue recognition criteria are met. The Company generally recognizes 100 Product sales Revenue generated from sales of products is recognized when the following four revenue recognition criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the selling price is fixed or determinable, and (iv) collectability is reasonably assured. Service rendered The Company has in recent years extended its service offerings as described below. The Company mainly provides two types of services: Revenue from one-off services: the Company provides different types of one-off services, including on-site maintenance service and training services which are generally completed on site within a few working days. Revenue is recognized when the Company has completed all the respective services described in the contracts, there is persuasive evidence of an arrangement, the fee is fixed or determinable and collection is reasonably assured. Revenue from services covering a period of time: the Company also separately sells extended warranties to their integrated solution customers for a fixed period. Such arrangements are negotiated separately from the corresponding integrated solution system and are usually entered into upon the expiration of the warranty period attached to the integrated solution contract. During the extended warranty period, the Company is responsible for addressing issues related to the system. Part replacement is not covered in such services. The Company recognizes revenue on a pro-rata basis over the contractual term. |
Inventory, Policy [Policy Text Block] | Inventories are composed of raw materials, work in progress, purchased and manufactured finished goods and low value consumables. Inventories are stated at the lower of cost or market. The Company elected to change the inventory costing method from the “first-in first-out method” to the weighted average cost method. The Company believes the weighted average cost method is preferable because it more closely aligns with the physical flow of inventory and the information system calculates inventory at weighted average cost. The impact of the change in accounting principle was immaterial to all periods presented and thus, not applied retrospectively. The Company assesses the lower of cost or market for non-saleable, excess or obsolete inventories based on its periodic review of inventory quantities on hand and the latest forecasts of product demand and production requirements from its customers. The Company writes down inventories for non-saleable, excess or obsolete raw materials, work-in-process and finished goods by charging such write-downs to cost of integrated contracts and/or costs of products sold. |
Standard Product Warranty, Policy [Policy Text Block] | Warranties Warranties represent a major term under an integrated contract, which will last, in general, for one to three years or otherwise specified in the terms of the contract. The Company accrues warranty liabilities under an integrated contract as a percentage of revenue recognized, which is derived from its historical experience, in order to recognize the warranty cost for an integrated contract throughout the contract period. In addition, the Company estimates whether or not the accrued warranty liabilities are adequate by considering specific conditions that may arise and the number of contracts under warranty period at each reporting date. The Company adjusts the accrued warranty liabilities in line with the results of its assessment. |
Accounts Receivable and Cost and Estimated Earnings In Excess Of Billings [Policy Text Block] | Performance of the integrated contracts will often extend over long periods and the Company’s right to receive payments depends on its performance in accordance with the contractual agreements. There are different billing practices in the PRC and overseas operating subsidiaries including Concord and Bond. For the Company’s PRC subsidiaries, billings are issued based on milestones specified in contracts negotiated with customers. In general, there are four milestones: 1) project commencement, 2) system manufacturing and delivery, 3) installation, trial-run and customer acceptance, and 4) expiration of the warranty period. The amounts to be billed at each milestone are specified in the contract. All contracts have the first milestone, but not all contracts require prepayments. The length of each interval between two continuous billings under an integrated contract varies depending on the duration of the contract (under certain contracts, the interval lasts more than a year) and the last billing to be issued for an integrated solution contract is scheduled at the end of a warranty period. For Concord and Bond, billing claims rendered are subject to the further approval and certification of the customers or their designated consultants. Payments are made to Concord or Bond based on the certified billings according to the payment terms mutually agreed between the customers and Concord or Bond. Certain amounts are retained by the customer and payable to Concord and Bond upon satisfaction of final quality inspection or at the end of the warranty period. The retained amounts which were recorded as accounts receivable were $ 9,653 10,380 10,848 The Company does not require collateral from its customers. Based on the prevailing collection practices in China, it is a reasonable expectation for the enterprises in the automation industry to take over one year to collect the accounts receivable in full. The Company does not charge interest for late payments by its customers. The Company periodically reviews the status of contracts and decides how much of an allowance for doubtful accounts should be made based on factors surrounding the credit risk of customers and historical experience. The Company sets up a doubtful account for a customer based on the aging of the outstanding amount as well as the customer’s credit worthiness. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, plant and equipment, other than construction in progress, are recorded at cost and are stated net of accumulated depreciation and impairment, if any. Buildings 30 - 50 Machinery 5 10 Software 3 5 Vehicles 5 6 Electronic and other equipment 3 10 Construction in progress represents uncompleted construction work of certain facilities which, upon completion, management intends to hold for production purposes. In addition to costs under construction contracts, other costs directly related to the construction of such facilities, including duty and tariff, equipment installation and shipping costs, and borrowing costs are capitalized. Depreciation commences when the asset is placed in service. Maintenance and repairs are charged directly to expenses as incurred, whereas betterment and renewals are capitalized in their respective accounts. When an item is retired or otherwise disposed of, the cost and applicable accumulated depreciation are removed and the resulting gain or loss is recognized for the reporting period. |
Lease, Policy [Policy Text Block] | Prepaid land leases, net Prepaid land lease payments, for the land use right of three parcels of land in the PRC, three parcels of leasehold land in Malaysia and one parcel of leasehold land in Singapore, are initially stated at cost and are subsequently amortized on a straight-line basis over the lease terms of 49 88 |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Acquired intangible assets, net Acquired intangible assets are carried at cost less accumulated amortization and any impairment. Intangible assets acquired in a business combination are recognized initially at fair value at the date of acquisition. Intangible assets, except for which are estimated to have an indefinite useful life, are amortized using a straight-line method. Intangible assets estimated to have an indefinite useful life are not amortized but tested for impairment annually or more frequently when indicators of impairment exist. Category Estimated useful life Customer relationship 57 - 60 Order backlog 21 33 Residual values are considered nil. |
Goodwill Impairment [Policy Text Block] | Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired. The Company’s goodwill outstanding at June 30, 2016 was related to the acquisition of Concord and Bond (see note 3). In accordance with ASC 350, Intangibles, Goodwill and Other Goodwill is tested for impairment on June 30 in each year. The Company performs a qualitative assessment to determine if it is more likely than not that the fair value of each identified reporting unit is less than its carrying amount. If this is the case, the Company is not required to calculate the fair value of its reporting unit(s) and perform the two-step impairment test. However, if the Company concludes otherwise, the first step of the two-step impairment test is performed by comparing the carrying value of its reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the second step is performed, where the implied fair value of goodwill is compared to its carrying value. The Company recognizes an impairment charge for the amount by which the carrying amount of goodwill exceeds its implied fair value. For the year ended June 30, 2015, the Company recorded an impairment charge of $ 1,855 |
Impairment Of Long Lived Assets Other Than Goodwill [Policy Text Block] | The Company evaluates its long-lived assets or asset group including acquired intangibles with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of a group of long-lived assets may not be fully recoverable. When these events occur, the Company evaluates the impairment by comparing the carrying amount of the assets to future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the asset group over its fair value, generally based upon discounted cash flows or quoted market prices. There was no impairment loss for the periods presented. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and handling costs All shipping and handling fees charged to customers are included in net revenue. Shipping and handling costs incurred are included in cost of integrated contracts and/or costs of products sold as appropriate. |
Income Tax, Policy [Policy Text Block] | Income taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Company adopted ASC 740, Income Taxes , |
Research and Development Expense, Policy [Policy Text Block] | Research and development costs Research and development costs consist primarily of salaries, bonuses and benefits for research and development personnel. Research and development costs also include travel expenses of research and development personnel as well as depreciation of hardware equipment and software tools and other materials used in research and development activities. Research and development costs are expensed as incurred. Software development costs are also expensed as incurred as the costs qualifying for capitalization have been insignificant. |
Vat Refunds and Government Subsidies [Policy Text Block] | Pursuant to the laws and regulations of the PRC, the Company remits 17 3 5,792 7,593 6,085 5,103 2,191 2,886 |
Appropriations To Statutory Reserve [Policy Text Block] | Under the corporate law and relevant regulations in the PRC, all of the subsidiaries of the Company located in the PRC are required to appropriate a portion of its retained earnings to statutory reserve. All subsidiaries located in the PRC are required to appropriate 10 |
Segment Reporting, Policy [Policy Text Block] | In accordance with ASC 280, Segment reporting |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive income Comprehensive income is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. In accordance with ASC 220, Comprehensive Income |
Equity and Cost Method Investments, Policy [Policy Text Block] | The Company accounts for its equity investments under either the cost method or the equity method by considering the Company’s rights and ability to exercise significant influence over the investees. Under the cost method, investments are initially carried at cost. In the event that the fair value of the investment falls below the initial cost and the decline is considered as other-than-temporary, the Company recognizes an impairment charge, equal to the difference between the cost basis and the fair value of the investment. A variety of factors are considered when determining if a decline in fair value below carrying value is other than temporary, including, among others, the financial condition and prospects of the investee. The investments in entities over which the Company has the ability to exercise significant influence are accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20 50 Under the equity method, original investments are recorded at cost and adjusted by the Company’s share of undistributed earnings or losses of these entities, by the amortization of any basis difference between the amount of the Company’s investment and its share of the net assets of the investee, and by dividend distributions or subsequent investments. Unrealized inter-company profits and losses related to equity investees are eliminated. An impairment charge, being the difference between the carrying amount and the fair value of the equity investee, is recognized in the consolidated statements of comprehensive income when the decline in value is considered other than temporary. The impairment loss on investment in cost investees for the years ended June 30, 2014, 2015 and 2016 were $325, nil and nil, respectively. There was no impairment loss on investments in equity investees for the years ended June 30, 2014, 2015 and 2016, respectively. |
Interest Capitalization, Policy [Policy Text Block] | Capitalization of interest Interest incurred on borrowings for the Company’s construction of facilities and assembly line projects during the active construction period are capitalized. The capitalization of interest ceases once a project is substantially complete. The amount to be capitalized is determined by applying the weighted-average interest rate of the Company’s outstanding borrowings to the average amount of accumulated capital expenditures for assets under construction during the year and is added to the cost of the underlying assets and amortized over their respective useful lives. |
Earnings Per Share, Policy [Policy Text Block] | Income per share Income per share is computed in accordance with ASC 260, Earnings Per Share |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | The Company accounts for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation For share-based awards that are subject to performance-based vesting conditions in addition to time-based vesting, the Company recognizes the estimated fair value of performance-based awards, net of estimated forfeitures, as share-based compensation expense over the vesting period based upon the Company’s determination of whether it is probable that the performance-based criteria will be achieved. At each reporting period, the Company reassesses the probability of achieving the performance-based criteria. Determining whether the performance-based criteria will be achieved involves judgment, and the estimate of share-based compensation expense may be revised periodically based on changes in the probability of achieving the performance-based criteria. Revisions are reflected in the period in which the estimate is changed. If the performance-based criteria are not met, no share-based compensation expense is recognized, and, to the extent share-based compensation expense was previously recognized, such share-based compensation expense is reversed. |
Fair Value Measurement, Policy [Policy Text Block] | Fair value measurements The Company has adopted ASC 820, Fair Value Measurements and Disclosures Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. |
Revenue Recognition Leases [Policy Text Block] | Leases Leases have been classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. |
Lessor [Policy Text Block] | Accounting for lessor Minimum contractual rental from leases are recognized on a straight-line basis over the non-cancelable term of the lease. With respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue commences when the customer assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Contingent rental revenue is accrued when the contingency is removed. |
Concentration Of Risks [Policy Text Block] | Concentration of credit risk Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents, time deposits with original maturities over three months, restricted cash, accounts receivable, other receivables and amounts due from related parties. The maximum exposure of such assets to credit risk is their carrying amounts as of the balance sheet date. As of June 30, 2016, substantially all of the Company’s cash and cash equivalents and time deposits with original maturities exceeding three months were managed by financial institutions located in the PRC, Singapore, Malaysia and Dubai, which management believes are of high credit quality. Accounts receivable, other receivables and amounts due from related parties are typically unsecured and the risk with respect to accounts receivable is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances. The Company has no customer that individually comprised 10 Concentration of business and economic risk A majority of the Company’s net revenue and net income are derived in the PRC. The Company’s operations may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 20 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC’s political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective. Concentration of currency convertibility risk A majority of the Company’s businesses are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. Concentration of foreign currency exchange rate risk The Company’s exposure to foreign currency exchange rate risk primarily relates to monetary assets or liabilities held in foreign currencies. Since July 21, 2005, the RMB has been permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. On June 19, 2010, the People’s Bank of China announced the end of the RMB’s de facto peg to USD, a policy which was instituted in late 2008 in the face of the global financial crisis, to further reform the RMB exchange rate regime and to enhance the RMB’s exchange rate flexibility. The exchange rate floating bands will remain the same as previously announced in the inter-bank foreign exchange market. The depreciation of the US dollars against RMB was approximately 0.42 0.64 8.68 For the years ended June 30, 2014, 2015 and 2016, the net foreign currency translation gains (losses) resulting from the translation of RMB and SGD functional currencies to the U.S. dollar reporting currency recorded in other comprehensive income was $ 2,146 (1,386) (48,841) |
New Accounting Pronouncements, Policy [Policy Text Block] | In January 2015, FASB issued ASU No. 2015-01, Income StatementExtraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”) Subtopic 225-20, Income StatementExtraordinary and Unusual Items In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs In July 2015, FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In August 2015, the FASB issued Accounting Standards Update 2015-14, which defers the effective date of ASU 2014-09 Revenue from Contracts with Customers (Topic 606) In September 2015, the FASB issued ASU No. 2015-16 (“ASU 2015-16”), Business Combinations (Topic 805) Simplifying the Accounting for Measurement Period Adjustments In November 2015, the FASB issued ASU No. 2015-17 (“ASU 2015-17”), Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases On March 30, 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. |
ORGANIZATION AND BUSINESS BAC36
ORGANIZATION AND BUSINESS BACKGROUND (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of Consolidated Subsidiaries [Table Text Block] | As of June 30, 2016, details of the Company’s subsidiaries are as follows: Name of company Place of Date of Percentage of ownership Principal activities Directly Indirectly Gifted Time Holdings Limited (“GTH”) BVI September 21, 2005 100 % - Investment holding Clear Mind Limited (“Clear Mind”) BVI November 29, 2007 - 100 % Investment holding World Hope Enterprises Limited (“World Hope”) Hong Kong September 17, 2007 - 100 % Investment holding Beijing Helitong Science & Technology Exploration Co., Ltd. (“Helitong”) The People’s Republic of China (“PRC”) January 25, 2008 - 100 % Investment holding Hollysys Group Co., Ltd. (“Hollysys Group”) PRC December 17, 2007 - 100 % Investment holding Hollysys (Beijing) Investment Co., Ltd. (“Hollysys Investment”) PRC April 15, 2011 - 100 % Investment management Beijing Hollysys PRC May 13, 2008 - 100 % Provision of integrated automation products and services Hangzhou Hollysys Automation Co., Ltd. (“Hangzhou Hollysys”) PRC September 24, 2003 - 100 % Provision of integrated automation products and services Hangzhou Hollysys System Engineering Co., Ltd. (“Hangzhou System”) PRC July 24, 2012 - 100 % Provision of integrated automation products and services Beijing Hollysys Electronics Technology Co., Ltd. (“Hollysys Electronics”) PRC June 4, 2010 - 100 % Manufacture components of automation products for members of Hollysys Beijing Hollycon Medicine & Technology Co., Ltd. (“Hollycon”) PRC June 4, 2010 - 51 % Manufacture and sale of medical automation equipment Beijing Hollysys Co., Ltd. (“Beijing Hollysys”) PRC September 25, 1996 - 100 % Provision of integrated automation products and services Xi’an Hollysys Co., Ltd. (“Xi'an Hollysys”) PRC March 9, 2011 - 100 % Research and development Hollysys International Pte. Limited (“HI”) Singapore January 10, 2013 100 % - Investment holding Hollycon (Italy) Pte. Ltd. ("Hollycon Italy") Italy December 15, 2014 - 99 % Manufacture and sale of medical automation equipment Hollysys (Asia Pacific) Pte. Limited (“HAP”) Singapore October 23, 1997 - 100 % Provision of integrated automation products and services Hollysys Automation India Private Limited (“HAIP”) India March 31, 2014 - 100 % Provision of automation products Concord Corporation Pte. Ltd. (“CCPL”) Singapore March 10, 2008 - 100 % Provision of mechanical and electrical solutions and installation services Concord Electrical Pte. Ltd. (“CEPL”) Singapore May 25, 1984 - 100 % Provision of mechanical and electrical solutions and installation services Concord Electrical Sdn. Bhd. (“CESB”) Malaysia May 13, 1994 - 100 % Provision of mechanical and electrical solutions and installation services Concord Solution (HK) Limited (“CSHK”) Hong Kong May 9, 2012 - 100 % Provision of mechanical and electrical solutions and installation services Concord M Design and Engineering Company Limited (“CMDE”) Macau February 21, 2013 - 100 % Provision of mechanical and electrical solutions and installation services Concord Electrical Contracting LLC (“CECL”) Qatar November 24, 2015 - 49 % Provision of mechanical and electrical solutions and installation services Bond Corporation Pte. Ltd. (“BCPL”) Singapore November 1, 2012 - 100 % Investment holding Bond M & E Pte. Ltd. (“BMSG”) Singapore March 6, 1981 - 100 % Provision of mechanical and electrical solutions and installation services Bond M & E Sdn. Bhd. (“BMJB”) Malaysia October 25, 1983 - 100 % Provision of mechanical and electrical solutions and installation services Bond M & E (KL) Sdn. Bhd. (“BMKL”) Malaysia October 24, 1989 - 100 % Provision of mechanical and electrical solutions and installation services |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Depreciation expense is determined using the straight-line method over the estimated useful lives of the assets as follows: Buildings 30 - 50 Machinery 5 10 Software 3 5 Vehicles 5 6 Electronic and other equipment 3 10 |
Schedule Of Acquired Finite Lived Intangible Assets By Major Class [Table Text Block] | The estimated useful lives for the acquired intangible assets are as follows: Category Estimated useful life Customer relationship 57 - 60 Order backlog 21 33 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Net income performance targets for Incentive Shares [Table Text Block] | The net income performance targets for the Incentive Shares for Bond are as follows: First installment Second installment Basis of performance target Net income for the year ending December 31, 2013 Net income for the year ending December 31, 2014 Target net income $ 8,806 $ 10,567 Nominal value of shares $ 10,950 $ 10,950 Referencing share price to achieve the nominal value of shares Average closing price of the Company’s shares during the trading days from October 1 to December 31, 2013 Average closing price of the Company’s shares during the trading days from October 1 to December 31, 2014 |
Schedule of Compound Annual Growth Rate Performance Targets For Premium Shares [Table Text Block] | The CAGR performance targets for the Premium Shares for Bond for the two-year period are as follows: CAGR performance target Premium shares issuable 21% 3 22% 6 23% 9 24% 12 25% and above 15 |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | The acquisition date fair value of the considerations as of the acquisition date is summarized in the below table: Considerations Fair value as at 1) Cash consideration (i) $ 35,059 2) Ordinary shares 16,909 3) Incentive Shares for Bond (ii) 21,837 4) Premium Shares for Bond (iii) - Total consideration $ 73,805 (i) The cash installments of $ 16,390 5,510 14,600 648,697 461,107 (iii) Bond also achieved the performance target of 25 166,471 |
Bond [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition: April 1, 2013 Cash and cash equivalents $ 4,460 Time deposits with original maturities over three months 7,486 Restricted cash 242 Accounts receivable 9,966 Cost and estimated earnings in excess of billings 6,340 Other receivables 886 Advances to suppliers 110 Inventories 133 Deferred tax assets 105 Assets held for sale 2,951 Property, plant and equipment 4,891 Prepaid land leases 5,884 Intangible assets 14,359 Investments in equity investees 261 Total identifiable assets acquired 58,074 Short-term bank loans 5,532 Accounts payable 8,654 Deferred revenue 2,315 Income tax payable 1,015 Other tax payable 142 Accrued liabilities 314 Deferred tax liabilities 3,791 Long-term bank loans 2,257 Total liabilities assumed 24,020 Net identifiable assets acquired 34,054 Goodwill 39,751 Net assets acquired $ 73,805 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Components of inventories are as follows: June 30, 2015 2016 Raw materials $ 12,857 $ 12,975 Work in progress 8,157 12,770 Finished goods 13,692 10,656 $ 34,706 $ 36,401 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, 2015 2016 Accounts receivable $ 286,797 $ 279,650 Allowance for doubtful accounts (34,259) (42,471) $ 252,538 $ 237,179 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The movements in allowance for doubtful accounts are as follows: June 30, 2014 2015 2016 Balance at the beginning of year $ 20,103 $ 25,691 $ 34,259 Additions 7,604 13,907 12,000 Written off (2,104) (5,499) (714) Translation adjustment 88 160 (3,074) Balance at the end of year $ 25,691 $ 34,259 $ 42,471 |
COSTS AND ESTIMATED EARNINGS 41
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Costs In Excess Of Billings and Billings In Excess Of Costs Incurred [Abstract] | |
Costs In Excess Of Billings And Billings In Excess Of Costs [Table Text Block] | June 30, 2015 2016 Contracts costs incurred plus estimated earnings $ 827,955 $ 887,037 Less: Progress billings (653,768) (690,726) Cost and estimated earnings in excess of billings 174,187 196,311 Less: Allowance for doubtful accounts (8,850) (6,383) $ 165,337 $ 189,928 |
Allowance For Doubtful Accounts Of Costs And Estimated Earnings In Excess Of Billings [Table Text Block] | The movements in allowance for doubtful accounts are as follows: June 30, 2014 2015 2016 Balance at the beginning of year $ 2,362 $ 5,839 $ 8,850 Additions 3,471 3,085 (1,823) Written off - (122) - Translation adjustment 6 48 (644) Balance at the end of the year $ 5,839 $ 8,850 $ 6,383 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | A summary of property, plant and equipment is as follows: June 30, 2015 2016 Buildings $ 72,643 $ 71,037 Machinery 7,594 8,148 Software 6,263 7,377 Vehicles 4,012 3,886 Electronic and other equipment 25,942 23,704 Construction in progress 1,159 5,753 $ 117,613 $ 119,905 Less: Accumulated depreciation (37,391) (39,967) $ 80,222 $ 79,938 |
Schedule of Property Subject to or Available for Operating Lease [Table Text Block] | June 30, 2015 2016 Buildings leased to others - at original cost $ 10,962 $ 10,086 Less: accumulated depreciation (3,808) (3,725) Buildings leased to others - net $ 7,154 $ 6,361 |
PREPAID LAND LEASES (Tables)
PREPAID LAND LEASES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | A summary of prepaid land leases is as follows: June 30, 2015 2016 Prepaid land leases $ 13,362 $ 12,641 Less: Accumulated amortization (1,713) (1,868) $ 11,649 $ 10,773 |
Schedule of Future Amortization Expenses of Prepaid Land Lease [Table Text Block] | The annual amortization of prepaid land leases for each of the five succeeding years is as follows: Year ending June 30, 2017 $ 268 2018 268 2019 268 2020 268 2021 268 $ 1,340 |
ACQUIRED INTANGIBLE ASSETS, N44
ACQUIRED INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule Of Finite Lived Intangible Assets Acquired As Part Of Business Combination [Table Text Block] | June 30, 2015 2016 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 3,155 (1,652) 1,503 $ 3,151 (2,308) 843 Order backlog 11,862 (11,672) 190 11,848 (11,835) 13 $ 15,017 (13,324) 1,693 $ 14,999 (14,143) 856 |
Schedule of Expected Amortization Expense [Table Text Block] | The annual amortization expense relating to the existing intangible assets for each of five succeeding years is as follows: Year ending June 30, 2017 $ 575 2018 281 2019 - 2020 - 2021 - $ 856 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill are as follows: June 30, 2015 2016 Balance at beginning of year $ 66,640 $ 59,918 Goodwill impairment charge (1,855) - Translation adjustment (4,867) (71) Balance at the end of year $ 59,918 $ 59,847 |
INVESTMENTS IN EQUITY AND COS46
INVESTMENTS IN EQUITY AND COST INVESTEES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Equity and Cost Method Investments [Abstract] | |
Schedule Of Long Term Investments Accounted For Equity Method Or Cost Method [Table Text Block] | June 30, 2015 Interest Long-term Share of Advance to Total Equity method China Techenergy Co., Ltd. 40.00 % $ 9,814 (5,953) 48 3,909 Beijing Hollysys Electric Motor Co., Ltd. 40.00 % 866 3,722 - 4,588 Beijing IPE Biotechnology Co., Ltd. 23.39 % 1,613 2,185 - 3,798 Beijing Hollysys Machine Automation Co., Ltd. 30.00 % 491 (491) - - Southcon Development Sdn Bhd. 30.00 % 238 (21) - 217 $ 13,022 (558) 48 12,512 Cost method Shenhua Hollysys Information Technology Co., Ltd. 20.00 % $ 2,593 - - 2,593 Heilongjiang Ruixing Technology Co., Ltd. 8.31 % 1,773 - - 1,773 Zhongjijing Investment Consulting Co., Ltd. 5.00 % - - - - Zhejiang Sanxin Technology Co., Ltd. 6.00 % 98 - - 98 $ 4,464 - - 4,464 June 30, 2016 Interest Long-term Share of Advance Total Equity method China Techenergy Co., Ltd. 40.00 % $ 9,030 1,077 44 10,151 Beijing Hollysys Electric Motor Co., Ltd. 40.00 % 797 3,961 - 4,758 Beijing IPE Biotechnology Co., Ltd. 23.39 % 1,484 2,213 - 3,697 Beijing Hollysys Machine Automation Co., Ltd. 30.00 % 452 (452) - - Southcon Development Sdn Bhd. 30.00 % 224 (116) - 108 $ 11,987 6,683 44 18,714 Cost method Shenhua Hollysys Information Technology Co., Ltd. 20.00 % $ 2,387 - - 2,387 Heilongjiang Ruixing Technology Co., Ltd. 6.00 % 1,631 - - 1,631 Zhongjijing Investment Consulting Co., Ltd. 5.00 % - - - - Zhejiang Sanxin Technology Co., Ltd. 6.00 % 90 - - 90 $ 4,108 - - 4,108 |
WARRANTY LIABILITIES (Tables)
WARRANTY LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | June 30, 2015 2016 Beginning balance $ 7,616 $ 10,387 Expense accrued 6,647 3,876 Expense incurred (3,924) (3,075) Translation adjustment 48 (828) $ 10,387 $ 10,360 Less: current portion of warranty liabilities (7,310) (6,782) Long-term warranty liabilities $ 3,077 $ 3,578 |
LONG-TERM LOANS (Tables)
LONG-TERM LOANS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt Instruments [Table Text Block] | June 30, 2015 2016 RMB denominated loan (i) 8,996 - USD denominated loan (ii) 4,794 4,770 MYR denominated loan (iii) 936 830 SGD denominated loan (iv) 364 1,939 Convertible Bond (v) $ 19,572 $ 19,802 34,662 27,341 Less: current portion (14,111) (6,833) $ 20,551 $ 20,508 i. The RMB denominated loan is repayable in three installments with the last installment due on March 29, 2016. It carried an annual interest rate of 5.94 35,091 32,420 ii. The USD denominated loan is repayable in one installment by July 31, 2017. It carries an annual interest rate of 4.3 5,136 4,515 iii. The MYR denominated loans are repayable in 2 to 82 installments with the last installment due in Aril 2023. For the year ended June 30, 2016, the effective interest rates ranged from 2.3 7.15 1,258 1,019 iv. The SGD denominated loans are repayable in 10 to 64 installments with the last installment due on March 15, 2020. For the year ended June 30, 2016, the effective interest rates ranged from 2.6 2.8 840 3,148 v. Convertible Bond On May 30, 2014, the Company entered into a Convertible Bond agreement with International Finance Corporation ("IFC"), under which the Company borrowed $ 20,000 2.1 0.5 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year ending June 30, 2017 $ 6,992 2018 345 2019 19,885 2020 67 2021 and onwards 52 $ 27,341 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | Assets and liabilities measured at fair value on a recurring basis as of June 30, 2015, and 2016 are stated below: June 30, 2015 Quoted Significant Significant (Level 1) (Level 2) (Level 3) Total Liabilities: Non-conversion compensation feature related to the Convertible Bond (i) $ - $ - $ 305 $ 305 Acquisition-related consideration (ii) 15,081 - - 15,081 Total liabilities measured at fair value on a recurring basis $ 15,081 $ - $ 305 $ 15,386 June 30, 2016 Quoted prices Significant Significant (Level 1) (Level 2) (Level 3) Total Liabilities: Non-conversion compensation feature related to the Convertible Bond (i) $ - $ - $ 398 $ 398 Total liabilities measured at fair value on a recurring basis $ - $ - $ 398 $ 398 (i) The non-conversion compensation feature represents the fair value of the non-conversion compensation feature (note 14). The Company engaged an independent third-party appraiser to assist with the valuation of the feature. The Company is ultimately responsible for the fair value of the non-conversion compensation feature recorded in the consolidated financial statements. The Company adopted the binomial model to assess the fair value of such feature as of year-end. The non-conversion compensation feature is equal to the difference between the fair value of the whole Convertible Bond with the non-conversion compensation feature and the whole Convertible Bond without the non-conversion feature. The significant unobservable inputs used in the fair value measurement of the non-conversion compensation feature includes the risk-free rate of return, expected volatility, expected life of the Convertible Bond and expected ordinary dividend yield. The changes in fair value of the non-conversion compensation feature during fiscal year 2015 and 2016 are shown in the following table. Fair value measurements as of (Level 3) Non-conversion compensation feature Balance as at June 30, 2015 $ 305 Change in fair-value (included within other expenses, net) 93 Balance as of June 30, 2016 $ 398 (ii) Acquisition-related consideration represents the fair value of Incentive Shares and Premium Shares for Bond (note 3). The fair value of the contingent consideration in connection with the acquisition was estimated using probability-weighted discounted cash flow models. Key assumptions include discount rate, a percent weighted-probability of Bond achieving net income performance targets and a percent weighted-probability of Bond achieving CAGR performance targets. As of June 30, 2015, Bond has achieved the net income performance target and the CAGR performance target. In addition, the referencing share price was determinable as of December 31, 2014 and the remaining input to the fair value of the Incentive and Premium Shares for Bond is the Company’s share price on the date of issuance, which is observable from an active market. Therefore, the fair value measurement of the acquisition-related consideration is transferred from Level 3 to Level 1 on December 31, 2014. In December 2015, all the remaining incentive shares and premium shares consideration were issued. As of June 30, 2015 and June 30, 2016, the fair value of the acquisition-related consideration in connection with Bond totaled $ 15,081 |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Assets measured at fair value on a nonrecurring basis as of June 30, 2015 are stated below: June 30, 2015 Quoted prices in Significant other Significant (Level 1) (Level 2) (Level 3) Total Assets: Goodwill (i) $ - $ - $ 23,285 $ 23,285 Total assets measured at fair value on a non-recurring basis $ - $ - $ 23,285 $ 23,285 (i) The Company’s goodwill of $ 23,285 36,633 1,855 |
SHARE-BASED COMPENSATION EXPE50
SHARE-BASED COMPENSATION EXPENSES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | A summary of the restricted share activity for the year ended June 30, 2016 is as follows: Number of restricted shares Weighted average grant-date fair value Un-vested at June 30, 2015 31,875 23.95 Vested (17,500) 23.95 Un-vested at June 30, 2016 14,375 23.95 |
Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the 2012 performance option activity under the 2006 Plan for the year ended June 30, 2016 is as follows: 2012 Performance Number of Weighted Weighted average Aggregate intrinsic Outstanding at June 30, 2015 1,333,500 $ 8.89 1.64 $ 20,189 Exercised (612,000) $ 8.89 Outstanding at June 30, 2016 721,500 $ 8.89 0.64 $ 6,118 Vested and expected to vest at June 30, 2016 721,500 8.89 0.64 6,118 Exercisable at June 30, 2016 721,500 8.89 0.64 6,118 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The valuation-date fair value of each 2012 performance share option granted is estimated on the date of grant using the Black-Scholes-Merton Option Pricing Model. The following table presents the assumptions used to estimate the fair values of the share options granted in the periods presented: For options granted on Risk-free rate of return 0.71 % Expected life (in years) 4.17 Weighted average expected volatility 62.64 % Expected dividends - |
Vesting Schedule For Performance Shares [Table Text Block] | The vesting schedule for such performance share options is as below: EPS Threshold Number of vested options Months after the grant date 24 months 36 months 48 months Over 15% but below 20% 944,000 283,200 283,200 377,600 Equal or over 20% but below 25% Additional 236,000 - - 236,000 25% or above Additional 236,000 - - 236,000 Total 283,200 283,200 849,600 |
Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the 2015 performance option activity for the year ended June 30, 2016 is as shown below: 2015 Performance Number of Weighted Weighted average Aggregate intrinsic Outstanding as at June 30, 2015 and 2016 1,740,000 22.25 3.87 - Vested and expected to vest at June 30, 2016 950,000 22.25 3.87 - Exercisable at June 30, 2016 - $ - - $ - |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The major inputs to the binomial model are as follows: For options granted on Risk-free rate of return 1.51 % Weighted average expected volatility 53.42 % Expected life (in years) 5 years Expected ordinary dividend yield nil |
Vesting Schedule For Performance Shares [Table Text Block] | The vesting schedule for such performance share options is as below: EPS Threshold Number of vested Months after the grant date 24 36 48 Annual growth rate over 15% but below 20% 1,160,000 348,000 348,000 464,000 CAGR equals or over 20% but below 25% Additional 290,000 - - 290,000 CAGR equals 25% or above Additional 290,000 - - 290,000 Total 348,000 348,000 1,044,000 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The Company’s income before income taxes consists of: Year ended June 30, 2014 2015 2016 PRC $ 97,931 $ 134,657 $ 142,900 Non-PRC (6,619) (9,430) (5,158) $ 91,312 $ 125,227 $ 137,742 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended June 30, 2014 2015 2016 Current income tax expense PRC 22,055 16,074 10,590 Singapore 2,966 1,151 235 Hong Kong - 2,279 2,776 Malaysia 267 1,690 1,099 $ 25,288 $ 21,194 $ 14,700 Deferred income tax (benefit) expense PRC (4,868) 5,834 (196) Singapore (1,982) (894) (181) Hong Kong - - Malaysia 1,423 (94) (85) $ (5,427) 4,846 (462) $ 19,861 $ 26,040 $ 14,238 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation of the income tax expenses as computed by applying the PRC statutory tax rate 25 and the actual income tax expenses is as follows: Year ended June 30, 2014 2015 2016 Income before income taxes $ 91,312 $ 125,227 $ 137,742 Expected income tax expense at statutory tax rate in the PRC 22,828 31,307 34,436 Effect of different tax rates in various jurisdictions 2,709 1,286 2,109 Effect of preferential tax treatment (5,027) (12,453) (12,296) Effect of non-taxable income (5,747) (6,770) (4,985) Effect of additional deductible research and development expenses (2,604) (2,772) (4,716) Effect of non-deductible expenses 6,379 8,402 5,569 Effect of change in tax rate - (4,191) (6,613) Change in valuation allowance 2,075 1,475 540 Tax rate differential on deferred tax items (2,193) 3,139 (587) Withholding tax on dividend paid by subsidiaries 1,381 6,028 1,252 Recognition of temporary difference not recognized in previous years 284 323 - Others (224) 266 (471) Total $ 19,861 $ 26,040 $ 14,238 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The breakdown of deferred tax assets/liabilities caused by the temporary difference is shown as below: June 30, 2015 2016 Deferred tax assets, current Allowance for doubtful accounts $ 6,885 $ 9,838 Inventory provision 148 205 Provision for contract loss 430 917 Long-term assets 14 13 Deferred revenue 5,737 3,522 Deferred subsidies 570 1,020 Warranty liabilities 1,109 1,322 Recognition of intangible assets 107 57 Accrued payroll 899 960 Net operating loss carry forward 5,843 6,361 Valuation allowance (5,796) (6,307) Total deferred tax assets, current $ 15,946 $ 17,908 Deferred tax liabilities, current Costs and estimated earnings in excess of billings $ (12,685) $ (16,068) Recognition of intangible assets (1,246) (1,060) PRC dividend withholding tax (4,653) (3,010) Others (36) (24) Total deferred tax liabilities, current $ (18,620) $ (20,162) Net deferred tax assets, current $ 3,214 $ 6,659 Net deferred tax liabilities, current $ (5,888) $ (8,913) Deferred tax assets, non-current Long-term assets $ 522 $ 699 Deferred subsidies 1,739 2,642 Recognition of intangible assets 63 (16) Warranty liabilities 452 874 Total deferred tax assets, non-current $ 2,776 $ 4,199 Deferred tax liabilities, non-current Share of net gains of equity investees $ 99 $ (1,733) Intangible assets and other non-current assets (371) (330) Total deferred tax liabilities, non-current $ (272) $ (2,063) Net deferred tax assets-non-current $ 2,581 $ 2,195 Net deferred tax liabilities-non-current $ (77) $ (59) |
INCOME PER SHARE (Tables)
INCOME PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted net income per share attributable to Hollysys for the years indicated: Year ended June 30, 2014 2015 2016 Numerator: Net income attributable to the Company - basic $ 69,620 $ 96,527 $ 118,471 Net income attributable to the Company - diluted (i) $ 69,620 $ 96,877 $ 119,121 Denominator: Weighted average ordinary shares outstanding used in computing basic income per share 57,926,333 58,612,596 59,170,050 Effect of dilutive securities Convertible Bond - 644,850 776,800 Share options 482,623 839,425 642,184 Restricted shares 17,686 37,332 22,422 Weighted average ordinary shares outstanding used in computing diluted income per share 58,426,642 60,134,203 60,611,456 Income per share - basic $ 1.20 1.65 2.00 Income per share - diluted $ 1.19 1.61 1.97 (i) For the year ended June 30, 2015 and 2016, interest accretion related to the Convertible Bond of $ 350 650 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule Of Amount Due From Related Parties [Table Text Block] | June 30, 2015 2016 China Techenergy $ 34,472 $ 22,579 Shenhua Information 3,447 2,995 Hollysys Machine 1,158 1,367 Heilongjiang Ruixing - 1,071 $ 39,077 $ 28,012 |
Schedule Of Amount Due To Related Parties [Table Text Block] | Due to related parties June 30, 2015 2016 China Techenergy $ 837 $ 1,170 Shenhua Information 818 358 Electric Motor 49 112 Hollysys Machine 9 5 $ 1,713 $ 1,645 |
Schedule of Related Party Transactions [Table Text Block] | Transactions with related parties Purchases of goods and services from: Year ended June 30, 2014 2015 2016 Hollysys Machine $ 1,980 $ 914 $ 555 Electric Motor 14 50 354 Shenhua Information 323 368 - China Techenergy - 1 - $ 2,317 $ 1,333 $ 909 Sales of goods and integrated solutions to: Year ended June 30, 2014 2015 2016 China Techenergy $ 3,136 $ 21,936 $ 3,657 Shenhua Information 2,726 2,128 847 Hollysys Machine 921 512 235 Electric Motor 2 1 - $ 6,785 $ 24,577 $ 4,739 Operating lease income from: Year ended June 30, 2014 2015 2016 Hollysys Machine $ 65 $ 41 $ 40 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Non Cancelable Operating Leases [Table Text Block] | Future minimum lease payments under non-cancelable operating leases with initial terms of one year or more consist of the following: Years ending June 30, Minimum lease payments 2017 $ 1,429 2018 441 2019 138 2020 84 2021 and onwards 15 Total minimum lease payments $ 2,107 |
OPERATING LEASES AS LESSOR (Tab
OPERATING LEASES AS LESSOR (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Leases [Abstract] | |
Minimum Lease Payment to Be Received For Operating Leases [Table Text Block] | The minimum rental income in the next five years is shown as below: Year ending June 30, Minimum lease payments 2017 $ 1,464 2018 1,508 2019 1,553 2020 1,600 2021 1,648 Total minimum lease payments to be received in the next five years $ 7,773 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Summarized information by segments for the years ended June 30, 2014, 2015, and 2016 is as follows: Year ended June 30, 2014 IA Rail M&E Miscellaneous Consolidated Revenues from external customers $ 224,366 178,134 108,846 9,986 521,332 Costs of revenue 143,645 104,055 93,459 4,550 345,709 Gross profit $ 80,721 74,079 15,387 5,436 175,623 Year ended June 30, 2015 IA Rail M&E Miscellaneous Consolidated Revenues from external customers $ 213,252 193,274 110,030 14,823 531,379 Costs of revenue 119,520 97,503 93,452 6,502 316,977 Gross profit $ 93,732 95,771 16,578 8,321 214,402 Year ended June 30, 2016 IA Rail M&E Miscellaneous Consolidated Revenues from external customers $ 182,901 240,310 95,277 25,837 544,325 Costs of revenue 113,314 131,043 82,900 11,342 338,599 Gross profit $ 69,587 109,267 12,377 14,495 205,726 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | The majority of the Company’s revenues and long-lived assets other than goodwill and acquired intangible assets are derived from and located in the PRC. The following table sets forth the revenues by geographical area: Year ended June 30, 2014 2015 2016 Revenues: PRC $ 393,596 $ 410,644 $ 443,256 Non-PRC (including Hong Kong) 127,736 120,735 101,069 $ 521,332 $ 531,379 $ 544,325 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | The following table sets forth the long-lived assets other than goodwill and acquired intangible assets by geographical area: June 30, 2015 2016 Long-lived assets other than goodwill and acquired intangible assets PRC $ 95,779 $ 100,454 Non-PRC (including Hong Kong) 13,068 13,079 $ 108,847 $ 113,533 |
CONDENSED FINANCIAL INFORMATI57
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet [Table Text Block] | CONDENSED BALANCE SHEETS June 30, 2015 2016 ASSETS Current assets: Cash and cash equivalents $ 8,437 $ 8,571 Time deposits with original maturities over three months 14,721 - Amounts due from subsidiaries 114,311 72,303 Prepaid expenses 50 63 Total current assets 137,519 80,937 Investments in subsidiaries 532,136 669,326 Total assets $ 669,655 $ 750,263 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accrued payroll and related expense $ 18 $ 9 Accrued liabilities 323 426 Amounts due to subsidiaries 70,642 55,869 Total current liabilities 70,983 56,304 Long-term loan 19,572 19,802 Total liabilities 90,555 76,106 Equity: Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 58,358,521 and 59,598,099 shares issued and outstanding as of June 30, 2015 and 2016, respectively 58 60 Additional paid-in capital 192,768 215,403 Retained earnings 348,689 467,160 Accumulated other comprehensive income (loss) 37,585 (8,466) Total equity 579,100 674,157 Total liabilities and equity $ 669,655 $ 750,263 |
Condensed Income Statement [Table Text Block] | CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Year Ended June 30, 2014 2015 2016 General and administrative expenses $ 3,721 $ 3,169 $ 4,484 Loss from operations (3,721) (3,169) (4,484) Other expense, net - (35) (93) Interest income - 1 80 Interest expenses - (463) (705) Foreign exchange gains (losses) 263 238 (719) Equity in profit of subsidiaries $ 73,078 $ 99,955 $ 124,392 Income before income taxes 69,620 96,527 118,471 Income tax expenses - - - Net income 69,620 96,527 118,471 Other comprehensive income, net of tax of nil Translation adjustment 2,140 (1,427) (46,052) Comprehensive income $ 71,760 $ 95,100 $ 72,419 |
Condensed Cash Flow Statement [Table Text Block] | CONDENSED STATEMENTS OF CASH FLOWS Year ended June 30, 2014 2015 2016 Net cash used in operating activities $ - $ (397) $ (1,697) Net cash used in investing activities - $ (4,402) $ 11,390 Net cash provided by financing activities $ - $ 13,236 $ (9,559) Net increase in cash and cash equivalents $ - $ 8,437 $ 134 Cash and cash equivalents, beginning of year $ - $ - $ 8,437 Cash and cash equivalents, end of year $ - $ 8,437 $ 8,571 |
ORGANIZATION AND BUSINESS BAC58
ORGANIZATION AND BUSINESS BACKGROUND (Details) | 12 Months Ended | |||||
Jun. 30, 2016 | Nov. 24, 2015 | Jun. 30, 2011 | Sep. 07, 2007 | Feb. 06, 2006 | Sep. 21, 2005 | |
Gifted Time Holdings Limited [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Gifted Time Holdings Limited (“GTH”) | |||||
Place of incorporation | BVI | |||||
Date of incorporation | Sep. 21, 2005 | |||||
Equity method investment, ownership percentage | 74.11% | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% | ||||
Principal activities | Investment holding | |||||
Gifted Time Holdings Limited [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Gifted Time Holdings Limited [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Clear Mind Limited [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Clear Mind Limited (“Clear Mind”) | |||||
Place of incorporation | BVI | |||||
Date of incorporation | Nov. 29, 2007 | |||||
Principal activities | Investment holding | |||||
Clear Mind Limited [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Clear Mind Limited [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
World Hope Enterprises Limited [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | World Hope Enterprises Limited (“World Hope”) | |||||
Place of incorporation | Hong Kong | |||||
Date of incorporation | Sep. 17, 2007 | |||||
Principal activities | Investment holding | |||||
World Hope Enterprises Limited [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
World Hope Enterprises Limited [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Beijing Helitong S&T Exploration Co Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Beijing Helitong Science & Technology Exploration Co., Ltd. (“Helitong”) | |||||
Place of incorporation | The People’s Republic of China (“PRC”) | |||||
Date of incorporation | Jan. 25, 2008 | |||||
Principal activities | Investment holding | |||||
Beijing Helitong S&T Exploration Co Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Beijing Helitong S&T Exploration Co Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Hollysys Group Co Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Hollysys Group Co., Ltd. (“Hollysys Group”) | |||||
Place of incorporation | PRC | |||||
Date of incorporation | Dec. 17, 2007 | |||||
Principal activities | Investment holding | |||||
Hollysys Group Co Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Hollysys Group Co Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Hollysys (Beijing) Investment Co Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Hollysys (Beijing) Investment Co., Ltd. (“Hollysys Investment”) | |||||
Place of incorporation | PRC | |||||
Date of incorporation | Apr. 15, 2011 | |||||
Principal activities | Investment management | |||||
Hollysys (Beijing) Investment Co Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Hollysys (Beijing) Investment Co Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Beijing Hollysys Automation Drive Co Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Beijing Hollysys Intelligent Technologies Co., Ltd. (“Hollysys Intelligent”) | |||||
Place of incorporation | PRC | |||||
Date of incorporation | May 13, 2008 | |||||
Principal activities | Provision of integrated automation products and services | |||||
Beijing Hollysys Automation Drive Co Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Beijing Hollysys Automation Drive Co Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Hangzhou Hollysys Automation Co., Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Hangzhou Hollysys Automation Co., Ltd. (“Hangzhou Hollysys”) | |||||
Place of incorporation | PRC | |||||
Date of incorporation | Sep. 24, 2003 | |||||
Equity method investment, ownership percentage | 60.00% | |||||
Principal activities | Provision of integrated automation products and services | |||||
Hangzhou Hollysys Automation Co., Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Hangzhou Hollysys Automation Co., Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Hangzhou Hollysys System Engineering Co Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Hangzhou Hollysys System Engineering Co., Ltd. (“Hangzhou System”) | |||||
Place of incorporation | PRC | |||||
Date of incorporation | Jul. 24, 2012 | |||||
Principal activities | Provision of integrated automation products and services | |||||
Hangzhou Hollysys System Engineering Co Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Hangzhou Hollysys System Engineering Co Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Beijing Hollysys Electronics Technology Co Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Beijing Hollysys Electronics Technology Co., Ltd. (“Hollysys Electronics”) | |||||
Place of incorporation | PRC | |||||
Date of incorporation | Jun. 4, 2010 | |||||
Principal activities | Manufacture components of automation products for members of Hollysys | |||||
Beijing Hollysys Electronics Technology Co Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Beijing Hollysys Electronics Technology Co Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Beijing Hollysys Co., Ltd. ("Beijing Hollysys") [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Beijing Hollysys Co., Ltd. (“Beijing Hollysys”) | |||||
Place of incorporation | PRC | |||||
Date of incorporation | Sep. 25, 1996 | |||||
Principal activities | Provision of integrated automation products and services | |||||
Beijing Hollysys Co., Ltd. ("Beijing Hollysys") [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Beijing Hollysys Co., Ltd. ("Beijing Hollysys") [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Xian Hollysys Co Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Xi’an Hollysys Co., Ltd. (“Xi'an Hollysys”) | |||||
Place of incorporation | PRC | |||||
Date of incorporation | Mar. 9, 2011 | |||||
Principal activities | Research and development | |||||
Xian Hollysys Co Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Xian Hollysys Co Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Hollysys International Pte Limited [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Hollysys International Pte. Limited (“HI”) | |||||
Place of incorporation | Singapore | |||||
Date of incorporation | Jan. 10, 2013 | |||||
Principal activities | Investment holding | |||||
Hollysys International Pte Limited [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Hollysys International Pte Limited [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Hollycon (Italy) Pte. Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Hollycon (Italy) Pte. Ltd. ("Hollycon Italy") | |||||
Place of incorporation | Italy | |||||
Date of incorporation | Dec. 15, 2014 | |||||
Principal activities | Manufacture and sale of medical automation equipment | |||||
Hollycon (Italy) Pte. Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Hollycon (Italy) Pte. Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 99.00% | |||||
Hollysys (Asia Pacific) Pte Limited [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Hollysys (Asia Pacific) Pte. Limited (“HAP”) | |||||
Place of incorporation | Singapore | |||||
Date of incorporation | Oct. 23, 1997 | |||||
Principal activities | Provision of integrated automation products and services | |||||
Hollysys (Asia Pacific) Pte Limited [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Hollysys (Asia Pacific) Pte Limited [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Hollysys Automation India Private Limited [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Hollysys Automation India Private Limited (“HAIP”) | |||||
Place of incorporation | India | |||||
Date of incorporation | Mar. 31, 2014 | |||||
Principal activities | Provision of automation products | |||||
Hollysys Automation India Private Limited [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Hollysys Automation India Private Limited [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Concord Corporation Pte Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Concord Corporation Pte. Ltd. (“CCPL”) | |||||
Place of incorporation | Singapore | |||||
Date of incorporation | Mar. 10, 2008 | |||||
Equity method investment, ownership percentage | 49.00% | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Principal activities | Provision of mechanical and electrical solutions and installation services | |||||
Concord Corporation Pte Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Concord Corporation Pte Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Concord Electrical Pte Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Concord Electrical Pte. Ltd. (“CEPL”) | |||||
Place of incorporation | Singapore | |||||
Date of incorporation | May 25, 1984 | |||||
Principal activities | Provision of mechanical and electrical solutions and installation services | |||||
Concord Electrical Pte Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Concord Electrical Pte Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Concord Electrical Sdn Bhd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Concord Electrical Sdn. Bhd. (“CESB”) | |||||
Place of incorporation | Malaysia | |||||
Date of incorporation | May 13, 1994 | |||||
Principal activities | Provision of mechanical and electrical solutions and installation services | |||||
Concord Electrical Sdn Bhd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Concord Electrical Sdn Bhd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Concord Solution (Hk) Limited [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Concord Solution (HK) Limited (“CSHK”) | |||||
Place of incorporation | Hong Kong | |||||
Date of incorporation | May 9, 2012 | |||||
Principal activities | Provision of mechanical and electrical solutions and installation services | |||||
Concord Solution (Hk) Limited [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Concord Solution (Hk) Limited [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Concord M Design and Engineering Company Limited [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Concord M Design and Engineering Company Limited (“CMDE”) | |||||
Place of incorporation | Macau | |||||
Date of incorporation | Feb. 21, 2013 | |||||
Principal activities | Provision of mechanical and electrical solutions and installation services | |||||
Concord M Design and Engineering Company Limited [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Concord M Design and Engineering Company Limited [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Concord Electrical Contracting LLC (“CECL”) [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Concord Electrical Contracting LLC (“CECL”) | |||||
Place of incorporation | Qatar | |||||
Date of incorporation | Nov. 24, 2015 | |||||
Principal activities | Provision of mechanical and electrical solutions and installation services | |||||
Concord Electrical Contracting LLC (“CECL”) [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Concord Electrical Contracting LLC (“CECL”) [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 49.00% | |||||
Bond Corporation Pte Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Bond Corporation Pte. Ltd. (“BCPL”) | |||||
Place of incorporation | Singapore | |||||
Date of incorporation | Nov. 1, 2012 | |||||
Principal activities | Investment holding | |||||
Bond Corporation Pte Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Bond Corporation Pte Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Bond M And E Pte Ltd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Bond M & E Pte. Ltd. (“BMSG”) | |||||
Place of incorporation | Singapore | |||||
Date of incorporation | Mar. 6, 1981 | |||||
Principal activities | Provision of mechanical and electrical solutions and installation services | |||||
Bond M And E Pte Ltd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Bond M And E Pte Ltd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Bond M And E Sdn Bhd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Bond M & E Sdn. Bhd. (“BMJB”) | |||||
Place of incorporation | Malaysia | |||||
Date of incorporation | Oct. 25, 1983 | |||||
Principal activities | Provision of mechanical and electrical solutions and installation services | |||||
Bond M And E Sdn Bhd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Bond M And E Sdn Bhd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Beijing Hollycon Medicine & Technology Co., Ltd. (“Hollycon”) [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Beijing Hollycon Medicine & Technology Co., Ltd. (“Hollycon”) | |||||
Place of incorporation | PRC | |||||
Date of incorporation | Jun. 4, 2010 | |||||
Principal activities | Manufacture and sale of medical automation equipment | |||||
Beijing Hollycon Medicine & Technology Co., Ltd. (“Hollycon”) [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Beijing Hollycon Medicine & Technology Co., Ltd. (“Hollycon”) [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 51.00% | |||||
Bond M & E (KL) Sdn Bhd [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Name of company | Bond M & E (KL) Sdn. Bhd. (“BMKL”) | |||||
Place of incorporation | Malaysia | |||||
Date of incorporation | Oct. 24, 1989 | |||||
Principal activities | Provision of mechanical and electrical solutions and installation services | |||||
Bond M & E (KL) Sdn Bhd [Member] | Direct [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 0.00% | |||||
Bond M & E (KL) Sdn Bhd [Member] | Indirect [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
ORGANIZATION AND BUSINESS BAC59
ORGANIZATION AND BUSINESS BACKGROUND (Details Textual) ¥ in Thousands, SGD in Thousands, HKD in Thousands, $ in Thousands | Dec. 23, 2009USD ($)shares | Dec. 23, 2009CNY (¥)shares | Jul. 01, 2009USD ($) | Jul. 01, 2009CNY (¥) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | May 30, 2013USD ($) | Nov. 24, 2015 | Apr. 01, 2013 | Feb. 21, 2013USD ($) | Jan. 10, 2013SGD | Dec. 31, 2012USD ($) | Jul. 24, 2012CNY (¥) | May 09, 2012HKD | Jun. 30, 2011 | Mar. 16, 2010USD ($) | Sep. 07, 2007 | Feb. 06, 2006 | Sep. 21, 2005 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 14,600 | $ 5,510 | $ 16,390 | ||||||||||||||||
Gifted Time Holdings Limited [Member] | |||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Percentage of ownership interest held | 74.11% | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 74.11% | ||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% | |||||||||||||||||
Beijing Hollysys [Member] | |||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Percentage of ownership interest held | 24.11% | 24.11% | 75.89% | 75.89% | 60.00% | 74.11% | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 1.78% | 1.78% | |||||||||||||||||
Acquisition of equity interest from non-controlling interest | $ 2,639 | ¥ 18,000 | |||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | shares | 4,413,948 | 4,413,948 | |||||||||||||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 9,917 | ¥ 67,634 | |||||||||||||||||
Equity Method Investments, Fair Value Disclosure | $ 53,012 | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 24.11% | 24.11% | 75.89% | 75.89% | 60.00% | 74.11% | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||||||||||||||||||
Hangzhou Hollysys Automation Co Ltd [Member] | |||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Percentage of ownership interest held | 60.00% | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 60.00% | ||||||||||||||||||
Hangzhou Hollysys [Member] | |||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Percentage of ownership interest held | 40.00% | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 40.00% | ||||||||||||||||||
Concord Corporation Pte Ltd [Member] | |||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Percentage of ownership interest held | 49.00% | ||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 95.00% | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||||||||||||||||||
Concord Corporation Pte Ltd [Member] | Nominee Shareholder [Member] | |||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Percentage of ownership interest held | 51.00% | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 51.00% | ||||||||||||||||||
Beijing Wodeweiye Technology Exploration Co Ltd [Member] | |||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Percentage of sold equity interest | 51.00% | ||||||||||||||||||
Sold of equity interest of consideration | $ 113 | ||||||||||||||||||
Bond Corporation Pte Ltd [Member] | |||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 100.00% | ||||||||||||||||||
Percentage of owned by parent with registered capital | 100.00% | ||||||||||||||||||
Registered Capital | SGD | SGD 20,000 | ||||||||||||||||||
Concord M Design and Engineering Company Limited [Member] | |||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Percentage of owned by parent with registered capital | 100.00% | ||||||||||||||||||
Registered Capital | $ 25 | ||||||||||||||||||
Concord Solution (Hk) Limited [Member] | |||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Percentage of owned by parent with registered capital | 100.00% | ||||||||||||||||||
Registered Capital | HKD | HKD 10 | ||||||||||||||||||
Hangzhou Hollysys System Engineering Co Ltd [Member] | |||||||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||||||||||
Percentage of owned by parent with registered capital | 100.00% | ||||||||||||||||||
Registered Capital | ¥ | ¥ 50,000 |
SUMMARY OF SIGNIFICANT ACCOUN60
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 50 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Computer Software, Intangible Asset [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Software, Intangible Asset [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 6 years |
Other Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Other Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN61
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Jun. 30, 2016 | |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 60 months |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 57 months |
Order or Production Backlog [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 33 months |
Order or Production Backlog [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 21 months |
SUMMARY OF SIGNIFICANT ACCOUN62
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Jun. 30, 2014CNY (¥) | |
Accounting Policies [Line Items] | ||||
Percentage Of Recognized Contractual Revenue | 100.00% | |||
Goodwill, Impairment Loss | $ 0 | $ 1,855 | $ 0 | |
Effective Value Added Tax Rate | 17.00% | |||
Percentage Of After Tax Income Transferred To Statutory Reserved | 10.00% | |||
Statutory Reserved, Balance, Maximum ,Description | 10 | |||
Impairment loss on long-term investment | $ 0 | $ 0 | 325 | ¥ 2,000 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | $ (299) | $ (6,765) | $ 794 | |
Percentage Of Currency Depreciation | 8.68% | 0.64% | 0.42% | 0.42% |
Retained Amount of Accounts Receivable | $ 10,848 | $ 10,380 | $ 9,653 | |
Government Grants Received | 6,085 | 7,593 | 5,792 | |
Revenue from Grants | 2,886 | $ 2,191 | 5,103 | |
Integrated Solutions Contracts Range Minimum | 6 months | |||
Integrated Solutions Contracts Range Maximum | 5 years | |||
Translation adjustments | $ (48,841) | $ (1,386) | $ 2,146 | |
Decreased Net Income Per Share Basic | $ / shares | $ 0.51 | $ 0.45 | $ 0.08 | |
Decreased Net Income Per Share diluted | $ / shares | $ 0.50 | $ 0.44 | $ 0.08 | |
Decreased Net Income | $ 30,270 | $ 26,232 | $ 4,436 | |
Malaysia [Member] | ||||
Accounting Policies [Line Items] | ||||
Deposits Assets | 8 | 5,878 | ||
SINGAPORE | ||||
Accounting Policies [Line Items] | ||||
Deposits Assets | $ 7,042 | $ 14,721 | ||
Accounts Receivable [Member] | ||||
Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 10.00% | 10.00% | ||
PRC [Member] | ||||
Accounting Policies [Line Items] | ||||
Deposits Assets | $ 35,318 | $ 29,051 | ||
Cost-method Investments [Member] | ||||
Accounting Policies [Line Items] | ||||
Revenue from Grants | $ 2,886 | |||
Software Development [Member] | ||||
Accounting Policies [Line Items] | ||||
Percentage Of Value Added Tax Refunded | 3.00% | |||
Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | |||
Contract Period | 6 months | |||
Minimum [Member] | Use Rights [Member] | ||||
Accounting Policies [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 49 years | |||
Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | |||
Contract Period | 3 years | |||
Maximum [Member] | Use Rights [Member] | ||||
Accounting Policies [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 88 years |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) $ in Thousands | 1 Months Ended |
Apr. 30, 2013USD ($) | |
First installment [Member] | |
Business Acquisition [Line Items] | |
Basis of performance target | Net income for the year ending December 31, 2013 |
Referencing share price to achieve the nominal value of shares | Average closing price of the Company’s shares during the trading days from October 1 to December 31, 2013 |
Second installment [Member] | |
Business Acquisition [Line Items] | |
Basis of performance target | Net income for the year ending December 31, 2014 |
Referencing share price to achieve the nominal value of shares | Average closing price of the Company’s shares during the trading days from October 1 to December 31, 2014 |
Bond [Member] | First installment [Member] | |
Business Acquisition [Line Items] | |
Target net income | $ 8,806 |
Nominal value of shares | 10,950 |
Bond [Member] | Second installment [Member] | |
Business Acquisition [Line Items] | |
Target net income | 10,567 |
Nominal value of shares | $ 10,950 |
BUSINESS COMBINATIONS (Details
BUSINESS COMBINATIONS (Details 1) | 12 Months Ended |
Jun. 30, 2016 | |
CAGR performance target, 21% [Member] | |
Business Acquisition [Line Items] | |
Premium Shares of Incentive Shares, CAGR Performance Target | 3.00% |
CAGR performance target, 22% [Member] | |
Business Acquisition [Line Items] | |
Premium Shares of Incentive Shares, CAGR Performance Target | 6.00% |
CAGR performance target, 23% [Member] | |
Business Acquisition [Line Items] | |
Premium Shares of Incentive Shares, CAGR Performance Target | 9.00% |
CAGR performance target, 24% [Member] | |
Business Acquisition [Line Items] | |
Premium Shares of Incentive Shares, CAGR Performance Target | 12.00% |
CAGR performance target, 25% [Member] | |
Business Acquisition [Line Items] | |
Premium Shares of Incentive Shares, CAGR Performance Target | 15.00% |
BUSINESS COMBINATIONS (Detail65
BUSINESS COMBINATIONS (Details 2) $ in Thousands | Apr. 01, 2013USD ($) | |
Business Acquisition, Contingent Consideration [Line Items] | ||
Business Combination, Contingent Consideration, Asset | $ 73,805 | |
Cash consideration [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Business Combination, Contingent Consideration, Asset | 35,059 | [1] |
Ordinary shares [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Business Combination, Contingent Consideration, Asset | 16,909 | |
Incentive Shares for Bond [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Business Combination, Contingent Consideration, Asset | 21,837 | [2] |
Premium Shares for Bond [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Business Combination, Contingent Consideration, Asset | $ 0 | [3] |
[1] | (i) The cash installments of $16,390, $5,510 and $14,600 were paid in May 2013, September 2013 and September 2014, respectively. There was no cash consideration outstanding as of June 30, 2016. | |
[2] | (ii) Bond achieved the performance target of the first and second installments of the Incentive Shares, and a total number of 648,697 and 461,107 shares were issued in October 2014 and December 2015, respectively. There was no incentive shares consideration outstanding as of June 30, 2016. | |
[3] | (iii) Bond also achieved the performance target of 25% and above CAGR growth for premium shares, hence a total number of 166,471 shares were issued in December 2015. There was no premium shares consideration outstanding as of June 30, 2016. |
BUSINESS COMBINATIONS (Detail66
BUSINESS COMBINATIONS (Details 3) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Apr. 01, 2013 |
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 4,460 | |||
Time deposits with original maturities over three months | 7,486 | |||
Restricted cash | 242 | |||
Accounts receivable | 9,966 | |||
Cost and estimated earnings in excess of billings | 6,340 | |||
Other receivables | 886 | |||
Advances to suppliers | 110 | |||
Inventories | 133 | |||
Deferred tax assets | 105 | |||
Assets held for sale | 2,951 | |||
Property, plant and equipment | 4,891 | |||
Prepaid land leases | 5,884 | |||
Intangible assets | 14,359 | |||
Investments in equity investees | 261 | |||
Total identifiable assets acquired | 58,074 | |||
Short-term bank loans | 5,532 | |||
Accounts payable | 8,654 | |||
Deferred revenue | 2,315 | |||
Income tax payable | 1,015 | |||
Other tax payable | 142 | |||
Accrued liabilities | 314 | |||
Deferred tax liabilities | 3,791 | |||
Long-term bank loans | 2,257 | |||
Total liabilities assumed | 24,020 | |||
Net identifiable assets acquired | 34,054 | |||
Goodwill | $ 59,847 | $ 59,918 | $ 66,640 | 39,751 |
Net assets acquired | $ 73,805 |
BUSINESS COMBINATIONS (Detail67
BUSINESS COMBINATIONS (Details Textual) - USD ($) $ in Thousands | Dec. 09, 2015 | Dec. 31, 2015 | Oct. 29, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | May 30, 2013 | Apr. 30, 2013 | Apr. 01, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Business Acquisition [Line Items] | ||||||||||||
Business Acquisition Cost Of Acquired Entity Purchases Price | $ 73,805 | |||||||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 14,600 | $ 5,510 | $ 16,390 | |||||||||
Business Combination, Consideration Transferred, Total | $ 0 | $ 15,081 | [1] | |||||||||
Fair Value of Accounts Receivable | 9,966 | |||||||||||
Business Combination, Contingent Consideration, Asset | 73,805 | |||||||||||
Incentive Shares for Bond [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Contingent Consideration, Asset | [2] | $ 21,837 | ||||||||||
Maximum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | |||||||||||
Maximum [Member] | Incentive Shares for Bond [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
CAGR performance target Percentage | 25.00% | |||||||||||
Business Combination, Contingent Consideration, Asset | $ 25,112 | |||||||||||
Minimum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | |||||||||||
Minimum [Member] | Incentive Shares for Bond [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
CAGR performance target Percentage | 20.00% | |||||||||||
Business Combination, Contingent Consideration, Asset | $ 21,837 | |||||||||||
Premium Shares for Bond [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 166,471 | |||||||||||
Bond [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||||||
Business Acquisition Cost Of Acquired Entity Purchases Price | $ 73,805 | |||||||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 16,390 | 36,500 | ||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 627,578 | 648,697 | 1,407,907 | |||||||||
Equity Method Investment, Quoted Market Value | $ 16,909 | |||||||||||
Business Combination, Consideration Transferred, Total | 73,000 | |||||||||||
Business Acquisition Cash Payments Expect In September 2013 | 5,510 | |||||||||||
Business Acquisition Cash Payments Expect In September 2014 | 14,600 | |||||||||||
Fair Value of Accounts Receivable | 9,966 | |||||||||||
Gross Contractual Accounts Receivable | 10,720 | |||||||||||
Contractual Cash Flows Collected at Acquisition | 754 | |||||||||||
Percentage Of Total Incentive Shares On Premium Shares Issuable | 15.00% | |||||||||||
Premium Shares Issuable Of Total Incentive Shares | $ 3,300 | |||||||||||
Minimum Percentage of Annual Growth Rate Performance Target | 20.00% | |||||||||||
CAGR performance target Percentage | 25.00% | |||||||||||
Business Acquisition Present Value Of Cash Consideration Installments | $ 13,286 | $ 5,383 | ||||||||||
Bond [Member] | Installment One [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 648,697 | |||||||||||
Fair Values Of Incentive Shares Issuable To Shareholders | $ 10,941 | |||||||||||
Bond [Member] | Installment Two [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 461,107 | |||||||||||
Fair Values Of Incentive Shares Issuable To Shareholders | $ 10,896 | |||||||||||
Customer Relationships [Member] | Maximum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 60 months | |||||||||||
Customer Relationships [Member] | Minimum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 57 months | |||||||||||
Customer Relationships [Member] | Bond [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Acquisition Purchases Price Allocation Amortizable Intangible Assets | $ 2,900 | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 57 years | |||||||||||
Order or Production Backlog [Member] | Maximum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 33 months | |||||||||||
Order or Production Backlog [Member] | Minimum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 21 months | |||||||||||
Order or Production Backlog [Member] | Bond [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Acquisition Purchases Price Allocation Amortizable Intangible Assets | $ 11,459 | |||||||||||
Order or Production Backlog [Member] | Bond [Member] | Maximum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 33 years | |||||||||||
Order or Production Backlog [Member] | Bond [Member] | Minimum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 21 years | |||||||||||
[1] | Acquisition-related consideration represents the fair value of Incentive Shares and Premium Shares for Bond (note 3). The fair value of the contingent consideration in connection with the acquisition was estimated using probability-weighted discounted cash flow models. Key assumptions include discount rate, a percent weighted-probability of Bond achieving net income performance targets and a percent weighted-probability of Bond achieving CAGR performance targets. As of June 30, 2015, Bond has achieved the net income performance target and the CAGR performance target. In addition, the referencing share price was determinable as of December 31, 2014 and the remaining input to the fair value of the Incentive and Premium Shares for Bond is the Company’s share price on the date of issuance, which is observable from an active market. Therefore, the fair value measurement of the acquisition-related consideration is transferred from Level 3 to Level 1 on December 31, 2014. In December 2015, all the remaining incentive shares and premium shares consideration were issued. As of June 30, 2015 and June 30, 2016, the fair value of the acquisition-related consideration in connection with Bond totaled $15,081 and nil, respectively. | |||||||||||
[2] | (ii) Bond achieved the performance target of the first and second installments of the Incentive Shares, and a total number of 648,697 and 461,107 shares were issued in October 2014 and December 2015, respectively. There was no incentive shares consideration outstanding as of June 30, 2016. |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 12,975 | $ 12,857 |
Work in progress | 12,770 | 8,157 |
Finished goods | 10,656 | 13,692 |
Inventories | $ 36,401 | $ 34,706 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 279,650 | $ 286,797 |
Allowance for doubtful accounts | (42,471) | (34,259) |
Accounts receivable, net | $ 237,179 | $ 252,538 |
ACCOUNTS RECEIVABLE (Details 1)
ACCOUNTS RECEIVABLE (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at the beginning of year | $ 34,259 | $ 25,691 | $ 20,103 |
Additions | 12,000 | 13,907 | 7,604 |
Written off | (714) | (5,499) | (2,104) |
Translation adjustment | (3,074) | 160 | 88 |
Balance at the end of year | $ 42,471 | $ 34,259 | $ 25,691 |
COSTS AND ESTIMATED EARNINGS 71
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Costs In Excess Of Billings And Billings In Excess Of Costs Incurred [Line Items] | ||||
Contracts costs incurred plus estimated earnings | $ 887,037 | $ 827,955 | ||
Less: Progress billings | (690,726) | (653,768) | ||
Cost and estimated earnings in excess of billings | 196,311 | 174,187 | ||
Less: Allowance for doubtful accounts | (6,383) | (8,850) | $ (5,839) | $ (2,362) |
Cost and estimated earnings in excess of billings, Total | $ 189,928 | $ 165,337 |
COSTS AND ESTIMATED EARNINGS 72
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Costs In Excess Of Billings And Billings In Excess Of Costs Incurred [Line Items] | |||
Balance at the beginning of year | $ 8,850 | $ 5,839 | $ 2,362 |
Additions | (1,823) | 3,085 | 3,471 |
Written off | 0 | (122) | 0 |
Translation adjustment | (644) | 48 | 6 |
Balance at the end of the year | $ 6,383 | $ 8,850 | $ 5,839 |
COSTS AND ESTIMATED EARNINGS 73
COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Costs In Excess Of Billings And Billings In Excess Of Costs Incurred [Line Items] | ||
Contracts Completed But Still Within Warranty Period Current | $ 36,387 | $ 29,752 |
Contract Amount For Warranty Period Expected To Be Collected | $ 4,034 | $ 1,895 |
PROPERTY, PLANT AND EQUIPMENT74
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 119,905 | $ 117,613 |
Less: Accumulated depreciation | (39,967) | (37,391) |
Property, plant and equipment, net | 79,938 | 80,222 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 71,037 | 72,643 |
Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 8,148 | 7,594 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 7,377 | 6,263 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,886 | 4,012 |
Electronic and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 23,704 | 25,942 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 5,753 | $ 1,159 |
PROPERTY, PLANT AND EQUIPMENT75
PROPERTY, PLANT AND EQUIPMENT (Details 1) - Assets Leased to Others [Member] - Building [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Buildings leased to others - at original cost | $ 10,086 | $ 10,962 |
Less: accumulated depreciation | (3,725) | (3,808) |
Buildings leased to others - net | $ 6,361 | $ 7,154 |
PROPERTY, PLANT AND EQUIPMENT76
PROPERTY, PLANT AND EQUIPMENT (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, Depletion and Amortization | $ 6,266 | $ 8,508 | $ 7,051 |
Property Plant And Equipment Pledged For Short Term Loans | 1,014 | 1,161 | |
Property Plant And Equipment Pledged For Long Term Loans | 28,984 | 32,077 | |
Property Plant And Equipment Pledged For Line Of Credit | $ 3,976 | $ 3,479 |
PREPAID LAND LEASES (Details)
PREPAID LAND LEASES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Prepaid Land and Leases [Line Items] | ||
Prepaid land leases | $ 12,641 | $ 13,362 |
Less: Accumulated amortization | (1,868) | (1,713) |
Deferred Costs, Leasing, Net | $ 10,773 | $ 11,649 |
PREPAID LAND LEASES (Details 1)
PREPAID LAND LEASES (Details 1) $ in Thousands | Jun. 30, 2016USD ($) |
Prepaid Land and Leases [Line Items] | |
2,017 | $ 268 |
2,018 | 268 |
2,019 | 268 |
2,020 | 268 |
2,021 | 268 |
Prepaid Land Lease Amortization Expense Net Total | $ 1,340 |
PREPAID LAND LEASES (Details Te
PREPAID LAND LEASES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Prepaid Land and Leases [Line Items] | |||
Amortization of Deferred Leasing Fees | $ 281 | $ 197 | $ 245 |
Prepaid Land Leases Total | $ 4,593 | $ 5,112 |
ACQUIRED INTANGIBLE ASSETS, N80
ACQUIRED INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 14,999 | $ 15,017 |
Accumulated amortization | (14,143) | (13,324) |
Net carrying value | 856 | 1,693 |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 3,151 | 3,155 |
Accumulated amortization | (2,308) | (1,652) |
Net carrying value | 843 | 1,503 |
Order Backlog [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 11,848 | 11,862 |
Accumulated amortization | (11,835) | (11,672) |
Net carrying value | $ 13 | $ 190 |
ACQUIRED INTANGIBLE ASSETS, N81
ACQUIRED INTANGIBLE ASSETS, NET (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense [Line Items] | ||
2,017 | $ 575 | |
2,018 | 281 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Intangible assets, Total | $ 856 | $ 1,693 |
ACQUIRED INTANGIBLE ASSETS, N82
ACQUIRED INTANGIBLE ASSETS, NET (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Accumulated amortization | $ 818 | $ 4,454 | $ 5,413 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year 3 months 18 days | ||
Customer Relationships [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year 3 months 18 days | ||
Order or Production Backlog [Member] | |||
Intangible Assets Net Excluding Goodwill [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill [Line Items] | |||
Balance at beginning of year | $ 59,918 | $ 66,640 | |
Goodwill impairment charge | 0 | (1,855) | $ 0 |
Translation adjustments | (71) | (4,867) | |
Balance at the end of year | $ 59,847 | $ 59,918 | $ 66,640 |
GOODWILL (Details Textual)
GOODWILL (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Apr. 01, 2013 | |
Goodwill [Line Items] | ||||
Goodwill | $ 59,847 | $ 59,918 | $ 66,640 | $ 39,751 |
Goodwill, Impairment Loss | 0 | 1,855 | $ 0 | |
Carrying Value Of Reporting Unit | 36,589 | 36,633 | ||
Concord Corporation Pte Ltd [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 25,111 | 25,141 | ||
Concord [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 23,258 | 23,288 | ||
Goodwill, Impairment Loss | $ 1,855 | |||
Fair Value Inputs, Terminal Value Growth Rate | 2.00% | 2.00% | ||
Maximum [Member] | Concord [Member] | ||||
Goodwill [Line Items] | ||||
Fair Value Inputs, Discount Rate | 16.40% | 16.90% | ||
Minimum [Member] | Concord [Member] | ||||
Goodwill [Line Items] | ||||
Fair Value Inputs, Discount Rate | 13.50% | 15.00% | ||
Discount Rate [Member] | Concord [Member] | ||||
Goodwill [Line Items] | ||||
Percentage Of Goodwill Increase Decrease | 1.00% | |||
Discount Rate [Member] | Maximum [Member] | Concord [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Period Increase (Decrease) | $ 3,527 | |||
Discount Rate [Member] | Minimum [Member] | Concord [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Period Increase (Decrease) | $ 3,018 | |||
Terminal Value Growth Rate [Member] | Concord [Member] | ||||
Goodwill [Line Items] | ||||
Percentage Of Goodwill Increase Decrease | 1.00% | |||
Terminal Value Growth Rate [Member] | Maximum [Member] | Concord [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Period Increase (Decrease) | $ 1,871 | |||
Terminal Value Growth Rate [Member] | Minimum [Member] | Concord [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Period Increase (Decrease) | $ 1,611 |
INVESTMENTS IN EQUITY AND COS85
INVESTMENTS IN EQUITY AND COST INVESTEES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule Of Equity And Cost Method Investments [Line Items] | |||
Long-term investment, at cost, less impairment | $ 11,987 | $ 13,022 | |
Share of undistributed profits | 6,683 | (558) | |
Advance to investee company | 44 | 48 | |
Total | 18,714 | 12,512 | |
Long-term investment, at cost, less impairment | 4,108 | 4,464 | |
Share of undistributed profits | 0 | 0 | |
Advance to investee company | 0 | 0 | |
Total | $ 4,108 | $ 4,464 | |
Shenhua Hollysys Information Technology Co Ltd [Member] | |||
Schedule Of Equity And Cost Method Investments [Line Items] | |||
Interest held (in percentage) | 20.00% | ||
Equity Method Investments [Member] | China Techenergy Co Ltd [Member] | |||
Schedule Of Equity And Cost Method Investments [Line Items] | |||
Interest held (in percentage) | 40.00% | 40.00% | |
Long-term investment, at cost, less impairment | $ 9,030 | $ 9,814 | |
Share of undistributed profits | 1,077 | (5,953) | |
Advance to investee company | 44 | 48 | |
Total | $ 10,151 | $ 3,909 | |
Equity Method Investments [Member] | Beijing Hollysys Electric Motor Co Ltd [Member] | |||
Schedule Of Equity And Cost Method Investments [Line Items] | |||
Interest held (in percentage) | 40.00% | 40.00% | |
Long-term investment, at cost, less impairment | $ 797 | $ 866 | |
Share of undistributed profits | 3,961 | 3,722 | |
Advance to investee company | 0 | 0 | |
Total | $ 4,758 | $ 4,588 | |
Equity Method Investments [Member] | Beijing Ipe Biotechnology Co Ltd [Member] | |||
Schedule Of Equity And Cost Method Investments [Line Items] | |||
Interest held (in percentage) | 23.39% | 23.39% | |
Long-term investment, at cost, less impairment | $ 1,484 | $ 1,613 | |
Share of undistributed profits | 2,213 | 2,185 | |
Advance to investee company | 0 | 0 | |
Total | $ 3,697 | $ 3,798 | |
Equity Method Investments [Member] | Beijing Hollysys Machine Automation Co Ltd [Member] | |||
Schedule Of Equity And Cost Method Investments [Line Items] | |||
Interest held (in percentage) | 30.00% | 30.00% | |
Long-term investment, at cost, less impairment | $ 452 | $ 491 | |
Share of undistributed profits | (452) | (491) | |
Advance to investee company | 0 | 0 | |
Total | $ 0 | $ 0 | |
Equity Method Investments [Member] | Southcon Development Sdn Bhd [Member] | |||
Schedule Of Equity And Cost Method Investments [Line Items] | |||
Interest held (in percentage) | 30.00% | 30.00% | |
Long-term investment, at cost, less impairment | $ 224 | $ 238 | |
Share of undistributed profits | (116) | (21) | |
Advance to investee company | 0 | 0 | |
Total | $ 108 | $ 217 | |
Cost-method Investments [Member] | Shenhua Hollysys Information Technology Co Ltd [Member] | |||
Schedule Of Equity And Cost Method Investments [Line Items] | |||
Interest held (in percentage) | 20.00% | 20.00% | |
Long-term investment, at cost, less impairment | $ 2,387 | $ 2,593 | |
Share of undistributed profits | 0 | 0 | |
Advance to investee company | 0 | 0 | |
Total | $ 2,387 | $ 2,593 | |
Cost-method Investments [Member] | Heilongjiang Ruixing Technology Co Ltd [Member] | |||
Schedule Of Equity And Cost Method Investments [Line Items] | |||
Interest held (in percentage) | 6.00% | 8.31% | |
Long-term investment, at cost, less impairment | $ 1,631 | $ 1,773 | |
Share of undistributed profits | 0 | 0 | |
Advance to investee company | 0 | 0 | |
Total | $ 1,631 | $ 1,773 | |
Cost-method Investments [Member] | Zhongjijing Investment Consulting Co Ltd [Member] | |||
Schedule Of Equity And Cost Method Investments [Line Items] | |||
Interest held (in percentage) | 5.00% | 5.00% | |
Long-term investment, at cost, less impairment | $ 0 | $ 0 | |
Share of undistributed profits | 0 | 0 | |
Advance to investee company | 0 | 0 | |
Total | $ 0 | $ 0 | |
Cost-method Investments [Member] | Zhejiang Sanxin Engineering Co Ltd [Member] | |||
Schedule Of Equity And Cost Method Investments [Line Items] | |||
Interest held (in percentage) | 6.00% | 6.00% | |
Long-term investment, at cost, less impairment | $ 90 | $ 98 | |
Share of undistributed profits | 0 | 0 | |
Advance to investee company | 0 | 0 | |
Total | $ 90 | $ 98 |
INVESTMENTS IN EQUITY AND COS86
INVESTMENTS IN EQUITY AND COST INVESTEES (Details Textual) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2014CNY (¥) | Apr. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment remaining percentage | 80.00% | 80.00% | |||
Other than Temporary Impairment Losses, Investments | $ 0 | $ 0 | $ 325 | ¥ 2,000 | |
Heilongjiang Ruixing Technology Co. [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost Method Investment Ownership Percentage | 6.00% | 8.31% | |||
Cost Method Investment Dividends | $ 1,109 | ||||
Shenhua Hollysys Information Technology Co Ltd [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost Method Investment Ownership Percentage | 20.00% | 20.00% | |||
Cost Method Investment Dividends | $ 249 |
WARRANTY LIABILITIES (Details)
WARRANTY LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Class of Warrant or Right [Line Items] | ||
Beginning balance | $ 10,387 | $ 7,616 |
Expense accrued | 3,876 | 6,647 |
Expense incurred | (3,075) | (3,924) |
Translation adjustment | (828) | 48 |
Closing balance | 10,360 | 10,387 |
Less: current portion of warranty liabilities | (6,782) | (7,310) |
Long-term warranty liabilities | $ 3,578 | $ 3,077 |
SHORT-TERM BANK LOANS (Details
SHORT-TERM BANK LOANS (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 3,051 | $ 16,295 | |
Borrowings under Guaranteed Investment Agreements | 3,757 | 19,202 | |
Property Plant And Equipment Pledged For Short Term Loans | 1,014 | 1,161 | |
Deferred Costs Leasing Total | 4,593 | 5,112 | |
Interest Expense | 211 | 286 | $ 5 |
Long-term Line of Credit | 205,129 | 230,074 | |
Line Of Credit Facility Amount Utilized | 72,592 | 68,435 | |
Line Of Credit Facility Amount Available For Use | 132,537 | 161,639 | |
Line Of Credit Facility Secured By Restricted Cash | 3,754 | 4,512 | |
Line Of Credit Facility Secured By Restricted Buildings | 3,976 | 3,479 | |
Building [Member] | |||
Short-term Debt [Line Items] | |||
Deferred Costs Leasing Total | 1,014 | 1,161 | |
Restricted Stock [Member] | |||
Short-term Debt [Line Items] | |||
Property Plant And Equipment Pledged For Short Term Loans | $ 2,743 | $ 18,041 | |
Minimum [Member] | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 0.80% | 1.50% | |
Maximum [Member] | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 5.12% | 5.12% | |
Weighted Average [Member] | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.50% | 1.78% |
LONG-TERM LOANS (Details)
LONG-TERM LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | |||
Loans Payable to Bank | $ 27,341 | $ 34,662 | |
Less: current portion | (6,833) | (14,111) | |
Long-term bank loans | 20,508 | 20,551 | |
RMB-denominated loan [Member] | |||
Debt Instrument [Line Items] | |||
Loans Payable to Bank | [1] | 0 | 8,996 |
USD-denominated loan [Member] | |||
Debt Instrument [Line Items] | |||
Loans Payable to Bank | [2] | 4,770 | 4,794 |
MYR-denominated loan [Member] | |||
Debt Instrument [Line Items] | |||
Loans Payable to Bank | [3] | 830 | 936 |
SGD-denominated loan [Member] | |||
Debt Instrument [Line Items] | |||
Loans Payable to Bank | [4] | 1,939 | 364 |
Convertible Bond [Member] | |||
Debt Instrument [Line Items] | |||
Loans Payable to Bank | [5] | $ 19,802 | $ 19,572 |
[1] | The RMB denominated loan is repayable in three installments with the last installment due on March 29, 2016. It carried an annual interest rate of 5.94% subject to yearly adjustments by reference to the benchmark rate over the same period announced by the People’s Bank of China with nil premiums. The loan was secured by a pledge of the headquarters facility in Beijing, comprising a prepaid land lease and buildings with an aggregate carrying value of $35,091 as of June 30, 2015. The Company repaid the loan in the year ended June 30, 2016, and is in the process of releasing pledges on the mortgaged buildings and prepaid land lease, with an aggregate carrying amount of $32,420 as of June 30, 2016. | ||
[2] | The USD denominated loan is repayable in one installment by July 31, 2017. It carries an annual interest rate of 4.3%. The borrowing is secured by restricted cash amounting to $5,136 and $4,515 as of June 30, 2015 and 2016, respectively. | ||
[3] | The MYR denominated loans are repayable in 2 to 82 installments with the last installment due in Aril 2023. For the year ended June 30, 2016, the effective interest rates ranged from 2.3 % to 7.15% per annum. The borrowings are secured by the mortgages of buildings, vehicles, and prepaid land leases in Malaysia, with an aggregate carrying value of $1,258 and $1,019 as of June 30, 2015 and 2016, respectively. | ||
[4] | The SGD denominated loans are repayable in 10 to 64 installments with the last installment due on March 15, 2020. For the year ended June 30, 2016, the effective interest rates ranged from 2.6% to 2.8% per annum. The borrowing is secured by vehicles and restricted cash with a total carrying value of $840 and $3,148 as of June 30, 2015 and 2016, respectively. | ||
[5] | On May 30, 2014, the Company entered into a Convertible Bond agreement with International Finance Corporation ("IFC"), under which the Company borrowed $20,000 from IFC (the “Convertible Bond”) with an interest rate of 2.1% per annum and commitment fee of 0.5% per annum paid in arrears semi-annually. The Convertible Bond has a five year term and was drawn down on August 30, 2014 and is repayable in full on August 29, 2019. The loan may not be prepaid before it is due. |
LONG-TERM LOANS (Details 1)
LONG-TERM LOANS (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Debt Instrument [Line Items] | ||
2,017 | $ 6,992 | |
2,018 | 345 | |
2,019 | 19,885 | |
2,020 | 67 | |
2021 and onwards | 52 | |
Loans Payable to Bank | $ 27,341 | $ 34,662 |
LONG-TERM LOANS (Details Textua
LONG-TERM LOANS (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Prepaid Land Leases Total | $ 4,593,000 | $ 5,112,000 | ||
Interest Payable | 1,193,000 | 1,535,000 | $ 2,791,000 | |
Interest Expense, Debt | 1,193,000 | 1,535,000 | 1,998,000 | |
Proceeds from Convertible Debt | $ 0 | 20,000,000 | 0 | |
Penalty Percentage | 0.50% | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Penalty Percentage | 5.00% | |||
Construction in Progress [Member] | ||||
Debt Instrument [Line Items] | ||||
Accumulated Capitalized Interest Costs | $ 0 | 0 | $ 793,000 | |
RMB-denominated loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 5.94% | |||
Secured Long-term Debt, Noncurrent | $ 32,420,000 | 35,091,000 | ||
USD-denominated loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Long-term Debt, Noncurrent | $ 4,515,000 | 5,136,000 | ||
USD-denominated loan [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 4.30% | |||
SGD-denominated loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Prepaid Land Leases Total | $ 3,148,000 | 840,000 | ||
SGD-denominated loan [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 2.80% | |||
SGD-denominated loan [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 2.60% | |||
MYR-denominated loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Prepaid Land Leases Total | $ 1,019,000 | 1,258,000 | ||
MYR-denominated loan [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 7.15% | |||
MYR-denominated loan [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 2.30% | |||
IFC Convertible Bond [Member] | International Finance Corporation [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Convertible Debt | $ 20,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.10% | |||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | |||
Debt Instrument, Convertible, Beneficial Conversion Feature | $ 1,000,000 | |||
Debt Instrument, Fee Amount | $ 349,000 | |||
Debt Instrument, Unamortized Discount | $ 230,000 | $ 192,000 | ||
Debt Instrument, Convertible, Terms of Conversion Feature | According to the Convertible Bond agreement, 50% of the principal amount of the Convertible Bond then outstanding will be mandatorily converted into ordinary shares of the Company at the conversion rate and conversion price then in effect if at any time, with respect to the period of 30 consecutive trading days ending at such time, the volume weighted average prices for 20 trading days or more in such 30 consecutive trading day period is equal to or more than 150% of the conversion price in effect at such time. In addition, 100% of the principal amount of the Convertible Bond then outstanding will be mandatorily converted into ordinary shares at the conversion rate and conversion price then in effect if at any time, with respect to the period of 30 consecutive trading days ending at such time, the volume weighted average prices for 20 trading days or more in such 30 consecutive trading day period is equal to or more than 200% of the conversion price in effect at such time. | |||
IFC Conversion Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Convertible, Terms of Conversion Feature | The initial conversion rate at the time of the agreement is 38 ordinary shares per $1, and the initial conversion price is $26.35 per share. | the Company paid out a cash dividend of $0.40 per share in March 2015, the conversion rate and conversion price wasadjusted to 38.84 ordinary shares per $1 and $25.75 per share, respectively. |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | ||
Liabilities: | ||||
Acquisition-related consideration | $ 398 | $ 15,386 | ||
Bond [Member] | ||||
Liabilities: | ||||
Acquisition-related consideration | [1] | 15,081 | ||
Convertable Bonds [Member] | ||||
Liabilities: | ||||
Acquisition-related consideration | 398 | 305 | [2] | |
Fair Value, Inputs, Level 1 [Member] | ||||
Liabilities: | ||||
Acquisition-related consideration | 0 | 15,081 | ||
Fair Value, Inputs, Level 1 [Member] | Bond [Member] | ||||
Liabilities: | ||||
Acquisition-related consideration | [1] | 15,081 | ||
Fair Value, Inputs, Level 1 [Member] | Convertable Bonds [Member] | ||||
Liabilities: | ||||
Acquisition-related consideration | 0 | 0 | [2] | |
Fair Value, Inputs, Level 2 [Member] | ||||
Liabilities: | ||||
Acquisition-related consideration | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Bond [Member] | ||||
Liabilities: | ||||
Acquisition-related consideration | [1] | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Convertable Bonds [Member] | ||||
Liabilities: | ||||
Acquisition-related consideration | 0 | 0 | [2] | |
Fair Value, Inputs, Level 3 [Member] | ||||
Liabilities: | ||||
Acquisition-related consideration | 398 | 305 | ||
Fair Value, Inputs, Level 3 [Member] | Bond [Member] | ||||
Liabilities: | ||||
Acquisition-related consideration | [1] | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Convertable Bonds [Member] | ||||
Liabilities: | ||||
Acquisition-related consideration | $ 398 | $ 305 | [2] | |
[1] | Acquisition-related consideration represents the fair value of Incentive Shares and Premium Shares for Bond (note 3). The fair value of the contingent consideration in connection with the acquisition was estimated using probability-weighted discounted cash flow models. Key assumptions include discount rate, a percent weighted-probability of Bond achieving net income performance targets and a percent weighted-probability of Bond achieving CAGR performance targets. As of June 30, 2015, Bond has achieved the net income performance target and the CAGR performance target. In addition, the referencing share price was determinable as of December 31, 2014 and the remaining input to the fair value of the Incentive and Premium Shares for Bond is the Company’s share price on the date of issuance, which is observable from an active market. Therefore, the fair value measurement of the acquisition-related consideration is transferred from Level 3 to Level 1 on December 31, 2014. In December 2015, all the remaining incentive shares and premium shares consideration were issued. As of June 30, 2015 and June 30, 2016, the fair value of the acquisition-related consideration in connection with Bond totaled $15,081 and nil, respectively. | |||
[2] | The non-conversion compensation feature represents the fair value of the non-conversion compensation feature (note 14). The Company engaged an independent third-party appraiser to assist with the valuation of the feature. The Company is ultimately responsible for the fair value of the non-conversion compensation feature recorded in the consolidated financial statements. The Company adopted the binomial model to assess the fair value of such feature as of year-end. The non-conversion compensation feature is equal to the difference between the fair value of the whole Convertible Bond with the non-conversion compensation feature and the whole Convertible Bond without the non-conversion feature. The significant unobservable inputs used in the fair value measurement of the non-conversion compensation feature includes the risk-free rate of return, expected volatility, expected life of the Convertible Bond and expected ordinary dividend yield. The changes in fair value of the non-conversion compensation feature during fiscal year 2015 and 2016 are shown in the following table. |
FAIR VALUE MEASUREMENT (Detai93
FAIR VALUE MEASUREMENT (Details 1) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance | $ 305 |
Change in fair-value (included within other expenses, net) | 93 |
Balance | $ 398 |
FAIR VALUE MEASUREMENT (Detai94
FAIR VALUE MEASUREMENT (Details 2) - Fair Value, Measurements, Nonrecurring [Member] $ in Thousands | Jun. 30, 2015USD ($) | |
Assets: | ||
Goodwill | $ 23,285 | [1] |
Total assets measured at fair value on a non-recurring basis | 23,285 | |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Goodwill | 0 | [1] |
Total assets measured at fair value on a non-recurring basis | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Goodwill | 0 | [1] |
Total assets measured at fair value on a non-recurring basis | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Goodwill | 23,285 | [1] |
Total assets measured at fair value on a non-recurring basis | $ 23,285 | |
[1] | The Company’s goodwill of $23,285 is related to the acquisition of Concord and $36,633 is related to the acquisition of Bond (note 3). The Company engaged an independent third-party appraiser to assist with the valuation of the goodwill related to the Concord acquisition. The Company is ultimately responsible for the fair value of the goodwill related to Concord acquisition recorded in the consolidated financial statements. For the purposes of step one of the goodwill impairment test, the Company has adopted the income approach, in particular the discounted cash flow approach, to evaluate the fair value of the reporting unit. In applying the discounted cash flow approach, key assumptions include the amount and timing of future expected cash flows, terminal value growth rates and appropriate discount rates. For the purpose of step two of the goodwill impairment test, the Company has allocated the fair value of the reporting unit derived in step one to the assets and liabilities of the reporting unit, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the reporting unit. The Company adopted the multi-period excess earnings model to evaluate the fair value of the intangible assets of the reporting unit, which was then used to compute the implied fair value of the goodwill via a residual approach. As a result, the Company recorded a goodwill impairment charge of $1,855 (Note 10). |
FAIR VALUE MEASUREMENT (Detai95
FAIR VALUE MEASUREMENT (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 01, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Business Combination, Consideration Transferred, Total | $ 0 | $ 15,081 | [1] | ||
Goodwill, Impairment Loss | 0 | 1,855 | $ 0 | ||
Acquisition of Concord [Member] | |||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Goodwill, Fair Value Disclosure | 23,285 | ||||
Acquisition of Bond [Member] | |||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Goodwill, Fair Value Disclosure | 36,633 | ||||
Bond [Member] | |||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Business Combination, Consideration Transferred, Total | $ 73,000 | ||||
Convertible Debt | 19,802 | 19,572 | |||
Convertible Debt, Fair Value Disclosures | $ 17,835 | $ 21,452 | |||
[1] | Acquisition-related consideration represents the fair value of Incentive Shares and Premium Shares for Bond (note 3). The fair value of the contingent consideration in connection with the acquisition was estimated using probability-weighted discounted cash flow models. Key assumptions include discount rate, a percent weighted-probability of Bond achieving net income performance targets and a percent weighted-probability of Bond achieving CAGR performance targets. As of June 30, 2015, Bond has achieved the net income performance target and the CAGR performance target. In addition, the referencing share price was determinable as of December 31, 2014 and the remaining input to the fair value of the Incentive and Premium Shares for Bond is the Company’s share price on the date of issuance, which is observable from an active market. Therefore, the fair value measurement of the acquisition-related consideration is transferred from Level 3 to Level 1 on December 31, 2014. In December 2015, all the remaining incentive shares and premium shares consideration were issued. As of June 30, 2015 and June 30, 2016, the fair value of the acquisition-related consideration in connection with Bond totaled $15,081 and nil, respectively. |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - $ / shares | Dec. 09, 2015 | Feb. 09, 2015 | Oct. 29, 2014 | May 30, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 01, 2013 | Aug. 31, 2010 |
Stockholders Equity Note [Line Items] | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.40 | |||||||
Preferred Class [Member] | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Business Acquisition, Share Price (in dollars per share) | $ 160 | |||||||
2010 Rights Plan [Member] | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | |||||||
Percentage Of Tender Offer For Ordinary Shares | 20.00% | |||||||
Percentage Of Ordinary Shares Acquiring Discount | 50.00% | |||||||
Bond [Member] | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||
Business Acquisition, Equity Interest Issued Or Issuable, Number Of Shares | 627,578 | 648,697 | 1,407,907 |
SHARE-BASED COMPENSATION EXPE97
SHARE-BASED COMPENSATION EXPENSES (Details) | 12 Months Ended |
Jun. 30, 2016shares | |
Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 721,500 |
Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 950,000 |
Grant Date After Two Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 283,200 |
Grant Date After Two Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 348,000 |
Grant Date After Three Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 283,200 |
Grant Date After Three Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 348,000 |
Grant Date After Four Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 849,600 |
Grant Date After Four Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 1,044,000 |
Performance Shares Eps Threshold Limit Over Fifteen Percentage But Below Twenty Percentage [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 944,000 |
Performance Shares Eps Threshold Limit Over Fifteen Percentage But Below Twenty Percentage [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 1,160,000 |
Performance Shares Eps Threshold Limit Over Fifteen Percentage But Below Twenty Percentage [Member] | Grant Date After Two Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 283,200 |
Performance Shares Eps Threshold Limit Over Fifteen Percentage But Below Twenty Percentage [Member] | Grant Date After Two Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 348,000 |
Performance Shares Eps Threshold Limit Over Fifteen Percentage But Below Twenty Percentage [Member] | Grant Date After Three Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 283,200 |
Performance Shares Eps Threshold Limit Over Fifteen Percentage But Below Twenty Percentage [Member] | Grant Date After Three Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 348,000 |
Performance Shares Eps Threshold Limit Over Fifteen Percentage But Below Twenty Percentage [Member] | Grant Date After Four Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 377,600 |
Performance Shares Eps Threshold Limit Over Fifteen Percentage But Below Twenty Percentage [Member] | Grant Date After Four Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 464,000 |
Performance Shares Eps Threshold Limit Equal Or Over Twenty Percentage But Below Twenty Five Percentage [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 236,000 |
Performance Shares Eps Threshold Limit Equal Or Over Twenty Percentage But Below Twenty Five Percentage [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 290,000 |
Performance Shares Eps Threshold Limit Equal Or Over Twenty Percentage But Below Twenty Five Percentage [Member] | Grant Date After Two Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 0 |
Performance Shares Eps Threshold Limit Equal Or Over Twenty Percentage But Below Twenty Five Percentage [Member] | Grant Date After Two Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 0 |
Performance Shares Eps Threshold Limit Equal Or Over Twenty Percentage But Below Twenty Five Percentage [Member] | Grant Date After Three Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 0 |
Performance Shares Eps Threshold Limit Equal Or Over Twenty Percentage But Below Twenty Five Percentage [Member] | Grant Date After Three Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 0 |
Performance Shares Eps Threshold Limit Equal Or Over Twenty Percentage But Below Twenty Five Percentage [Member] | Grant Date After Four Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 236,000 |
Performance Shares Eps Threshold Limit Equal Or Over Twenty Percentage But Below Twenty Five Percentage [Member] | Grant Date After Four Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 290,000 |
Performance Shares Eps Threshold Limit Twenty Five Percentage Or Above [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 236,000 |
Performance Shares Eps Threshold Limit Twenty Five Percentage Or Above [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number | 290,000 |
Performance Shares Eps Threshold Limit Twenty Five Percentage Or Above [Member] | Grant Date After Two Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 0 |
Performance Shares Eps Threshold Limit Twenty Five Percentage Or Above [Member] | Grant Date After Two Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 0 |
Performance Shares Eps Threshold Limit Twenty Five Percentage Or Above [Member] | Grant Date After Three Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 0 |
Performance Shares Eps Threshold Limit Twenty Five Percentage Or Above [Member] | Grant Date After Three Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 0 |
Performance Shares Eps Threshold Limit Twenty Five Percentage Or Above [Member] | Grant Date After Four Years [Member] | Performance Options 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 236,000 |
Performance Shares Eps Threshold Limit Twenty Five Percentage Or Above [Member] | Grant Date After Four Years [Member] | Performance Options 2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share options vested | 290,000 |
SHARE-BASED COMPENSATION EXPE98
SHARE-BASED COMPENSATION EXPENSES (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Performance Options 2012 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Outstanding | 1,333,500 | |
Number of shares, Exercised | (612,000) | |
Number of shares, Outstanding | 721,500 | 1,333,500 |
Number of shares, Vested and expected to vest | 721,500 | |
Number of shares, Exercisable | 721,500 | |
Weighted average exercise price, Outstanding (in dollars per share) | $ 8.89 | |
Weighted average exercise price, Exercised (in dollars per share) | 8.89 | |
Weighted average exercise price, Outstanding (in dollars per share) | 8.89 | $ 8.89 |
Weighted average exercise price, Vested and expected to vest (in dollars per share) | 8.89 | |
Weighted average exercise price, Exercisable (in dollars per share) | $ 8.89 | |
Weighted average remaining contractual life (years), Outstanding | 7 months 20 days | 1 year 7 months 20 days |
Weighted average remaining contractual life (years), Vested and expected to vest | 7 months 20 days | |
Weighted average remaining contractual life (years), Exercisable | 7 months 20 days | |
Aggregate intrinsic value, Outstanding (in dollars) | $ 20,189 | |
Aggregate intrinsic value, Outstanding (in dollars) | 6,118 | $ 20,189 |
Aggregate intrinsic value, Vested and expected to vest (in dollars) | 6,118 | |
Aggregate intrinsic value, Exercisable (in dollars) | $ 6,118 | |
Performance Options 2015 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Outstanding | 1,740,000 | |
Number of shares, Outstanding | 1,740,000 | 1,740,000 |
Number of shares, Vested and expected to vest | 950,000 | |
Number of shares, Exercisable | 0 | |
Weighted average exercise price, Outstanding (in dollars per share) | $ 22.25 | |
Weighted average exercise price, Outstanding (in dollars per share) | 22.25 | $ 22.25 |
Weighted average exercise price, Vested and expected to vest (in dollars per share) | 22.25 | |
Weighted average exercise price, Exercisable (in dollars per share) | $ 0 | |
Weighted average remaining contractual life (years), Outstanding | 3 years 10 months 13 days | 3 years 10 months 13 days |
Weighted average remaining contractual life (years), Vested and expected to vest | 3 years 10 months 13 days | |
Weighted average remaining contractual life (years), Exercisable | 0 years | |
Aggregate intrinsic value, Outstanding (in dollars) | $ 0 | |
Aggregate intrinsic value, Outstanding (in dollars) | 0 | $ 0 |
Aggregate intrinsic value, Vested and expected to vest (in dollars) | 0 | |
Aggregate intrinsic value, Exercisable (in dollars) | $ 0 |
SHARE-BASED COMPENSATION EXPE99
SHARE-BASED COMPENSATION EXPENSES (Details 2) | 1 Months Ended | |
May 14, 2015 | Feb. 20, 2012 | |
Performance Options 2012 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free rate of return | 0.71% | |
Weighted average expected volatility | 62.64% | |
Expected life (in years) | 4 years 2 months 1 day | |
Expected ordinary dividend yield | 0.00% | |
Performance Options 2015 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free rate of return | 1.51% | |
Weighted average expected volatility | 53.42% | |
Expected life (in years) | 5 years | |
Expected ordinary dividend yield | 0.00% |
SHARE-BASED COMPENSATION EXP100
SHARE-BASED COMPENSATION EXPENSES (Details 3) - Restricted Stock [Member] | 12 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of restricted shares, Un-vested | shares | 31,875 |
Number of restricted shares, Vested | shares | (17,500) |
Number of restricted shares, Un-vested | shares | 14,375 |
Weighted average grant-date fair value, Un-vested (in dollars per share) | $ / shares | $ 23.95 |
Weighted average grant-date fair value, Vested (in dollars per share) | $ / shares | 23.95 |
Weighted average grant-date fair value, Un-vested (in dollars per share) | $ / shares | $ 23.95 |
SHARE-BASED COMPENSATION EXP101
SHARE-BASED COMPENSATION EXPENSES (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Feb. 01, 2011 | May 14, 2015 | Feb. 20, 2012 | Jun. 02, 2011 | Jan. 31, 2011 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2011 | Mar. 31, 2015 | Sep. 20, 2007 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Weighted average exercise price, Granted (in dollars per share) | $ 22.25 | ||||||||||
Share-Based Compensation | $ 3,860 | $ 2,492 | $ 2,986 | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross (is shares) | 1,740,000 | ||||||||||
Service and Performance Conditions 1 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 60,000,000 | ||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross (is shares) | 60,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 30,000 | ||||||||||
Cliff Vest Date After Grant Date | 36 months | ||||||||||
Exercisable Terms | 60 months | ||||||||||
Number Of Options Cliff Vested (in shares) | 60,000 | ||||||||||
Allocated Share-based Compensation Expense | 72 | $ 206 | |||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 60,000,000 | ||||||||||
Service and Performance Conditions 1 [Member] | EPS Threshold One [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Expected Term | 48 months | ||||||||||
Service and Performance Conditions 1 [Member] | EPS Threshold One [Member] | Minimum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Expected Term | 24 months | ||||||||||
Service and Performance Conditions 2 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 1,416,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 1,416,000 | 1,416,000 | |||||||||
Cliff Vest Date After Grant Date | 36 months | ||||||||||
Allocated Share-based Compensation Expense | $ 251 | 1,530 | $ 1,222 | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 1,416,000 | ||||||||||
Service and Performance Conditions 2 [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Expected Term | 48 months | ||||||||||
Service and Performance Conditions 2 [Member] | Minimum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Expected Term | 24 months | ||||||||||
Service and Performance Conditions 2 [Member] | EPS Threshold One [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 944,000 | ||||||||||
Average Growth Rate Of Non GAAP Diluted Earnings Per Share Threshold Minimum | 15.00% | 15.00% | |||||||||
Average Growth Rate Of Non GAAP Diluted Earnings Per Share Threshold Maximum | 20.00% | 20.00% | |||||||||
Service and Performance Conditions 2 [Member] | EPS Threshold Two [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 236,000 | ||||||||||
Average Growth Rate Of Non GAAP Diluted Earnings Per Share Threshold Minimum | 20.00% | ||||||||||
Average Growth Rate Of Non GAAP Diluted Earnings Per Share Threshold Maximum | 25.00% | ||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Expected Term | 48 months | ||||||||||
Service and Performance Conditions 2 [Member] | EPS Threshold Three [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 236,000 | ||||||||||
Average Growth Rate Of Non GAAP Diluted Earnings Per Share Threshold Maximum | 25.00% | ||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Expected Term | 48 months | ||||||||||
Service and Performance Conditions 2 [Member] | Options Vest One [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 283,200 | ||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Expected Term | 24 months | ||||||||||
Service and Performance Conditions 2 [Member] | Options Vest Two [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 283,200 | ||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Expected Term | 36 months | ||||||||||
Service and Performance Conditions 2 [Member] | Options Vest Three [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 849,600 | ||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Expected Term | 48 months | 48 months | |||||||||
Restricted Stock [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ 274 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 7 months 28 days | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 419 | 419 | $ 290 | ||||||||
Restricted Stock [Member] | General and Administrative Expense [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-Based Compensation | 419 | 419 | $ 290 | ||||||||
Restricted Stock [Member] | Director [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Issuance of ordinary shares upon vesting of restricted shares (in shares) | 22,500 | 30,000 | 15,000 | 52,500 | 67,500 | ||||||
Performance Shares [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Weighted average exercise price, Granted (in dollars per share) | $ 9.29 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | 6,033 | 10,293 | |||||||||
Share-Based Compensation | $ 3,190 | $ 471 | |||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross (is shares) | 1,476,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years 10 months 13 days | 4 years 10 months 13 days | |||||||||
Share Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross (is shares) | 696,000 | ||||||||||
Equity Plan 2015 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 5,000,000 | 5,000,000 | |||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 5,000,000 | 5,000,000 | |||||||||
Performance Options 2015 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Weighted average exercise price, Granted (in dollars per share) | $ 22.22 | ||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Vested and Expected To Vest, Outstanding, Number | 950,000 | 1,740,000 | |||||||||
Two Thousand Fifteen Performance Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Expected Term | 5 years | ||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Vested and Expected To Vest, Outstanding, Number | 950,000 | ||||||||||
Two Thousand Fifteen Performance Options [Member] | Vesting Period One [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 1,160,000 | ||||||||||
Two Thousand Fifteen Performance Options [Member] | Vesting Period Two [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 580,000 | ||||||||||
Two Thousand Fifteen Performance Options [Member] | Vesting Period Three [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in shares) | 580,000 | ||||||||||
2012 Performance Share Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Aggregate intrinsic value, Forfeited or expired | $ 6,026 | $ 2,383 | $ 0 | ||||||||
Share-Based Compensation | 251 | 1,602 | 2,654 | ||||||||
Share Based Compensation Arrangement by Share Based Payment Award Options Vested in Period Total Fair Value | $ 15,650 | $ 6,497 | $ 5,480 | ||||||||
Stock Plan 2006 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 3,000,000 | ||||||||||
Dividends Payable, Amount Per Share | $ 0.40 | ||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 3,000,000 | ||||||||||
Package A [Member] | Performance Options 2015 [Member] | Fiscal Year 2015 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Vested Grant Date Fair Value Percentage | 30.00% | ||||||||||
Package A [Member] | Performance Options 2015 [Member] | Fiscal Year 2016 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Vested Grant Date Fair Value Percentage | 30.00% | ||||||||||
Package A [Member] | Performance Options 2015 [Member] | Fiscal Year 2017 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Vested Grant Date Fair Value Percentage | 40.00% | ||||||||||
Package B [Member] | Performance Options 2015 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Average Growth Rate Of Non GAAP Diluted Earnings Per Share Threshold Minimum | 15.00% | ||||||||||
Package B [Member] | Performance Options 2015 [Member] | Vesting Period One [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Vested Grant Date Fair Value Percentage | 50.00% | ||||||||||
Package B [Member] | Performance Options 2015 [Member] | Vesting Period Two [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Vested Grant Date Fair Value Percentage | 50.00% |
EMPLOYEE BENEFITS (Details Text
EMPLOYEE BENEFITS (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $ 18,235 | $ 17,018 | $ 16,150 |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule Of Income Tax Disclosure [Line Items] | |||
PRC | $ 142,900 | $ 134,657 | $ 97,931 |
Non-PRC | (5,158) | (9,430) | (6,619) |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest, Total | $ 137,742 | $ 125,227 | $ 91,312 |
INCOME TAX (Details 1)
INCOME TAX (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Expense Incurred In PRC [Line Items] | |||
Current income tax expense | $ 14,700 | $ 21,194 | $ 25,288 |
Deferred income tax (benefit) expense | (462) | 4,846 | (5,427) |
Effective income tax expense | 14,238 | 26,040 | 19,861 |
PRC [Member] | |||
Income Tax Expense Incurred In PRC [Line Items] | |||
Current income tax expense | 10,590 | 16,074 | 22,055 |
Deferred income tax (benefit) expense | (196) | 5,834 | (4,868) |
Singapore [Member] | |||
Income Tax Expense Incurred In PRC [Line Items] | |||
Current income tax expense | 235 | 1,151 | 2,966 |
Deferred income tax (benefit) expense | (181) | (894) | (1,982) |
Hong Kong [Member] | |||
Income Tax Expense Incurred In PRC [Line Items] | |||
Current income tax expense | 2,776 | 2,279 | 0 |
Deferred income tax (benefit) expense | 0 | 0 | |
Malaysia [Member] | |||
Income Tax Expense Incurred In PRC [Line Items] | |||
Current income tax expense | 1,099 | 1,690 | 267 |
Deferred income tax (benefit) expense | $ (85) | $ (94) | $ 1,423 |
INCOME TAX (Details 2)
INCOME TAX (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Statutory Tax Rate Prc [Line Items] | |||
Income before income taxes | $ 137,742 | $ 125,227 | $ 91,312 |
Effect of preferential tax treatment | (12,296) | (12,453) | (5,027) |
Withholding tax on dividend paid by subsidiaries | 3,117 | ||
Total | 14,238 | 26,040 | 19,861 |
People Republic Of China Subsidiaries [Member] | |||
Income Tax Statutory Tax Rate Prc [Line Items] | |||
Income before income taxes | 137,742 | 125,227 | 91,312 |
Expected income tax expense at statutory tax rate in the PRC | 34,436 | 31,307 | 22,828 |
Effect of different tax rates in various jurisdictions | 2,109 | 1,286 | 2,709 |
Effect of preferential tax treatment | (12,296) | (12,453) | (5,027) |
Effect of non-taxable income | (4,985) | (6,770) | (5,747) |
Effect of additional deductible research and development expenses | (4,716) | (2,772) | (2,604) |
Effect of non-deductible expenses | 5,569 | 8,402 | 6,379 |
Effect of change in tax rate | (6,613) | (4,191) | 0 |
Change in valuation allowance | 540 | 1,475 | 2,075 |
Tax rate differential on deferred tax items | (587) | 3,139 | (2,193) |
Withholding tax on dividend paid by subsidiaries | 1,252 | 6,028 | 1,381 |
Recognition of temporary difference not recognized in previous years | 0 | 323 | 284 |
Others | (471) | 266 | (224) |
Total | $ 14,238 | $ 26,040 | $ 19,861 |
INCOME TAX (Details 3)
INCOME TAX (Details 3) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Deferred tax assets, current | ||
Allowance for doubtful accounts | $ 9,838 | $ 6,885 |
Inventory provision | 205 | 148 |
Provision for contract loss | 917 | 430 |
Long-term assets | 13 | 14 |
Deferred revenue | 3,522 | 5,737 |
Deferred subsidies | 1,020 | 570 |
Warranty liabilities | 1,322 | 1,109 |
Recognition of intangible assets | 57 | 107 |
Accrued payroll | 960 | 899 |
Net operating loss carry forward | 6,361 | 5,843 |
Valuation allowance | (6,307) | (5,796) |
Total deferred tax assets, current | 17,908 | 15,946 |
Deferred tax liabilities, current | ||
Costs and estimated earnings in excess of billings | (16,068) | (12,685) |
Recognition of intangible assets | (1,060) | (1,246) |
PRC dividend withholding tax | (3,010) | (4,653) |
Others | (24) | (36) |
Total deferred tax liabilities, current | (20,162) | (18,620) |
Net deferred tax assets, current | 6,659 | 3,214 |
Deferred tax liabilities | 8,913 | 5,888 |
Deferred tax assets, non-current | ||
Long-term assets | 699 | 522 |
Deferred subsidies | 2,642 | 1,739 |
Recognition of intangible assets | (16) | 63 |
Warranty liabilities | 874 | 452 |
Total deferred tax assets, non-current | 4,199 | 2,776 |
Deferred tax liabilities, non-current | ||
Share of net gains of equity investees | (1,733) | 99 |
Intangible assets and other non-current assets | (330) | (371) |
Total deferred tax liabilities, non-current | (2,063) | (272) |
Net deferred tax assets-non-current | 2,195 | 2,581 |
Net deferred tax liabilities-non-current | $ (59) | $ (77) |
INCOME TAX (Details Textual)
INCOME TAX (Details Textual) $ / shares in Units, ¥ in Thousands, MOP in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
May 31, 2016 | Nov. 24, 2015 | Jun. 30, 2017 | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2016CNY (¥) | Jun. 30, 2016MOP | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Dec. 31, 2011 | Dec. 31, 2008 | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Reconciliation Deductions Qualified Production Activities (in dollars) | $ 12,296 | $ 12,453 | $ 5,027 | |||||||||
Undistributed Earnings of Foreign Subsidiaries (in dollars) | 447,025 | 355,454 | ¥ 2,907,542 | ¥ 2,320,060 | ||||||||
Operating Loss Carry Forwards Expiration | 1,927 | |||||||||||
Withholding tax rate profits of subsidiaries earned | 10.00% | |||||||||||
Withholding Tax On Capital Gain | 3,117 | |||||||||||
Distributed Earnings | 30,100 | ¥ 200,000 | ||||||||||
Profits arising from subsidiary with an Maximum exemption | MOP | MOP 300 | |||||||||||
Undistributed, Retained Earnings Of Foreign Subsidiaries With No Withholding Tax | $ 63,716 | $ 63,716 | ||||||||||
Net Income Per Share Basic [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Impact Of Tax Holidays and Concessions On Earnings Per Share (in dollars per share) | $ / shares | $ 0.21 | $ 0.21 | $ 0.09 | |||||||||
Net Income Per Share Diluted [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Impact Of Tax Holidays and Concessions On Earnings Per Share (in dollars per share) | $ / shares | $ 0.20 | $ 0.21 | $ 0.09 | |||||||||
Singapore [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 17.00% | 17.00% | 17.00% | |||||||||
Operating Loss Carryforwards (in dollars) | $ 34,004 | |||||||||||
Malaysia [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | |||||||||
Hong kong [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 16.50% | 16.50% | 16.50% | |||||||||
Operating Loss Carryforwards (in dollars) | $ 1,116 | |||||||||||
Macau [Member] | Minimum [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 12.00% | 12.00% | 12.00% | |||||||||
India [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 30.00% | 30.00% | 30.00% | |||||||||
Italy [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 27.50% | 27.50% | 27.50% | |||||||||
Italy [Member] | Regional Production Tax [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 3.90% | 3.90% | 3.90% | |||||||||
QATAR | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 10.00% | |||||||||||
PRC [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Operating Loss Carryforwards (in dollars) | $ 1,927 | |||||||||||
Operating Loss Carry Forward Expiration Term | 5 years | 5 years | 5 years | |||||||||
People Republic Of China Subsidiaries [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income Tax Reconciliation Deductions Qualified Production Activities (in dollars) | $ 12,296 | $ 12,453 | $ 5,027 | |||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | 25.00% | ||||||||
Withholding Tax On Capital Gain | $ 1,252 | 6,028 | $ 1,381 | |||||||||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 30,832 | 20,508 | ||||||||||
Undistributed Earnings Of Foreign Subsidiaries With No Withholding Tax | $ 372,040 | $ 268,793 | ||||||||||
Hangzhou Hollysys Automation Company Ltd [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | 15.00% | |||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 10.00% | |||||||||||
Hangzhou Hollysys Automation Company Ltd [Member] | Scenario, Forecast [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | |||||||||||
Beijing Hollysys Company Ltd [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 10.00% | 15.00% | ||||||||||
Beijing Hollysys Company Ltd [Member] | Scenario, Forecast [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% |
INCOME PER SHARE (Details)
INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Numerator: | ||||
Net income attributable to the Company - basic (in dollars) | $ 118,471 | $ 96,527 | $ 69,620 | |
Net income attributable to the Company - diluted (in dollars) | [1] | $ 119,121 | $ 96,877 | $ 69,620 |
Denominator: | ||||
Weighted average ordinary shares outstanding used in computing basic income per share | 59,170,050 | 58,612,596 | 57,926,333 | |
Effect of dilutive securities | ||||
Convertible Bond | 776,800 | 644,850 | 0 | |
Share options | 642,184 | 839,425 | 482,623 | |
Restricted shares | 22,422 | 37,332 | 17,686 | |
Weighted average ordinary shares outstanding used in computing diluted income per share | 60,611,456 | 60,134,203 | 58,426,642 | |
Income per share - basic (in dollars per share) | $ 2 | $ 1.65 | $ 1.2 | |
Income per share - diluted (in dollars per share) | $ 1.97 | $ 1.61 | $ 1.19 | |
[1] | For the year ended June 30, 2015 and 2016, interest accretion related to the Convertible Bond of $350 and $650, respectively, is added back to derive net income attributable to the Company for computing diluted income per share. |
INCOME PER SHARE (Details Textu
INCOME PER SHARE (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2015 | |
Earnings Per Share [Line Items] | ||||
Interest on Convertible Debt, Net of Tax | $ 650 | $ 350 | ||
Incentive Shares [Member] | First Instalment [Member] | ||||
Earnings Per Share [Line Items] | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 648,697 | |||
Incentive Shares [Member] | Second Instalment [Member] | ||||
Earnings Per Share [Line Items] | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 461,107 | |||
Premium Shares for Bond [Member] | ||||
Earnings Per Share [Line Items] | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 166,471 | |||
Premium Shares for Bond [Member] | Second Instalment [Member] | ||||
Earnings Per Share [Line Items] | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 166,471 | |||
Vested and Unissued Restricted Shares [Member] | ||||
Earnings Per Share [Line Items] | ||||
Weighted Average Number Diluted Shares Outstanding Vested And Unissued Restricted Shares | 75,066 | 58,726 | 60,625 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Related Party Transaction [Line Items] | ||
Due from Related Parties | $ 28,012 | $ 39,077 |
China Techenergy [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties | 22,579 | 34,472 |
Shenhua Information [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties | 2,995 | 3,447 |
Hollysys Machine [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties | 1,367 | 1,158 |
Heilongjiang Ruixing [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties | $ 1,071 | $ 0 |
RELATED PARTY TRANSACTIONS (111
RELATED PARTY TRANSACTIONS (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Related Party Transaction [Line Items] | ||
Due to Related Parties | $ 1,645 | $ 1,713 |
China Techenergy [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties | 1,170 | 837 |
Shenhua Information [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties | 358 | 818 |
Electric Motor [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties | 112 | 49 |
Hollysys Machine [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties | $ 5 | $ 9 |
RELATED PARTY TRANSACTIONS (112
RELATED PARTY TRANSACTIONS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction Purchases From Related Party | $ 22 | $ 419 | $ 364 |
Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction Purchases From Related Party | 909 | 1,333 | 2,317 |
Hollysys Machine [Member] | Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction Purchases From Related Party | 555 | 914 | 1,980 |
Shenhua Information [Member] | Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction Purchases From Related Party | 0 | 368 | 323 |
Electric Motor [Member] | Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction Purchases From Related Party | 354 | 50 | 14 |
China Techenergy [Member] | Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction Purchases From Related Party | $ 0 | $ 1 | $ 0 |
RELATED PARTY TRANSACTIONS (113
RELATED PARTY TRANSACTIONS (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Related Party Transaction [Line Items] | |||
Sales Of Goods and Services To Related Parties Amount | $ 517 | $ 914 | $ 1,953 |
Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Sales Of Goods and Services To Related Parties Amount | 4,739 | 24,577 | 6,785 |
China Techenergy [Member] | Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Sales Of Goods and Services To Related Parties Amount | 3,657 | 21,936 | 3,136 |
Shenhua Information [Member] | Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Sales Of Goods and Services To Related Parties Amount | 847 | 2,128 | 2,726 |
Hollysys Machine [Member] | Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Sales Of Goods and Services To Related Parties Amount | 235 | 512 | 921 |
Electric Motor [Member] | Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Sales Of Goods and Services To Related Parties Amount | $ 0 | $ 1 | $ 2 |
RELATED PARTY TRANSACTIONS (114
RELATED PARTY TRANSACTIONS (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Related Party Transaction [Line Items] | |||
Sales Of Goods and Services To Related Parties Amount | $ 517 | $ 914 | $ 1,953 |
Hollysys Machine [Member] | |||
Related Party Transaction [Line Items] | |||
Sales Of Goods and Services To Related Parties Amount | $ 40 | $ 41 | $ 65 |
RELATED PARTY TRANSACTIONS (115
RELATED PARTY TRANSACTIONS (Details Textual) | Jun. 30, 2016 |
Shenhua Information | |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 20.00% |
China Techenergy | |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 40.00% |
Electric Motor | |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 40.00% |
Hollysys Machine | |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 30.00% |
Heilongjiang Ruixing [Member] | |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 6.00% |
COMMITMENTS AND CONTINGENCIE116
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Operating Leases Future Minimum Payments Due [Line Items] | |
2,017 | $ 1,429 |
2,018 | 441 |
2,019 | 138 |
2,020 | 84 |
2021 and onwards | 15 |
Total minimum lease payments | $ 2,107 |
COMMITMENTS AND CONTINGENCIE117
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Commitments And Contingencies Disclosure [Line Items] | |||
Operating Leases, Rent Expense | $ 1,811 | $ 1,492 | $ 2,067 |
Commitments and contingencies | |||
Outstanding Guarantees | 58,747 | ||
Line of Credit Facility, Amount Outstanding | 205,129 | $ 230,074 | |
Purchase Obligation, Due in Next Twelve Months | 156,090 | ||
Capital Commitments [Member] | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Commitments and contingencies | 1,796 | ||
Standby Letters of Credit [Member] | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Line of Credit Facility, Amount Outstanding | 40,800 | ||
Performance Guarantee [Member] | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Restricted Cash and Cash Equivalents | $ 27,994 |
OPERATING LEASES AS LESSOR (Det
OPERATING LEASES AS LESSOR (Details) - Beijing Hollysys [Member] $ in Thousands | Jun. 30, 2016USD ($) |
Operating Leases Future Minimum Payments Receivable [Line Items] | |
2,017 | $ 1,464 |
2,018 | 1,508 |
2,019 | 1,553 |
2,020 | 1,600 |
2,021 | 1,648 |
Total minimum lease payments to be received in the next five years | $ 7,773 |
OPERATING LEASES AS LESSOR (119
OPERATING LEASES AS LESSOR (Details Textual) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Leases Operating [Line Items] | |
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 10 years |
Operating Leases, Future Minimum Payments Receivable | $ 3,741 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 544,325 | $ 531,379 | $ 521,332 |
Costs of revenue | 338,599 | 316,977 | 345,709 |
Gross profit | 205,726 | 214,402 | 175,623 |
IA [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 182,901 | 213,252 | 224,366 |
Costs of revenue | 113,314 | 119,520 | 143,645 |
Gross profit | 69,587 | 93,732 | 80,721 |
Rail [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 240,310 | 193,274 | 178,134 |
Costs of revenue | 131,043 | 97,503 | 104,055 |
Gross profit | 109,267 | 95,771 | 74,079 |
M&E [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 95,277 | 110,030 | 108,846 |
Costs of revenue | 82,900 | 93,452 | 93,459 |
Gross profit | 12,377 | 16,578 | 15,387 |
Miscellaneous [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 25,837 | 14,823 | 9,986 |
Costs of revenue | 11,342 | 6,502 | 4,550 |
Gross profit | $ 14,495 | $ 8,321 | $ 5,436 |
SEGMENT REPORTING (Details 1)
SEGMENT REPORTING (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 544,325 | $ 531,379 | $ 521,332 |
PRC [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 443,256 | 410,644 | 393,596 |
Non-PRC (including Hong Kong) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 101,069 | $ 120,735 | $ 127,736 |
SEGMENT REPORTING (Details 2)
SEGMENT REPORTING (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets other than goodwill and acquired intangible assets | $ 113,533 | $ 108,847 |
PRC [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets other than goodwill and acquired intangible assets | 100,454 | 95,779 |
Non-PRC (including Hong Kong) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets other than goodwill and acquired intangible assets | $ 13,079 | $ 13,068 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Subsequent Event [Line Items] | |||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | [1] | $ 464 | $ 0 | $ 0 | |
Subsequent Event [Member] | Hollycon Italy Private Ltd [Member] | |||||
Subsequent Event [Line Items] | |||||
Discontinued Operation, Equity Method Investment, Ownership Interest Disposal | 0.60% | ||||
Proceeds from Sale of Equity Method Investments | $ 30,943 | ||||
Equity Method Investment, Ownership Percentage | 51.00% | ||||
Discontinued Operation, Equity Method Investment Retained after Disposal, Ownership Interest Prior to Disposal | 30.00% | ||||
Subsequent Event [Member] | Hollycon Italy Private Ltd [Member] | Year-End Adjustment [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from Sale of Equity Method Investments | $ 7,736 | ||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | $ 464 | ||||
[1] | The respective issuances and sales of shares of a subsidiary were not completed as of June 30, 2016 (note 25). |
ENDORSEMENT OF NOTE RECEIVAB124
ENDORSEMENT OF NOTE RECEIVABLES (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
ENDORSEMENT OF NOTE RECEIVABLES [Line Items] | ||
Endorsed Bank Acceptance Bill | $ 31,991 | $ 37,669 |
CONDENSED FINANCIAL INFORMAT125
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
ASSETS | ||||
Cash and cash equivalents | $ 229,095 | $ 207,834 | $ 162,159 | $ 112,229 |
Time deposits with original maturities over three months | 42,368 | 49,650 | ||
Prepaid expenses | 569 | 594 | ||
Total current assets | 827,310 | 806,640 | ||
Total assets | 1,004,156 | 983,686 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accrued payroll and related expense | 13,193 | 11,982 | ||
Accrued liabilities | 44,439 | 31,299 | ||
Total current liabilities | 297,326 | 374,596 | ||
Long-term loan | 20,508 | 20,551 | ||
Total liabilities | 321,471 | 398,301 | ||
Equity: | ||||
Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 58,358,521 and 59,598,099 shares issued and outstanding as of June 30, 2015 and 2016, respectively | 60 | 58 | ||
Additional paid-in capital | 215,403 | 192,768 | ||
Accumulated other comprehensive income (loss) | (8,467) | 37,585 | ||
Total equity | 682,685 | 585,385 | 492,058 | 415,475 |
Total liabilities and equity | 1,004,156 | 983,686 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 8,571 | 8,437 | $ 0 | $ 0 |
Time deposits with original maturities over three months | 0 | 14,721 | ||
Amounts due from subsidiaries | 72,303 | 114,311 | ||
Prepaid expenses | 63 | 50 | ||
Total current assets | 80,937 | 137,519 | ||
Investments in subsidiaries | 669,326 | 532,136 | ||
Total assets | 750,263 | 669,655 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accrued payroll and related expense | 9 | 18 | ||
Accrued liabilities | 426 | 323 | ||
Amounts due to subsidiaries | 55,869 | 70,642 | ||
Total current liabilities | 56,304 | 70,983 | ||
Long-term loan | 19,802 | 19,572 | ||
Total liabilities | 76,106 | 90,555 | ||
Equity: | ||||
Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 58,358,521 and 59,598,099 shares issued and outstanding as of June 30, 2015 and 2016, respectively | 60 | 58 | ||
Additional paid-in capital | 215,403 | 192,768 | ||
Retained earnings | 467,160 | 348,689 | ||
Accumulated other comprehensive income (loss) | (8,466) | 37,585 | ||
Total equity | 674,157 | 579,100 | ||
Total liabilities and equity | $ 750,263 | $ 669,655 |
CONDENSED FINANCIAL INFORMAT126
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||
General and administrative expenses | $ 45,832 | $ 50,786 | $ 39,716 |
Loss from operations | 120,583 | 130,107 | 98,407 |
Interest income | 5,858 | 3,686 | 3,253 |
Interest expenses | (1,404) | (1,821) | (1,998) |
Income before income taxes | 137,742 | 125,227 | 91,312 |
Income tax expenses | 14,238 | 26,040 | 19,861 |
Net income | 118,471 | 96,527 | 69,620 |
Other comprehensive income, net of tax of nil | |||
Translation adjustment | (48,841) | (1,386) | 2,146 |
Comprehensive income | 74,663 | 97,801 | 73,597 |
Parent Company [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
General and administrative expenses | 4,484 | 3,169 | 3,721 |
Loss from operations | (4,484) | (3,169) | (3,721) |
Other expense, net | (93) | (35) | 0 |
Interest income | 80 | 1 | 0 |
Interest expenses | (705) | (463) | 0 |
Foreign exchange gains (losses) | (719) | 238 | 263 |
Equity in profit of subsidiaries | 124,392 | 99,955 | 73,078 |
Income before income taxes | 118,471 | 96,527 | 69,620 |
Income tax expenses | 0 | 0 | 0 |
Net income | 118,471 | 96,527 | 69,620 |
Other comprehensive income, net of tax of nil | |||
Translation adjustment | (46,052) | (1,427) | 2,140 |
Comprehensive income | $ 72,419 | $ 95,100 | $ 71,760 |
CONDENSED FINANCIAL INFORMAT127
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net increase in cash and cash equivalents | $ 21,261 | $ 45,675 | $ 49,930 |
Cash and cash equivalents, beginning of year | 207,834 | 162,159 | 112,229 |
Cash and cash equivalents, end of year | 229,095 | 207,834 | 162,159 |
Parent Company [Member] | |||
Net cash used in operating activities | (1,697) | (397) | 0 |
Net cash used in investing activities | 11,390 | (4,402) | 0 |
Net cash provided by financing activities | (9,559) | 13,236 | 0 |
Net increase in cash and cash equivalents | 134 | 8,437 | 0 |
Cash and cash equivalents, beginning of year | 8,437 | 0 | 0 |
Cash and cash equivalents, end of year | $ 8,571 | $ 8,437 | $ 0 |
CONDENSED FINANCIAL INFORMAT128
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details Textual) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2016CNY (¥)shares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2015CNY (¥)shares |
Condensed Financial Information of Parent Company [Line Items] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 59,598,099 | 59,598,099 | 58,358,521 | 58,358,521 |
Common stock, shares outstanding (in shares) | 59,598,099 | 59,598,099 | 58,358,521 | 58,358,521 |
Parent Company [Member] | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 59,598,099 | 59,598,099 | 58,358,521 | 58,358,521 |
Common stock, shares outstanding (in shares) | 59,598,099 | 59,598,099 | 58,358,521 | 58,358,521 |
Amount Restricted To Transfer From Subsidiary To Parent | $ 79,500 | ¥ 538,113 | $ 73,209 | ¥ 497,789 |