Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2017shares | |
Entity Registrant Name | Bonso Electronics International Inc. |
Entity Central Index Key | 846,546 |
Document Type | 20-F |
Document Period End Date | Mar. 31, 2017 |
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 | 2,017 |
Common Stock | |
Entity Common Stock, Shares Outstanding | 5,577,639 |
Treasury Stock | |
Entity Common Stock, Shares Outstanding | 568,519 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 3,745 | $ 3,547 |
Trade receivables, net | 1,167 | 913 |
Other receivables, deposits and prepayments | 1,646 | 1,180 |
Inventories, net | 1,018 | 1,823 |
Financial instruments at fair value | 167 | 144 |
Total current assets | 7,743 | 7,607 |
Investment in life insurance contract | 144 | 140 |
Other receivables - non-current portion | 265 | |
Property, plant and equipment | ||
Buildings | 16,285 | 16,403 |
Construction-in-progress | 62 | 821 |
Plant and machinery | 9,810 | 9,862 |
Furniture, fixtures and equipment | 1,273 | 1,323 |
Motor vehicles | 626 | 685 |
Total property, plant and equipment | 28,056 | 29,094 |
Less: accumulated depreciation | (17,762) | (17,377) |
Property, plant and equipment, net | 10,294 | 11,717 |
Intangible assets, net | 2,785 | 3,292 |
Total assets | 20,966 | 23,021 |
Current liabilities | ||
Notes payable - secured | 134 | 1,237 |
Bank loans - secured | 143 | 506 |
Accounts payable | 1,183 | 2,501 |
Accrued charges and deposits | 3,018 | 3,153 |
Income tax liabilities | 533 | 317 |
Payable to affiliated parties | 54 | 79 |
Financial instruments at fair value | 160 | |
Current portion of capital lease obligations | 44 | 49 |
Loan from affiliated party - current portion | 135 | 135 |
Total current liabilities | 5,244 | 8,137 |
Capital lease obligations - non current portion | 60 | 104 |
Loan from affiliated party - non current portion | 67 | 202 |
Stockholders' equity | ||
Common stock par value $0.003 per share - authorized shares - 23,333,334 - issued shares: March 31, 2016 and 2017 - 5,577,639,- outstanding shares: March 31, 2016: 5,173,431; March 31, 2017: 5,009,120. | 17 | 17 |
Additional paid-in capital | 22,566 | 22,566 |
Treasury stock at cost: March 31, 2016: 404,208; March 31, 2017: 568,519. | (1,929) | (1,561) |
Accumulated deficit | (6,033) | (8,828) |
Accumulated other comprehensive income | 974 | 2,384 |
Total stockholders' equity | 15,595 | 14,578 |
Total liabilities and stockholders' equity | $ 20,966 | $ 23,021 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Mar. 31, 2016 |
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 |
Treasury stock, shares | 568,519 | 404,208 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss)/ Income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 17,476 | $ 23,892 | $ 28,944 |
Cost of sales | (10,715) | (16,476) | (23,092) |
Gross profit | 6,761 | 7,416 | 5,852 |
Rental income | 1,345 | 1,477 | 1,453 |
Selling expenses | (297) | (420) | (822) |
Salaries and related costs | (2,573) | (2,961) | (3,166) |
Research and development expenses | (158) | (200) | (228) |
Administration and general expenses | (2,597) | (3,503) | (3,245) |
Other income | 584 | 256 | 520 |
Gain on disposal of property plant and equipment | 718 | 98 | |
Gain on disposal of intangible assets | 79 | 519 | |
Gain from deregistration of subsidiaries | 22 | ||
Income from operations | 3,166 | 3,302 | 462 |
Interest income | 8 | 15 | 18 |
Interest expense | (37) | (113) | (273) |
Foreign exchange (loss) / gain | 258 | (23) | (134) |
Income before income taxes | 3,395 | 3,181 | 73 |
Income tax credit / (expense) | (600) | (310) | 1,037 |
Net income | 2,795 | 2,871 | 1,110 |
Other comprehensive income / (loss), net of tax: | |||
Foreign currency translation adjustments, net of tax | (1,410) | (850) | 123 |
Comprehensive income | 1,385 | 2,021 | 1,233 |
Net income attributable to common shareholders | $ 2,795 | $ 2,871 | $ 1,110 |
Net earnings per share - basic | $ 0.54 | $ 0.55 | $ 0.21 |
Weighted average number of shares outstanding basic | 5,143,648 | 5,173,431 | 5,246,903 |
Net earnings per share - diluted | $ 0.53 | $ 0.55 | $ 0.21 |
Weighted average number of shares outstanding diluted | 5,316,393 | 5,173,431 | 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, Value at Mar. 31, 2014 | $ 17 | $ 21,765 | $ (1,462) | $ (12,809) | $ 3,111 | $ 10,622 |
Balance, Shares at Mar. 31, 2014 | 5,577,639 | 330,736 | ||||
Net income | 1,110 | 1,110 | ||||
Share-based compensation | ||||||
Shares repurchased | ||||||
Foreign exchange translation adjustment | 123 | 123 | ||||
Balance, Value at Mar. 31, 2015 | $ 17 | 21,765 | $ (1,462) | (11,699) | 3,234 | 11,855 |
Balance, Shares at Mar. 31, 2015 | 5,577,639 | 330,736 | ||||
Net income | 2,871 | 2,871 | ||||
Share-based compensation | 801 | 801 | ||||
Shares repurchased | $ (99) | (99) | ||||
Shares repurchased, shares | 73,472 | |||||
Foreign exchange translation adjustment | (850) | (850) | ||||
Balance, Value at Mar. 31, 2016 | $ 17 | 22,566 | $ (1,561) | (8,828) | 2,384 | 14,578 |
Balance, Shares at Mar. 31, 2016 | 5,577,639 | 404,208 | ||||
Net income | 2,795 | 2,795 | ||||
Share-based compensation | ||||||
Shares repurchased | $ (368) | $ (368) | ||||
Shares repurchased, shares | 164,311 | 568,519 | ||||
Foreign exchange translation adjustment | (1,410) | $ (1,410) | ||||
Balance, Value at Mar. 31, 2017 | $ 17 | $ 22,566 | $ (1,929) | $ (6,033) | $ 974 | $ 15,595 |
Balance, Shares at Mar. 31, 2017 | 5,577,639 | 568,519 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | |||
Net income | $ 2,795 | $ 2,871 | $ 1,110 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,046 | 1,047 | 1,082 |
Amortization | 271 | 288 | 294 |
Gain on disposal of property, plant and equipment | (718) | (98) | |
Gain on disposal of intangible assets | (79) | (519) | |
Write-down of inventories | 156 | 30 | 687 |
Write off of property, plant and equipment | 2 | 192 | |
Gain from deregistration of subsidiaries | 22 | ||
Change in cash surrender value of life insurance contract | (4) | (4) | (5) |
Change in fair value of financial instruments | 61 | (46) | (132) |
Dividend income from financial instruments at fair value | (1) | ||
Gain from sale of financial instruments at fair value | (3) | ||
Compensation expense for stock options granted | 801 | ||
Changes in assets and liabilities: | |||
Trade receivables | (254) | 393 | 1,174 |
Other receivables, deposits and prepayments | (209) | 336 | 380 |
Repayment from affiliated party | 166 | ||
Inventories | 649 | 1,268 | 3,737 |
Income tax recoverable | 39 | ||
Accounts payable | (1,318) | (2,290) | (5,622) |
Accrued charges and deposits | (136) | 36 | 520 |
Payable to affiliated parties | (25) | 13 | 56 |
Income tax liabilities | 216 | 310 | (894) |
Net cash provided by operating activities | 3,145 | 3,855 | 2,647 |
Cash flows from investing activities | |||
Proceeds from disposal of property, plant and equipment | 805 | 314 | |
Acquisition of property, plant and equipment | (289) | (823) | (1,105) |
Proceeds from disposal of intangible assets | 120 | 342 | |
Acquisition of financial instruments at fair value | (163) | (134) | (390) |
Payments made upon expiry of forward contracts | (225) | ||
Proceeds from sale of financial instruments at fair value | 146 | 391 | |
Dividends received from financial instruments at fair value | 1 | ||
Proceeds from maturity of fixed deposits | 1,049 | ||
Net cash (used in) / generated from investing activities | (410) | 581 | (132) |
Cash flows from financing activities | |||
Capital lease payments | (49) | (31) | (24) |
Advance from notes payable | 1,721 | 4,370 | 6,275 |
Repayment of notes payable | (2,820) | (4,963) | (6,972) |
Repayment of bank overdrafts | (630) | ||
Advance from bank loans | 2,927 | ||
Repayment of bank loans | (363) | (2,870) | (1,871) |
Advance from affiliated party | 538 | ||
Payment to affiliated party | (135) | (134) | (67) |
Stock repurchase | (368) | (99) | |
Net cash generated from / (used in) financing activities | (2,014) | (3,727) | 176 |
Net increase in cash and cash equivalents | 721 | 709 | 2,691 |
Effect of exchange rate changes on cash and cash equivalents | (523) | (189) | 220 |
Cash and cash equivalents, beginning of year | 3,547 | 3,027 | 116 |
Cash and cash equivalents, end of year | 3,745 | 3,547 | 3,027 |
Cash paid during the year for: | |||
Interest | 37 | 113 | 273 |
Income tax | 360 | 13 | |
Income tax refund received | 39 | 165 | |
Non-cash investing activities: | |||
Property plant and equipment acquired under capital lease | 116 | ||
Non-cash financing activities: | |||
Compensation expense for stock options granted | $ 801 |
Description of business and sig
Description of business and significant accounting policies | 12 Months Ended |
Mar. 31, 2017 | |
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. Further, the Group also rents or leases both factory facilities and equipment not being currently used to third parties. 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, stock-based compensation and the impairment of long-lived assets. Actual results could differ from those estimates. The Company had operating income of approximately $462,000, $3,302,000 and $3,166,000 in the fiscal years ended March 31, 2015, 2016 and 2017, respectively. As of March 31, 2017, the Company had positive working capital of approximately $2,499,000 and the accompanying consolidated financial statements were prepared on a going concern basis. Management believes the Company will have sufficient working capital to meet its financing requirements based upon their experience and their assessment of the Company’s 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. The Company has no cash equivalents as of March 31, 2016 and 2017. (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 Company’s best estimate of the amount of probable credit losses in the Company’s 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 customer’s or other debtor’s 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” “Income Taxes” (f) Lease prepayments and intangible assets Lease prepayments represent the cost of land use rights in the People’s 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 a maximum period 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 estimated useful lives for depreciation are: Plant and machinery - 10 years Furniture, fixtures and equipment - 5 to10 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 it is incurred. (v) Any gain or loss on disposal is included in the consolidated statements of operations and comprehensive 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 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 (2016: $nil; 2015: $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 Company’s 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 Company’s 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, 2017, the Company recorded $nil for such accrual (2016: $nil, 2015: $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 $9,000, $12,000 and $10,000 for the fiscal years ended March 31, 2015, 2016 and 2017, respectively. (m) Foreign currency translations (i) The Company’s functional currency is the United States dollar. Transactions denominated in non-United States dollar currencies of foreign subsidiaries where the United States dollar is the functional currency are translated into United States dollars at the exchange rates existing at date of transaction. The translation of local currencies into United States dollars at the balance sheet date creates transaction adjustments which are included in net income. Exchange differences are recorded in the statements of operations and comprehensive 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) Fair value of financial instruments The carrying amounts of financial instruments including cash and cash equivalents, trade receivables, net, other receivables, deposits and prepayments, other current assets, accounts payable and accrued charges and deposits, and other current liabilities approximate fair value due to the relatively short-term maturity of these instruments. The carrying value of long-term debt approximates fair value based on prevailing borrowing rates currently available for loans with similar terms and maturities. (p) Recent accounting pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” ("ASU 2014-09"). The objective of this Update is to remove inconsistencies and weaknesses in revenue requirements, and to simplify the preparation of financial statements by reducing the number requirements to which an entity must refer. The new standard supersedes virtually all present U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than the prior standards, as well as additional disclosures. In August 2015, the FASB issued ASU 2015-14, " Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In January 2016, the FASB issued ASU 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is trading or available-for-sale) and require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the new pronouncement to determine the impact it may have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Lease (Subtopic 842)" ("ASU 2016-02"). This Update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For public business entities, this Update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the new pronouncement to determine the impact it may have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), which improves financial reporting by providing timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Forward-looking information will now be used to better inform credit loss estimates. This ASU is effective for interim and annual periods beginning after December 15, 2019 and early addition is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230)" ("ASU 2016-15"). This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. For public business entities, this Update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the new pronouncement to determine the impact it may have to its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740)" ("ASU 2016-16"). This Update improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. For public business entities, this Update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the new pronouncement to determine the impact it may have on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230)" ("ASU 2016-18"). This Update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. For public business entities, this Update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the new pronouncement to determine the impact it may have on its consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, "Other Income—Gains and Losses from the De-recognition of Nonfinancial Assets (Subtopic 610-20)" ("ASU 2017-05"). This Update clarifies the Scope of Asset De-recognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope of the nonfinancial asset guidance in Subtopic 610-20. This ASU also clarifies that the de-recognition of all businesses and nonprofit activities (except those related to conveyances of oil and gas mineral rights or contracts with customers) should be accounted for in accordance with the de-recognition and deconsolidation guidance in Subtopic 810-10. The amendments in this ASU also provide guidance on the accounting for what often are referred to as partial sales of nonfinancial assets within the scope of Subtopic 610-20 and contributions of nonfinancial assets to a joint venture or other non-controlled investee. The amendments in this ASU are effective for annual reporting reports beginning after December 15, 2017, including interim reporting periods within that reporting period. Public entities may apply the guidance earlier but only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We do not expect the adoption of ASU 2017-05 to have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation—Stock Compensation (Topic 718) Scope of Modification Accounting" ("ASU 2017-09"). The requirement provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. For public business entities, this ASU should be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. We are currently evaluating the impact the adoption of ASU 2017-09 will have on its consolidated financial statements. In July 2017, the FASB issued ASU 2017-11, "Earnings Per Share (Topic 260) (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception" ("ASU 2017-11"). The amendments require companies to disregard the down round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. Companies that provide earnings per share (EPS) data will adjust their basic EPS calculation for the effect of the feature when triggered (i.e., when the exercise price of the related equity-linked financial instrument is adjusted downward because of the down round feature) and will also recognize the effect of the trigger within equity. For public business entities, this ASU should be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. We are currently evaluating the impact the adoption of ASU 2017-09 will have on its consolidated financial statements. |
Allowance for doubtful accounts
Allowance for doubtful accounts | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Allowance for doubtful accounts | 2 Allowance for doubtful accounts Allowance for doubtful accounts amounted to $nil as of March 31, 2017 (2016: $1,415,000). Most of the Company’s trade receivables are generally unsecured. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 3 Inventories The components of inventories as of March 31, 2016 and 2017 are as follows: 2016 2017 $ in thousands $ in thousands Raw materials 684 442 Work in progress 430 317 Finished goods 709 259 1,823 1,018 During the fiscal years ended March 31, 2015, 2016 and 2017, based upon material composition and expected usage, provisions for inventories of approximately $687,000, $30,000 and $156,000, 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, 2017 | |
Property, plant and equipment | |
Property, plant and equipment, net | 4 Property, plant and equipment, net During the fiscal years ended March 31, 2015, 2016 and 2017, depreciation expenses charged to the consolidated statements of operations amounted to approximately $1,082,000, $1,047,000 and $1,046,000, respectively. As at March 31, 2016 and 2017, fully depreciated assets that were still in use by the Company amounted to $9,195,000 and $8,761,000, 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 was required for the fiscal years ended March 31, 2016 and 2017. |
Interests of subsidiaries
Interests of subsidiaries | 12 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interests of subsidiaries | 5 Interests in subsidiaries Particulars of principal subsidiaries as of March 31, 2016 and 2017 are as follows: Name of company Place of incorporation and kind of legal entity Particulars of issued capital/ registered capital Percentage of capital held by the Company Principal activities 2016 2017 Bonso Electronics Limited * (“BEL”) Hong Kong, limited liability company HK$5,000,000 (US$641,026) 100 % 100 % Investment holding, providing management and administrative support to the Group companies Bonso Investment Limited (“BIL”) Hong Kong, limited liability company HK$3,000,000 (US$384,615) 100 % 100 % Investment holding and property investment Bonso Electronics (Shenzhen) Company, Limited (“BESCL”) PRC, limited liability company US$12,621,222 100 % 100 % Investment holding and property rental Bonso Advanced Technology Limited * (“BATL”) Hong Kong, limited liability company HK$1,000,000 (US$128,205) 100 % 100 % Investment holding, and trading of scales and pet electronics products Bonso Advanced Technology (Xinxing) Company, Limited (“BATXXCL”) PRC, limited liability company US$10,000,000 100 % 100 % Production of scales and pet electronics products Bonso Technology (Shenzhen) Company, Limited (“BTL”) PRC, limited liability company HK$200,000 100 % 100 % Product development * Shares directly held by the Company |
Intangible assets
Intangible assets | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | 6 Intangible assets Intangible assets are analyzed as follows: March 31, 2016 2017 $ in thousands $ in thousands Cost 6,159 5,740 Less: accumulated amortization (2,867 ) (2,955 ) 3,292 2,785 The components of intangible assets are as follows: March 31, 2016 2017 $ in thousands $ in thousands Land use right of factory land in Shenzhen, Guangdong, PRC 1,599 1.326 Land use right of factory land in Xinxing, Guangdong, PRC 1,652 1,459 Golf club membership 41 - 3,292 2,785 Amortization expense in relation to other intangible assets was approximately $294,000, $288,000 and $271,000 for each of the fiscal years ended March 31, 2015, 2016 and 2017, respectively. As of March 31, 2017, future minimum amortization expenses in respect of other intangible assets are as follows: Year ending March 31, $ in thousands 2018 265 2019 265 2020 265 2021 265 2022 265 Thereafter 1,460 Total 2,785 |
Banking facilities
Banking facilities | 12 Months Ended |
Mar. 31, 2017 | |
Banking and Thrift [Abstract] | |
Banking facilities | 7 Banking facilities As of March 31, 2017, the Company had general banking facilities for bank overdrafts, letters of credit, notes payable and term loans. The facilities are interchangeable with total amounts available of $5,306,000 (2016: $6,189,000). The general banking facilities utilized by the Company are denominated in United States dollars, Hong Kong dollars and Chinese Yuan. The Company’s general banking facilities, expressed in United States dollars, are further detailed as follows: Amount available Amount utilized Amount unutilized Terms of banking facilities as of March 31, March 31, March 31, March 31, 2017 2016 2017 2016 2017 2016 2017 Interest Repayment $ in thousands $ in thousands $ in thousands rate terms Import and export facilities Combined limit 2,564 2,564 1,237 134 1,327 2,430 Including sub-limit of: Notes payable 2,308 2,308 1,237 134 1,071 2,174 HIBOR* +2.5% Repayable in full within 120 days Bank overdrafts 641 641 - - 641 641 Prime rate + 1% Repayable on demand Factoring 2,400 - - - 2,400 - HIBOR* +1.5% Repayable in 60 days Other facilities Export Documentary Credits 641 641 - - 641 641 Short Term Loans 1,923 1,923 - - 1,923 1,923 (Note A) Revolving loan repayable in 30 days Long Term Loans (1) 1,061 178 506 143 555 35 (Note A) Term loans repayable monthly over 3 years. 6,189 5,306 1,743 277 4,446 5,029 Note A: HIBOR* +2.25% for loans in Hong Kong. People's Bank of China’s 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. As of March 31, 2017, the long-term loans became current as it is repayable within one year in accordance with the repayment schedule. * HIBOR is the Hong Kong Interbank Offer Rate As of March 31, 2016, a treasury product facility of approximately $25,738,000 was made available to the Company for transactions of financial instruments including forward contracts, and approximately $1,000,000 of the facility was utilized. There was no such treasury product facility available as of March 31, 2017. One of the properties of the Company located in Hong Kong with a net book value of approximately $965,000, the rental assignment over such property, and the rights, interests and benefits of a life insurance contract with a book value of approximately $144,000 are arranged as securities to the banks for the banking facilities arrangement. The Prime Rate, HIBOR and Peoples' Bank of China loan benchmark interest rate were 5.00%, 1.11% and 4.75% per annum, respectively, as of March 31, 2017. 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 borrowings of the Company are as follows: During the fiscal year ended March 31, 2016 2017 Bank overdrafts 6.00 % 6.00 % Notes payable 2.94 % 3.13 % Term Loan in Hong Kong 2.50 % 2.59 % Term Loan in PRC 6.77 % unutilized Factoring 1.74 % unutilized |
Income tax
Income tax | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income tax | 8 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% (2016 and 2015: 16.5%). BIL, BATL and BEL have no assessable profits for the year ended March 31, 2017. 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 determined that BEL was not entitled to this tax benefit as the PRC factory setup was no longer considered an import processing activity. Also, during the tax years under review, the local tax authorities determined 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. PRC Tax All subsidiaries registered in the PRC are subject to a tax rate of 25% (2016 and 2015: 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: 2015 2016 2017 $ in thousands $ in thousands $ in thousands Hong Kong (55 ) 3,933 693 PRC 148 (167 ) 2,531 Others (20 ) (585 ) 171 Total 73 3,181 3,395 Others mainly include the (loss) / income from BVI. (c) Income tax credit / (expense) comprises the following: 2015 2016 2017 $ in thousands $ in thousands $ in thousands Current income tax expense (13 ) (310 ) (600 ) Income tax credit 1,050 - - Total income tax credit / (expense) 1,037 (310 ) (600 ) The components of the income tax credit / (expense) by geographical location are as follows: 2015 2016 2017 $ in thousands $ in thousands $ in thousands Hong Kong 1,050 (310 ) (5 ) PRC (13 ) - (595 ) Total 1,037 (310 ) (600 ) At the end of the accounting periods, the income tax liabilities are as follows: 2016 2017 $ in thousands $ in thousands Non-current - - Current 317 533 Total 317 533 (d) Deferred tax assets comprise the following: 2016 2017 $ in thousands $ in thousands Tax loss carry forwards 4,459 4,270 Less: Valuation allowance (4,459 ) (4,270 ) - - As of March 31, 2016 and 2017, the Company had accumulated tax losses amounting to approximately $25,327,000 and $24,410,000 (the tax effect thereon is approximately $4,459,000 and $4,270,000), 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 jurisdictions. 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, 2017, the Company’s accumulated tax losses of approximately $2,848,000 will expire from 2018 to 2022. (e) Changes in valuation allowance are as follows: 2015 2016 2017 $ in thousands $ in thousands $ in thousands Balance, April 1 853 4,459 4,459 Charged / (credited) to income tax expense 3,606 - (189 ) Balance, March 31 4,459 4,459 4,270 (f) The actual income tax credit / (expense) attributable to earnings for the fiscal years ended March 31, 2015, 2016 and 2017 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: 2015 2016 2017 $ in thousands $ in thousands $ in thousands Income before income taxes 73 3,181 3,395 Income tax benefit / (expense) on pretax income at statutory rate (12 ) (525 ) (560 ) Effect of different tax rates of subsidiaries operating in other jurisdictions (233 ) (95 ) (52 ) Profit not subject to income tax 542 387 472 Expenses not deductible for income tax purposes (336 ) (255 ) (686 ) Increase / (decrease) in valuation allowance 3,606 - (189 ) 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 in prior year - - 5 Utilization of tax losses / (tax losses recognized) (3,580 ) 178 410 Total income tax credit / (expense) 1,037 (310 ) (600 ) The statutory rate of 16.5% used above is that of Hong Kong, where the Company’s main business is located. (g) The Company complies with ASC 740 and assessed the tax position during the fiscal year ended March 31, 2017 and concluded that such prior year uncertain income tax liability was no longer required. The Company’s accounting policy is to treat interest and penalties as components of income taxes. As of March 31, 2017, the Company had no accrued penalties related to uncertain tax positions (2016: $nil). |
Financial instruments at fair v
Financial instruments at fair value | 12 Months Ended |
Mar. 31, 2017 | |
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 the USD. If the Chinese Yuan depreciates against the 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, 2016, based on our valuation of the existing forward contracts, we recorded a gain of approximately $36,000 for the change in valuation, resulting in a liability of approximately $160,000. During the fiscal year ended March 31, 2017, the forward contracts matured and payments of approximately $225,000 has been made. During the fiscal year ended March 31, 2015, the Company purchased an investment product for approximately $390,000 through Ping An Bank, and the fair value at March 31, 2015 was approximately $391,000. Such investment product for trading purpose was redeemed during the fiscal year ended March 31, 2016. During the fiscal year ended March 31, 2017, the Company purchased listed shares in Hong Kong for trading purpose approximately $163,000 (2016: $134,000). A revaluation gain of approximately $4,000 was recorded (2016: $10,000). At the end of the accounting period, the fair value of the following assets / (liabilities) were as follows: March 31, 2016 March 31, 2017 $ in thousands Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Forward contracts (1) - (160 ) - (160 ) - - - - Investment product (2) - - - - - - - - Equity investment (3) 144 - - 144 167 - - 167 (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. (3) The fair value of equity investment is determined based on quoted price in active markets. |
Investment in life insurance co
Investment in life insurance contract | 12 Months Ended |
Mar. 31, 2017 | |
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, 2016 and March 31, 2017, with a carrying amount of approximately $140,000 and $144,000, 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, 2017, we recorded a gain of approximately $4,000 for the change in valuation (2016: $4,000). |
Leases
Leases | 12 Months Ended |
Mar. 31, 2017 | |
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, 2016, the Company entered into an additional capital lease obligation amounting to approximately $116,000 for one motor vehicle. Future minimum payments under capital leases as of March 31, 2017 with an initial term of more than one year are as follows: Future minimum payments under capital leases for the years ending March 31, Principal repayment Interest payment Total obligations $ in thousands $ in thousands $ in thousands 2018 44 4 48 2019 28 2 30 2020 27 1 28 2021 5 0 5 104 7 111 (b) Operating leases As of March 31, 2017, the Company leases a factory in Shenzhen, two commercial units in Beijing and part of production facilities and machines in Xinxing under rental agreements to third parties. The Company will need to pay a cancellation fee of approximately $84,000 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. Part of the production facilities in Xinxing were rented to various third parties up to December 31, 2020. The expected future rental payments to be received are as follows: Year ending March 31, $ in thousands 2018 1,302 2019 1,231 2020 410 2,943 As of March 31, 2017, the future minimum lease commitment payables in respect of non-cancellable operating leases for one office and two staff quarters in Shenzhen and a staff quarter in Xinxing are as follows: Year ending March 31, $ in thousands 2018 94 2019 26 120 Rental expenses for all operating leases of one office premise in Shenzhen, two staff quarters in Shenzhen and a staff quarter in Xinxing amounted to approximately $100,000, $119,000 and $100,000 for the fiscal years ended March 31, 2015, 2016 and 2017, respectively. |
Commitments and contingent liab
Commitments and contingent liabilities | 12 Months Ended |
Mar. 31, 2017 | |
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, 2016 2017 $ in thousands $ in thousands Construction in Xinxing, Guangdong, PRC 48 31 Mold - 22 48 53 As of March 31, 2017, the Company entered into contractor agreements on leasehold improvements on the manufacturing facility in Xinxing, the PRC and mold for total consideration of $346,000. As of March 31, 2017, $293,000 has been paid, and the remaining balance of $53,000 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. So’s employment agreement provides for a maximum yearly salary of approximately $800,000 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. So’s 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. |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Mar. 31, 2017 | |
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. On September 17, 2015, the Company’s Board of Directors authorized an additional $1,500,000 to repurchase its common stock under the same repurchase program, bringing the amount authorized for repurchase to $3,000,000. 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 568,519 shares of its common stock, including 164,311 shares ($368,000) that were repurchased during the fiscal year ended March 31, 2017, and 73,472 shares ($99,000) that were repurchased during the fiscal year ended March 31, 2016. No shares were repurchased during the fiscal years ended March 31, 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 Company’s 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 Company’s Memorandum of Association. The Company has not issued any shares of preferred stock as of March 31, 2017. (c) Dividends No dividends were declared by the Company for each of the fiscal years ended March 31, 2015, 2016 and 2017, respectively. |
Stock option and bonus plans
Stock option and bonus plans | 12 Months Ended |
Mar. 31, 2017 | |
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 were exercised during the ten year term 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 were exercised during the ten year term ended 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 exercise prices of these options were equal to the fair market value at the time of grant. The options expired on December 4, 2015. No such options were exercised up to December 4, 2015. During the fiscal years ended March 31, 2015, 2016 and 2017, 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) A summary of the stock options activity is as follows: Number Weighted average exercise of options price Balance, April 1, 2015 30,000 $ 4,50 Expired (30,000 ) $ 4.50 Granted 850,000 $ 1.50 Balance, March 31, 2016 and 2017 850,000 $ 1.50 (e) The following table summarizes information about all stock options of the Company outstanding as at March 31, 2017: Number Weighted average Exercisable Weighted average outstanding at remaining life shares at exercise price March 31, 2017 (years) March 31, 2017 $ 1.50 850,000 5.5 850,000 The intrinsic value of options outstanding and exercisable was $1.07 on March 31, 2017. The intrinsic value represents the pre-tax intrinsic value (the difference between the closing stock price of the Company’s 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, 2017. New shares will be issued by the Company upon future exercise of stock options. (f) Stock-based compensation expense is recognized on a straight-line basis over the respective vesting periods, or at the time of option granting if there are no vesting periods. The fair value of the option granted was estimated on the date of granting using the Black-Scholes option-pricing model with the following assumptions used for grants during the applicable periods: For the Fiscal Year Ended March 31, 2016 2017 Risk-free interest rate (1) 1.63% to 2.36% N/A Expected life (years) (2) 4.71 to 9.71 N/A Expected dividend yield (3) 0 % N/A Volatility (4) 73.63 % N/A Fair value of options at grant date per share $ 0.81 to $1.08 N/A (1) Risk-free interest rate Risk-free interest rate for periods within the contractual life of the option is based upon the interest rate on U.S. Treasury zero-coupon bond issued with remaining terms similar to the expected term of the options granted. (2) Expected life (years) Assumption of the expected term was based on the vesting and contractual terms and employee demographics. (3) Expected dividend yield The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. (4) Volatility The volatility assumption was estimated based on historical volatility of the Company’s share price applying the guidance provided by ASC 718. The Company recorded the related compensation expense of approximately $nil, $801,000 and $nil during the fiscal years ended March 31, 2015, 2016 and 2017. The following table summarizes the share based compensation expense: For the Fiscal Year Ended March 31, 2015 2016 2017 $ in thousands $ in thousands $ in thousands Administration and general - 801 - Total - 801 - |
Related party transactions
Related party transactions | 12 Months Ended |
Mar. 31, 2017 | |
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 Officer Director Director Director and Chief Operating Officer $ in thousands $ in thousands $ in thousands $ in thousands 2015 $857 (i), (iii) $160 (iii) Nil $124 2016 $857 (i), (iii) $170 (iii) Nil $249 2017 $643 (i), (iii) $171 (iii) Nil $249 Mr. Henry Mr. Albert Schlueter So Director and Assistant Secretary Director, Chief Financial Officer and Secretary $ in thousands $ in thousands 2015 $55 (ii) $109 2016 $60 (ii) $181 2017 $62 (ii) $152 The emoluments paid to the Company’s 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, 2015, 2016 and 2017 represented professional fees paid to Schlueter & Associates, P.C., the Company’s SEC counsel, in which Mr. Henry Schlueter is one of the principals. (iii) The amount for the year ended March 31, 2015, included unpaid vacation payments of $57,000 and $9,000 for Mr. Anthony So and Mr. Kim Wah Chung, respectively. The amount for the year ended March 31, 2016, included unpaid vacation payments of $57,000, $10,000, and $12,000 for Mr. Anthony So, Mr. Kim Wah Chung, and Mr. Albert So, respectively. The amount for the year ended March 31, 2017, included unpaid vacation payments of $43,000 and $11,000 for Mr. Anthony So and Mr. Kim Wah Chung, respectively. During the fiscal year ended March 31, 2015, one of the subsidiaries in Hong Kong borrowed an interest-free loan of approximately $538,000 from a director and stockholder, Mr. Anthony So, to provide working capital. This loan is to be repaid in 48 equal installments. As of March 31, 2017, the Company had repaid a total of approximately $336,000 to Mr. Anthony So, and the balance of loan due to Mr. Anthony so was approximately $202,000. 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. Starting from August 1, 2016, rental of two of the apartment units was no longer required and the rental agreement was terminated, and a new rental agreement for one apartment unit for staff quarters was in place, for a monthly rental payment of $260. The total rental payment paid to Mr. Anthony So during the fiscal year ended March 31, 2017 was approximately $9,000 (2016: $24,000). 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 is approximately $430, and the total rental payment paid to Mr. Andrew So during the fiscal year ended March 31, 2017 was approximately $5,000 (2016: $5,000). During the fiscal year ended March 31, 2016, one of the subsidiaries in Shenzhen, PRC entered into a rental agreement with a director and stockholder, Mr. Anthony So, for one apartment unit located in Shenzhen, PRC for staff quarters. Mr. Anthony So is the sole owner of this apartment unit. The monthly rental payment was approximately $330, and the total rental payment paid to Mr. Anthony So during the fiscal year ended March 31, 2017 was approximately $4,000 (2016: $2,000) for this unit. In February 2017, a non-employee director of the Company, Henry F. Schlueter, sold 24,000 shares of the Company’s common stock to the Company at a purchase price of $2.39 per share, pursuant to the Company repurchase program. |
Concentrations and credit risk
Concentrations and credit risk | 12 Months Ended |
Mar. 31, 2017 | |
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 Company’s 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, 2016 and 2017, the Company had credit risk exposure of uninsured cash and deposits with maturities of less than one year in banks of approximately $3,547,000 and $3,745,000, respectively. A substantial portion, 37%, 59% and 48% of revenue, was generated from sales to one customer for the years ended March 31, 2015, 2016 and 2017, respectively. That customer has discontinued purchasing from us effective June 2017. The net sales to customers representing at least 10% of net total sales are as follows: Year Ended March 31, 2015 2016 2017 $ in thousands % $ in thousands % $ in thousands % Fitbit, Inc. 10,593 37 14,145 59 8.472 48 Kern + Sohn GMBH 5,424 19 3,874 16 2,729 16 Pitney Bowes Inc. 2,476 8 1,969 8 2,435 14 Sunbeam Products, Inc. 6,879 24 1,738 7 1,563 9 25,372 88 21,726 90 15,199 87 The following customers had balances of at least 10% of the total trade receivables at the respective balance sheet dates set forth below: March 31, 2016 2017 $ in thousands % $ in thousands % Sunbeam Products, Inc. 87 10 162 14 Fitbit, Inc. 378 41 109 9 Kern + Sohn GMBH 204 22 328 28 Pitney Bowes Inc. 145 16 455 39 89 90 At March 31, 2016 and 2017, these customers accounted for 89% and 90%, respectively, of net trade receivables. The trade receivables have repayment terms of not more than twelve months. |
Employee retirement benefits an
Employee retirement benefits and severance payment allowance | 12 Months Ended |
Mar. 31, 2017 | |
Retirement Benefits [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 employee’s 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 employee’s and employer’s contributions to the MPF are 5% of the eligible employee’s monthly salary and are subject to a maximum mandatory contribution of HK$1,000 (US$128) per month. Both the maximum mandatory employee’s and employer’s 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 employee’s 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 Company’s 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 Company’s total contributions and accruals to the above schemes for the years ended March 31, 2015, 2016 and 2017 amounted to $693,000, $293,000 and $267,000, respectively. The Company has no other obligation to make payments in respect of retirement benefits of the employees. (c) According to the New Labor Law in the PRC which was effective on January 1, 2008, a company is required to provide one month’s salary for each year of service as a severance payment. The Company recognized a total provision of $297,000 as of March 31, 2017 for severance payments for staff in the PRC (2016: $317,000, 2015: $256,000). The accrued severance payment allowance is reviewed every year. |
Net earnings per share
Net earnings per share | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Net earnings per share | 18 Net earnings per share Basic net earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net earnings per share gives effect to all dilutive potential common shares outstanding during the period. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. In computing the dilutive effect of potential common shares, the average stock price for the period is used in determining the number of treasury shares assumed to be purchased with the proceeds from the exercise of options. Year Ended March 31, 2015 2016 2017 Income available to common stockholders ($ in thousands) $ 1,110 $ 2,871 $ 2,795 Basic weighted average common shares outstanding 5,246,903 5,173,431 5,143,648 Basic net earnings per share $ 0.21 $ 0.55 $ 0.54 Basic weighted average common shares outstanding 5,246,903 5,173,431 5,143,648 Effect of dilutive securities – Options - - 172,745 Diluted weighted average common and potential common shares outstanding 5,246,903 5,173,431 5,316,393 Diluted net earnings income per share $ 0.21 $ 0.55 $ 0.53 |
Business segment information
Business segment information | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Business segment information | 19 Business segment information (a) The Company is organized based on the products it offers. Under this organizational structure, the Company’s operations can be classified into three business segments, Scales, Pet Electronics Products and Others for the fiscal years ended March 31, 2016 and 2017. Scales operations principally involve production and marketing of sensor-based scales products. These include bathroom, kitchen, office, jewelry, laboratory, postal and industrial scales that are used in consumer, commercial and industrial applications. Revenue from scale products was 90% (2016: 93%) of overall revenue of the Company for the fiscal year ended March 31, 2017, and the Company expects that the revenue will decrease for the next 12 months as one of our major customers has discontinued purchasing from us effective June 2017. Pet Electronics Products principally involve development and production of pet-related electronics products that are used in consumer applications. Revenue from pet electronics products was 9% (2016: 6%) of overall revenue of the Company for the fiscal year ended March 31, 2017, 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, 2015, 2016, and 2017: Year ended March 31, Product Line 2015 2016 2017 Scales 89 % 93 % 90 % Pet Electronics Products 10 % 6 % 9 % Others 1 % 1 % 1 % Total 100 % 100 % 100 % The accounting policies of the Company’s reportable segments are the same as those described in the description of business and significant accounting policies. Summarized financial information by business segment as of March 31, 2015, 2016 and 2017 is as follows: Net sales Operating income Identifiable assets as of March 31 Depreciation and amortization Capital expenditure $ in thousands $ in thousands $ in thousands $ in thousands $ in thousands 2015 Scales & Others 25,911 414 16,172 968 1,472 Pet Electronics Products 3,033 48 1,893 114 173 Total operating segments 28,944 462 18,065 1,082 1,645 Corporate - - 7,712 294 - Group 28,944 462 25,777 1,376 1,645 2016 Scales & Others 22,378 3,094 14,896 981 880 Pet Electronics Products 1,514 208 1,002 66 59 Total operating segments 23,892 3,302 15,898 1,047 939 Corporate - - 7,123 288 - Group 23,892 3,302 23,021 1,335 939 2017 Scales & Others 15,814 2,865 12,782 947 262 Pet Electronics Products 1,662 301 1,343 99 27 Total operating segments 17,476 3,166 14,125 1,046 289 Corporate - - 6,841 271 - Group 17,476 3,166 20,966 1,317 289 Operating income by segment equals total operating revenues less expenses directly attributable to the generation of the segment’s operating revenues. Identifiable assets by segment are those assets that are used in the operation of that segment. Corporate assets consist principally of cash and cash equivalents, investment in life insurance contracts, intangible assets, and other identifiable assets not related specifically to individual segments. (b) The Company primarily operates in Hong Kong and the PRC. The manufacture of components and their assembly into finished products and research and development are carried out in the PRC. As the operations are integrated, it is not practicable to distinguish the net income derived among the activities in Hong Kong, and the PRC. Total property, plant and equipment, net by geographical areas are as follows: March 31, March 31, 2016 2017 $ in thousands $ in thousands Hong Kong 1,159 1,126 The PRC 10,558 9,168 Total property, plant and equipment 11,717 10,294 (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, 2015, 2016 and 2017: Year ended March 31, 2015 2016 2017 $ in thousands % $ in thousands % $ in thousands % United States 21,271 73 14,062 59 10,356 59 Germany 6,210 22 4,568 19 2,797 16 Netherlands 0 0 1,901 8 2,299 13 27,481 95 20,531 86 15,452 88 (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, 2015, 2016 and 2017: Year Ended March 31, 2015 2016 2017 Customers Segment $ in thousands % $ in thousands % $ in thousands % Fitbit, Inc. Scales 10,593 37 14,145 59 8.472 48 Kern + Sohn GMBH Scales 5,424 19 3,874 16 2,729 16 Pitney Bowes Inc. Scales 2,476 8 1,969 8 2,435 14 Sunbeam Products, Inc. Scales & Pet Electronics Products 6,879 24 1,738 7 1,563 9 25,372 88 21,726 90 15,199 87 |
Subsequent events
Subsequent events | 12 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent events | 20 Subsequent events From April 1, 2017 to July 14, 2017, the Company repurchased an additional 45,924 shares of its common stock for an aggregate purchase price of approximately $114,000. In July 2017, the Company signed a letter of intent with Shenzhen Fangda Property Development Company Limited (hereafter "Fangda") to cooperate in reconstructing the existing Shenzhen factory of the Company into a high-rise industrial and commercial complex. Under the terms of the agreement, Fangda will be responsible for applying for necessary government approvals and for financing and handling the redevelopment project. Both companies will share the redeveloped property after the reconstruction. The companies expect to reach a definitive agreement within the next three months. If an agreement is reached, the redevelopment will start in mid-2019 and the reconstruction is expected to be finished by 2021. |
Description of business and s27
Description of business and significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
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. The Company has no cash equivalents as of March 31, 2016 and 2017. |
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 Company’s best estimate of the amount of probable credit losses in the Company’s 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 customer’s or other debtor’s 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” “Income Taxes” |
Lease prepayments and intangible assets | (f) Lease prepayments and intangible assets Lease prepayments represent the cost of land use rights in the People’s 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 a maximum period 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 estimated useful lives for depreciation are: Plant and machinery - 10 years Furniture, fixtures and equipment - 5 to10 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 it is incurred. (v) Any gain or loss on disposal is included in the consolidated statements of operations and comprehensive income. |
Impairment of long-lived assets including intangible assets | (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 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 (2016: $nil; 2015: $nil) based on the assessment. |
Capital and operating leases | (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. |
Revenue recognition | (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 Company’s 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 Company’s 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, 2017, the Company recorded $nil for such accrual (2016: $nil, 2015: $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. |
Research and development costs | (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 $9,000, $12,000 and $10,000 for the fiscal years ended March 31, 2015, 2016 and 2017, respectively. |
Foreign currency translations | (m) Foreign currency translations (i) The Company’s functional currency is the United States dollar. Transactions denominated in non-United States dollar currencies of foreign subsidiaries where the United States dollar is the functional currency are translated into United States dollars at the exchange rates existing at date of transaction. The translation of local currencies into United States dollars at the balance sheet date creates transaction adjustments which are included in net income. Exchange differences are recorded in the statements of operations and comprehensive 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 . |
Fair value of financial instruments | (o) Fair value of financial instruments The carrying amounts of financial instruments including cash and cash equivalents, trade receivables, net, other receivables, deposits and prepayments, other current assets, accounts payable and accrued charges and deposits, and other current liabilities approximate fair value due to the relatively short-term maturity of these instruments. The carrying value of long-term debt approximates fair value based on prevailing borrowing rates currently available for loans with similar terms and maturities. |
Recent accounting pronouncements | p) Recent accounting pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” ("ASU 2014-09"). The objective of this Update is to remove inconsistencies and weaknesses in revenue requirements, and to simplify the preparation of financial statements by reducing the number requirements to which an entity must refer. The new standard supersedes virtually all present U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than the prior standards, as well as additional disclosures. In August 2015, the FASB issued ASU 2015-14, " Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In January 2016, the FASB issued ASU 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is trading or available-for-sale) and require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the new pronouncement to determine the impact it may have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Lease (Subtopic 842)" ("ASU 2016-02"). This Update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For public business entities, this Update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the new pronouncement to determine the impact it may have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), which improves financial reporting by providing timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Forward-looking information will now be used to better inform credit loss estimates. This ASU is effective for interim and annual periods beginning after December 15, 2019 and early addition is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230)" ("ASU 2016-15"). This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. For public business entities, this Update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the new pronouncement to determine the impact it may have to its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740)" ("ASU 2016-16"). This Update improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. For public business entities, this Update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the new pronouncement to determine the impact it may have on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230)" ("ASU 2016-18"). This Update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. For public business entities, this Update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the new pronouncement to determine the impact it may have on its consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, "Other Income—Gains and Losses from the De-recognition of Nonfinancial Assets (Subtopic 610-20)" ("ASU 2017-05"). This Update clarifies the Scope of Asset De-recognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope of the nonfinancial asset guidance in Subtopic 610-20. This ASU also clarifies that the de-recognition of all businesses and nonprofit activities (except those related to conveyances of oil and gas mineral rights or contracts with customers) should be accounted for in accordance with the de-recognition and deconsolidation guidance in Subtopic 810-10. The amendments in this ASU also provide guidance on the accounting for what often are referred to as partial sales of nonfinancial assets within the scope of Subtopic 610-20 and contributions of nonfinancial assets to a joint venture or other non-controlled investee. The amendments in this ASU are effective for annual reporting reports beginning after December 15, 2017, including interim reporting periods within that reporting period. Public entities may apply the guidance earlier but only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We do not expect the adoption of ASU 2017-05 to have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation—Stock Compensation (Topic 718) Scope of Modification Accounting" ("ASU 2017-09"). The requirement provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. For public business entities, this ASU should be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. We are currently evaluating the impact the adoption of ASU 2017-09 will have on its consolidated financial statements. In July 2017, the FASB issued ASU 2017-11, "Earnings Per Share (Topic 260) (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception" ("ASU 2017-11"). The amendments require companies to disregard the down round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. Companies that provide earnings per share (EPS) data will adjust their basic EPS calculation for the effect of the feature when triggered (i.e., when the exercise price of the related equity-linked financial instrument is adjusted downward because of the down round feature) and will also recognize the effect of the trigger within equity. For public business entities, this ASU should be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. We are currently evaluating the impact the adoption of ASU 2017-09 will have on its consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | 2016 2017 $ in thousands $ in thousands Raw materials 684 442 Work in progress 430 317 Finished goods 709 259 1,823 1,018 |
Interests of subsidiaries (Tabl
Interests of subsidiaries (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of subsidiaries | Name of company Place of incorporation and kind of legal entity Particulars of issued capital/ registered capital Percentage of capital held by the Company Principal activities 2016 2017 Bonso Electronics Limited * (“BEL”) Hong Kong, limited liability company HK$5,000,000 (US$641,026) 100 % 100 % Investment holding, providing management and administrative support to the Group companies Bonso Investment Limited (“BIL”) Hong Kong, limited liability company HK$3,000,000 (US$384,615) 100 % 100 % Investment holding and property investment Bonso Electronics (Shenzhen) Company, Limited (“BESCL”) PRC, limited liability company US$12,621,222 100 % 100 % Investment holding and property rental Bonso Advanced Technology Limited * (“BATL”) Hong Kong, limited liability company HK$1,000,000 (US$128,205) 100 % 100 % Investment holding, and trading of scales and pet electronics products Bonso Advanced Technology (Xinxing) Company, Limited (“BATXXCL”) PRC, limited liability company US$10,000,000 100 % 100 % Production of scales and pet electronics products Bonso Technology (Shenzhen) Company, Limited (“BTL”) PRC, limited liability company HK$200,000 100 % 100 % Product development * Shares directly held by the Company |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other intangible assets | March 31, 2016 2017 $ in thousands $ in thousands Cost 6,159 5,740 Less: accumulated amortization (2,867 ) (2,955 ) 3,292 2,785 |
Components of other intangible assets | March 31, 2016 2017 $ in thousands $ in thousands Land use right of factory land in Shenzhen, Guangdong, PRC 1,599 1.326 Land use right of factory land in Xinxing, Guangdong, PRC 1,652 1,459 Golf club membership 41 - 3,292 2,785 |
Schedule of amortization expenses | Year ending March 31, $ in thousands 2018 265 2019 265 2020 265 2021 265 2022 265 Thereafter 1,460 Total 2,785 |
Banking facilities (Tables)
Banking facilities (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Banking and Thrift [Abstract] | |
General banking facilities | Amount available Amount utilized Amount unutilized Terms of banking facilities as of March 31, March 31, March 31, March 31, 2017 2016 2017 2016 2017 2016 2017 Interest Repayment $ in thousands $ in thousands $ in thousands rate terms Import and export facilities Combined limit 2,564 2,564 1,237 134 1,327 2,430 Including sub-limit of: Notes payable 2,308 2,308 1,237 134 1,071 2,174 HIBOR* +2.5% Repayable in full within 120 days Bank overdrafts 641 641 - - 641 641 Prime rate + 1% Repayable on demand Factoring 2,400 - - - 2,400 - HIBOR* +1.5% Repayable in 60 days Other facilities Export Documentary Credits 641 641 - - 641 641 Short Term Loans 1,923 1,923 - - 1,923 1,923 (Note A) Revolving loan repayable in 30 days Long Term Loans (1) 1,061 178 506 143 555 35 (Note A) Term loans repayable monthly over 3 years. 6,189 5,306 1,743 277 4,446 5,029 |
Short-term borrowings | During the fiscal year ended March 31, 2016 2017 Bank overdrafts 6.00 % 6.00 % Notes payable 2.94 % 3.13 % Term Loan in Hong Kong 2.50 % 2.59 % Term Loan in PRC 6.77 % unutilized Factoring 1.74 % unutilized |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Loss before income tax | 2015 2016 2017 $ in thousands $ in thousands $ in thousands Hong Kong (55 ) 3,933 693 PRC 148 (167 ) 2,531 Others (20 ) (585 ) 171 Total 73 3,181 3,395 |
Deferred taxes | 2015 2016 2017 $ in thousands $ in thousands $ in thousands Current income tax expense (13 ) (310 ) (600 ) Income tax credit 1,050 - - Total income tax credit / (expense) 1,037 (310 ) (600 ) |
Geographic tax expense | 2015 2016 2017 $ in thousands $ in thousands $ in thousands Hong Kong 1,050 (310 ) (5 ) PRC (13 ) - (595 ) Total 1,037 (310 ) (600 ) |
Income tax liabilities | 2016 2017 $ in thousands $ in thousands Non-current - - Current 317 533 Total 317 533 |
Deferred tax assets and liabilities | Total property, plant and equipment, net by geographical areas are as follows: March 31, March 31, 2016 2017 $ in thousands $ in thousands Hong Kong 1,159 1,126 The PRC 10,558 9,168 Total property, plant and equipment 11,717 10,294 (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, 2015, 2016 and 2017: Year ended March 31, 2015 2016 2017 $ in thousands % $ in thousands % $ in thousands % United States 21,271 73 14,062 59 10,356 59 Germany 6,210 22 4,568 19 2,797 16 Netherlands 0 0 1,901 8 2,299 13 27,481 95 20,531 86 15,452 88 |
Changes in valuation allowance | 2015 2016 2017 $ in thousands $ in thousands $ in thousands Balance, April 1 853 4,459 4,459 Charged / (credited) to income tax expense 3,606 - (189 ) Balance, March 31 4,459 4,459 4,270 |
Tax expense attributable to earnings | 2015 2016 2017 $ in thousands $ in thousands $ in thousands Income before income taxes 73 3,181 3,395 Income tax benefit / (expense) on pretax income at statutory rate (12 ) (525 ) (560 ) Effect of different tax rates of subsidiaries operating in other jurisdictions (233 ) (95 ) (52 ) Profit not subject to income tax 542 387 472 Expenses not deductible for income tax purposes (336 ) (255 ) (686 ) Increase / (decrease) in valuation allowance 3,606 - (189 ) 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 in prior year - - 5 Utilization of tax losses / (tax losses recognized) (3,580 ) 178 410 Total income tax credit / (expense) 1,037 (310 ) (600 ) |
Financial instruments at fair33
Financial instruments at fair value (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value of assets | March 31, 2016 March 31, 2017 $ in thousands Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Forward contracts (1) - (160 ) - (160 ) - - - - Investment product (2) - - - - - - - - Equity investment (3) 144 - - 144 167 - - 167 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Leases [Abstract] | |
Future minimum payments for capital leases | Future minimum payments under capital leases for the years ending March 31, Principal repayment Interest payment Total obligations $ in thousands $ in thousands $ in thousands 2018 44 4 48 2019 28 2 30 2020 27 1 28 2021 5 0 5 104 7 111 |
Future minimum payments for operating leases | Year ending March 31, $ in thousands 2018 1,302 2019 1,231 2020 410 2,943 |
Future minimum rental income | Year ending March 31, $ in thousands 2018 94 2019 26 120 |
Commitments and contingent li35
Commitments and contingent liabilities (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and contingent liabilities | |
Capital expenditures | March 31, 2016 2017 $ in thousands $ in thousands Construction in Xinxing, Guangdong, PRC 48 31 Mold - 22 48 53 |
Stock option and bonus plans (T
Stock option and bonus plans (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Stock option summary | Number Weighted average exercise of options price Balance, April 1, 2015 30,000 $ 4,50 Expired (30,000 ) $ 4.50 Granted 850,000 $ 1.50 Balance, March 31, 2016 and 2017 850,000 $ 1.50 |
Information regarding stock options | Number Weighted average Exercisable Weighted average outstanding at remaining life shares at exercise price March 31, 2017 (years) March 31, 2017 $ 1.50 850,000 5.5 850,000 |
Schedule of Fair value of Stock Options | For the Fiscal Year Ended March 31, 2016 2017 Risk-free interest rate (1) 1.63% to 2.36% N/A Expected life (years) (2) 4.71 to 9.71 N/A Expected dividend yield (3) 0 % N/A Volatility (4) 73.63 % N/A Fair value of options at grant date per share $ 0.81 to $1.08 N/A |
Schedule of Share Based Compensation | For the Fiscal Year Ended March 31, 2015 2016 2017 $ in thousands $ in thousands $ in thousands Administration and general - 801 - Total - 801 - |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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 Officer Director Director Director and Chief Operating Officer $ in thousands $ in thousands $ in thousands $ in thousands 2015 $857 (i), (iii) $160 (iii) Nil $124 2016 $857 (i), (iii) $170 (iii) Nil $249 2017 $643 (i), (iii) $171 (iii) Nil $249 Mr. Henry Mr. Albert Schlueter So Director and Assistant Secretary Director, Chief Financial Officer and Secretary $ in thousands $ in thousands 2015 $55 (ii) $109 2016 $60 (ii) $181 2017 $62 (ii) $152 The emoluments paid to the Company’s 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, 2015, 2016 and 2017 represented professional fees paid to Schlueter & Associates, P.C., the Company’s SEC counsel, in which Mr. Henry Schlueter is one of the principals. (iii) The amount for the year ended March 31, 2015, included unpaid vacation payments of $57,000 and $9,000 for Mr. Anthony So and Mr. Kim Wah Chung, respectively. The amount for the year ended March 31, 2016, included unpaid vacation payments of $57,000, $10,000, and $12,000 for Mr. Anthony So, Mr. Kim Wah Chung, and Mr. Albert So, respectively. The amount for the year ended March 31, 2017, included unpaid vacation payments of $43,000 and $11,000 for Mr. Anthony So and Mr. Kim Wah Chung, respectively. |
Concentrations and credit risk
Concentrations and credit risk (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Net sales to customers | The net sales to customers representing at least 10% of net total sales are as follows: Year Ended March 31, 2015 2016 2017 $ in thousands % $ in thousands % $ in thousands % Fitbit, Inc. 10,593 37 14,145 59 8.472 48 Kern + Sohn GMBH 5,424 19 3,874 16 2,729 16 Pitney Bowes Inc. 2,476 8 1,969 8 2,435 14 Sunbeam Products, Inc. 6,879 24 1,738 7 1,563 9 25,372 88 21,726 90 15,199 87 The following customers had balances of at least 10% of the total trade receivables at the respective balance sheet dates set forth below: March 31, 2016 2017 $ in thousands % $ in thousands % Sunbeam Products, Inc. 87 10 162 14 Fitbit, Inc. 378 41 109 9 Kern + Sohn GMBH 204 22 328 28 Pitney Bowes Inc. 145 16 455 39 89 90 |
Net earnings per share (Tables)
Net earnings per share (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Year Ended March 31, 2015 2016 2017 Income available to common stockholders ($ in thousands) $ 1,110 $ 2,871 $ 2,795 Basic weighted average common shares outstanding 5,246,903 5,173,431 5,143,648 Basic net earnings per share $ 0.21 $ 0.55 $ 0.54 Basic weighted average common shares outstanding 5,246,903 5,173,431 5,143,648 Effect of dilutive securities – Options - - 172,745 Diluted weighted average common and potential common shares outstanding 5,246,903 5,173,431 5,316,393 Diluted net earnings income per share $ 0.21 $ 0.55 $ 0.53 |
Business segment information (T
Business segment information (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Business segment financial information | Year ended March 31, Product Line 2015 2016 2017 Scales 89 % 93 % 90 % Pet Electronics Products 10 % 6 % 9 % Others 1 % 1 % 1 % Total 100 % 100 % 100 % |
Total property plant and equipment | Net sales Operating income Identifiable assets as of March 31 Depreciation and amortization Capital expenditure $ in thousands $ in thousands $ in thousands $ in thousands $ in thousands 2015 Scales & Others 25,911 414 16,172 968 1,472 Pet Electronics Products 3,033 48 1,893 114 173 Total operating segments 28,944 462 18,065 1,082 1,645 Corporate - - 7,712 294 - Group 28,944 462 25,777 1,376 1,645 2016 Scales & Others 22,378 3,094 14,896 981 880 Pet Electronics Products 1,514 208 1,002 66 59 Total operating segments 23,892 3,302 15,898 1,047 939 Corporate - - 7,123 288 - Group 23,892 3,302 23,021 1,335 939 2017 Scales & Others 15,814 2,865 12,782 947 262 Pet Electronics Products 1,662 301 1,343 99 27 Total operating segments 17,476 3,166 14,125 1,046 289 Corporate - - 6,841 271 - Group 17,476 3,166 20,966 1,317 289 |
Geographic net export sales | Total property, plant and equipment, net by geographical areas are as follows: March 31, March 31, 2016 2017 $ in thousands $ in thousands Hong Kong 1,159 1,126 The PRC 10,558 9,168 Total property, plant and equipment 11,717 10,294 (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, 2015, 2016 and 2017: Year ended March 31, 2015 2016 2017 $ in thousands % $ in thousands % $ in thousands % United States 21,271 73 14,062 59 10,356 59 Germany 6,210 22 4,568 19 2,797 16 Netherlands 0 0 1,901 8 2,299 13 27,481 95 20,531 86 15,452 88 |
Customer geographic net export sales | Year Ended March 31, 2015 2016 2017 Customers Segment $ in thousands % $ in thousands % $ in thousands % Fitbit, Inc. Scales 10,593 37 14,145 59 8.472 48 Kern + Sohn GMBH Scales 5,424 19 3,874 16 2,729 16 Pitney Bowes Inc. Scales 2,476 8 1,969 8 2,435 14 Sunbeam Products, Inc. Scales & Pet Electronics Products 6,879 24 1,738 7 1,563 9 25,372 88 21,726 90 15,199 87 |
Description of business and s41
Description of business and significant accounting policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Operating income | $ 3,166 | $ 3,302 | $ 462 |
Working Capital | 2,499 | ||
Advertising costs | $ 10 | $ 12 | $ 9 |
Plant and machinery | |||
Useful Life of Assets | 10 years | ||
Furniture, fixtures and equipment | Maximum [Member] | |||
Useful Life of Assets | 10 years | ||
Furniture, fixtures and equipment | Minimum [Member] | |||
Useful Life of Assets | 5 years | ||
Motor vehicles | |||
Useful Life of Assets | 5 years |
Allowance for doubtful accoun42
Allowance for doubtful accounts (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance For Doubtful Accounts Details Narrative | ||
Balance due from doubtfull account holder | $ 0 | $ 1,415 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Inventories Details | ||
Raw materials | $ 442 | $ 684 |
Work in progress | 317 | 430 |
Finished goods | 259 | 709 |
Total | $ 1,018 | $ 1,823 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Inventories Details Narrative | |||
Allowance for obsolete inventories | $ 156 | $ 30 | $ 687 |
Property, plant and equipment45
Property, plant and equipment, net (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Property Plant And Equipment Net Details Narrative | |||
Depreciation expenses | $ 1,046 | $ 1,047 | $ 1,082 |
Depreciated property, plant and equipment | $ 8,761 | $ 9,195 |
Interests in subsidiaries (Deta
Interests in subsidiaries (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Bonso Electronics Limited | ||
Place of incorporation and kind of legal entity | Hong Kong, limited liability company | Hong Kong, limited liability company |
Particulars of issued capital/ registered capital | $ 641 | $ 641 |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Investment holding, providing management and administrative support to the Group companies | Investment holding, providing management and administrative support to the Group companies |
Bonso Advanced Technology (Xinxing) Company, Limited | ||
Place of incorporation and kind of legal entity | PRC, limited liability company | PRC, limited liability company |
Particulars of issued capital/ registered capital | $ 10,000 | $ 10,000 |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Production of scales and pet electronics products | Production of scales and pet electronics products |
Bonso Advanced Technology Limited | ||
Place of incorporation and kind of legal entity | Hong Kong, limited liability company | Hong Kong, limited liability company |
Particulars of issued capital/ registered capital | $ 128 | $ 128 |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Investment holding, and trading of scales and pet electronics products | Investment holding, and trading of scales and pet electronics products |
Bonso Electronics (Shenzhen) Company, Limited | ||
Place of incorporation and kind of legal entity | PRC, limited liability company | PRC, limited liability company |
Particulars of issued capital/ registered capital | $ 12,621 | $ 12,621 |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Investment holding and property rental | Investment holding and property rental |
Bonso Investment Limited | ||
Place of incorporation and kind of legal entity | Hong Kong, limited liability company | Hong Kong, limited liability company |
Particulars of issued capital/ registered capital | $ 385 | $ 385 |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Investment holding and property investment | Investment holding and property investment |
Bonso Technology (Shenzhen) Company, Limited | ||
Place of incorporation and kind of legal entity | PRC, limited liability company | PRC, limited liability company |
Percentage of capital held by the Company | 100.00% | 100.00% |
Principal activities | Product development | Product development |
Intangible assets (Details)
Intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Other Intangible Assets Details | ||
Cost | $ 5,740 | $ 6,159 |
Less: accumulated amortization | (2,955) | (2,867) |
Total | $ 2,785 | $ 3,292 |
Intangible assets (Details 1)
Intangible assets (Details 1) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Other Intangible Assets Details 1 | ||
Land use right of factory land in Shenzhen, Guangdong, PRC | $ 1,326 | $ 1,599 |
Land use right of factory land in Xinxing, Guangdong, PRC | 1,459 | 1,652 |
Golf club membership | 41 | |
Total | $ 2,785 | $ 3,292 |
Intangible assets (Details 2)
Intangible assets (Details 2) $ in Thousands | Mar. 31, 2017USD ($) |
Other Intangible Assets Details 2 | |
2,018 | $ 265 |
2,019 | 265 |
2,020 | 265 |
2,021 | 265 |
2,022 | 265 |
Thereafter | 1,460 |
Total | $ 2,785 |
Intangible assets (Details Narr
Intangible assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Other Intangible Assets Details Narrative | |||
Amortization expense | $ 271 | $ 288 | $ 294 |
Banking facilities (Details)
Banking facilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 | |
Including sub-limit of: | |||
Bank overdrafts(3)(4) | $ 143 | $ 506 | |
Amount Available | |||
Import and export facilities | |||
Combined limit | 2,564 | 2,564 | |
Including sub-limit of: | |||
Notes payable (1)(2) | 2,308 | 2,308 | |
Bank overdrafts(3)(4) | 641 | 641 | |
Factoring | 2,400 | ||
Other facilities | |||
Export Documentary Credits | 641 | 641 | |
Short Term Loan | 1,923 | 1,923 | |
Lont Term Loans | [1] | 178 | 1,061 |
Total | 5,306 | 6,189 | |
Amount Unutilized | |||
Import and export facilities | |||
Combined limit | 2,430 | 1,237 | |
Including sub-limit of: | |||
Notes payable (1)(2) | 2,174 | 1,237 | |
Bank overdrafts(3)(4) | 641 | ||
Factoring | |||
Other facilities | |||
Export Documentary Credits | 641 | ||
Short Term Loan | 1,923 | ||
Lont Term Loans | [1] | 35 | 506 |
Total | 5,029 | 1,743 | |
Amount Utilized | |||
Import and export facilities | |||
Combined limit | 134 | 1,327 | |
Including sub-limit of: | |||
Notes payable (1)(2) | 134 | 1,071 | |
Bank overdrafts(3)(4) | 641 | ||
Factoring | 2,400 | ||
Other facilities | |||
Export Documentary Credits | 641 | ||
Short Term Loan | 1,923 | ||
Lont Term Loans | [1] | 143 | 555 |
Total | $ 277 | $ 4,446 | |
[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. As of March 31, 2017, the long-term loans became current as it is repayable within one year in accordance with the repayment schedule. |
Banking facilities (Details 1)
Banking facilities (Details 1) | Mar. 31, 2017 | Mar. 31, 2016 |
Banking Facilities Details 2 | ||
Weighted average interest rate bank overdrafts | 6.00% | 6.00% |
Weighted average interest rate notes payable | 3.13% | 2.94% |
Term Loan in Hong Kong | 2.59% | 2.50% |
Term Loan in PRC | 6.77% | |
Factoring | 1.74% |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax -loss Before Taxes Details | |||
Hong Kong | $ 693 | $ 3,933 | $ (55) |
PRC | 2,531 | (167) | 148 |
Others | 171 | (585) | (20) |
Total | $ 3,395 | $ 3,181 | $ 73 |
Income Tax (Details 1)
Income Tax (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax -deferred Taxes Details 1 | |||
Current income tax expense | $ (600) | $ (310) | $ (13) |
Income tax credit | 1,050 | ||
Total income tax credit / (expense) | $ (600) | $ (310) | $ 1,037 |
Income Tax (Details 2)
Income Tax (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax -geographic Tax Expense Details 2 | |||
Hong Kong | $ (5) | $ (310) | $ 1,050 |
PRC | (595) | (13) | |
Total | $ (600) | $ (310) | $ 1,037 |
Income Tax (Details 3)
Income Tax (Details 3) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Income Tax - Income Tax Liabilities Details 3 | ||
Non-current | ||
Current | 533 | 317 |
Total | $ 533 | $ 317 |
Income Tax (Details 4)
Income Tax (Details 4) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Income Tax - Deferred Tax Carry Forwards Details 4 | ||
Tax loss carry forwards | $ 4,270 | $ 4,459 |
Less: Valuation allowance | (4,270) | (4,459) |
Total |
Income Tax (Details 5)
Income Tax (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax - Changes In Valuation Allowances Details 5 | |||
Balance, April 1 | $ 4,459 | $ 4,459 | $ 853 |
Charged / (credited) to income tax expense | (189) | 3,606 | |
Balance, March 31 | $ 4,270 | $ 4,459 | $ 4,459 |
Income Tax (Details 6)
Income Tax (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax - Tax Expense Attributable To Earnings Details 6 | |||
Income before income taxes | $ 3,395 | $ 3,181 | $ 73 |
Income tax benefit/ (expense) on pretax income at statutory rate | (560) | (525) | (12) |
Effect of different tax rates of subsidiary operating in other jurisdictions | (52) | (95) | (233) |
Profit not subject to income tax | 472 | 387 | 542 |
Expenses not deductible for income tax purposes | (686) | (255) | (336) |
Increase / (decrease) in valuation allowance | (189) | 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 | 5 | ||
Utilization of tax losses recognized/(tax losses recognized) | 410 | 178 | (3,580) |
Total income tax credit / (expense) | $ (600) | $ (310) | $ 1,037 |
Income Tax (Details Narrative)
Income Tax (Details Narrative) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Details Narrative | ||
Tax rate of Hong Kong subsidiaries | 16.50% | 16.50% |
Tax rate of PRC | 25.00% | 25.00% |
Income Tax (Details Narrative 1
Income Tax (Details Narrative 1) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Details Narrative 1 | ||
Accumulated tax losses | $ 24,410 | $ 25,327 |
Financial instruments at fair62
Financial instruments at fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 | |
Equity investment | |||
Fair Value of Investment | [1] | $ 167 | $ 144 |
Forward contracts | |||
Fair Value of Investment | [2] | (160) | |
Fair Value, Inputs, Level 1 [Member] | Equity investment | |||
Fair Value of Investment | [1] | $ 167 | 144 |
Fair Value, Inputs, Level 2 [Member] | Forward contracts | |||
Fair Value of Investment | [2] | $ (160) | |
[1] | The fair value of equity investment is determined based on quoted price in active markets. | ||
[2] | 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. |
Investment in life insurance 63
Investment in life insurance contract (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Investment In Life Insurance Contract Details Narrative | |||
Change in fair value of life insurance contract | $ 4 | $ 4 | $ 5 |
Leases (Details)
Leases (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Principal Repayment | |
2,017 | $ 44 |
2,018 | 28 |
2,019 | 27 |
2,020 | 5 |
2,021 | 104 |
Total | 153 |
Interest Payment | |
2,017 | 4 |
2,018 | 2 |
2,019 | 1 |
2,020 | 0 |
2,021 | 7 |
Total | 12 |
Total Obligations | |
2,017 | 48 |
2,018 | 30 |
2,019 | 28 |
2,020 | 5 |
2,021 | 111 |
Total | $ 165 |
Leases (Details 1)
Leases (Details 1) $ in Thousands | 12 Months Ended |
Mar. 31, 2017USD ($) | |
Leases Details 2 | |
2,018 | $ 1,302 |
2,019 | 1,231 |
2,020 | 410 |
Total | $ 2,943 |
Leases (Details 2)
Leases (Details 2) $ in Thousands | Mar. 31, 2017USD ($) |
Leases Details 3 | |
2,018 | $ 94 |
2,019 | 26 |
Total | $ 120 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Leases Details Narrative | |||
Rental expense for operating leases | $ 100 | $ 119 | $ 100 |
Early cancellation fee for leases | $ 84 |
Commitments and contingent li68
Commitments and contingent liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Commitments Details | ||
Construction in Xinxing, Guangdong, PRC | $ 31 | $ 48 |
Mold | 22 | |
Total construction cost | $ 53 | $ 48 |
Commitments and contingent li69
Commitments and contingent liabilities (Details Narrative) $ in Thousands | 12 Months Ended |
Mar. 31, 2017USD ($) | |
Commitments Details Narrative | |
Payment for contractor agreement to construct factory | $ 293 |
Balance due on contractor agreement | $ 53 |
Stockholders' equity (Details N
Stockholders' equity (Details Narrative) $ in Thousands | 12 Months Ended |
Mar. 31, 2017USD ($)shares | |
Stockholders Equity Details Narrative | |
Authorized amount for repuchase of common stock | $ 1,500 |
Common stock repurchased during period | shares | 568,519 |
Preferred stock authorized for sale | $ 100 |
Stock Option and bonus plans (D
Stock Option and bonus plans (Details) | 12 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Number of Options | |
Options Outstanding, beginning balance | shares | 30,000 |
Shares Expired | shares | (30,000) |
Shares Granted | shares | 850,000 |
Options Outstanding, ending balance | shares | 850,000 |
Weighted Average Exercise Price | |
Options Outstanding, beginning balance | $ / shares | $ 450 |
Weighted Average Exercise Price, Expired | $ / shares | 4.5 |
Weighted Average Exercise Price, Granted | $ / shares | 1.50 |
Options Outstanding, ending balance | $ / shares | $ 1.5 |
Stock Option and bonus plans 72
Stock Option and bonus plans (Details 1) | 12 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Stock Option And Bonus Plans Details 1Abstract | |
Exercisable, Weighted Average Exercise Price | $ / shares | $ 1.50 |
Outstanding, Number | 850,000 |
Outstanding, Weighted Average Remaining Life | 5 years 6 months |
Exercisable, Number | 850,000 |
Stock Option and bonus plans 73
Stock Option and bonus plans (Details 2) | 12 Months Ended |
Mar. 31, 2016$ / shares | |
Expected dividend yield | 0.00% |
Volatility | 73.63% |
Minimum [Member] | |
Risk-free interest rate | 1.63% |
Expected life (years) | 4 years 8 months 16 days |
Fair value of options at grant date per share | $ 0.81 |
Maximum [Member] | |
Risk-free interest rate | 2.36% |
Expected life (years) | 9 years 8 months 16 days |
Fair value of options at grant date per share | $ 1.08 |
Stock Option and bonus plans 74
Stock Option and bonus plans (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Stock Option And Bonus Plans Details 3 | |||
Administration and general | $ 801 |
Stock Option and bonus plans 75
Stock Option and bonus plans (Details Narrative) - shares | Sep. 07, 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 |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Mr. Anthony So, Director, Chief Executive Officer | ||||
Commissions and/or Consultancy Fees | [1],[2] | $ 643 | $ 857 | $ 857 |
Mr. Kim Wah Chung, Director | ||||
Commissions and/or Consultancy Fees | [2] | 171 | 170 | 160 |
Mr. Woo-Ping Fok, Director | ||||
Commissions and/or Consultancy Fees | ||||
Mr. Andrew So, Director, Chief Operating Officer | ||||
Commissions and/or Consultancy Fees | 249 | 249 | 124 | |
Mr. Henry Schlueter, Director and Assistant Secretary | ||||
Commissions and/or Consultancy Fees | [3] | 62 | 60 | 55 |
Mr. Albert So, Director, Chief Financial Officer and Secretary | ||||
Commissions and/or Consultancy Fees | $ 152 | $ 181 | $ 109 | |
[1] | 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. | |||
[2] | The amount for the year ended March 31, 2015, included unpaid vacation payments of $57,000 and $9,000 for Mr. Anthony So and Mr. Kim Wah Chung, respectively. The amount for the year ended March 31, 2016, included unpaid vacation payments of $57,000, $10,000, and $12,000 for Mr. Anthony So, Mr. Kim Wah Chung, and Mr. Albert So, respectively. The amount for the year ended March 31, 2017, included unpaid vacation payments of $43,000 and $11,000 for Mr. Anthony So and Mr. Kim Wah Chung, respectively. | |||
[3] | The amounts for the years ended March 31, 2015, 2016 and 2017 represented professional fees paid to Schlueter & Associates, P.C. the Company's SEC counsel, in which Mr. Henry Schlueter is one of the principals. |
Concentrations and Credit Ris77
Concentrations and Credit Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net Total Sales | $ 17,476 | $ 23,892 | $ 28,944 |
Net Total Sales, percent | 100.00% | 100.00% | 100.00% |
Total Trade Receivables | $ 1,167 | $ 913 | |
Fitbit Inc [Member] | |||
Net Total Sales | $ 8,472 | $ 14,145 | $ 10,593 |
Net Total Sales, percent | 48.00% | 59.00% | 37.00% |
Total Trade Receivables | $ 109 | $ 378 | |
Total Trade Receivables, percent | 9.00% | 41.00% | |
Kern Sohn G M B H [Member] | |||
Net Total Sales | $ 2,729 | $ 3,874 | $ 5,424 |
Net Total Sales, percent | 16.00% | 16.00% | 19.00% |
Total Trade Receivables | $ 328 | $ 204 | |
Total Trade Receivables, percent | 28.00% | 22.00% | |
Pitney Bowes Inc. | |||
Net Total Sales | $ 2,435 | $ 1,969 | $ 2,476 |
Net Total Sales, percent | 14.00% | 8.00% | 8.00% |
Total Trade Receivables | $ 455 | $ 145 | |
Total Trade Receivables, percent | 39.00% | 16.00% | |
Sunbeam Products Inc [Member] | |||
Net Total Sales | $ 1,563 | $ 1,738 | $ 6,879 |
Net Total Sales, percent | 9.00% | 7.00% | 24.00% |
Total Trade Receivables | $ 162 | $ 87 | |
Total Trade Receivables, percent | 14.00% | 10.00% | |
Total [Member] | |||
Net Total Sales | $ 15,199 | $ 21,726 | $ 25,372 |
Net Total Sales, percent | 87.00% | 90.00% | 88.00% |
Total Trade Receivables, percent | 90.00% | 89.00% |
Concentrations and Credit Ris78
Concentrations and Credit Risk (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Concentrations And Credit Risk Details Narrative | ||
Uninsured cash in banks | $ 3,547 | $ 3,745 |
Employee retirement benefits 79
Employee retirement benefits and severance payment allowance (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Retirement Benefits And Severance Payment Allowance Details Narrative | |||
Contributions to mandatory Hong Kong retirement plan | $ 267 | $ 293 | $ 693 |
Mandatory severance pay allowance | $ 297 | $ 317 | $ 256 |
Net earnings per share (Details
Net earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Loss Per Share Details Narrative | |||
Income available to common stockholders ($ in thousands) | $ 2,795 | $ 2,871 | $ 1,110 |
Basic net earnings per share | $ 0.54 | $ 0.55 | $ 0.21 |
Basic weighted average common shares outstanding | 5,143,648 | 5,173,431 | 5,246,903 |
Effect of dilutive securities – Options | 172,745 | ||
Diluted weighted average common and potential common shares outstanding | 5,316,393 | 5,173,431 | 5,246,903 |
Diluted net earnings income per share | $ 0.53 | $ 0.55 | $ 0.21 |
Business segment Information (D
Business segment Information (Details) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Percentage of Net Sales | 100.00% | 100.00% | 100.00% |
Scales & Pet Electronics Products | |||
Percentage of Net Sales | 90.00% | 93.00% | 89.00% |
Pet Electronics Products | |||
Percentage of Net Sales | 9.00% | 6.00% | 10.00% |
Others | |||
Percentage of Net Sales | 10.00% | 10.00% | 1.00% |
Business segment information 82
Business segment information (Details 1) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Scales & Others | |||
Net sales | $ 15,814 | $ 22,378 | $ 25,911 |
Operating (loss) / income | 2,865 | 3,094 | 414 |
Identifiable assets | 12,782 | 14,896 | 16,172 |
Depreciation and amortization | 947 | 981 | 968 |
Capital expenditure | 262 | 880 | 1,472 |
Pet Electronics Products | |||
Net sales | 1,662 | ||
Operating (loss) / income | 301 | ||
Identifiable assets | 1,343 | ||
Depreciation and amortization | 99 | ||
Capital expenditure | 27 | ||
Total Operating Segments | |||
Net sales | 17,476 | 23,892 | 28,944 |
Operating (loss) / income | 3,166 | 3,302 | 462 |
Identifiable assets | 14,125 | 15,898 | 18,065 |
Depreciation and amortization | 1,046 | 1,047 | 1,082 |
Capital expenditure | 289 | 939 | 1,645 |
Corporate | |||
Net sales | |||
Operating (loss) / income | |||
Identifiable assets | 6,841 | 7,123 | 7,712 |
Depreciation and amortization | 271 | 288 | 294 |
Capital expenditure | |||
Group | |||
Net sales | 17,476 | 23,892 | 28,944 |
Operating (loss) / income | 3,166 | 3,302 | 462 |
Identifiable assets | 20,966 | 23,021 | 25,777 |
Depreciation and amortization | 1,317 | 1,335 | 1,376 |
Capital expenditure | $ 289 | 939 | 1,645 |
Pet Electronic Products | |||
Net sales | 1,514 | 3,033 | |
Operating (loss) / income | 208 | 48 | |
Identifiable assets | 1,002 | 1,893 | |
Depreciation and amortization | 66 | 114 | |
Capital expenditure | $ 59 | $ 173 |
Business segment information 83
Business segment information (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Business Segment Information Details 1 | ||
Hong Kong | $ 1,126 | $ 1,159 |
The PRC | 9,168 | 10,558 |
Total property, plant and equipment | $ 10,294 | $ 11,717 |
Business segment information 84
Business segment information (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net Total Sales | $ 17,476 | $ 23,892 | $ 28,944 |
Net Total Sales, percent | 100.00% | 100.00% | 100.00% |
UNITED STATES | |||
Net Total Sales | $ 10,356 | $ 14,062 | $ 21,271 |
Net Total Sales, percent | 59.00% | 59.00% | 73.00% |
GERMANY | |||
Net Total Sales | $ 2,797 | $ 4,568 | $ 6,210 |
Net Total Sales, percent | 16.00% | 19.00% | 22.00% |
Netherlands | |||
Net Total Sales | $ 2,299 | $ 1,901 | $ 0 |
Net Total Sales, percent | 13.00% | 8.00% | 0.00% |
Total | |||
Net Total Sales | $ 15,452 | $ 20,531 | $ 27,481 |
Net Total Sales, percent | 88.00% | 86.00% | 95.00% |
Business segment information 85
Business segment information (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net Total Sales | $ 17,476 | $ 23,892 | $ 28,944 |
Net Total Sales, percent | 100.00% | 100.00% | 100.00% |
Fitbit Inc [Member] | |||
Net Total Sales | $ 8,472 | $ 14,145 | $ 10,593 |
Net Total Sales, percent | 48.00% | 59.00% | 37.00% |
Kern Sohn G M B H [Member] | |||
Net Total Sales | $ 2,729 | $ 3,874 | $ 5,424 |
Net Total Sales, percent | 16.00% | 16.00% | 19.00% |
Pitney Bowes Inc [Member] | |||
Net Total Sales | $ 2,435 | $ 1,969 | $ 2,476 |
Net Total Sales, percent | 14.00% | 8.00% | 8.00% |
Sunbeam Products Inc [Member] | |||
Net Total Sales | $ 1,563 | $ 1,738 | $ 6,879 |
Net Total Sales, percent | 9.00% | 7.00% | 24.00% |
Total [Member] | |||
Net Total Sales | $ 15,199 | $ 21,726 | $ 25,372 |
Net Total Sales, percent | 87.00% | 90.00% | 88.00% |
Scales & Pet Electronics Products | Fitbit Inc [Member] | |||
Net Total Sales | $ 8,472 | $ 14,145 | $ 10,593 |
Net Total Sales, percent | 48.00% | 59.00% | 37.00% |
Scales & Pet Electronics Products | Kern Sohn G M B H [Member] | |||
Net Total Sales | $ 2,729 | $ 3,874 | $ 5,424 |
Net Total Sales, percent | 16.00% | 16.00% | 19.00% |
ScalesAndPetElectronicsProductsMember | Pitney Bowes Inc [Member] | |||
Net Total Sales | $ 2,435 | $ 1,969 | $ 2,476 |
Net Total Sales, percent | 14.00% | 8.00% | 8.00% |
ScalesAndPetElectronicsProductsMember | Sunbeam Products Inc [Member] | |||
Net Total Sales | $ 1,563 | $ 1,738 | $ 6,879 |
Net Total Sales, percent | 9.00% | 7.00% | 24.00% |
Subsequent events (Details Narr
Subsequent events (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 14, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Shares Re-Purchased | 568,519 | |||
Common stock aggregate purchase price | $ 368 | $ 99 | ||
Subsequent Event [Member] | ||||
Shares Re-Purchased | 45,924 | |||
Common stock aggregate purchase price | $ 114 |