|
5. |
SEGMENT INFORMATION |
For management purposes, the Company organizes its business segments along regional lines and has three operating segments, consisting of the North Asia region, the Thailand region and the Rest of the World (“ROW”) region. The Company considers the economic characteristics similarity in determining the reportable segments.
Each segment engages in business activities generating revenues and incurring expenses. Each segment generates a management report which contains its own financial information and submits to the Company’s chief operating decision maker (“CODM”) for review on a monthly basis. The Company’s Chief Executive Officer (“CEO”) and Chief Operating Officer (“COO”) are the ones who review all the management reports provided by each segment, makes the decisions on how the resources are to be allocated and assesses the operating performances based on the reports. Each reporting segment has a segment manager who is in charge of the business operations in such region and regularly contacts the Company’s CEO and COO to discuss operational-related matters.
As the three operating segments exceed the quantitative thresholds, they are also reportable segments.
Segment’s profit or loss is measured consistently with profit or loss in the consolidated financial statements. The accounting policies for segment information, including transactions entered between segments are generally the same as those described in the summary of significant accounting policies.
Inter-segment revenues are eliminated upon consolidation and reflected in the “adjustments and eliminations” column. All other adjustments and eliminations are part of detailed reconciliations presented further below.
|
Year ended December 31, 2017 |
|
North Asia |
|
|
Thailand |
|
|
ROW |
|
|
Total segments |
|
|
Corporate expense adjustments and eliminations |
|
|
Consolidated |
|
||||||
|
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
||||||
|
Sales of goods / services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers |
|
|
101,533 |
|
|
|
206,485 |
|
|
|
117,197 |
|
|
|
425,215 |
|
|
— |
|
|
|
425,215 |
|
|
|
Gross profit |
|
|
7,471 |
|
|
|
20,174 |
|
|
|
12,043 |
|
|
|
39,688 |
|
|
— |
|
|
|
39,688 |
|
|
|
Inter-segment |
|
|
890 |
|
|
|
1,044 |
|
|
— |
|
|
|
1,934 |
|
|
|
(1,934 |
) |
|
|
— |
|
|
|
Depreciation and amortization |
|
|
(979 |
) |
|
|
(2,760 |
) |
|
|
(1,314 |
) |
|
|
(5,053 |
) |
|
|
(3 |
) |
|
|
(5,056 |
) |
|
Impairment of property, plant and equipment |
|
|
(213 |
) |
|
|
(10 |
) |
|
— |
|
|
|
(223 |
) |
|
— |
|
|
|
(223 |
) |
||
|
Interest income |
|
|
51 |
|
|
|
845 |
|
|
|
61 |
|
|
|
957 |
|
|
|
(81 |
) |
|
|
876 |
|
|
Interest expense |
|
|
(428 |
) |
|
|
(553 |
) |
|
|
(52 |
) |
|
|
(1,033 |
) |
|
|
67 |
|
|
|
(966 |
) |
|
Income tax (expense)/benefit |
|
|
(1,395 |
) |
|
|
(2,727 |
) |
|
|
(342 |
) |
|
|
(4,464 |
) |
|
|
(676 |
) |
|
|
(5,140 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure |
|
|
991 |
|
|
|
3,332 |
|
|
|
590 |
|
|
|
4,913 |
|
|
— |
|
|
|
4,913 |
|
|
|
5. |
SEGMENT INFORMATION (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments |
|
|
|
|
|
|
|
Year ended December 31, 2016 |
|
North Asia |
|
|
Thailand |
|
|
ROW |
|
|
Total segments |
|
|
and eliminations |
|
|
Consolidated |
|
||||||
|
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
||||||
|
Sales of goods / services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers |
|
|
93,931 |
|
|
|
152,935 |
|
|
|
137,699 |
|
|
|
384,565 |
|
|
|
— |
|
|
|
384,565 |
|
|
Gross profit |
|
|
5,033 |
|
|
|
13,421 |
|
|
|
13,154 |
|
|
|
31,608 |
|
|
|
— |
|
|
|
31,608 |
|
|
Inter-segment |
|
|
2,522 |
|
|
|
(41 |
) |
|
|
— |
|
|
|
2,481 |
|
|
|
(2,481 |
) |
|
|
— |
|
|
Depreciation and amortization |
|
|
(1,423 |
) |
|
|
(2,689 |
) |
|
|
(1,439 |
) |
|
|
(5,551 |
) |
|
|
(3 |
) |
|
|
(5,554 |
) |
|
Impairment of property, plant and equipment |
|
|
(1,132 |
) |
|
|
(1,392 |
) |
|
|
— |
|
|
|
(2,524 |
) |
|
|
— |
|
|
|
(2,524 |
) |
|
Interest income |
|
|
34 |
|
|
|
1,022 |
|
|
|
97 |
|
|
|
1,153 |
|
|
|
(108 |
) |
|
|
1,045 |
|
|
Interest expense |
|
|
(692 |
) |
|
|
(282 |
) |
|
|
(86 |
) |
|
|
(1,060 |
) |
|
|
98 |
|
|
|
(962 |
) |
|
Income tax (expense)/benefit |
|
|
2,844 |
|
|
|
(2,059 |
) |
|
|
(538 |
) |
|
|
247 |
|
|
|
(757 |
) |
|
|
(510 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure |
|
|
697 |
|
|
|
4,198 |
|
|
|
275 |
|
|
|
5,170 |
|
|
|
— |
|
|
|
5,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments |
|
|
|
|
|
|
|
Year ended December 31, 2015 |
|
North Asia |
|
|
Thailand |
|
|
ROW |
|
|
Total segments |
|
|
and eliminations |
|
|
Consolidated |
|
||||||
|
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
||||||
|
Sales of goods / services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers |
|
|
90,237 |
|
|
|
165,354 |
|
|
|
134,041 |
|
|
|
389,632 |
|
|
|
— |
|
|
|
389,632 |
|
|
Gross profit |
|
|
1,888 |
|
|
|
9,488 |
|
|
|
12,113 |
|
|
|
23,489 |
|
|
|
— |
|
|
|
23,489 |
|
|
Inter-segment |
|
|
2,381 |
|
|
|
1,502 |
|
|
|
— |
|
|
|
3,883 |
|
|
|
(3,883 |
) |
|
|
— |
|
|
Depreciation and amortization |
|
|
(1,511 |
) |
|
|
(2,699 |
) |
|
|
(1,480 |
) |
|
|
(5,690 |
) |
|
|
(3 |
) |
|
|
(5,693 |
) |
|
Interest income |
|
|
15 |
|
|
|
621 |
|
|
|
77 |
|
|
|
713 |
|
|
|
(16 |
) |
|
|
697 |
|
|
Interest expense |
|
|
(804 |
) |
|
|
(467 |
) |
|
|
(40 |
) |
|
|
(1,311 |
) |
|
|
7 |
|
|
|
(1,304 |
) |
|
Income tax (expense)/benefit |
|
|
614 |
|
|
|
(655 |
) |
|
|
(223 |
) |
|
|
(264 |
) |
|
|
(202 |
) |
|
|
(466 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure |
|
|
594 |
|
|
|
6,409 |
|
|
|
427 |
|
|
|
7,430 |
|
|
|
14 |
|
|
|
7,444 |
|
Adjustments and eliminations
Corporate expenses, gain on disposal of investment, and share of gain (loss) of associates are not allocated to individual segments as the underlying instruments are managed on a group basis.
Capital expenditure consists of additions of property, plant and equipment, and intangible assets.
|
5. |
SEGMENT INFORMATION (continued) |
Reconciliation of segment gross profit
|
|
|
For the year ended December 31, |
|
|||||||||
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|||
|
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|||
|
Gross profit |
|
|
39,688 |
|
|
|
31,608 |
|
|
|
23,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating income |
|
|
5,084 |
|
|
|
5,441 |
|
|
|
1,140 |
|
|
Selling, general and administrative expenses |
|
|
(27,248 |
) |
|
|
(26,325 |
) |
|
|
(27,007 |
) |
|
Other operating expenses |
|
|
(909 |
) |
|
|
(3,386 |
) |
|
|
(332 |
) |
|
Operating profit/(loss) |
|
|
16,615 |
|
|
|
7,338 |
|
|
|
(2,710 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs |
|
|
(1,221 |
) |
|
|
(1,147 |
) |
|
|
(1,547 |
) |
|
Finance income |
|
|
876 |
|
|
|
1,045 |
|
|
|
697 |
|
|
Share of loss of associates |
|
|
(3 |
) |
|
|
(710 |
) |
|
|
(801 |
) |
|
Impairment of investment in associates |
|
|
— |
|
|
|
(126 |
) |
|
|
— |
|
|
Loss on liquidation of subsidiary |
|
|
(261 |
) |
|
|
— |
|
|
|
— |
|
|
Exchange gain / (loss) |
|
|
2,784 |
|
|
|
(38 |
) |
|
|
(4,223 |
) |
|
Other income |
|
|
214 |
|
|
|
267 |
|
|
|
119 |
|
|
Other expense |
|
|
(336 |
) |
|
|
(94 |
) |
|
|
(180 |
) |
|
Profit/(loss) before tax |
|
|
18,668 |
|
|
|
6,535 |
|
|
|
(8,645 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments |
|
|
|
|
|
|
|
|
|
North Asia |
|
|
Thailand |
|
|
ROW |
|
|
Total segments |
|
|
and eliminations |
|
|
Consolidated |
|
||||||
|
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
||||||
|
As of December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
63,853 |
|
|
|
181,232 |
|
|
|
85,838 |
|
|
|
330,923 |
|
|
|
3,920 |
|
|
|
334,843 |
|
|
Total liabilities |
|
|
28,928 |
|
|
|
55,877 |
|
|
|
21,647 |
|
|
|
106,452 |
|
|
|
5,565 |
|
|
|
112,017 |
|
|
As of December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
59,120 |
|
|
|
145,549 |
|
|
|
86,325 |
|
|
|
290,994 |
|
|
|
2,602 |
|
|
|
293,596 |
|
|
Total liabilities |
|
|
31,406 |
|
|
|
36,929 |
|
|
|
24,435 |
|
|
|
92,770 |
|
|
|
3,651 |
|
|
|
96,421 |
|
Reconciliation of assets:
|
|
|
As of December 31, |
|
|||||
|
|
|
2017 |
|
|
2016 |
|
||
|
|
|
US$’000 |
|
|
US$’000 |
|
||
|
Segment operating assets |
|
|
330,923 |
|
|
|
290,994 |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and other assets |
|
|
2,916 |
|
|
|
2,928 |
|
|
Investment in associates |
|
|
861 |
|
|
|
786 |
|
|
Deferred tax assets |
|
|
3,022 |
|
|
|
3,114 |
|
|
Inter-segment elimination |
|
|
(2,879 |
) |
|
|
(4,226 |
) |
|
Total assets |
|
|
334,843 |
|
|
|
293,596 |
|
|
5. |
SEGMENT INFORMATION (continued) |
Reconciliation of liabilities:
|
|
|
As of December 31, |
|
|||||
|
|
|
2017 |
|
|
2016 |
|
||
|
|
|
US$’000 |
|
|
US$’000 |
|
||
|
Segment operating liabilities |
|
|
106,452 |
|
|
|
92,770 |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate liabilities |
|
|
5,287 |
|
|
|
5,257 |
|
|
Deferred tax liabilities |
|
|
3,154 |
|
|
|
2,588 |
|
|
Inter-segment elimination |
|
|
(2,876 |
) |
|
|
(4,194 |
) |
|
Total liabilities |
|
|
112,017 |
|
|
|
96,421 |
|
Revenue from external customers is attributed to individual countries based on the customer’s country of domicile and is summarized as follows:
|
|
|
For the year ended December 31, |
|
|||||||||
|
|
|
2017 |
|
|
2016 |
|
|
2015 |
|
|||
|
|
|
US$’000 |
|
|
US$’000 |
|
|
US$’000 |
|
|||
|
Revenues from external customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thailand |
|
|
158,565 |
|
|
|
110,569 |
|
|
|
128,213 |
|
|
Singapore |
|
|
76,453 |
|
|
|
105,431 |
|
|
|
90,960 |
|
|
Australia |
|
|
34,901 |
|
|
|
27,918 |
|
|
|
36,731 |
|
|
PRC |
|
|
108,561 |
|
|
|
96,956 |
|
|
|
93,718 |
|
|
Southeast Asia |
|
|
46,685 |
|
|
|
43,677 |
|
|
|
40,001 |
|
|
Northeast Asia |
|
|
50 |
|
|
|
14 |
|
|
|
9 |
|
|
|
|
|
425,215 |
|
|
|
384,565 |
|
|
|
389,632 |
|
Countries in the Southeast Asia region include Cambodia, Vietnam, Indonesia, India, Laos, Malaysia and Myanmar.
Countries in the Northeast Asia region include Japan and South Korea.
Major customer information
Revenue from one customer amounted to $36,518 (2016: $53,465; 2015: $42,279) represent 8.59% (2016: 13.9%; 2015: 10.9%), arising from sales in the ROW segment.
Long-lived assets by the country of domicile are summarized as follow:
|
|
|
As of December 31, |
|
|||||
|
|
|
2017 |
|
|
2016 |
|
||
|
|
|
US$’000 |
|
|
US$’000 |
|
||
|
Long-lived assets by area: |
|
|
|
|
|
|
|
|
|
Thailand |
|
|
28,140 |
|
|
|
25,011 |
|
|
Singapore |
|
|
6,831 |
|
|
|
6,821 |
|
|
China |
|
|
6,333 |
|
|
|
6,757 |
|
|
Australia |
|
|
2,984 |
|
|
|
2,935 |
|
|
Corporate |
|
|
6 |
|
|
|
9 |
|
|
Total long-lived assets |
|
|
44,294 |
|
|
|
41,533 |
|