37.
SEGMENT INFORMATION
For management purposes, the Group is organised into business units based on their products and
services, and has three reportable operating segments as follows:
I.
The precision components and tooling assembly segment specialise in sales of stamping
components, tooling design and fabrication to wide range of industries such as automotive
components, office automation and consumer electronics products. It also provide die making
services to manufacturers of such products.
II.
The precision subassemblies segment specialise in the subassembly products mainly from the TV
and office automation industries. However in line with the demand of products made of aluminium
alloy and other light metals, this segment also has speciality in metal-related components for
customers in the TV, Tablets and Mobile-phone industries through advance technologies like
cold-forging, CNC machining and surface decoration.
III.
The corporate segment is involved in Company-level corporate services, treasury functions.
Except as indicated above, no operating segments have been aggregated to form the above reportable
operating segments.
Management monitors the operating results of its business units separately for the purpose of making
decisions about resource allocation and performance assessment. Segment performance is evaluated
based on operating profit or loss which in certain respects, as explained in the table below, is measured
differently from operating profit or loss in the consolidated financial statements. Company financing
(including finance costs) and income taxes are managed on a company basis and are not allocated to
operating segments.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to
transactions with third parties. The Group generally accounts for inter-segment sales and transfers as of
the sales or transfers were to third parties at current market prices.
I N N O T E K L I M I T E D
A N N U A L R E P O R T 2 0 1 5
121
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
