Ni Hsin Berhad Annual Report 2017

23. Operating segments The Group has three main reportable segments, as described below, which are the Group’s strategic business units. The strategic business units offer different products and services, and are managed separately because they require different technology and marketing strategies. For each of the strategic business units, the Chief Operating Decision Maker (“CODM”) (i.e. the Managing Director) reviews internal management reports at least on a quarterly basis. The following summary describes the operations in each of the Group’s main reportable segments: (i) Cookware Design, manufacture and sale of stainless steel kitchenware and cookware (ii) Convex mirrors Manufacture and sale of stainless steel convex mirrors (iii) Clad metals Research, development and manufacture of clad metals Performance is measured based on segment profit before tax, interest, depreciation and amortisation, as included in the internal management reports that are reviewed by the CODM. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Segment assets The total of segment assets ismeasured based on all assets (including goodwill) of a segment, as included in the internal management reports that are reviewed by the CODM. Segment total assets is used to measure the return on assets of each segment. Segment liabilities The total of segment liabilities is measured based on all liabilities of a segment, as included in the internal management reports that are reviewed by the CODM. Segment total liabilities is used to measure the operating liabilities that are attributable to or can be allocated to each segment. Geographical segments In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Convex Clad Elimi- Cookware mirrors metals nations Total RM’000 RM’000 RM’000 RM’000 RM’000 2017 Business segments Revenue 19,374 12,096 8,142 - 39,612 Inter-segment revenue 4 1,609 6,837 (8,450) - Total revenue 19,378 13,705 14,979 (8,450) 39,612 2016 Business segments Revenue 19,276 11,130 7,411 - 37,817 Inter-segment revenue 41 898 5,631 (6,570) - Total revenue 19,317 12,028 13,042 (6,570) 37,817 Notes to the financial statements (continued) Annual Report 2017 78