Bonso Electronics International Stock

Bonso Electronics International Inc. designs, develops, produces and sells electronic sensor-based and wireless products for private label original equipment manufacturers (OEMs), original brand manufacturers (OBMs) and original design manufacturers (ODMs).

Segments

The company operates through four segments, Scales, Pet Electronic Products, Rental and Management, and Others.

Scales

This segment engages in the 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.

Pet Electronic Products

This segment engages in the development and production of pet-related electronics products that are used in consumer applications.

Rental and Management

This segment engages in leasing out part of the company’s factories and machinery to third parties.

Real Properties

Hong Kong: The company owns a residential property in Hong Kong, which is located at Savanna Garden, House No. 27, Tai Po, New Territories, Hong Kong. House No. 27 consists of approximately 2,475 square feet plus a 177 square foot terrace and a 2,308 square foot garden area.

China: The company’s Shenzhen factory is located in the DaYang Synthetical Development District. This factory consists of one factory building, which contains approximately 186,000 square feet, two workers’ dormitories, containing approximately 103,000 square feet, a canteen and recreation center of approximately 26,000 square feet, an office building consisting of approximately 26,000 square feet and two staff quarters for supervisory employees, consisting of approximately 34,000 square feet, for a total of approximately 375,000 square feet.

Others

This segment includes the activities of tooling and mould charges for scales and pet electronics products, and sales of scrap materials.

Products

The company’s sensor-based scale products include bathroom, kitchen, office, jewelry, laboratory, postal and industrial scales that are used in consumer, commercial and industrial applications. It also produces certain pet electronic products that are sold to wholesalers and pet shops. The company also sells its pet electronic products through online platforms, including Taobao, Tmall, Alibaba and Amazon. It also receives revenue from certain customers for the development and manufacture of tooling and moulding for scales and pet electronic products although majority of the tools and moulds that it produces are used by it for the manufacture of its products. The company also generates some sales of scrap materials.

Business Strategy

The key elements of the company's strategy include increased focus upon manufacturing and selling higher margin products and the elimination or decrease in the production and sale of lower margin products; product enhancement and diversification; and maintaining and expanding business relations with existing customers.

Customers and Marketing

The company sells its products primarily in the United States and Europe. Customers for its products are primarily OEMs, OBMs and ODMs, which market the products under their own brand names. The company markets its products to OEMs, OBMs and ODMs through its sales staff at trade shows, through e-mail and through its website. In addition, the company markets its pet electronic products to end users worldwide through online platforms. The company has made sales through this medium primarily to end users in the United States, Europe and China.

The company markets its products primarily through a combination of direct contact by its in-house technical sales staff and through trade shows, e-mail and its website.

Research and Development

The company’s research and development expenses aggregated approximately $229,000 during the year ended March 31, 2021.

Patents, Licenses, Trademarks, Franchises, Concessions and Royalty Agreements

The company has obtained a trademark registration in Hong Kong and the People's Republic of China (China) for the marks BONSO and MODUS in connection with certain electronic apparatus.

Seasonality

The first quarter (year ended March 2021) of each year is the slowest sales period because the company’s manufacturing facilities in China are closed for two weeks for the Chinese New Year holidays to permit employees to travel to their homes in China. In addition, sales during the first quarter of scales products dip following the increase in sales during the Christmas season.

Regulation

The company operates under the British Virgin Islands Business Companies Act.

History

The company was founded in 1988 as a limited liability International Business Company under the laws of the British Virgin Islands. It was formerly known as Golden Virtue Limited and changed its name to Bonso Electronics International Inc. in September 1988.