Document and Entity Information
Document and Entity Information - Mar. 31, 2015 - shares | Total |
Entity Registrant Name | Bonso Electronics International Inc. |
Entity Central Index Key | 846,546 |
Document Type | 20-F |
Document Period End Date | Mar. 31, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Smaller Reporting Company |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,014 |
Common Stock | |
Entity Common Stock, Shares Outstanding | 5,577,639 |
Treasury Stock | |
Entity Common Stock, Shares Outstanding | 330,736 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 3,027 | $ 116 |
Fixed deposits maturing over three months | 1,049 | |
Trade receivables, net | $ 1,306 | 2,480 |
Other receivables, deposits and prepayments | $ 1,154 | 1,781 |
Receivable from affiliated party | 166 | |
Inventories | $ 3,121 | $ 7,545 |
Financial instruments at fair value | 391 | |
Income tax recoverable | 39 | $ 1,740 |
Total current assets | 9,038 | 14,877 |
Investment in life insurance contract | $ 136 | 131 |
Deposits | 293 | |
Property, plant and equipment | ||
Buildings | $ 17,056 | 14,339 |
Construction-in-progress | 427 | 3,183 |
Plant and machinery | 9,847 | 11,276 |
Furniture, fixtures and equipment | 1,325 | 1,170 |
Motor vehicles | 572 | 589 |
Total property, plant and equipment | 29,227 | 30,557 |
Less: accumulated depreciation and impairment | (16,743) | (18,105) |
Property, plant and equipment, net | 12,484 | 12,452 |
Intangible assets, net | 4,119 | 4,387 |
Total assets | $ 25,777 | 32,140 |
Current liabilities | ||
Bank overdrafts - secured | 630 | |
Notes payable - secured | $ 1,830 | 2,527 |
Accounts payable | 4,791 | 10,413 |
Accrued charges and deposits | 3,117 | 2,597 |
Income tax liabilities | 7 | 7 |
Payable to affiliated parties | 66 | 10 |
Short-term bank loans - secured | 3,376 | 2,320 |
Financial instruments at fair value | 84 | 119 |
Current portion of capital lease obligations | 23 | $ 23 |
Loan from affiliated party - current portion | 135 | |
Total current liabilities | 13,429 | $ 18,646 |
Financial instruments at fair value - non current portion | 112 | 208 |
Capital lease obligations - non current portion | $ 45 | 69 |
Income tax liabilities | $ 2,595 | |
Loan from affiliated party - non current portion | $ 336 | |
Stockholders' equity | ||
Common stock par value $0.003 per share authorized shares - 23,333,334 issued shares: 2014 and 2015 - 5,577,639, outstanding shares: 2014 and 2015 - 5,246,903 | 17 | $ 17 |
Additional paid-in capital | 21,765 | 21,765 |
Treasury stock at cost: 2014 and 2015 - 330,736 shares | (1,462) | (1,462) |
Accumulated deficit | (11,699) | (12,809) |
Accumulated other comprehensive income | 3,234 | 3,111 |
Total stockholders' equity | 11,855 | 10,622 |
Total liabilities and stockholders' equity | $ 25,777 | $ 32,140 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.003 | $ 0.003 |
Common stock, shares authorized | 23,333,334 | 23,333,334 |
Common stock, shares issued | 5,577,639 | 5,577,639 |
Common stock, shares outstanding | 5,246,903 | 5,246,903 |
Treasury stock, shares | 330,736 | 330,736 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss)/ Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 28,944 | $ 31,305 | $ 30,386 |
Cost of sales | (23,092) | (28,631) | (25,263) |
Gross profit | 5,852 | 2,674 | 5,123 |
Rental income | 1,453 | 708 | 45 |
Selling expenses | (822) | (389) | (268) |
Salaries and related costs | (3,166) | (2,983) | (2,627) |
Research and development expenses | (228) | (366) | (396) |
Administration and general expenses | (3,245) | (2,964) | (2,402) |
Other income | 520 | 20 | 120 |
Gain on disposal of property plant and equipment | 98 | 3,595 | 2 |
(Loss) / income from operations | 462 | 295 | (403) |
Interest income | 18 | 64 | 7 |
Interest expense | (273) | (136) | (68) |
Foreign exchange loss | (134) | (444) | (261) |
(Loss) / income before income taxes | 73 | $ (221) | (725) |
Income tax (expense) / credit | 1,037 | (29) | |
Net (loss) / income | 1,110 | $ (221) | (754) |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments, net of tax | 123 | 257 | 62 |
Comprehensive (loss) / income | $ 1,233 | $ 36 | $ (692) |
Net (loss)/ earnings per share - basic and diluted | $ 0.21 | $ (0.04) | $ (0.14) |
Weighted average number of shares outstanding basic and diluted | 5,246,903 | 5,246,903 | 5,246,903 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income - Foreign Currency Adjustments | Total |
Balance, Shares at Mar. 31, 2012 | 5,577,639 | 330,736 | ||||
Balance, Value at Mar. 31, 2012 | $ 17 | $ 21,765 | $ (1,462) | $ (11,834) | $ 2,792 | $ 11,278 |
Net income/loss | (754) | (754) | ||||
Foreign exchange translation adjustment | 62 | 62 | ||||
Balance, Shares at Mar. 31, 2013 | 5,577,639 | 330,736 | ||||
Balance, Value at Mar. 31, 2013 | $ 17 | 21,765 | $ (1,462) | (12,588) | 2,854 | 10,586 |
Net income/loss | (221) | (221) | ||||
Foreign exchange translation adjustment | 257 | $ 257 | ||||
Balance, Shares at Mar. 31, 2014 | 5,577,639 | 330,736 | 5,246,903 | |||
Balance, Value at Mar. 31, 2014 | $ 17 | 21,765 | $ (1,462) | (12,809) | 3,111 | $ 10,622 |
Net income/loss | 1,110 | 1,110 | ||||
Foreign exchange translation adjustment | 123 | $ 123 | ||||
Balance, Shares at Mar. 31, 2015 | 5,577,639 | 330,736 | 5,246,903 | |||
Balance, Value at Mar. 31, 2015 | $ 17 | $ 21,765 | $ (1,462) | $ (11,699) | $ 3,234 | $ 11,855 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities | |||
Net (loss) / income | $ 1,110 | $ (221) | $ (754) |
Adjustments to reconcile net (loss) / income to net cash provided by operating activities: | |||
Depreciation | 1,082 | 1,086 | 120 |
Amortization | 294 | 289 | 226 |
Gain on disposal of property, plant and equipment | (98) | (3,595) | $ (2) |
Write-down of inventories | 687 | 874 | |
Write off of property, plant and equipment | 192 | 1,511 | |
Change in cash surrender value of life insurance contract | (5) | (4) | $ (5) |
Change in fair value of financial instruments | (132) | 419 | (35) |
Changes in assets and liabilities: | |||
Trade receivables | 1,174 | 279 | (678) |
Other receivables, deposits and prepayments | $ 380 | (166) | $ (792) |
Receivable from affiliated party | $ (166) | ||
Repayment from affiliated party | $ 166 | ||
Inventories | $ 3,737 | $ (2,959) | $ (1,355) |
Income tax recoverable | (22) | ||
Accounts payable | $ (5,622) | $ 2,620 | 2,761 |
Accrued charges and deposits | 520 | 268 | $ (18) |
Payable to affiliated parties | 56 | $ 10 | |
Income tax liabilities | $ (894) | $ (37) | |
Deferred income tax liabilities | (2) | ||
Net cash (used in) / provided by operating activities | $ 2,647 | $ 245 | (593) |
Cash flows from investing activities | |||
Proceeds from disposal of property, plant and equipment | 314 | 40 | 2 |
Acquisition of property, plant and equipment | $ (1,105) | $ (2,778) | (1,412) |
Acquisition of intangible assets | $ (802) | ||
Acquisition of financial instruments at fair value | $ (390) | ||
Acquisition of fixed deposits | $ (1,049) | $ (1,014) | |
Proceeds from maturity of fixed deposits | $ 1,049 | 1,014 | |
Net cash used in investing activities | (132) | (2,773) | $ (3,226) |
Cash flows from financing activities | |||
Capital lease payments | (24) | (28) | |
Advance from notes payable | 6,275 | 7,313 | $ 6,467 |
Repayment of notes payable | $ (6,972) | (7,062) | (6,061) |
Advance from bank overdrafts | 630 | $ 180 | |
Repayment of bank overdrafts | $ (630) | 180 | |
Advance from bank loans | 2,927 | $ 963 | $ 1,357 |
Repayment of bank loans | (1,871) | ||
Net advance from loan from affiliated party | 471 | ||
Net cash provided by financing activities | 176 | $ 1,636 | $ 1,943 |
Net (decrease) / increase in cash and cash equivalents | 2,691 | (892) | (1,876) |
Effect of exchange rate changes on cash and cash equivalents | 220 | (132) | 2 |
Cash and cash equivalents, beginning of year | 116 | 1,140 | 3,014 |
Cash and cash equivalents, end of year | 3,027 | 116 | 1,140 |
Cash paid during the year for: | |||
Interest | 273 | $ 136 | 68 |
Income tax | 13 | $ 90 | |
Income tax refund received | $ 165 | ||
Non-cash investing activities: | |||
Property plant and equipment acquired under capital lease | $ 120 |
Description of business and sig
Description of business and significant accounting policies | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of business and significant accounting policies | 1. Description of business and significant accounting policies Bonso Electronics International Inc. and its subsidiaries (collectively, the Company or Group) are engaged in the designing, manufacturing and selling of a comprehensive line of electronic scales and weighing instruments, pet electronics products and other products. The consolidated financial statements have been prepared in United States dollars and in accordance with generally accepted accounting principles in the United States of America. The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by management include valuation of inventories, allowance for trade receivables and the impairment of long-lived assets. Actual results could differ from those estimates. The Company sustained an operating loss in the fiscal year ended March 31, 2013, and operating income of approximately $295,000 and $462,000 in the fiscal years ended March 31, 2014, and 2015, respectively. Notwithstanding the operating losses sustained in the fiscal year ended March 31, 2013 and the negative working capital as of March 31, 2014 and 2015, the accompanying consolidated financial statements have been prepared on a going concern basis. With the unutilized banking facilities of approximately $4,232,000 (refer to note 7) available as of March, 31, 2015 and the increase of gross profit from 8.5% during the fiscal year ended March 31, 2014 to 20.2% during the fiscal year ended March 31, 2015, management believes the Company will have sufficient working capital to meet its financing requirements based upon their experience and their assessment of the Companys projected performance, credit facilities and banking relationships. The significant accounting policies are as follows: (a) Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries after elimination of inter-company accounts and transactions. Acquisitions of companies have been consolidated from the date on which control of the net assets and operations was transferred to the Company. Acquisitions of companies are accounted for using the purchase method of accounting. (b) Cash and cash equivalents Cash and cash equivalents are short-term, highly liquid investments with original maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value because of the short-term maturity of these instruments. (c) Inventories Inventories are stated at the lower of cost, as determined on a first-in, first-out basis, or market. Costs of inventories include purchase and related costs incurred in bringing the products to their present location and condition. Market value is determined by reference to the selling price after the balance sheet date or to management estimates based on prevailing market conditions. The Company routinely reviews its inventories for their salability and for indications of obsolescence to determine if inventory carrying values are higher than market value. Some of the significant factors the Company considers in estimating the market value of its inventories include the likelihood of changes in market and customer demand and expected changes in market prices for its inventories. (d) Trade receivables Trade receivables are recorded at the invoiced amount, net of allowances for doubtful accounts and sales returns. The allowance for doubtful accounts is the Companys best estimate of the amount of probable credit losses in the Companys existing trade receivables. Bad debt expense is included in the administrative and general expenses. The Company recognizes an allowance for doubtful receivables to ensure accounts and other receivables are not overstated due to uncollectibility. Allowance for doubtful receivables is maintained for all customers based on a variety of factors, including the length of time the receivables are past due, significant one-time events and historical experience. An additional allowance for individual accounts is recorded when the Company becomes aware of customers or other debtors inability to meet their financial obligations, such as bankruptcy filings or deterioration in the customers or other debtors operating results or financial position. If circumstances related to customers or debtors change, estimates of the recoverability of receivables will be further adjusted. (e) Income taxes and deferred income taxes Amounts in the consolidated financial statements related to income taxes are calculated using the principles of Accounting Standards Codification (ASC) 740 and Accounting Standards Updates (ASU) 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists The Company complies with ASC 740 Income Taxes (f) Lease prepayments and intangible assets Lease prepayments represent the cost of land use rights in the Peoples Republic of China (PRC). Land use rights held by the Company are included in intangible assets. The granted useful life of the land use rights is 50 years. They are stated at cost and amortized on a straight-line basis over the period of a maximum of 30 years, in accordance with the business licenses of 30 years. (g) Property, plant and equipment (i) Property, plant and equipment are stated at cost less accumulated depreciation. Leasehold land and buildings are depreciated on a straight-line basis over 15 to 50 years, representing the shorter of the remaining term of the lease or the expected useful life to the Company. (ii) Other categories of property, plant and equipment are carried at cost and depreciated using the straight-line method over their expected useful lives to the Company. The principal Oestimated useful lives for depreciation are: Plant and machinery - 10 years Furniture, fixtures and equipment - 5 to 10 years Motor vehicles - 5 years (iii) Assets under construction are not depreciated until construction is completed and the assets are ready for their intended use. (iv) The cost of major improvements and betterments is capitalized, whereas the cost of maintenance and repairs is expensed in the year when they are incurred. (v) Any gain or loss on disposal is included in the consolidated statements of operations and comprehensive (loss) / income. (h) Impairment of long-lived assets including intangible assets Long-lived assets held and used by the Company and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company evaluates recoverability of assets to be held and used by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the asset. If such assets are considered to be impaired, the impairment loss is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets calculated using a discounted future cash flows analysis. Provisions for impairment made on other long-lived assets are disclosed in the consolidated statements of operations and comprehensive (loss) / income. Since the fiscal year ended March 31, 2014, the Company has transferred all its production process to the factory in Xinxing, PRC, and the factory in Shenzhen was leased out to a third party. As a result, the Company performed an assessment of the value of the land, buildings and intangible assets of the factories in Shenzhen and Xinxing, PRC, and no provision for impairment was made by the Company (2014: $nil; 2013: $nil) based on the assessment. (i) Capital and operating leases Costs in respect of operating leases are charged against income on a straight-line basis over the lease term. Leasing agreements, which transfer to the Company substantially all the benefits and risks of ownership of an asset, are treated as if the asset had been purchased outright. The assets are included in property, plant and equipment (capital leases) and the capital element of the lease commitments is shown as an obligation under capital leases. The lease rentals are treated as consisting of capital and interest elements. The capital element is applied to reduce the outstanding obligation and the interest element is charged against profit so as to give a consistent periodic rate of charge on the remaining balance outstanding at the end of each accounting period. Assets held under capital leases are depreciated over the useful lives of the equivalent owned assets or the lease term, whichever is shorter. (j) Revenue recognition No revenue is recognized unless there is persuasive evidence of an arrangement, the price to the buyer is fixed or determinable, delivery has occurred and collectibility of the sales price is reasonably assured. Revenue is recognized when title and risk of loss are transferred to customers, which is generally the point at which products are leaving the ports of Hong Kong, or Shenzhen or Nansha (Guangzhou) as designated by our customers. Shipping costs billed to the Companys customers are included within revenue. Associated costs are classified as part of cost of sales. The Company provides to certain customers an additional one to two percent of the quantity of certain products ordered in lieu of a warranty, which is recognized as cost of sales when these products are shipped to customers from the Companys facilities. In addition, certain products sold by the Company are subject to a limited product quality warranty. The Company accrues for estimated incurred but unidentified quality issues based upon historical activity and known quality issues if a loss is probable and can be reasonably estimated. During the fiscal year ended March 31, 2015, the Company recorded $nil for such accrual (2014: $nil, 2013: $nil). The standard limited warranty period is one to three years. Quality returns, refunds, rebates and discounts are recorded net of sales at the time of sale and estimated based on past history. All sales are based upon firm orders with fixed terms and conditions, which generally cannot be modified. Historically, the Company has not experienced material differences between its estimated amounts of quality returns, refunds, rebates and discounts and the actual results. In all contracts, there is no price protection or similar privilege in relation to the sale of goods. Rental income is recognized according to the rental agreements. Rental income for non-uniform rent payments is recognized on a straight-line basis throughout the lease term. (k) Research and development costs Research and development costs include salaries, utilities and contractor fees that are directly attributable to the conduct of research and development progress primarily related to the development of new design of products. Research and development costs are expensed in the financial period in which they are incurred. (l) Advertising Advertising costs are expensed as incurred and are included within selling expenses. Advertising costs were approximately $26,000, $16,000 and $9,000 for the fiscal years ended March 31, 2013, 2014 and 2015, respectively. (m) Foreign currency translations (i) The Companys functional currency is the United States dollar. The financial statements of foreign subsidiaries where the United States dollar is the functional currency and which have transactions denominated in non-United States dollar currencies are translated into United States dollars at the exchange rates existing on that date. The translation of local currencies into United States dollars creates transaction adjustments which are included in net (loss) / income. Exchange differences are recorded in the statements of operations and comprehensive (loss) / income (ii) The financial statements of foreign subsidiaries, where non-United States dollar currencies are the functional currencies, are translated into United States dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates during each reporting period for statement of operations. Adjustments resulting from translation of these financial statements are reflected as a separate component of stockholders equity in accumulated other comprehensive income. (n) Stock options and warrants Stock options have been granted to employees, directors and non-employee directors. Upon exercise of the options, a holder can acquire shares of common stock of the Company at an exercise price determined by the board of directors. The options are exercisable based on the vesting terms stipulated in the option agreements or plan. The Company follows the guidance of ASC 718, Accounting for Stock Options and Other Stock-Based Compensation. (o) Recent accounting pronouncements In April 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued ASU 2014-12, Compensation Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern In January 2015, the FASB issued ASU 2015-01, Income Statement Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, In April 2015, the FASB issued ASU 2015-05, Customers Accounting for Fees Paid in a Cloud Computing Arrangement In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement: Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) We believe there is no additional new accounting guidance adopted, but not yet effective that is relevant to the readers of our financial statements. However, there are numerous new proposals under development which, if and when enacted, may have a significant impact on our financial reporting. |
Allowance for doubtful accounts
Allowance for doubtful accounts | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Allowance for doubtful accounts | 2 Allowance for doubtful accounts Allowance for doubtful accounts amounted to $1,415,000 as of March 31, 2014 and 2015. The Company believed that the recoverability was doubtful, and continued to include this amount in allowance for doubtful accounts as of March 31, 2014 and 2015. Most of the Companys trade receivables are generally unsecured, except for two customers with receivables covered by credit insurance under a factoring agreement. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 3 Inventories The components of inventories as of March 31, 2014 and 2015 are as follows: 2014 2015 $ in thousands $ in thousands Raw materials 5,137 1,978 Work in progress 2,229 676 Finished goods 179 467 7,545 3,121 During the fiscal year ended March 31, 2014 and 2015, based upon material composition and expected usage, provision for inventories of approximately $874,000 and $687,000, respectively, were charged to the consolidated statements of operations under cost of sales. |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Mar. 31, 2015 | |
Property, plant and equipment | |
Property, plant and equipment, net | 4 Property, plant and equipment, net During the fiscal years ended March 31, 2013, 2014 and 2015, depreciation expenses charged to the consolidated statements of operations amounted to approximately $120,000, $1,086,000 and $1,082,000 respectively. As at March 31, 2014 and 2015, fully depreciated assets that were still in use by the Company amounted to $10,122,000 and $9,550,000, respectively. Property, plant and equipment in Shenzhen and Xinxing were assessed for impairment according to the policy described in note 1(h). The Company concluded that no impairment to property, plant and equipment in Shenzhen and Xinxing were required for the fiscal years ended March 31, 2014 and 2015. |
Interests of subsidiaries
Interests of subsidiaries | 12 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interests of subsidiaries | Interests in subsidiaries Particulars of principal subsidiaries as of March 31, 2014 and 2015 are as follows: Name of company Place of legal entity Particulars of issued capital registered capital Percentage of capital held by the Company Principal activities 2014 2015 Bonso Electronics Limited * Hong Kong, HK$5,000,000 (US$641,026) 100% 100% Investment holding, providing management and administrative support to the Group companies Bonso Investment Limited Hong Kong, HK$3,000,000 (US$384,615) 100% 100% Investment holding Bonso Electronics (Shenzhen) Company, Limited PRC, US$12,621,222 100% 100% Investment holding Bonso Advanced Technology Limited * Hong Kong, HK$1,000,000 100% 100% Investment holding, and trading of scales and pet electronics products Bonso Advanced Technology (Xinxing) Company, Limited PRC, US$10,000,000 100% 100% Production of scales and pet electronics products Bonso Technology (Shenzhen) Company, Limited PRC, HK$200,000 100% 100% Product development Xinxing An Bang Metal and Plastic Manufacturing Company Limited PRC, HK$500,000 100% 100% Employs workers for assembly of scales and pet electronics products * Shares directly held by the Company |
Intangible assets
Intangible assets | 12 Months Ended |
Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Intangible assets Intangible assets are analyzed as follows: March 31, 2014 2015 $ in thousands $ in thousands Cost 6,894 6,939 Less: accumulated amortization (2,507 ) (2,820 ) 4,387 4,119 The components of other intangible assets are as follows: March 31 , 2014 2015 $ in thousands $ in thousands Land use right of factory land in Shenzhen, Guangdong, PRC 2,062 1,880 Land use right of factory land in Xinxing, Guangdong, PRC 2,325 2,239 4,387 4,119 Amortization expense in relation to other intangible assets was approximately $226,000, $289,000 and $294,000 for each of the fiscal years ended March 31, 2013, 2014 and 2015, respectively. As of March 31, 2015, future minimum amortization expenses in respect of other intangible assets are as follows: Year ending March 31, $ in thousands 2016 294 2017 294 2018 294 2019 294 2020 294 Thereafter 2,649 Total 4,119 |
Banking facilities
Banking facilities | 12 Months Ended |
Mar. 31, 2015 | |
Banking and Thrift [Abstract] | |
Banking facilities | 7 Banking facilities As of March 31, 2015, the Company had general banking facilities for bank overdrafts, letters of credit, notes payable, factoring and term loans. The facilities are interchangeable with total amounts available of $9,438,000 (2014: $10,698,000). The general banking facilities utilized by the Company are denominated in United States dollars, Hong Kong dollars and Chinese Yuan. The Companys general banking facilities, expressed in United States dollars, are further detailed as follows: Amount available Amount utilized Amount unutilized Terms of banking March 31, March 31, March 31, March 31, 2015 2014 2015 2014 2015 2014 2015 Interest Repayment $ in thousands $ in thousands $ in thousands rate terms Import and export facilities Combined limit 6,154 2,564 3,703 1,830 2,451 734 Including sub-limit of: Notes payable 4,487 2,308 2,527 1,830 1,960 478 HIBOR* +2.5% Repayable in full within 120 days Bank overdrafts 641 641 630 11 641 Prime rate Repayable on demand Factoring 2,400 2,400 546 1,854 2,400 HIBOR* +1.5% Repayable in 60 days Other facilities Export Documentary Credits 1,923 641 1,923 641 Short Term 1,026 3,547 1,026 1,026 2,521 (Note A) A Revolving loan is repayable in 30 days Long Term Loans (1) 1,595 2,686 748 2,350 847 336 (Note A) Term loans are repayable 10,698 9,438 5,477 5,206 5,221 4,232 Note A: HIBOR* +2.25% for loans in Hong Kong. People's Bank of Chinas loan benchmark interest rate times 110% for loans in PRC. (1) A clause in the banking facilities states that the term loans are subject to review any time and also subject to the bank's overriding right of repayment on demand, including the right to call for cash cover on demand for prospective and contingent liabilities. Therefore, all long-term loans were classified as current liabilities in the consolidated balance sheets. * HIBOR is the Hong Kong Interbank Offer Rate As of March 31, 2015, a treasury product facility of approximately $25,738,000 (2014: $25,738,000) was made available to the Company for transactions of financial instruments including forward contracts, and approximately $2,000,000 (2014: $2,000,000) of the facility was utilized. One of the properties of the Company located in Hong Kong with net book value of approximately $990,000 and the rental assignment over such property, the rights, interests and benefits of a life insurance contract with book value of approximately $136,000, and a land use right and factory building located in Xinxing, PRC with net book value of approximately $3,550,000 are arranged as securities to the banks for the banking facilities arrangement. Refer to note 20 on subsequent events for sale of land use right after March 31, 2015 and potential impact to the banking facilities. The Prime Rate, HIBOR and Peoples' Bank of China loan benchmark interest rate were 5.00%, 0.53% and 5.75% per annum, respectively, as of March 31, 2015. The Prime Rate is determined by the Hong Kong Bankers Association and is subject to revision from time to time. Interest rates are subject to change if the Company defaults on the amount due under the facility or draws in excess of the facility amounts, or at the discretion of the banks. The weighted average interest rates of short-term borrowings of the Company are as follows: During the fiscal year ended March 31, 2014 2015 Bank overdrafts 6.00 % 6.00 % Notes payable 2.96 % 2.92 % Term Loan in Hong Kong 2.47 % 2.47 % Term Loan in PRC 6.77 % Factoring 1.96 % 1.74 % |
Income tax
Income tax | 12 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income tax | Income tax (a) The subsidiaries comprising the Group are subject to tax on an entity basis on income arising in or derived from Hong Kong and the PRC. The Company is not subject to income taxes in the British Virgin Islands. Hong Kong Tax The subsidiaries operating in Hong Kong are subject to the Hong Kong profits tax rate of 16.5% (2014: 16.5%). BIL has no assessable profits for the year ended March 31, 2015. Both BEL and BATL have assessable profits for the year ended March 31, 2015 and will be offset against prior year tax losses. Therefore, no current year provision for taxation has been made for the year ended March 31, 2015 (2014: $nil). Since December 2005, BEL was under tax review by the local tax authorities for the profits tax assessment for the fiscal years ended March 31, 2000 to 2005. During the tax years under review, BEL was reporting profits tax with tax benefit of 50% reduction in tax payment due to import processing. However, the local tax authorities later believed that BEL was not entitled to this tax benefit as the PRC factory setup was no longer considered an import processing. Also, during the tax years under review, the local tax authorities believed that some profits of BEII were generated within the territory of Hong Kong and should be taxable in Hong Kong. After review and discussion between the Company and the local tax authorities, both parties agreed that the tax benefit of 50% reduction was not applicable and certain profits of BEII were taxable in Hong Kong during the tax years in review. During the fiscal year ended March 31, 2015, the tax review case was closed and confirmed with the local tax authorities and the final tax and interest payable were approximately $1,545,000. After offsetting with the tax reserve certificates purchased for approximately $1,710,000, the Company obtained a refund of approximately $165,000. PRC Tax All subsidiaries registered in the PRC are subject to a tax rate of 25% (2014: 25%). (b) Income is subject to taxation in the various countries in which the Company and its subsidiaries operate. The (loss) / income before income taxes by geographical location is analyzed as follows: 2013 2014 2015 $ in thousands $ in thousands $ in thousands Hong Kong (3,509 ) (1,495 ) (55 ) PRC 2,832 1,337 148 Others (48 ) (63 ) (20 ) Total (725 ) (221 ) 73 Others mainly include the (loss) / income from BVI. (c) Income tax (expense) / credit comprises the following: 2013 2014 2015 $ in thousands $ in thousands $ in thousands Deferred income tax 2 Current income tax expense (31 ) (13 ) Income tax credit 1,050 Total income tax (expense) / credit (29 ) 1,037 The components of the income tax (expense) / credit by geographical location are as follows: 2013 2014 2015 $ in thousands $ in thousands $ in thousands Hong Kong (29 ) 1,050 PRC (13 ) Others Total (29 ) 1,037 At the end of the accounting period, the income tax liabilities are as follows: 2014 2015 $ in thousands $ in thousands Non-current 2,595 Current 7 7 Total 2,602 7 (d) Deferred tax assets comprise the following: 2014 2015 $ in thousands $ in thousands Tax loss carry forwards 853 4,459 Less: Valuation allowance (853 ) (4,459 ) As of March 31, 2014 and 2015, the Company had accumulated tax losses amounting to approximately $3,600,000 and $25,327,000 (the tax effect thereon is $853,000 and $4,459,000), respectively, subject to the final agreement by the relevant tax authorities, which may be carried forward and applied to reduce future taxable income which is earned in or derived from Hong Kong and other countries. Realization of deferred tax assets associated with tax loss carry forwards is dependent upon generating sufficient taxable income prior to their expiration. A valuation allowance is established against such tax losses when management believes it is more likely than not that a portion may not be utilized. As of March 31, 2015, the Companys accumulated tax losses of $2,189,000 will expire in 2018, $164,000 will expire in 2019 and $951,000 will expire in 2020. (e) Changes in valuation allowance are as follows: 2013 2014 2015 $ in thousands $ in thousands $ in thousands Balance, April 1 784 700 853 (Credited) / charged to income tax expense (84 ) 153 3,606 ────── ────── ────── Balance, March 31 700 853 4,459 ══════ ══════ ══════ (f) The actual income tax (expense) / credit attributable to earnings for the fiscal years ended March 31, 2013, 2014 and 2015 differed from the amounts computed by applying the Hong Kong statutory tax rate in accordance with the relevant income tax law as a result of the following: 2013 2014 2015 $ in thousands $ in thousands $ in thousands (Loss) / income before income taxes (725 ) (221 ) 73 Income tax benefit / (expense) on pretax income at statutory rate 120 36 (12 ) Effect of different tax rates of subsidiary (249 ) (28 ) (233 ) Profit not subject to income tax 3,600 1,129 542 Expenses not deductible for income tax purposes (3,469 ) (1,137 ) (336 ) (Decrease) / increase in valuation allowance (84 ) 153 3,606 Reversal of provision from conclusion of tax review with tax authorities 2,595 Tax expense from conclusion of tax review with tax authorities (1,545 ) Under provision of prior year (31 ) Utilization of tax losses not previously recognized / (tax losses 84 (153 ) (3,580 ) Total income tax (expense) / credit (29 ) 1,037 The statutory rate of 16.5% used above is that of Hong Kong, where the Companys main business is located. (g) The Company complies with ASC 740 and assessed the tax position during the fiscal year ended March 31, 2015 and concluded that such prior year uncertain income tax liability was no longer required. Included in the total tax liabilities of $7,000 (2014: $2,602,000), the uncertain tax liabilities in respect of this for the year ended March 31, 2015 amounted to $nil (2014: $2,595,000). The Companys accounting policy is to treat interest and penalties as components of income taxes. As of March 31, 2015, the Company had no accrued penalties related to uncertain tax positions (2014: $994,000). |
Financial instruments at fair v
Financial instruments at fair value | 12 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial instruments at fair value | 9 Financial instruments at fair value The Company complies with ASC 820, Fair Value Measurements Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. Level 3-Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The Company entered into forward contracts with a bank, and the bank will pay the Company if the Chinese Yuan appreciates against USD. If the Chinese Yuan depreciates against USD, the Company will need to pay the bank, but will be able to buy more Chinese Yuan as a result. During the fiscal year ended March 31, 2015, based on our valuation of the existing forward contracts, we recorded a gain of approximately $131,000 (2014: loss of $419,000) for the change in valuation, resulting in a liability of approximately $196,000 (2014: $327,000). During the fiscal year ended March 31, 2015, the Company purchased an investment product for approximately $390,000 through Ping An Bank (2014: $nil), and the fair value at March 31, 2015 was valuated at approximately $391,000 (2014: $nil). At the end of the accounting period, the fair value of the following assets / (liabilities) were as follows: March 31, 2014 March 31, 2015 $ in thousands Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Forward contracts (1) (327 ) (327 ) (196 ) (196 ) Investment product (2) 391 391 (1) The fair value of forward contracts was determined based on the present value of expected future cash flows considering the risks involved, and using discount rates appropriate for the respective maturities. Observable level 2 inputs are used to determine the present value of expected future cash flows. (2) Observable inputs for the fair value of financial instruments were not assessable. The fair value is determined based on valuation and projection provided by Ping An Bank. On July 8, 2015, the investment product has been redeemed for approximately $397,000 for a net gain of approximately $6,000. |
Investment in life insurance co
Investment in life insurance contract | 12 Months Ended |
Mar. 31, 2015 | |
Investments, All Other Investments [Abstract] | |
Investment in life insurance contract | 10 Investment in life insurance contract Investment in life insurance contract represents the carrying amount (surrender value) of the contract if it is to be terminated by the Company. There is one life insurance contract as of March 31, 2015 and March 31, 2014, with carrying amount of approximately $136,000 and $131,000, respectively. All premiums of this contract have already been paid during the fiscal year ended March 31, 2012. The face amount (death benefit) of this contract is $1,000,000. During the fiscal year ended March 31, 2015, we recorded a gain of approximately $5,000 for the change in valuation (2014: $4,000). |
Leases
Leases | 12 Months Ended |
Mar. 31, 2015 | |
Leases [Abstract] | |
Leases | 11 Leases (a) Capital leases During the year ended March 31, 2014, the Company entered into capital lease obligations amounting to approximately $123,000 for two motor vehicles. During the year ended March 31, 2015, the Company did not enter into additional capital lease obligations. Future minimum payments under capital leases as of March 31, 2015 with an initial term of more than one year are as follows: Future minimum payments under capital leases for the years ended March 31, Principal repayment Interest payment Total obligations 2016 23 2 25 2017 23 1 24 2018 20 1 21 2019 2 0 2 68 4 72 (b) Operating leases As of March 31, 2015, the Company leases two properties, a factory in Shenzhen and part of production facilities in Xinxing under rental agreements to third parties. The Company will need to pay a cancellation fee of approximately $69,000 if the Company decides to terminate all the rental agreements before their expiry. The Shenzhen factory was rented out to a third party from August 1, 2013 to August 1, 2019. The metal stamping facilities in Xinxing were rented out to a third party from July 1, 2013 to June 30, 2016. The plastic injection facilities in Xinxing were rented out to a third party from January 1, 2015 to December 31, 2020. The expected future rental payments to be received are as follows: Year ending March 31, $ in thousands 2016 1,307 2017 1,341 2018 1,383 2019 1,383 2020 461 5,875 As of March 31, 2015, the future minimum lease commitment payables in respect of non-cancellable operating leases for two offices in Shenzhen and a staff quarter in Xinxing are as follows: Year ending March 31, $ in thousands 2016 119 2017 122 2018 107 2019 20 368 Rental expenses for all operating leases of two office premises in Shenzhen and a staff quarter in Xinxing amounted to approximately $nil, $51,000 and $100,000 for the fiscal years ended March 31, 2013, 2014 and 2015, respectively. |
Commitments and contingent liab
Commitments and contingent liabilities | 12 Months Ended |
Mar. 31, 2015 | |
Commitments and contingent liabilities | |
Commitments and contingent liabilities | 12 Commitments and contingent liabilities (a) Commitments Capital expenditures contracted at the balance sheet date but not yet provided for are as follows: March 31, 2014 2015 $ in thousands $ in thousands Construction in Xinxing, Guangdong, PRC 665 301 Leasehold improvement in Hong Kong 73 738 301 As of March 31, 2015, the Company entered into contractor agreements to construct a factory building and leasehold improvements on the manufacturing facility in Xinxing, the PRC for total consideration of $1,561,000. As of March 31, 2015, $1,260,000 has been paid, and the remaining balance of $301,000 is to be paid in accordance with the progress of the construction. (b) Contingent liabilities The Company has entered into an employment agreement with a director, Anthony So. Mr. Sos employment agreement provides for a maximum yearly salary of approximately $800,000 per year plus bonus. The initial term of the employment agreement expired on March 31, 2013 (Initial Term); however, the employment agreement has been renewed under a provision in the agreement that provides for automatic renewal for successive one year periods, unless at least 90 days prior to the expiration of the Initial Term or any renewal term, either party gives written notice to the other party specifically electing to terminate the agreement. Mr. Sos employment agreement contains a provision under which the Company will be obligated to pay Mr. So all compensation for the remainder of his employment agreement and five times his annual salary and bonus compensation if a change of control, as defined in his employment agreement occurs. The employment agreement was renewed automatically, and will expire on March 31, 2016, unless automatically renewed. |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Stockholders' equity | 13 Stockholders equity (a) Repurchase of common stock In August of 2001, the Company's Board of Directors authorized a program for the Company to repurchase up to $500,000 of its common stock. This repurchase program does not obligate the Company to acquire any specific number of shares or acquire shares over any specified period of time. No stock had been repurchased when, on November 16, 2006, the Company's Board of Directors authorized another $1,000,000 for the Company to repurchase its common stock under the same repurchase program. This authorization to repurchase shares increased the amount authorized for repurchase from $500,000 to $1,500,000. The Board of Directors believed that the common stock was undervalued and that the repurchase of common stock would be beneficial to the Company's stockholders. The Company (through its subsidiary) has repurchased an aggregate of 330,736 shares of its common stock, including 70,019 ($134,000) shares that were repurchased during the fiscal year ended March 31, 2009. No shares were repurchased during the three fiscal years ended March 31, 2013, 2014 and 2015. The Company may from time to time repurchase shares of its common stock under this program. (b) Preferred stock The Company has authorized share capital of $100,000 for 10,000,000 shares of preferred stock, with par value of $0.01 each, divided into 2,500,000 shares each of class A preferred stock, class B preferred stock, class C preferred stock and class D preferred stock. Shares may be issued within each class from time to time by the Companys Board of Directors in its sole discretion without the approval of the stockholders, with such designations, power, preferences, rights, qualifications, limitation and restrictions as the Board of Directors shall fix and as have not been fixed in the Companys Memorandum of Association. The Company has not issued any shares of preferred stock as of March 31, 2015. (c) Dividends No dividends were declared by the Company for each of the fiscal years ended March 31, 2013, 2014 and 2015, respectively. |
Stock option and bonus plans
Stock option and bonus plans | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Stock option and bonus plans | 14 Stock option and bonus plans (a) 1996 Stock Option Plan Under the 1996 Non-Employee Directors Stock Option Plan, the non-employee directors were automatically granted stock options on the third business day following the day of each annual general meeting of the Company to purchase shares of common stock. The maximum number of authorized shares under the 1996 Non-Employee Directors Stock Option Plan was 600,000. The exercise price of all options granted under the 1996 Non-Employee Directors Stock Option Plan shall be one hundred percent of the fair market value per share of the common shares on the date of grant. The maximum term of options granted under the 1996 Non-Employee Directors Stock Option Plan is 10 years. No stock option may be exercised during the first six months of its term except for certain conditions provided in the 1996 Non-Employee Directors Stock Option Plan. The right to acquire the common shares is not assignable except for under certain conditions stipulated in the 1996 Non-Employee Directors Stock Option Plan. In April 2003, the Company issued options to certain directors and non-employee directors of the Company to purchase an aggregate of 372,500 shares of common stock of the Company at an exercise price of $1.61. The exercise prices of these options were equal to the fair market value at the time of grant. The options expired on March 31, 2013. No such options have been exercised during the years ended March 31, 2013. In March 2004, the Company issued options to certain non-employee directors of the Company to purchase an aggregate of 40,000 shares of common stock of the Company at an exercise price of $6.12. The exercise prices of these options were equal to the fair market value at the time of grant. The options expired on March 25, 2014. No such options have been exercised up to March 31, 2014. In December 2005, the Company issued options to certain non-employee directors of the Company to purchase an aggregate of 30,000 shares of common stock of the Company at an exercise price of $4.50. The options shall expire on December 4, 2015 and can be exercised at any time after granting. The exercise prices of these options were equal to the fair market value at the time of grant. No such options had been exercised during the years ended March 31, 2013, 2014 and 2015. During the fiscal years ended March 31, 2013, 2014 and 2015, no shares or share options were granted under the 1996 Stock Option Plan. (b) 2004 Stock Bonus Plan The purpose of this Stock Bonus Plan is to (i) induce key employees to remain in the employment of the Company or of any subsidiary of the Company; (ii) encourage such employees to secure or increase their stock ownership in the Company; and (iii) reward employees, non-employee directors, advisors and consultants for services rendered or to be rendered to or for the benefit of the Company or any of its subsidiaries. The Company believes that the Stock Bonus Plan will promote continuity of management and increase incentive and personal interest in the welfare of the Company. The Stock Bonus Plan shall be administered by a committee appointed by the Board of Directors which consists of at least two but not more than three members of the Board, one of whom shall be a non-employee of the Company. The existing Committee members are Mr. Anthony So and Mr. Woo Ping Fok. The Committee has the authority, in its sole discretion: (i) to determine the parties to receive bonus stock, the times when they shall receive such awards, the number of shares to be issued and the time, terms and conditions of the issuance of any such shares; (ii) to construe and interpret the terms of the Stock Bonus Plan; (iii) to establish, amend and rescind rules and regulations for the administration of the Stock Bonus Plan; and (iv) to make all other determinations necessary or advisable for administering the Stock Bonus Plan. (c) 2004 Stock Option Plan The purpose of the 2004 Plan is to secure key employees to remain in the employment of the Company and to encourage such employees to secure or increase on reasonable terms their common stock ownership in the Company. The Company believes that the 2004 Plan promotes continuity of management and increased incentive and personal interest in the welfare of the Company. The 2004 Plan is administered by a committee appointed by the Board of Directors which consists of at least two but not more than three members of the Board, one of whom shall be a non-employee of the Company. The current committee members are Mr. Anthony So and Mr. Woo Ping Fok. The committee determines the specific terms of the options granted, including the employees to be granted options under the plan, the number of shares subject to each option grant, the exercise price of each option and the option period, subject to the requirement that no option may be exercisable more than 10 years after the date of grant. The exercise price of an option may be less than the fair market value of the underlying shares of Common Stock. No options granted under the plan will be transferable by the optionee other than by will or the laws of descent and distribution, and each option will be exercisable during the lifetime of the optionee only by the optionee. The exercise price of an option granted pursuant to the 2004 Plan may be paid in cash, by the surrender of options, in common stock, in other property, including a promissory note from the optionee, or by a combination of the above, at the discretion of the Committee. (d) The stock options summary as of March 31, 2015 is as follows: Number of options Weighted average exercise price Balance, March 31, 2013 110,000 $ 5.71 Expired (40,000 ) $ 6.12 Balance, March 31, 2014 70,000 $ 5.47 Expired (40,000 ) $ 6.20 Balance, March 31, 2015 30,000 $ 4.50 (e) The following table summarizes information about all stock options of the Company outstanding as at March 31, 2015 : Weighted average Number Weighted Exercisable exercise price March 31, 2015 (years) March 31, 2015 $4.50 30,000 0.8 30,000 The intrinsic value of options outstanding and exercisable was $nil, $nil and $nil on March 31, 2013, 2014 and 2015, respectively. The intrinsic value represents the pre-tax intrinsic value (the difference between the closing stock price of the Companys common stock on the balance sheet date and the exercise price for both the outstanding and exercisable options) that would have been received by the option holders if all options had been exercised on March 31, 2013, 2014 and 2015. New shares will be issued by the Company upon future exercise of stock options. |
Related party transactions
Related party transactions | 12 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related party transactions | 15 Related party transactions (a) The Company paid emoluments, commissions and/or consultancy fees to its directors and officers as follows: Year ended Mr. Anthony Mr. Kim Wah Mr. Woo-Ping Mr. Andrew March 31, So Chung Fok So Director, Chief Executive Director Director Director $ in thousands $ in thousands $ in thousands $ in thousands 2013 $857 (i), (iii) $160 (iii) Nil $ 124 2014 $857 (i), (iii) $161 (iii) Nil $ 128 2015 $857 (i), (iii) $160 (iii) Nil $ 124 Mr. Henry Mr. Albert So Director and Director, Chief Financial $ in thousands $ in thousands 2013 $74 (ii) $124 (iii) 2014 $84 (ii) $125 2015 $55 (ii) $109 The emoluments paid to the Companys directors and officers were included in the salaries and related costs, while the consultancy fees or professional fees paid to Schlueter & Associates, P.C., were included in the administration and general expenses. (i) Apart from the emoluments paid by the Company as shown above, one of the properties of the Company in Hong Kong is also provided to Mr. Anthony So for his accommodation. (ii) The amounts for the years ended March 31, 2013, 2014 and 2015 represented professional fees paid to Schlueter & Associates, P.C., the Companys SEC counsel, in which Mr. Henry Schlueter is one of the principals. (iii) The amount for the year ended March 31, 2013, included unpaid vacation payments of $57,000, $9,000, and $5,000 for Mr. Anthony So, Mr. Kim Wah Chung, and Mr. Albert So, respectively. The amount for the year ended March 31, 2014, included unpaid vacation payments of $10,000, for Mr. Kim Wah Chung. The amount for the year ended March 31, 2014 included vacation payment of $57,000 for Mr. Anthony So. The amount for the year ended March 31, 2015, included unpaid vacation payments of $57,000, $9,000 for Mr. Anthony So and Mr. Kim Wah Chung, respectively. During the fiscal year ended March 31, 2014, the Company made a loan to a director, Mr. Anthony So, resulting in an amount due to the Company from Mr. So of $166,000 on March 31, 2014. On August 7, 2014, Mr. So paid $166,000 to the Company to fully repay the amounts loaned to him. During the fiscal year ended March 31, 2015, one of the subsidiaries in Shenzhen, PRC entered into a rental agreement with a director and stockholder, Mr. Anthony So, for three apartment units located in Shenzhen, PRC for office usage. Mr. Anthony So is the sole owner of these three apartment units. The monthly rental payment was approximately $2,000, and the total rental payment paid to Mr. Anthony So during the fiscal year ended March 31, 2015 was approximately $10,000. During the fiscal year ended March 31, 2015, one of the subsidiaries in Xinxing, PRC entered into a rental agreement with a director and stockholder, Mr. Andrew So, for an apartment unit located in Xinxing, PRC for staff quarters. Mr. Andrew So is the sole owner of this apartment unit. The monthly rental payment was approximately $480, and the total rental payment paid to Mr. Andrew So during the fiscal year ended March 31, 2015 was approximately $2,000. |
Concentrations and credit risk
Concentrations and credit risk | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Concentrations and credit risk | 16 Concentrations and credit risk The Company operates principally in the PRC (including Hong Kong) and grants credit to its customers in this geographic region. Although the PRC is economically stable, it is always possible that unanticipated events in foreign countries could disrupt the Companys operations. Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and trade receivables. The Company does not require collateral to support financial instruments that are subject to credit risk. At March 31, 2014 and 2015, the Company had credit risk exposure of uninsured cash and deposits and less than one year in banks of approximately $1,165,000 and $3,027,000, respectively. A substantial portion, 52%, 45% and 37% of revenue, was generated from one customer for the years ended March 31, 2013, 2014 and 2015, respectively. The net sales to customers representing at least 10% of net total sales are as follows: Year Ended March 31, 2013 2014 2015 $ in thousands % $ in thousands % $ in thousands % Sunbeam Products, Inc. 15,818 52 14,080 45 6,879 24 Fitbit, Inc. 5,493 18 10,396 33 10,593 37 Kern + Sohn GMBH 3,814 13 2,762 9 5,424 19 25,125 83 27,238 87 22,896 80 The following customers had balances greater than 10% of the total trade receivables at the respective balance sheet dates set forth below: March 31, 2014 2015 $ in thousands % $ in thousands % Sunbeam Products, Inc. 1,523 61 101 8 Fitbit, Inc. 355 14 324 25 Kern + Sohn GMBH 169 7 224 17 Pitney Bowes Inc. 219 9 355 27 91 77 At March 31, 2014 and 2015, these customers accounted for 91% and 77%, respectively, of net trade receivables. The trade receivables have repayment terms of not more than twelve months. Trade receivables for two customers accounted for 33% of total trade receivables as of March 31, 2015 (2014: 75%), and they were covered by credit insurance under a factoring agreement with a bank. |
Employee retirement benefits an
Employee retirement benefits and severance payment allowance | 12 Months Ended |
Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee retirement benefits and severance payment allowance | 17 Employee retirement benefits and severance payment allowance (a) With effect from January 1, 1988, BEL, a wholly-owned foreign subsidiary of the Company in Hong Kong, implemented a defined contribution plan (the Plan) with a major international insurance company to provide life insurance and retirement benefits for its employees. All permanent full time employees who joined BEL before December 2000, excluding factory workers, are eligible to join the Plan. Each eligible employee that chooses to participate in the Plan is required to contribute 5% of their monthly salary, while BEL is required to contribute from 5% to 10% depending on the eligible employees salary and number of years in service. The Mandatory Provident Fund (the MPF) was introduced by the Hong Kong Government and commenced in December 2000. BEL joined the MPF by implementing a plan with a major international insurance company. All permanent Hong Kong full time employees who joined BEL on or after December 2000, excluding factory workers, must join the MPF, except for those who joined the Plan before December 2000. Both the employees and employers contributions to the MPF are 5% of the eligible employees monthly salary and are subject to a maximum mandatory contribution of HK$1,000 (US$128) per month. Both the maximum mandatory employees and employers contributions per month increased to HK$1,250 (US$160) since June 1, 2012, and then later to HK$1,500 (US$192) since June 1, 2014. Pursuant to the relevant PRC regulations, the Company is required to make contributions for each employee, at rates based upon the employees standard salary base as determined by the local Social Security Bureau, to a defined contribution retirement scheme organized by the local Social Security Bureau in respect of the retirement benefits for the Companys employees in the PRC. (b) The contributions to each of the above schemes are recognized as employee benefit expenses when they are due and are charged to the consolidated statement of operations. The Companys total contributions and accruals to the above schemes for the years ended March 31, 2013, 2014 and 2015 amounted to $225,000, $758,000 and $693,000, respectively. (c) According to the New Labor Law in the PRC which was effective on January 1, 2008, a company is required to provide one months salary for each year of service as a severance payment. As such, the Company paid $1,194,000 for severance payment in the fiscal year ended March 31, 2014 to the terminated staff when production was moved from the Shenzhen factory to the Xinxing factory. The Company recognized a provision of $256,000 in the fiscal year ended March 31, 2015 for severance payments for staff in the PRC (2014: $156,000, 2013: $743,000). The accrued severance payment allowance is reviewed every year. |
Net (loss) earnings per share
Net (loss) earnings per share | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Net (loss) earnings per share | 18 Net (loss) / earnings per share Basic (loss) / earnings per share is computed by dividing net (loss) / earnings available to common stockholders by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive shares of common stock that were outstanding during the period, including stock options. The outstanding 30,000 options as of March 31, 2015 have an anti-dilutive effect and are excluded from calculation of weighted average shares outstanding. The diluted net (loss) / earnings per share was the same as the basic net (loss) / shares per share for the years ended March 31, 2013, 2014 and 2015, as all potential common shares (110,000 shares on March 31, 2013, 70,000 shares on March 31, 2014 and 30,000 shares on March 31, 2015) from the exercise of stock options are anti-dilutive and are therefore excluded from the computation of diluted net (loss) / earnings per share. |
Business segment information
Business segment information | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Business segment information | 19 Business segment information (a) The Company is organized based on the products it offers. Under this organizational structure, the Companys operations can be classified into three business segments, Scales, Pet Electronics Products and Others for the fiscal years ended March 31, 2014 and 2015. Scales operations principally involve production and marketing of sensor-based scales products. These include bathroom, kitchen, office, jewelry, laboratory, postal and industrial scales that are used in consumer, commercial and industrial applications. Revenue from scale products were 89% (2014: 95%) of overall revenue of the Company for the fiscal year ended March 31, 2015, and the Company expects that the revenue from scale products will continue to contribute a similar level of revenue for the next 12 months. Pet Electronics Products principally involve development and production of pet-related electronics products that are used in consumer applications. Revenue from pet electronics products were 10% (2014: 4%) of overall revenue of the Company for the fiscal year ended March 31, 2015, and the Company expects that the revenue from pet electronics products will continue to contribute a similar level of revenue for the next 12 months. The Others segment is a residual, which principally includes the activities of (i) tooling and mould charges for scales and pet electronics products, and (ii) sales of scrap materials. The following table sets forth the percentage of net sales for each of the product lines mentioned above for the fiscal years ended March 31, 2013, 2014, and 2015: Year ended March 31, Product Line 2013 2014 2015 Scales 90 % 95 % 89 % Pet Electronics Products 8 % 4 % 10 % Others 2 % 1 % 1 % Total 100 % 100 % 100 % The accounting policies of the Companys reportable segments are the same as those described in the description of business and significant accounting policies. Summarized financial information by business segment as of March 31, 2013, 2014 and 2015 is as follows: Net sales Operating (loss)/income Identifiable assets as of Depreciation and amortization Capital expenditure $ in thousands $ in thousands $ in thousands $ in thousands $ in thousands 2013 Scales & Others 27,998 (371 ) 18,518 111 1,301 Pet Electronics Products 2,388 (32 ) 1,579 9 111 Total operating segments 30,386 (403 ) 20,097 120 1,412 Corporate 7,026 226 - Group 30,386 (403 ) 27,123 346 1,412 2014 Scales & Others 29,837 281 23,279 1,035 2,762 Pet Electronics Products 1,468 14 1,145 51 136 Total operating segments 31,305 295 24,424 1,086 2,898 Corporate 7,716 289 - Group 31,305 295 32,140 1,375 2,898 2015 Scales & Others 25,911 414 16,172 968 1,472 Pet Electronics Products 3,033 48 1,893 114 173 Total operating segments 28,944 462 18,065 1,082 1,645 Corporate 7,712 294 Group 28,944 462 25,777 1,376 1,645 Operating (loss) / income by segment equals total operating revenues less expenses directly attributable to the generation of the segments operating revenues. Operating loss of the corporate segment consists principally of salaries and related costs of administrative staff, and administration and general expenses of the Company. Identifiable assets by segment are those assets that are used in the operation of that segment. Corporate assets consist principally of cash and cash equivalents, investment in life insurance contracts, income tax recoverable, other intangible assets, and other identifiable assets not related specifically to individual segments. (b) The Company primarily operates in Hong Kong and the PRC. The manufacture of components and their assembly into finished products and research and development are carried out in the PRC. As the operations are integrated, it is not practicable to distinguish the net income derived among the activities in Hong Kong, and the PRC. Total property, plant and equipment, net by geographical areas are as follows: March 31, March 31, 2014 2015 $ in thousands $ in thousands Hong Kong 1,090 1,194 The PRC 11,362 11,290 Total property , plant and equipment 12,452 12,484 (c) The following is a summary of net export sales by geographical areas, which are defined by the final shipment destination, constituting 10% or more of total sales of the Company for the years ended March 31, 2013, 2014 and 2015: Year ended March 31, 2013 2014 2015 $ in thousands % $ in thousands % $ in thousands % United States 23,804 78 25,203 81 21,271 73 Germany 5,121 17 4,688 15 6,210 22 28,925 95 29,891 96 27,481 95 (d) The following is a summary of net export sales by customers, constituting 10% or more of total sales of the Company for the years ended March 31, 2013, 2014 and 2015: Year ended March 31, 2013 2014 2015 Customers Segment $ in thousand % $ in thousands % $ in thousands % Sunbeam Products, Inc. Scales & Pet Electronics Products 15,818 52 14,080 45 6,879 24 Fitbit, Inc. Scales 5,493 18 10,396 33 10,593 37 Kern + Sohn GMBH Scales 3,814 13 2,762 9 5,424 19 25,125 83 27,238 87 22,896 80 |
Subsequent events
Subsequent events | 12 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent events | 20 Subsequent events On July 9, 2015, the Company issued options to certain directors and non-employee directors of the Company to purchase an aggregate of 850,000 shares of common stock of the Company at an exercise price of $1.50. The options for 425,000 shares will expire on March 31, 2020, and options for 425,000 shares will expire on March 31, 2025. The exercise prices of these options were equal to the fair market value at the time of grant. No such options have been exercised through the date of this report. On July 10, 2015, the Company entered into an agreement with a third party to sell part of the Companys land use right in Xinxing, PRC for approximately $866,000. The area of this piece of land is approximately 18% of the total land area of our Xinxing manufacturing facility. The selling price is approximately 86% more than our initial purchase price, and the resulting gain will be determined upon final measurement by the local Land Department and the taxation charges by the local tax authorities. This piece of land includes part of the land use rights currently arranged as securities to a bank for the banking facilities arrangement. The Company is working with the bank in order to release part of the land use right to the buyer. |
Description of business and s27
Description of business and significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of business and significant accounting policies | 1. Description of business and significant accounting policies Bonso Electronics International Inc. and its subsidiaries (collectively, the Company or Group) are engaged in the designing, manufacturing and selling of a comprehensive line of electronic scales and weighing instruments, pet electronics products and other products. The consolidated financial statements have been prepared in United States dollars and in accordance with generally accepted accounting principles in the United States of America. The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by management include valuation of inventories, allowance for trade receivables and the impairment of long-lived assets. Actual results could differ from those estimates. The Company sustained an operating loss in the fiscal year ended March 31, 2013, and operating income of approximately $295,000 and $462,000 in the fiscal years ended March 31, 2014, and 2015, respectively. Notwithstanding the operating losses sustained in the fiscal year ended March 31, 2013 and the negative working capital as of March 31, 2014 and 2015, the accompanying consolidated financial statements have been prepared on a going concern basis. With the unutilized banking facilities of approximately $4,232,000 (refer to note 7) available as of March, 31, 2015 and the increase of gross profit from 8.5% during the fiscal year ended March 31, 2014 to 20.2% during the fiscal year ended March 31, 2015, management believes the Company will have sufficient working capital to meet its financing requirements based upon their experience and their assessment of the Companys projected performance, credit facilities and banking relationships. The significant accounting policies are as follows: |
Principles of consolidation | (a) Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries after elimination of inter-company accounts and transactions. Acquisitions of companies have been consolidated from the date on which control of the net assets and operations was transferred to the Company. Acquisitions of companies are accounted for using the purchase method of accounting. |
Cash and cash equivalents | (b) Cash and cash equivalents Cash and cash equivalents are short-term, highly liquid investments with original maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value because of the short-term maturity of these instruments. |
Inventories | (c) Inventories Inventories are stated at the lower of cost, as determined on a first-in, first-out basis, or market. Costs of inventories include purchase and related costs incurred in bringing the products to their present location and condition. Market value is determined by reference to the selling price after the balance sheet date or to management estimates based on prevailing market conditions. The Company routinely reviews its inventories for their salability and for indications of obsolescence to determine if inventory carrying values are higher than market value. Some of the significant factors the Company considers in estimating the market value of its inventories include the likelihood of changes in market and customer demand and expected changes in market prices for its inventories. |
Trade receivables | (d) Trade receivables Trade receivables are recorded at the invoiced amount, net of allowances for doubtful accounts and sales returns. The allowance for doubtful accounts is the Companys best estimate of the amount of probable credit losses in the Companys existing trade receivables. Bad debt expense is included in the administrative and general expenses. The Company recognizes an allowance for doubtful receivables to ensure accounts and other receivables are not overstated due to uncollectibility. Allowance for doubtful receivables is maintained for all customers based on a variety of factors, including the length of time the receivables are past due, significant one-time events and historical experience. An additional allowance for individual accounts is recorded when the Company becomes aware of customers or other debtors inability to meet their financial obligations, such as bankruptcy filings or deterioration in the customers or other debtors operating results or financial position. If circumstances related to customers or debtors change, estimates of the recoverability of receivables will be further adjusted. |
Income taxes and deferred income taxes | (e) Income taxes and deferred income taxes Amounts in the consolidated financial statements related to income taxes are calculated using the principles of Accounting Standards Codification (ASC) 740 and Accounting Standards Updates (ASU) 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists The Company complies with ASC 740 Income Taxes |
Lease prepayments | (f) Lease prepayments and intangible assets Lease prepayments represent the cost of land use rights in the Peoples Republic of China (PRC). Land use rights held by the Company are included in intangible assets. The granted useful life of the land use rights is 50 years. They are stated at cost and amortized on a straight-line basis over the period of a maximum of 30 years, in accordance with the business licenses of 30 years. |
Property, plant and equipment | (g) Property, plant and equipment (i) Property, plant and equipment are stated at cost less accumulated depreciation. Leasehold land and buildings are depreciated on a straight-line basis over 15 to 50 years, representing the shorter of the remaining term of the lease or the expected useful life to the Company. (ii) Other categories of property, plant and equipment are carried at cost and depreciated using the straight-line method over their expected useful lives to the Company. The principal Oestimated useful lives for depreciation are: Plant and machinery - 10 years Furniture, fixtures and equipment - 5 to 10 years Motor vehicles - 5 years (iii) Assets under construction are not depreciated until construction is completed and the assets are ready for their intended use. (iv) The cost of major improvements and betterments is capitalized, whereas the cost of maintenance and repairs is expensed in the year when they are incurred. (v) Any gain or loss on disposal is included in the consolidated statements of operations and comprehensive (loss) / income. (h) Impairment of long-lived assets including intangible assets Long-lived assets held and used by the Company and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company evaluates recoverability of assets to be held and used by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the asset. If such assets are considered to be impaired, the impairment loss is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets calculated using a discounted future cash flows analysis. Provisions for impairment made on other long-lived assets are disclosed in the consolidated statements of operations and comprehensive (loss) / income. Since the fiscal year ended March 31, 2014, the Company has transferred all its production process to the factory in Xinxing, PRC, and the factory in Shenzhen was leased out to a third party. As a result, the Company performed an assessment of the value of the land, buildings and intangible assets of the factories in Shenzhen and Xinxing, PRC, and no provision for impairment was made by the Company (2014: $nil; 2013: $nil) based on the assessment. (i) Capital and operating leases Costs in respect of operating leases are charged against income on a straight-line basis over the lease term. Leasing agreements, which transfer to the Company substantially all the benefits and risks of ownership of an asset, are treated as if the asset had been purchased outright. The assets are included in property, plant and equipment (capital leases) and the capital element of the lease commitments is shown as an obligation under capital leases. The lease rentals are treated as consisting of capital and interest elements. The capital element is applied to reduce the outstanding obligation and the interest element is charged against profit so as to give a consistent periodic rate of charge on the remaining balance outstanding at the end of each accounting period. Assets held under capital leases are depreciated over the useful lives of the equivalent owned assets or the lease term, whichever is shorter. (j) Revenue recognition No revenue is recognized unless there is persuasive evidence of an arrangement, the price to the buyer is fixed or determinable, delivery has occurred and collectibility of the sales price is reasonably assured. Revenue is recognized when title and risk of loss are transferred to customers, which is generally the point at which products are leaving the ports of Hong Kong, or Shenzhen or Nansha (Guangzhou) as designated by our customers. Shipping costs billed to the Companys customers are included within revenue. Associated costs are classified as part of cost of sales. The Company provides to certain customers an additional one to two percent of the quantity of certain products ordered in lieu of a warranty, which is recognized as cost of sales when these products are shipped to customers from the Companys facilities. In addition, certain products sold by the Company are subject to a limited product quality warranty. The Company accrues for estimated incurred but unidentified quality issues based upon historical activity and known quality issues if a loss is probable and can be reasonably estimated. During the fiscal year ended March 31, 2015, the Company recorded $nil for such accrual (2014: $nil, 2013: $nil). The standard limited warranty period is one to three years. Quality returns, refunds, rebates and discounts are recorded net of sales at the time of sale and estimated based on past history. All sales are based upon firm orders with fixed terms and conditions, which generally cannot be modified. Historically, the Company has not experienced material differences between its estimated amounts of quality returns, refunds, rebates and discounts and the actual results. In all contracts, there is no price protection or similar privilege in relation to the sale of goods. Rental income is recognized according to the rental agreements. Rental income for non-uniform rent payments is recognized on a straight-line basis throughout the lease term. (k) Research and development costs Research and development costs include salaries, utilities and contractor fees that are directly attributable to the conduct of research and development progress primarily related to the development of new design of products. Research and development costs are expensed in the financial period in which they are incurred. |
Advertising | (l) Advertising Advertising costs are expensed as incurred and are included within selling expenses. Advertising costs were approximately $26,000, $16,000 and $9,000 for the fiscal years ended March 31, 2013, 2014 and 2015, respectively. |
Foreign currency translations | (m) Foreign currency translations (i) The Companys functional currency is the United States dollar. The financial statements of foreign subsidiaries where the United States dollar is the functional currency and which have transactions denominated in non-United States dollar currencies are translated into United States dollars at the exchange rates existing on that date. The translation of local currencies into United States dollars creates transaction adjustments which are included in net (loss) / income. Exchange differences are recorded in the statements of operations and comprehensive (loss) / income (ii) The financial statements of foreign subsidiaries, where non-United States dollar currencies are the functional currencies, are translated into United States dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates during each reporting period for statement of operations. Adjustments resulting from translation of these financial statements are reflected as a separate component of stockholders equity in accumulated other comprehensive income. |
Stock Options and warrants | (n) Stock options and warrants Stock options have been granted to employees, directors and non-employee directors. Upon exercise of the options, a holder can acquire shares of common stock of the Company at an exercise price determined by the board of directors. The options are exercisable based on the vesting terms stipulated in the option agreements or plan. The Company follows the guidance of ASC 718, Accounting for Stock Options and Other Stock-Based Compensation. |
Recent accounting pronouncements | (o) Recent accounting pronouncements In April 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued ASU 2014-12, Compensation Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern In January 2015, the FASB issued ASU 2015-01, Income Statement Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, In April 2015, the FASB issued ASU 2015-05, Customers Accounting for Fees Paid in a Cloud Computing Arrangement In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement: Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) We believe there is no additional new accounting guidance adopted, but not yet effective that is relevant to the readers of our financial statements. However, there are numerous new proposals under development which, if and when enacted, may have a significant impact on our financial reporting. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | The components of inventories as of March 31, 2014 and 2015 are as follows: 2014 2015 $ in thousands $ in thousands Raw materials 5,137 1,978 Work in progress 2,229 676 Finished goods 179 467 7,545 3,121 |
Interests of subsidiaries (Tabl
Interests of subsidiaries (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of subsidiaries | Name of company Place of legal entity Particulars of issued capital registered capital Percentage of capital held by the Company Principal activities 2014 2015 Bonso Electronics Limited * Hong Kong, HK$5,000,000 (US$641,026) 100% 100% Investment holding, providing management and administrative support to the Group companies Bonso Investment Limited Hong Kong, HK$3,000,000 (US$384,615) 100% 100% Investment holding Bonso Electronics (Shenzhen) Company, Limited PRC, US$12,621,222 100% 100% Investment holding Bonso Advanced Technology Limited * Hong Kong, HK$1,000,000 100% 100% Investment holding, and trading of scales and pet electronics products Bonso Advanced Technology (Xinxing) Company, Limited PRC, US$10,000,000 100% 100% Production of scales and pet electronics products Bonso Technology (Shenzhen) Company, Limited PRC, HK$200,000 100% 100% Product development Xinxing An Bang Metal and Plastic Manufacturing Company Limited PRC, HK$500,000 100% 100% Employs workers for assembly of scales and pet electronics products * Shares directly held by the Company |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other intangible assets | Intangible assets are analyzed as follows: March 31, 2014 2015 $ in thousands $ in thousands Cost 6,894 6,939 Less: accumulated amortization (2,507 ) (2,820 ) 4,387 4,119 |
Components of other intangible assets | The components of other intangible assets are as follows: March 31 , 2014 2015 $ in thousands $ in thousands Land use right of factory land in Shenzhen, Guangdong, PRC 2,062 1,880 Land use right of factory land in Xinxing, Guangdong, PRC 2,325 2,239 4,387 4,119 |
Schedule of amortization expenses | Year ending March 31, $ in thousands 2016 294 2017 294 2018 294 2019 294 2020 294 Thereafter 2,649 Total 4,119 |
Banking facilities (Tables)
Banking facilities (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Banking and Thrift [Abstract] | |
General banking facilities | Amount available Amount utilized Amount unutilized Terms of banking March 31, March 31, March 31, March 31, 2015 2014 2015 2014 2015 2014 2015 Interest Repayment $ in thousands $ in thousands $ in thousands rate terms Import and export facilities Combined limit 6,154 2,564 3,703 1,830 2,451 734 Including sub-limit of: Notes payable 4,487 2,308 2,527 1,830 1,960 478 HIBOR* +2.5% Repayable in full within 120 days Bank overdrafts 641 641 630 11 641 Prime rate Repayable on demand Factoring 2,400 2,400 546 1,854 2,400 HIBOR* +1.5% Repayable in 60 days Other facilities Export Documentary Credits 1,923 641 1,923 641 Short Term 1,026 3,547 1,026 1,026 2,521 (Note A) A Revolving loan is repayable in 30 days Long Term Loans (1) 1,595 2,686 748 2,350 847 336 (Note A) Term loans are repayable 10,698 9,438 5,477 5,206 5,221 4,232 |
Short-term borrowings | During the fiscal year ended March 31, 2014 2015 Bank overdrafts 6.00 % 6.00 % Notes payable 2.96 % 2.92 % Term Loan in Hong Kong 2.47 % 2.47 % Term Loan in PRC 6.77 % Factoring 1.96 % 1.74 % |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Loss before income tax | 2013 2014 2015 $ in thousands $ in thousands $ in thousands Hong Kong (3,509 ) (1,495 ) (55 ) PRC 2,832 1,337 148 Others (48 ) (63 ) (20 ) Total (725 ) (221 ) 73 |
Deferred taxes | 2013 2014 2015 $ in thousands $ in thousands $ in thousands Deferred income tax 2 Current income tax expense (31 ) (13 ) Income tax credit 1,050 Total income tax (expense) / credit (29 ) 1,037 |
Geographic tax expense | 2013 2014 2015 $ in thousands $ in thousands $ in thousands Hong Kong (29 ) 1,050 PRC (13 ) Others Total (29 ) 1,037 |
Income tax liabilities | 2014 2015 $ in thousands $ in thousands Non-current 2,595 Current 7 7 Total 2,602 7 |
Deferred tax assets and liabilities | Year ended March 31, 2013 2014 2015 $ in thousands % $ in thousands % $ in thousands % United States 23,804 78 25,203 81 21,271 73 Germany 5,121 17 4,688 15 6,210 22 28,925 95 29,891 96 27,481 95 |
Changes in valuation allowance | 2013 2014 2015 $ in thousands $ in thousands $ in thousands Balance, April 1 784 700 853 (Credited) / charged to income tax expense (84 ) 153 3,606 ────── ────── ────── Balance, March 31 700 853 4,459 ══════ ══════ ══════ |
Tax expense attributable to earnings | 2013 2014 2015 $ in thousands $ in thousands $ in thousands (Loss) / income before income taxes (725 ) (221 ) 73 Income tax benefit / (expense) on pretax income at statutory rate 120 36 (12 ) Effect of different tax rates of subsidiary (249 ) (28 ) (233 ) Profit not subject to income tax 3,600 1,129 542 Expenses not deductible for income tax purposes (3,469 ) (1,137 ) (336 ) (Decrease) / increase in valuation allowance (84 ) 153 3,606 Reversal of provision from conclusion of tax review with tax authorities 2,595 Tax expense from conclusion of tax review with tax authorities (1,545 ) Under provision of prior year (31 ) Utilization of tax losses not previously recognized / (tax losses 84 (153 ) (3,580 ) Total income tax (expense) / credit (29 ) 1,037 |
Financial instruments at fair33
Financial instruments at fair value (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of assets | March 31, 2014 March 31, 2015 $ in thousands Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Forward contracts (1) (327 ) (327 ) (196 ) (196 ) Investment product (2) 391 391 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Leases [Abstract] | |
Future minimum payments for capital leases | Future minimum payments under capital leases for the years ended March 31, Principal repayment Interest payment Total obligations 2016 23 2 25 2017 23 1 24 2018 20 1 21 2019 2 0 2 68 4 72 |
Future minimum payments for operating leases | Year ending March 31, $ in thousands 2016 1,307 2017 1,341 2018 1,383 2019 1,383 2020 461 5,875 |
Future minimum rental income | Year ending March 31, $ in thousands 2016 119 2017 122 2018 107 2019 20 368 |
Commitments and contingent li35
Commitments and contingent liabilities (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Commitments and contingent liabilities | |
Capital expenditures | March 31, 2014 2015 $ in thousands $ in thousands Construction in Xinxing, Guangdong, PRC 665 301 Leasehold improvement in Hong Kong 73 738 301 |
Stock option and bonus plans (T
Stock option and bonus plans (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Stock option summary | Number of options Weighted average exercise price Balance, March 31, 2013 110,000 $ 5.71 Expired (40,000 ) $ 6.12 Balance, March 31, 2014 70,000 $ 5.47 Expired (40,000 ) $ 6.20 Balance, March 31, 2015 30,000 $ 4.50 |
Information regarding stock options | Weighted average Number Weighted Exercisable exercise price March 31, 2015 (years) March 31, 2015 $4.50 30,000 0.8 30,000 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related party group | Year ended Mr. Anthony Mr. Kim Wah Mr. Woo-Ping Mr. Andrew March 31, So Chung Fok So Director, Chief Executive Director Director Director $ in thousands $ in thousands $ in thousands $ in thousands 2013 $857 (i), (iii) $160 (iii) Nil $ 124 2014 $857 (i), (iii) $161 (iii) Nil $ 128 2015 $857 (i), (iii) $160 (iii) Nil $ 124 Mr. Henry Mr. Albert So Director and Director, Chief Financial $ in thousands $ in thousands 2013 $74 (ii) $124 (iii) 2014 $84 (ii) $125 2015 $55 (ii) $109 |
Concentrations and credit risk
Concentrations and credit risk (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Net sales to customers | Year Ended March 31, 2013 2014 2015 $ in thousands % $ in thousands % $ in thousands % Sunbeam Products, Inc. 15,818 52 14,080 45 6,879 24 Fitbit, Inc. 5,493 18 10,396 33 10,593 37 Kern + Sohn GMBH 3,814 13 2,762 9 5,424 19 25,125 83 27,238 87 22,896 80 The following customers had balances greater than 10% of the total trade receivables at the respective balance sheet dates set forth below: March 31, 2014 2015 $ in thousands % $ in thousands % Sunbeam Products, Inc. 1,523 61 101 8 Fitbit, Inc. 355 14 324 25 Kern + Sohn GMBH 169 7 224 17 Pitney Bowes Inc. 219 9 355 27 91 77 |
Business segment information (T
Business segment information (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Business segment financial information | Year ended March 31, Product Line 2013 2014 2015 Scales 90 % 95 % 89 % Pet Electronics Products 8 % 4 % 10 % Others 2 % 1 % 1 % Total 100 % 100 % 100 % The accounting policies of the Companys reportable segments are the same as those described in the description of business and significant accounting policies. Summarized financial information by business segment as of March 31, 2013, 2014 and 2015 is as follows: Net sales Operating (loss)/income Identifiable assets as of Depreciation and amortization Capital expenditure $ in thousands $ in thousands $ in thousands $ in thousands $ in thousands 2013 Scales & Others 27,998 (371 ) 18,518 111 1,301 Pet Electronics Products 2,388 (32 ) 1,579 9 111 Total operating segments 30,386 (403 ) 20,097 120 1,412 Corporate 7,026 226 - Group 30,386 (403 ) 27,123 346 1,412 2014 Scales & Others 29,837 281 23,279 1,035 2,762 Pet Electronics Products 1,468 14 1,145 51 136 Total operating segments 31,305 295 24,424 1,086 2,898 Corporate 7,716 289 - Group 31,305 295 32,140 1,375 2,898 2015 Scales & Others 25,911 414 16,172 968 1,472 Pet Electronics Products 3,033 48 1,893 114 173 Total operating segments 28,944 462 18,065 1,082 1,645 Corporate 7,712 294 Group 28,944 462 25,777 1,376 1,645 |
Total property plant and equipment | March 31, March 31, 2014 2015 $ in thousands $ in thousands Hong Kong 1,090 1,194 The PRC 11,362 11,290 Total property , plant and equipment 12,452 12,484 |
Geographic net export sales | Year ended March 31, 2013 2014 2015 $ in thousands % $ in thousands % $ in thousands % United States 23,804 78 25,203 81 21,271 73 Germany 5,121 17 4,688 15 6,210 22 28,925 95 29,891 96 27,481 95 |
Customer geographic net export sales | Year ended March 31, 2013 2014 2015 Customers Segment $ in thousand % $ in thousands % $ in thousands % Sunbeam Products, Inc. Scales & Pet Electronics Products 15,818 52 14,080 45 6,879 24 Fitbit, Inc. Scales 5,493 18 10,396 33 10,593 37 Kern + Sohn GMBH Scales 3,814 13 2,762 9 5,424 19 25,125 83 27,238 87 22,896 80 |
Description of business and s40
Description of business and significant accounting policies - Advertising (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Description Of Business And Significant Accounting Policies - Advertising Details Narrative | |||
Advertising costs | $ 9 | $ 16 | $ 26 |
Allowance for doubtful accoun41
Allowance for doubtful accounts (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance For Doubtful Accounts Details Narrative | ||
Balance due from doubtfull account holder | $ 1,415 | $ 1,415 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Inventories Details | ||
Raw materials | $ 1,978 | $ 5,137 |
Work in progress | 676 | 2,229 |
Finished goods | 467 | 179 |
Total | $ 3,121 | $ 7,545 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | |
Inventories Details Narrative | |||||
Allowance for obsolete inventories | $ 687 | $ 687 | $ 874 | $ 874 |
Property, plant and equipment44
Property, plant and equipment, net (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment Net Details Narrative | |||
Depreciated property, plant and equipment expenses | $ 1,082 | $ 1,086 | $ 120 |
Depreciated property, plant and equipment assets | $ 9,550 | $ 10,122 |
Interests in subsidiaries (Deta
Interests in subsidiaries (Details) - Mar. 31, 2015 | USD ($) | CNY (¥) |
Bonso Electronics Limited | ||
Place of incorporation and kind of legal entity | Hong Kong, limited liability company | |
Particulars of issued capital/ registered capital | ¥ 641,026 | |
Particulars of issued capital/ registered capital HK$ | $ | $ 5,000,000 | |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Investment holding, providing management and administrative support to the Group companies | |
Bonso Investment Limited | ||
Place of incorporation and kind of legal entity | Hong Kong, limited liability company | |
Particulars of issued capital/ registered capital | ¥ 384,615 | |
Particulars of issued capital/ registered capital HK$ | $ | $ 3,000,000 | |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Investment holding | |
Bonso Electronics (Shenzhen) Company, Limited | ||
Place of incorporation and kind of legal entity | PRC, limited liability company | |
Particulars of issued capital/ registered capital | ¥ 12,621,222 | |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Investment holding | |
Bonso Advanced Technology Limited | ||
Place of incorporation and kind of legal entity | Hong Kong, limited liability company | |
Particulars of issued capital/ registered capital | ¥ 128,205 | |
Particulars of issued capital/ registered capital HK$ | ¥ 1,000,000 | |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Investment holding, and trading of scales and pet electronics products | |
Bonso AdvancedTtechnology (Xinxing) Company, Limited | ||
Place of incorporation and kind of legal entity | PRC, limited liability company | |
Particulars of issued capital/ registered capital | ¥ 10,000,000 | |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Production of scales and pet electronics products | |
Bonso Technology (Shenzhen) Company, Limited | ||
Place of incorporation and kind of legal entity | PRC, limited liability company | |
Particulars of issued capital/ registered capital | ¥ 200,000 | |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Product development | |
Xinxing An Bang Metal and Plastic Manufacturing Company Limited | ||
Place of incorporation and kind of legal entity | PRC, limited liability company | |
Particulars of issued capital/ registered capital | ¥ 500,000 | |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Employ workers for assembly of scales and pet electronics products |
Other intangible assets (Detail
Other intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Other Intangible Assets Details | ||
Cost | $ 6,939 | $ 6,894 |
Less: accumulated amortization | (2,820) | (2,507) |
Total | $ 4,119 | $ 4,387 |
Other intangible assets (Deta47
Other intangible assets (Details 1) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Other Intangible Assets Details 1 | ||
Land use right of factory land in Shenzhen, Guangdong, PRC | $ 1,880 | $ 2,062 |
Land use right of factory land in Xinxing, Guangdong, PRC | 2,239 | 2,325 |
Total | $ 4,119 | $ 4,387 |
Other intangible assets (Deta48
Other intangible assets (Details 2) $ in Thousands | Mar. 31, 2015USD ($) |
Other Intangible Assets Details 2 | |
2,016 | $ 294 |
2,017 | 294 |
2,018 | 294 |
2,019 | 294 |
2,020 | 294 |
Thereafter | 2,649 |
Total | $ 4,119 |
Other intangible assets (Deta49
Other intangible assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Intangible Assets Details Narrative | |||
Amortization expense | $ 294 | $ 289 | $ 226 |
Banking facilities (Details)
Banking facilities (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 | |
Including sub-limit of: | |||
Bank overdrafts(3)(4) | $ 630 | ||
terms of Banking Facilities-Repayment Terms | |||
Import and export facilities | |||
Combined limit | |||
Including sub-limit of: | |||
Bank overdrafts(3)(4) | |||
Factoring | |||
Other facilities | |||
Export Documentary Credits | |||
Short Term Loan(5) | |||
Lont Term Loans(1) | |||
Total | |||
Terms of Banking Facilities-Interest Rate | |||
Import and export facilities | |||
Combined limit | $ 734 | ||
Including sub-limit of: | |||
Notes payable (1)(2) | 478 | ||
Bank overdrafts(3)(4) | 641 | ||
Factoring | 2,400 | ||
Other facilities | |||
Export Documentary Credits | 641 | ||
Short Term Loan(5) | 2,521 | ||
Lont Term Loans(1) | 336 | ||
Total | 4,232 | ||
Amount Unutilized | |||
Import and export facilities | |||
Combined limit | 2,451 | ||
Including sub-limit of: | |||
Notes payable (1)(2) | 1,960 | ||
Bank overdrafts(3)(4) | 11 | ||
Factoring | 1,854 | ||
Other facilities | |||
Export Documentary Credits | $ 1,923 | ||
Short Term Loan(5) | |||
Lont Term Loans(1) | $ 847 | ||
Total | 5,221 | ||
Amount Utilized | |||
Import and export facilities | |||
Combined limit | 1,830 | 3,703 | |
Including sub-limit of: | |||
Notes payable (1)(2) | $ 1,830 | 2,527 | |
Bank overdrafts(3)(4) | 630 | ||
Factoring | $ 546 | ||
Other facilities | |||
Export Documentary Credits | |||
Short Term Loan(5) | $ 1,026 | $ 1,026 | |
Lont Term Loans(1) | 2,350 | 748 | |
Total | 5,206 | 5,477 | |
Amount Available | |||
Import and export facilities | |||
Combined limit | 2,564 | 6,154 | |
Including sub-limit of: | |||
Notes payable (1)(2) | 2,308 | 4,487 | [1],[2] |
Bank overdrafts(3)(4) | 641 | 641 | [3],[4] |
Factoring | 2,400 | 2,400 | |
Other facilities | |||
Export Documentary Credits | 641 | 1,923 | |
Short Term Loan(5) | 3,547 | 1,026 | [5] |
Lont Term Loans(1) | 2,686 | 1,595 | |
Total | $ 9,438 | $ 10,698 | |
[1] | HIBOR* +1.5% | ||
[2] | Repayable in full within 120 days | ||
[3] | Prime rate + 1% | ||
[4] | Repayable on demand | ||
[5] | Revolving loan is repayable in 90 days. Term loan is repayable monthly over the 3-year term. |
Banking facilities (Details 2)
Banking facilities (Details 2) | Mar. 31, 2015 | Mar. 31, 2014 |
Banking Facilities Details 2 | ||
Weighted average interest rate bank overdrafts | 6.00% | 6.00% |
Weighted average interest rate notes payable | 2.92% | 2.96% |
Term Loan in PRC | 6.77% | 2.47% |
Factoring | 1.74% | 1.96% |
Income Tax -Loss before taxes (
Income Tax -Loss before taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax -loss Before Taxes Details | |||
Hong Kong | $ (65) | $ (1,495) | $ (3,509) |
PRC | 148 | 1,337 | 2,832 |
Others | (20) | (63) | (48) |
Total | $ 73 | $ (221) | $ (725) |
Income Tax -Deferred taxes (Det
Income Tax -Deferred taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax -deferred Taxes Details 1 | |||
Deferred income tax | $ 2 | ||
Current income tax expense | $ (13) | $ (31) | |
Income tax credit | 1,050 | ||
Total income tax expense | $ 1,037 | $ (29) |
Income Tax -Geographic tax expe
Income Tax -Geographic tax expense (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax -geographic Tax Expense Details 2 | |||
Hong Kong | $ 1,050 | $ (29) | |
PRC | $ (13) | ||
Others | |||
Total | $ 1,037 | $ (29) |
Income Tax - Income tax liabili
Income Tax - Income tax liabilities (Details 3) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax - Income Tax Liabilities Details 3 | ||
Non-current | $ 2,595 | |
Current | $ 7 | 7 |
Total | $ 7 | $ 2,602 |
Income Tax - Deferred tax carry
Income Tax - Deferred tax carry forwards (Details 4) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax - Deferred Tax Carry Forwards Details 4 | ||
Tax loss carry forwards | $ 4,459 | $ 853 |
Less: Valuation allowance | $ (4,459) | $ (853) |
Total |
Income Tax - Changes in valuati
Income Tax - Changes in valuation allowances (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax - Changes In Valuation Allowances Details 5 | |||
Credited / (charged) to income tax expense | $ 3,606 | $ 153 | $ (84) |
Income Tax - Tax expense attrib
Income Tax - Tax expense attributable to earnings (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax - Tax Expense Attributable To Earnings Details 6 | |||
(Loss)/ income before income taxes | $ 73 | $ (221) | $ (725) |
Income tax benefit/ (expense) on pretax income at statutory rate | (12) | 36 | 120 |
Effect of different tax rates of subsidiary operating in other jurisdictions | (233) | (28) | (249) |
Profit not subject to income tax | 542 | 1,129 | 3,600 |
Expenses not deductible for income tax purposes | (336) | (1,137) | (3,469) |
(Decrease) / increase in valuation allowance | 3,606 | $ 153 | $ (84) |
Reversal of provision from conclusion of tax review with tax authorities | 2,595 | ||
Tax expense from conclusion of tax review with tax authorities | $ (1,545) | ||
Under provision of prior year | $ (31) | ||
Utilization of tax losses not previously recognized/(tax losses not yet recognized) | $ (3,580) | $ (153) | 84 |
Total income tax (expense)/ credit | $ 1,037 | $ (29) |
Income Tax (Details Narrative)
Income Tax (Details Narrative) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Details Narrative | |
Tax rate of Hong Kong subsidiaries | 16.50% |
Tax rate of PRC | 25.00% |
Income Tax (Details Narrative 1
Income Tax (Details Narrative 1) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Details Narrative 1 | |||||
Accumulated tax losses | $ 25,327 | $ 3,600 | |||
Expiration of tax loss | $ 951 | $ 164 | $ 2,189 |
Income Tax (Details Narrative 2
Income Tax (Details Narrative 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2015 | |
Income Tax Details Narrative 2 | ||
Tax liability carry fowrward | $ 2,602 | |
Liability for unrecognized tax benefits | $ 2,595 | |
Penalty for unrecognized tax benefits | $ 994 |
Financial instruments at fair62
Financial instruments at fair value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Level 1 | ||
Forward contracts | ||
Investment product | ||
Level 2 | ||
Forward contracts | $ (196) | $ (327) |
Investment product | ||
Level 3 | ||
Forward contracts | ||
Investment product | $ 391 | |
Total | ||
Forward contracts | (196) | $ (327) |
Investment product | $ 391 |
Investment in life insurance 63
Investment in life insurance contract (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | |
Investment In Life Insurance Contract Details Narrative | |||||
Change in fair value of life insurance contract | $ 4 | $ (5) | $ 5 | $ (4) | $ (5) |
Leases (Details)
Leases (Details) $ in Thousands | Mar. 31, 2015USD ($) |
Principal Repayment | |
2,016 | $ 23 |
2,017 | 23 |
2,018 | 20 |
2,019 | 2 |
Total | 68 |
Interest Payment | |
2,016 | 2 |
2,017 | 1 |
2,018 | 1 |
2,019 | 0 |
Total | 4 |
Total Obligations | |
2,016 | 25 |
2,017 | 24 |
2,018 | 21 |
2,019 | 2 |
Total | $ 72 |
Leases (Details 2)
Leases (Details 2) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Leases Details 2 | |
2,016 | $ 1,307 |
2,017 | 1,341 |
2,018 | 1,383 |
2,019 | 1,383 |
2,020 | 461 |
Total | $ 5,875 |
Leases (Details 3)
Leases (Details 3) $ in Thousands | Mar. 31, 2015USD ($) |
Leases Details 3 | |
2,016 | $ 119 |
2,017 | 122 |
2,018 | 107 |
2,019 | 20 |
Total | $ 368 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases Details Narrative | |||
Rental expense for operating leases | $ 100 | $ 51 | $ 0 |
Early cancellation fee for leases | $ 69 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Commitments Details | ||||
Construction in Xinxing, Guangdong, PRC | $ 301 | $ 665 | ||
Leasehold improvement in Hong Kong | $ 73 | |||
Commitments | $ 301 | $ 738 |
Commitments (Details Narrative)
Commitments (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Commitments Details Narrative | |
Payment for contractor agreement to construct factory | $ 1,561 |
Balance due on contractor agreement | $ 301 |
Stockholders' equity (Details N
Stockholders' equity (Details Narrative) - 12 months ended Dec. 31, 2015 - USD ($) $ in Thousands | Total |
Stockholders Equity Details Narrative | |
Authorized amount for repuchase of common stock | $ 1,500 |
Common stock repurchased during period | 330,736 |
Preferred stock authorized for sale | $ 100 |
Stock Option and bonus plans (D
Stock Option and bonus plans (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Options | ||
Shares Expired | (40,000) | (40,000) |
Weighted Average Exercise Price | ||
Shares Expired | $ 6.20 | $ 6.12 |
Stock Option and bonus plans 72
Stock Option and bonus plans (Details 1) - 12 months ended Mar. 31, 2015 - 4.50 | Decimal$ / sharesshares |
Exercisable, Weighted Average Exercise Price | $ / shares | $ 4.50 |
Outstanding, Number | 30,000 |
Outstanding, Weighted Average Remaining Life | Decimal | 0.8 |
Exercisable, Number | 30 |
Stock Option and bonus plans 73
Stock Option and bonus plans (Details Narrative) - shares | Sep. 05, 2004 | Mar. 23, 2004 |
Stock Option And Bonus Plans Details Narrative | ||
Stock Bonus Plan authorized issuance of shares | 500,000 | |
Stock Option Plan authoried issuance of shares | 850,000 |
Stock Option and bonus plans 74
Stock Option and bonus plans (Details Narrative 1) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Stock Option And Bonus Plans Details Narrative 1 | |||
Intrinsic value of options outstanding and exercisable | $ 0 | $ 0 | $ 0 |
Related party transactions (Det
Related party transactions (Details) | 12 Months Ended | |
Mar. 31, 2015USD ($) | ||
Mr. Anthony So, Director, Chief Executive Officer | ||
Year Ended March 31, 2013 (i), (ii), (iii) | [1],[2] | $ 857,000 |
Year Ended March 31, 2014 (i), (ii), (iii) | [1],[2] | 857,000 |
Year Ended March 31, 2015 (i), (ii), (iii) | [1],[2] | 857,000 |
Mr. Kim Wah Chung, Director | ||
Year Ended March 31, 2013 (i), (ii), (iii) | [2] | 160,000 |
Year Ended March 31, 2014 (i), (ii), (iii) | [2] | 161,000 |
Year Ended March 31, 2015 (i), (ii), (iii) | [2] | 160,000 |
Mr. Woo-Ping Fok, Director | ||
Year Ended March 31, 2013 (i), (ii), (iii) | 0 | |
Year Ended March 31, 2014 (i), (ii), (iii) | 0 | |
Year Ended March 31, 2015 (i), (ii), (iii) | 0 | |
Mr. Andrew So, Director, Chief Operating Officer | ||
Year Ended March 31, 2013 (i), (ii), (iii) | 124,000 | |
Year Ended March 31, 2014 (i), (ii), (iii) | 128,000 | |
Year Ended March 31, 2015 (i), (ii), (iii) | 124,000 | |
Mr. Henry Schlueter, Director and Assistant Secretary | ||
Year Ended March 31, 2013 (i), (ii), (iii) | [3] | 74,000 |
Year Ended March 31, 2014 (i), (ii), (iii) | [3] | 84,000 |
Year Ended March 31, 2015 (i), (ii), (iii) | [3] | 55,000 |
Mr. Albert So, Director, Chief Financial Officer and Secretary | ||
Year Ended March 31, 2013 (i), (ii), (iii) | [2] | 124,000 |
Year Ended March 31, 2014 (i), (ii), (iii) | 125,000 | |
Year Ended March 31, 2015 (i), (ii), (iii) | $ 109,000 | |
[1] | (i) Apart from the emoluments paid by the Group as shown above, one of the properties of the Group in Hong Kong is also provided to Mr. So Hung Gun, Anthony for his accommodation. | |
[2] | (iii) The amount for the year ended March 31, 2012, included unpaid vacation payments of $57,000 and $10,000 for Mr. Anthony So, and Mr. Kim Wah Chung, respectively. The amount for the year ended March 31, 2013, included unpaid vacation payments of $57,000, $9,000, $5,000 for Mr. Anthony So, Mr. Kim Wah Chung, and Mr. Albert So, respectively. The amount for the year ended March 31, 2014, included unpaid vacation payments of $10,000, for Mr. Kim Wah Chung. The amount for the year ended March 31, 2014 included vacation payment of $57,000 for Mr. Anthony So. | |
[3] | (ii) The amounts for the years ended March 31, 2012, 2013 and 2014 represented professional fees paid to Schlueter & Associates, P.C., the Group's SEC counsel, in which Mr. Henry Schlueter is one of the principals. |
Concentrations and Credit Ris76
Concentrations and Credit Risk (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | |
Customers representing at least 10% of total net sales | ||||||
Sunbeam Products, Inc. | $ 6,879,000 | $ 14,080,000 | $ 15,818,000 | |||
Sunbeam Products, Inc. percent of sales | ||||||
Fitbit, Inc. | $ 10,593,000 | $ 10,396,000 | $ 5,493,000 | |||
Fitbit, Inc. percent of sales | ||||||
Kern + Sohn GMBH | $ 5,424,000 | $ 2,762,000 | $ 3,814,000 | |||
Kern + Sohn GMBH percent of sales | ||||||
Total amount | $ 22,896,000 | $ 27,238,000 | $ 25,125,000 | |||
Total percent | ||||||
Customers representinig greater than 10% of total trade receivables | ||||||
Sunbeam Products, Inc. | $ 101,000 | $ 1,523,000 | ||||
Sunbeam Products, Inc. trade receivable | ||||||
Fitbit, Inc. | $ 240 | $ 355,000 | ||||
Fitbit, Inc. trade receivable | ||||||
Pitney Bowes Inc. | $ 224,000 | $ 169,000 | ||||
Pitney Bowes Inc. trade receivable | ||||||
Total | ||||||
0%-100% | ||||||
Customers representing at least 10% of total net sales | ||||||
Sunbeam Products, Inc. | ||||||
Sunbeam Products, Inc. percent of sales | 24.00% | 45.00% | 52.00% | |||
Fitbit, Inc. | ||||||
Fitbit, Inc. percent of sales | 37.00% | 33.00% | 18.00% | |||
Kern + Sohn GMBH | ||||||
Kern + Sohn GMBH percent of sales | 19.00% | 9.00% | 13.00% | |||
Total amount | ||||||
Total percent | 8.00% | 87.00% | 83.00% | |||
Customers representinig greater than 10% of total trade receivables | ||||||
Sunbeam Products, Inc. | ||||||
Sunbeam Products, Inc. trade receivable | 8.00% | 61.00% | ||||
Fitbit, Inc. | ||||||
Fitbit, Inc. trade receivable | 2.50% | 14.00% | ||||
Pitney Bowes Inc. | ||||||
Pitney Bowes Inc. trade receivable | 27.00% | 7.00% | ||||
Total | 77.00% | 91.00% |
Concentrations and Credit Ris77
Concentrations and Credit Risk (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 |
Concentrations And Credit Risk Details Narrative | ||
Uninsured cash in banks | $ 3,027 | $ 1,165 |
Concentrations and Credit Ris78
Concentrations and Credit Risk (Details Narrative 1) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentrations And Credit Risk Details Narrative 1 | |||
Percent of revenue from major customer | 77.00% | 91.00% | |
Percent of trade receivables for 10% or greater customers | 37.00% | 45.00% | 52.00% |
Percent of trade receivable for two other customers | 7.50% | 33.00% |
Employee retirement benefits 79
Employee retirement benefits and severance payment allowance (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Retirement Benefits And Severance Payment Allowance Details Narrative | |||
Contributions to mandatory Hong Kong retirement plan | $ 693 | $ 758 | $ 225 |
Mandatory severance pay allowance | $ 256 | $ 156 | $ 743 |
Loss per share (Details Narrati
Loss per share (Details Narrative) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loss Per Share Details Narrative | |||
Anti-dilutive exercise of stock options | 30 | 70 | 110 |
Business segment Information (D
Business segment Information (Details Narrative) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Scales | |||
Percentage of Net Sales | 89.00% | 95.00% | 90.00% |
Pet Electronics Products | |||
Percentage of Net Sales | 10.00% | 40.00% | 80.00% |
Others | |||
Percentage of Net Sales | 10.00% | 1.00% | 20.00% |
Total | |||
Percentage of Net Sales | 100.00% |
Business segment information 82
Business segment information (Details) - USD ($) | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Scales & Others | |||
Net sales | $ 25,911,000 | $ 29,837,000 | $ 27,998,000 |
Operating (loss) / income | 44,000 | 43,000 | (663,000) |
Identifiable assets as of March 31 | 16,172,000 | 23,279,000 | 18,518,000 |
Depreciation and amortization | 968,000 | 1,035,000 | 111,000 |
Capital expenditure | 1,472,000 | 2,762,000 | 1,301,000 |
Pet Electronic Products | |||
Net sales | 2,388,000 | ||
Operating (loss) / income | 260,000 | ||
Identifiable assets as of March 31 | 1,579,000 | ||
Depreciation and amortization | 9,000 | ||
Capital expenditure | 111,000 | ||
Total Operating Segments | |||
Net sales | 28,944,000 | 31,305,000 | 39,386,000 |
Operating (loss) / income | 462,000 | 295,000 | (403,000) |
Identifiable assets as of March 31 | 18,065,000 | 24,424,000 | 20,097,000 |
Depreciation and amortization | 1,082,000 | 1,086,000 | 120,000 |
Capital expenditure | $ 1,645,000 | $ 2,898,000 | $ 1,412,000 |
Corporate | |||
Net sales | |||
Operating (loss) / income | |||
Identifiable assets as of March 31 | $ 7,712,000 | $ 7,716,000 | $ 7,026,000 |
Depreciation and amortization | $ 294,000 | $ 289,000 | $ 226,000 |
Capital expenditure | |||
Group | |||
Net sales | $ 28,944,000 | $ 31,305,000 | $ 30,386,000 |
Operating (loss) / income | 462,000 | 295,000 | (403,000) |
Identifiable assets as of March 31 | 25,777,000 | 32,140,000 | 27,123,000 |
Depreciation and amortization | 1,376,000 | 1,375,000 | 346,000 |
Capital expenditure | 1,645,000 | 2,898,000 | $ 1,412,000 |
Pet Electronic Products | |||
Net sales | 1,468,000 | ||
Operating (loss) / income | 252,000 | ||
Identifiable assets as of March 31 | 1,145,000 | ||
Depreciation and amortization | 51,000 | ||
Capital expenditure | $ 136,000 | ||
Pet Electronics Products | |||
Net sales | 3,033,000 | ||
Operating (loss) / income | 418,000 | ||
Identifiable assets as of March 31 | 1,893,000 | ||
Depreciation and amortization | 114,000 | ||
Capital expenditure | $ 173,000 |
Business segment information 83
Business segment information (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Segment Information Details 1 | ||
Hong Kong | $ 1,194 | $ 1,090 |
The PRC | 11,290 | 11,362 |
Total property, plant and equipment | $ 12,484 | $ 12,452 |
Business segment information 84
Business segment information (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Segment Information Details 2 | |||
United States, Amount | $ 21,271 | $ 25,203 | $ 23,804 |
United States, Percent | 73.00% | 81.00% | 78.00% |
Germany, Amount | $ 6,210 | $ 4,688 | $ 5,121 |
Germany, Percent | 22.00% | 15.00% | 17.00% |
Total Amount | $ 27,481 | $ 29,861 | $ 28,925 |
Business segment information 85
Business segment information (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Sunbeam Products, Inc. | |||
Business segment | |||
Scales | $ 6,879 | $ 14,080 | $ 15,808 |
Percent | 24.00% | 45.00% | 52.00% |
Fitbit, Inc. | |||
Business segment | |||
Scales | $ 10,593 | $ 10,396 | $ 5,493 |
Percent | 37.00% | 33.00% | 18.00% |
Kern + Sohn GMBH | |||
Business segment | |||
Scales | $ 5,424 | $ 2,762 | $ 3,814 |
Percent | 19.00% | 90.00% | 13.00% |
Total Sales | |||
Business segment | |||
Total sales | $ 22,896 | $ 27,239 | $ 25,125 |
Totall Percent | |||
Business segment | |||
Total percent | 80.00% | 87.00% | 83.00% |
Subsequent events (Details Narr
Subsequent events (Details Narrative) - USD ($) $ in Thousands | Jul. 10, 2015 | Jul. 09, 2015 | Mar. 31, 2015 | Mar. 31, 2014 |
Subsequent Events Details Narrative | ||||
Insider options to purchase common stock | 425,000 | |||
Agreement to sell land use rights | $ 866,000 | $ 336 |