Financial Performance - Revenue for the first half of the fiscal year 2025 decreased by 4.5% to $1.0897 billion, down from $1.1409 billion in the same period last year[7]. - Net profit attributable to shareholders fell by 6.6% to $87.4 million, compared to $93.4 million in the previous fiscal year[7]. - Gross profit margin improved to 31.5% from 28.5% in the same period last year, primarily due to a decrease in material costs and changes in product mix[7]. - The group's revenue in Europe for the first half of fiscal year 2025 decreased by 1.4% to $462.1 million, with electronic learning products declining by 6.3% to $13.7 million[16]. - In the Asia-Pacific region, revenue decreased by 7.1% to $159.4 million, with electronic learning products growing by 1.1% to $35.4 million, driven by sales increases in Australia and mainland China[22]. - North America reported revenue of $453.1 million for the six months ended September 30, 2024, a decrease of 7.2% from $489.4 million in 2023[82]. - Europe generated revenue of $462.1 million, down 1.4% from $468.7 million in the previous year[82]. - Asia-Pacific revenue was $159.4 million, a decline of 7.0% compared to $171.5 million in 2023[82]. - Total reported revenue for the group was $1,089.7 million, a decrease of 4.5% from $1,140.9 million in the same period last year[82]. Dividends - The company announced an interim dividend of 17.0 cents per share, consistent with the dividend declared in the first half of the fiscal year 2024[7]. - The company declared an interim dividend of $0.17 per share for the six months ended September 30, 2024, to be paid on December 18, 2024[198]. - The proposed final dividend for the fiscal year ending March 31, 2024, is $0.48 per share, an increase from $0.42 per share in the previous year, totaling approximately $121.4 million[91]. - The company paid dividends of $121.5 million in the current period, an increase of 14.9% from $106.2 million in the previous year[67]. Operational Efficiency - The company successfully integrated the assets of GST Communications GmbH, enhancing operational efficiency and supply chain management[6]. - The company is collaborating closely with its product development team in Germany to strengthen its product roadmap and accelerate new product launches[9]. - The company is constructing a new warehouse in Malaysia to increase production capacity by 30% before Q1 2025[36]. - The production facility in Mexico is now fully operational to meet onshore production demands from U.S. customers[36]. Market Performance - Revenue from electronic learning products in North America increased by 7.4% to $22.38 million, driven by sales growth in the U.S. and Canada[9]. - The sales of LeapFrog's educational tablets and interactive reading systems recorded growth, although subscriptions for LeapFrog Academy saw a decline[9]. - The group maintained its position as the largest manufacturer of infant and preschool electronic learning toys in Australia during the first nine months of 2024[22]. - The group remains the world's largest contract manufacturer of professional audio equipment despite a decline in sales in several product categories[14]. - The group achieved a 33.6% increase in revenue from other regions, totaling $15.1 million, driven by growth in electronic learning and telecommunications products[23]. Expenses and Costs - Operating expenses increased by $25.3 million, with total operating expenses as a percentage of total revenue rising from 18.8% to 22.0%[38]. - Research and development expenses rose by 9.3% to $45.9 million, accounting for 4.2% of total revenue[44]. - Sales and distribution costs rose by 12.2% from $133.1 million to $149.4 million, with the percentage of total revenue increasing from 11.7% to 13.7%[50]. - The cost of goods sold was $746.2 million, a reduction from $815.4 million in the previous year, indicating improved cost management[85]. Cash Flow and Assets - Cash and cash equivalents increased by $41.7 million to $150.2 million as of September 30, 2024[47]. - The cash flow from operating activities was a net outflow of $36.1 million for the six months ended September 30, 2024, compared to an inflow of $54.4 million in the same period of 2023[67]. - The total assets increased to $1,436.3 million as of September 30, 2024, up from $1,262.3 million as of March 31, 2024[84]. - The total liabilities increased to $809.5 million from $755.5 million, reflecting a rise of about 7.1%[62]. Corporate Governance - The company has complied with all corporate governance code provisions except for a deviation from C.2.1[189]. - The company emphasizes transparency, accountability, and independence in its corporate governance practices[188]. - The company maintains a comprehensive corporate governance framework to protect shareholders' long-term interests[190]. - The company confirmed compliance with the securities trading standards for directors and designated employees during the six months ended September 30, 2024[195]. Stock Options and Incentives - The total number of shares available for issuance under the share option and incentive plans is 25,101,579, representing 9.9% of the company's issued shares[110]. - The stock options plan is set to expire on July 18, 2033, marking a ten-year term from the adoption date[115]. - The share incentive plan allows a maximum of 1% of the total issued shares to be granted to any individual participant within any twelve-month period[136]. - The share-based compensation expense for the six months ended September 30, 2024, was $1,900,000, an increase from $1,700,000 for the same period in 2023[147].

Financial Performance - Group revenue decreased by 4.5% to $1,089.7 million[2] - Profit attributable to shareholders decreased by 6.6% to $87.4 million[2] - The total operating profit for the six months ended September 30, 2024, was $104.2 million, down from $110.3 million in 2023, indicating a decrease of about 5.5%[15] - The pre-tax profit for the six months ended September 30, 2024, was $746.2 million, a decrease from $815.4 million in the same period of 2023, representing a decline of approximately 8.4%[17] - The basic and diluted earnings per share for the period were calculated based on a profit attributable to shareholders of $87.4 million, down from $93.6 million in 2023, indicating a decrease of about 6.9%[22] - The net profit attributable to shareholders was $87.4 million, down $6.2 million or 6.6%, with a net profit margin decreasing from 8.2% to 8.0%[59] Revenue Breakdown - Revenue from North America for the six months ended September 30, 2024, was $453.1 million, down from $489.4 million in 2023, a decrease of about 7.5%[15] - The Asia-Pacific region generated $159.4 million in revenue for the six months ended September 30, 2024, compared to $171.5 million in 2023, reflecting a decline of approximately 7.0%[15] - Revenue from electronic learning products for the six months ended September 30, 2024, was $403.8 million, compared to $396.2 million in the previous period, showing a growth of approximately 1.6%[10] - The company reported a revenue of $492.0 million from contract manufacturing services for the six months ended September 30, 2024, compared to $580.8 million in the previous period, a decline of about 15.2%[10] - Revenue in Europe decreased by 1.4% to $462.1 million, with telecommunications product sales growth offset by declines in electronic learning products and contract manufacturing services[40] - Revenue from telecommunications products in North America decreased by 11.3% to $92.2 million in the first half of the fiscal year 2025[37] Dividends - Interim dividend per ordinary share remains unchanged at 17.0 cents[2] - The company declared an interim dividend of 17.0 cents per share for the six months ended September 30, 2024, consistent with the previous year[20] - The company plans to distribute a final dividend of 48.0 cents per share for the fiscal year ending March 31, 2024, compared to 42.0 cents per share in 2023, reflecting an increase of approximately 19%[21] Assets and Liabilities - Non-current assets increased to $307.1 million from $293.6 million year-on-year[4] - Total assets less current liabilities increased to $766.5 million from $762.5 million year-on-year[4] - The total assets as of September 30, 2024, were $1,436.3 million, an increase from $1,262.3 million as of March 31, 2024[16] - The total liabilities as of September 30, 2024, were $(809.3) million, compared to $(617.3) million as of March 31, 2024, indicating an increase in liabilities[16] Inventory and Cash Management - Inventory decreased to $425.2 million from $432.0 million year-on-year[4] - Cash and cash equivalents increased to $150.2 million from $108.5 million year-on-year[4] - The total accounts receivable, deposits, and prepayments amounted to $547.9 million as of September 30, 2024, compared to $516.8 million as of September 30, 2023, showing an increase of approximately 6.4%[24] - The total accounts payable and accrued expenses reached $600.9 million as of September 30, 2024, up from $537.5 million as of September 30, 2023, representing an increase of about 11.8%[25] Corporate Governance - The company has adopted a comprehensive corporate governance framework to ensure effective execution of strategies and policies, safeguarding long-term shareholder interests[66] - The company has complied with all provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Dr. Wong Tsz Yan[67] - The Audit Committee has reviewed the unaudited interim financial report for the six months ended September 30, 2024, in discussion with external auditors and senior management[72] Future Outlook - The company expects overall revenue growth for the fiscal year 2025, driven by increased sales of electronic learning products in the U.S. and improved telecommunications product revenue following the integration of Gigaset assets[50] - The company anticipates a decline in revenue from contract manufacturing services for the fiscal year 2025, although sales are expected to stabilize in the second half of the year[51] - A new warehouse is being constructed in Malaysia to increase production capacity by 30% before the first quarter of fiscal year 2025[51] - The first desktop phone from Gigaset is expected to launch in the second half of fiscal year 2025, complementing its widely recognized multi-base station system[51] Research and Development - Research and development expenses increased by 9.3% to $45.9 million, representing 4.2% of total revenue, up from 3.7% in the previous year[58] Employee Information - As of September 30, 2024, the average number of employees in the group was approximately 22,200, up from 20,900 as of September 30, 2023[65] - Employee-related costs for the six months ended September 30, 2024, were approximately $204.4 million, compared to $184.8 million for the same period last fiscal year, reflecting the inclusion of Gigaset's operations[65]

Financial Performance - Revenue for the fiscal year ending March 31, 2024, was $2,145.7 million, a decrease of 4.3% compared to $2,241.7 million in 2023[4] - Gross profit increased slightly to $634.9 million in 2024, up 0.2% from $633.7 million in 2023[4] - Operating profit rose to $196.2 million in 2024, an 8.7% increase from $180.5 million in 2023[4] - Net profit attributable to shareholders grew by 11.7% to $166.6 million in 2024, compared to $149.2 million in 2023[4] - Cash generated from operations surged by 35.1% to $373.1 million in 2024, up from $276.1 million in 2023[4] - Net profit attributable to shareholders increased by $17.4 million or 11.7% to $166.6 million for the fiscal year ended March 31, 2024, with a net profit margin rising from 6.7% to 7.8%[23] - Basic earnings per share rose to 66.0 cents from 59.1 cents in the previous fiscal year[23] - The company declared an interim dividend of 17.0 cents per share totaling $43.0 million and proposed a final dividend of 48.0 cents per share, estimated at $121.4 million[24] - Total dividends for the fiscal year amounted to 65.0 cents per share, up from 59.0 cents in the previous year[25] - Shareholders' equity increased by 1.6% to $645.0 million, with net cash holdings rising by 62.3% to $322.1 million[26] - Inventory decreased by $127.5 million to $348.0 million, with inventory turnover days dropping from 128 days to 101 days[30] - Accounts receivable decreased by $52.6 million to $224.6 million, with turnover days slightly increasing from 59 days to 60 days[31] - Accounts payable decreased by $52.5 million to $199.8 million, with turnover days dropping from 102 days to 91 days[33] - Capital expenditures for the fiscal year totaled $32.4 million, with future capital commitments for existing operations estimated at $34.5 million for the next fiscal year[35] - VTech's dividend payout ratio for the fiscal year 2024 was 98.7% of the profit attributable to shareholders, compared to 99.9% in the fiscal year 2023[173] - Over the past decade, VTech has distributed a total of $1.7323 billion in dividends, with a payout ratio exceeding 90% in eight out of the ten years[171] - VTech's highest closing share price in 2024 was HK$52.1 (recorded on July 18, 2023), while the lowest was HK$43.15 (recorded on December 13 and 18, 2023)[174] - VTech's shares are listed on the Hong Kong Stock Exchange with a trading unit of 100 shares and 252,882,466 shares issued as of March 31, 2024[177] - The company's interim dividend for the fiscal year 2024 was 17.0 cents per share, and the final dividend was 48.0 cents per share[178] - VTech maintains a net cash position despite its high dividend payout ratio, ensuring a robust financial status[173] Regional Performance - North America and Europe experienced sales declines, offsetting growth in the Asia-Pacific region[9] - North America revenue decreased by 6.3% to $922.6 million, while Europe revenue declined by 3.1% to $888.3 million[18] - Asia-Pacific revenue grew by 0.6% to $317.7 million, while other regions saw a significant 29.0% decline to $17.1 million[18] - North America revenue for electronic learning products increased by 11.8% to $415.9 million in FY2024[46] - Europe revenue for electronic learning products grew by 4.4% to $315.6 million in FY2024[46] - Asia-Pacific revenue for electronic learning products rose by 11.3% to $70.4 million in FY2024[46] - North America revenue for telecom products increased by 16.2% to $201.0 million in FY2024[53] - Europe revenue for telecom products grew by 19.9% to $77.2 million in FY2024[53] - Asia-Pacific revenue for telecom products rose by 25.0% to $21.3 million in FY2024[53] - VTech's sales in the Asia-Pacific region increased by 0.6% to $317.7 million in FY2024, driven by growth in contract manufacturing services, offsetting declines in electronic learning products and telecommunication products[42] - Electronic learning products revenue in the Asia-Pacific region decreased by 11.3% to $70.4 million due to declines in Australia and Japan, despite growth in mainland China[42] - Telecommunication products revenue in the Asia-Pacific region fell by 25.0% to $21.3 million, with declines in Australia, Japan, and Hong Kong[42] - Contract manufacturing services revenue in the Asia-Pacific region rose by 8.7% to $226.0 million, primarily driven by increased orders for DJ equipment[42] - VTech's contract manufacturing services in Europe increased by 1.0% to $495.5 million, with growth in medical and nursing products, communication products, and smart energy storage systems[41] - Telecommunication products revenue in Europe decreased by 19.9% to $77.2 million, mainly due to declines in home phones, business phones, and other telecommunication products[41] - Other regions revenue decreased by 29.0% to $17.1 million in FY2024, primarily due to declines in electronic learning and telecom products sales[43] - Electronic learning products revenue in other regions fell by 17.1% to $8.7 million, with sales declines in Latin America, the Middle East, and Africa[43] - Telecom products revenue in other regions dropped by 38.2% to $8.4 million, driven by sales decreases in Latin America, the Middle East, and Africa[43] Product Performance - Independent products accounted for 89% of total electronic learning product sales in FY2024, up from 87% in FY2023[10] - VTech's KidiZoom® Duo DX maintained its top position in the electronic entertainment category (excluding tablets) in Germany, France, and the UK from 2020 to 2023[10] - The Magic Adventures™ Globe ranked first in the electronic learning hardware/software and accessories category in the US, Germany, France, and the UK in 2022 and 2023[10] - The company's new electronic learning product sales office in Italy began contributing to revenue in FY2024[10] - VTech's educational tablet and interactive reading system sales declined, with LeapFrog Academy™ subscriptions also dropping due to reduced educational tablet sales[11] - VTech's telecom product sales decreased, with commercial phones and other telecom products accounting for 60% of total telecom revenue in FY2024, up from 57% in the previous fiscal year[11] - VTech's contract manufacturing services revenue reached a record high in FY2024, with sales growth across all regions, driven by improved material supply and post-pandemic business recovery[11] - VTech completed the acquisition of Gigaset Communications GmbH for €27.5 million, enhancing its position as a global leader in the home phone market and expanding into the smartphone sector[12] - VTech expects revenue growth in FY2025, driven by new product launches in electronic learning products and contributions from Gigaset, while contract manufacturing revenue is expected to remain flat[12] - VTech's production facilities in China are implementing Industry 4.0, improving product quality and production efficiency through higher automation and data-driven production planning[11] - VTech maintained its position as the top baby monitor brand in the US, Canada, and the UK despite intense competition and reduced orders from original design manufacturing customers[11] - VTech's new hotel phone series performed well, increasing market share, while the Snom D7 and D8 series contributed to sales growth in the commercial phone segment[11] - VTech's professional audio equipment, medical and nursing products, communication products, and smart energy storage systems saw growth, offsetting declines in other product categories[11] - VTech's contract manufacturing services ranked 26th globally in 2023, up from 28th in 2022, according to Manufacturing Market Insider[11] - The company launched several important new products in FY2024, including the V-Care VC2105 smart baby monitor with AI technology, which provides sleep analysis and real-time alerts[39] - The company received over 90 industry awards in North America for its innovative electronic learning products in FY2024[37] - VTech's electronic learning products received 109 awards globally in the 2024 fiscal year, including recognition from industry experts and retailers[65] - Magic Adventures Telescope was selected as one of Time Magazine's "Best Inventions of 2023"[65] - LeapFrog's Magic Adventures Binocular Camera was named a "Hero Toy for 2024" at the London Toy Fair[65] - KidiZoom Smartwatch was the best-selling youth electronic product in Canada in 2023[65] - VTech acquired Gigaset Communications GmbH, a leader in the European DECT phone market, in April 2024[67] - VTech maintained its position as the top baby monitor brand in the US, Canada, and the UK[67] - VTech launched the V-Care VC2105 smart baby monitor with AI-powered sleep analysis in September 2023[68] - VTech's baby care products received 23 awards globally in 2024[69] - VTech was ranked as the 26th largest electronics manufacturing services provider globally and the top in Hong Kong[70] - VTech received nine awards for excellence in service from clients in the 2024 fiscal year[71] Research and Development - Research and development expenses decreased by 1.9% to $81.7 million in 2024, down from $83.3 million in 2023[4] - The company invested 4% of its total revenue in research and development, with approximately 1,400 professional R&D personnel[7] - R&D expenses decreased by 1.9% to $81.7 million, representing 3.8% of total revenue[21] - The company plans to complete the integration of Gigaset's operations into its global R&D, procurement, production, sales, marketing, and logistics by the end of 2024[14] - Gigaset's acquisition is expected to drive growth in home phones, business phones, and smartphones, with the introduction of AI-powered baby monitors and Android-based smartphones[14] - The company is expanding production facilities in Malaysia and Mexico, with plans to implement Industry 4.0 technologies to improve efficiency and cost-effectiveness[14] - Contract manufacturing revenue is expected to remain stable, with growth in smart energy storage systems offset by declining demand for wearable devices[14] - The company implemented advanced AI algorithms in its smart baby monitors, featuring face detection, cry detection, and danger zone alerts[155] Sustainability and Corporate Responsibility - VTech holds a AA+ rating in the Hang Seng Corporate Sustainability Index and is a constituent of the FTSE4Good Global Index[7] - VTech has established the "Sustainability Plan 2025" covering fiscal years 2021 to 2025, with measurable goals including increased use of sustainable materials, eco-friendly transportation in supply chain management, and reduced natural resource consumption[75] - VTech has been publishing annual sustainability reports since fiscal year 2014, following GRI standards and HKEX ESG reporting guidelines, with climate disclosures referencing ISSB's IFRS S2 Climate-related Disclosures starting from fiscal year 2024[77] - VTech has achieved an AA+ rating in the Hang Seng Corporate Sustainability Benchmark Index and an AA rating in MSCI ESG Ratings, while being included in the FTSE4Good Global Index for nine consecutive years[78] - VTech has received multiple ESG awards including the "ESG Excellence Award" and "Best ESG Report Award" from TVB's ESG Awards 2023, and the "ESG Award" from the Hong Kong Institute of Certified Public Accountants[78] - VTech has been recognized as a "Caring Company" by the Hong Kong Council of Social Service for 16 consecutive years and received the "8+ Years Industrial Love and Care Certificate" from the Federation of Hong Kong Industries[78] - VTech installed solar panels covering approximately 28,000 square meters of roof area in its production facilities in FY2024[158] - VTech generated approximately 3,390 MWh of renewable electricity globally in FY2024, a 191% increase compared to FY2023[158] - VTech achieved an 80% recycling rate in FY2024 through waste reduction and recycling initiatives[159] - VTech reduced its total water consumption per unit of production by 13% compared to FY2020[159] - VTech plans to install additional solar power systems in production facilities in FY2025[158] - VTech's telecommunication products production facility has received the "Guangdong-Hong Kong Cleaner Production Excellence Partner" award for nine consecutive years[158] - VTech's production facilities for telecommunication products, electronic learning products, and contract manufacturing services are all ISO 14001 certified[159] - VTech established a new warehouse in France in FY2024 to reduce delivery time and distance to French customers[158] - VTech implemented a low-cost automation and lean production management plan to improve resource efficiency and productivity[158] - VTech expanded wastewater reuse in manufacturing processes and upgraded water supply infrastructure to reduce freshwater consumption[159] - 42% of the company's global workforce are women, with 27% of management positions held by women[160] - The company conducted over 20,800 hours of volunteer service with 2,523 volunteers in the 2024 fiscal year[163] - The company donated over 1,900 electronic learning toys and contributed more than $176,000 to charity in the 2024 fiscal year[163] - The company upgraded dormitories and recreational facilities in its production facilities in China and Malaysia during the 2024 fiscal year[161] - The company provided an average of 83 hours of training per employee, with an increase in health and safety training hours compared to the previous fiscal year[161] - The company's production facilities in China and Malaysia are certified with ISO 45001 and SA 8000 standards, ensuring compliance with local regulations and high-quality working environments[160] - The company awarded scholarships to 14 engineering students from top universities in Hong Kong and collaborated with universities to promote innovation and sustainability[165] - The company's ethical supply chain program and human rights policy are aligned with international standards, including the International Labour Organization's Declaration on Fundamental Principles and Rights at Work[160] - The company's risk management framework includes ongoing due diligence to identify, assess, and mitigate potential human rights risks[160] - The company's employee satisfaction surveys and cross-functional committees are used to improve working conditions and address employee concerns[160] - VTech is a constituent of the Hang Seng Corporate Sustainability Benchmark Index and the FTSE4Good Global Index, reflecting its commitment to sustainability[175] - The company has been included in the MSCI ESG rating report with an AA rating, highlighting its strong performance in environmental, social, and governance (ESG) aspects[175] Corporate Governance - VTech's Board of Directors has deviated from the HKEX Corporate Governance Code by allowing the Chairman to also serve as the Group CEO, citing the founder's expertise and the majority of independent non-executive directors as safeguards[80] - VTech publishes interim financial results within one and a half months after the six-month fiscal period and annual financial results within two months after the fiscal year-end, exceeding HKEX minimum requirements[81] - VTech has implemented a continuous disclosure policy since 2013, providing guidance on monitoring and disclosing potential inside information[81] - The Board of Directors consists of nine members, with five being independent non-executive directors, exceeding the requirement of at least one-third (and no fewer than three) independent non-executive directors as per listing rules[82] - The company has implemented a standard code of conduct for senior management, requiring them to make biannual declarations of compliance, and has set a cap on issuing new shares at 10% of the issued share capital, below the 20% limit allowed by listing rules[83] - The company's vision focuses on creating sustainable value by integrating economic growth, environmental protection, and social responsibility into its business strategy[84] - The company emphasizes a culture of integrity, accountability, and innovation, supported by mandatory training programs and clear communication channels[86] - The Board reviewed and approved the company's three-year business plan and fiscal budget for the period ending March 31, 2026, and March 31, 2025, respectively[88] - The Board oversees risk management and internal controls through the Audit Committee and the Risk Management and Sustainability Committee[89] - The company prioritizes leadership and talent development, focusing on succession planning and nurturing the next generation of leaders[90] - The Board approved the company's 2024 fiscal year annual report and interim report for the six months ending September 30, 2023, ensuring accurate financial representation[91] - The company maintains active communication with stakeholders, including customers, employees, shareholders, and investors, through various channels such as physical and virtual meetings[92] - The board of directors consists of 3 executive directors, 1 non-executive director, and 5 independent non-executive directors, ensuring a comprehensive mix of experience, expertise, and independence[94] - The board oversees key strategic policies, financial conditions, and shareholder matters, including the approval of three-year business plans, risk management, and sustainability strategies[93] - The board reviews and approves interim and annual financial results, dividend policies, annual budgets, and significant corporate activities such as major acquisitions and disposals[93] - The board has established four committees: Audit Committee, Nomination Committee, Remuneration Committee, and Risk Management and Sustainability Committee, each with defined terms of reference[99] - The executive board, comprising 3 executive directors, the President of Telecom Products, and the Group CFO, is responsible for overseeing the company's daily operations and financial performance[101] - The board composition includes 100% representation in industrial and manufacturing expertise, 89% in mainland China experience, and 78% in accounting, finance, legal, and risk management[98] - The board ensures diversity in gender, ethnicity, and age groups, with a balanced representation across different service tenures and external directorships[96] - The board retains control over key decisions and "reserved matters," which are reviewed annually to ensure alignment with the company's governance practices[100] - The company's global workforce consists of 42%

Financial Performance - Net profit attributable to shareholders increased by 11.7% to $166.6 million[3] - Total revenue decreased by 4.3% to $2,145.7 million[3] - Gross margin improved from 28.3% to 29.6%[3] - Operating profit rose to $196.2 million from $180.5 million in the previous year[4] - Earnings per share (basic) increased to 66.0 US cents from 59.1 US cents[4] - Total comprehensive income for the year was $158.3 million, up from $124.6 million[6] - Annual profit for the year ended March 31, 2024, was $166.6 million, up from $149.2 million in the previous year[9] - Net profit attributable to shareholders increased by 11.7% to $166.6 million, driven by improved gross margins and reduced operating expenses[37] - Basic earnings per share rose by 11.7% to 66.0 cents, compared to 59.1 cents in the previous fiscal year[37] - Gross profit for FY2024 increased by $1.2 million to $634.9 million, with gross margin rising from 28.3% to 29.6% due to reduced freight and inventory provisions, lower direct labor costs, and production expenses[50] - Operating profit for FY2024 increased by $15.7 million to $196.2 million, with operating profit margin rising from 8.1% to 9.1%, driven by higher gross margins[51] - Net profit attributable to shareholders increased by $17.4 million to $166.6 million, with net profit margin rising from 6.7% to 7.8%[52] - Earnings per share for FY2024 increased to 66.0 cents from 59.1 cents in the previous fiscal year[52] Dividends - Final dividend per share is 48.0 US cents, with total annual dividend increasing by 10.2% to 65.0 US cents per share[3] - The company proposed a final dividend of 48.0 cents per share for 2024, up from 42.0 cents per share in 2023, totaling $121.4 million compared to $106.1 million in the previous year[24] - The company proposed a final dividend of 48.0 cents per share, bringing the total annual dividend to 65.0 cents per share, a 10.2% increase from the previous year[37] - The company announced a final dividend of 48.0 cents per share, totaling $121.4 million[53] Cash Flow and Liquidity - Cash and deposits increased to $322.1 million from $198.5 million[7] - Cash and cash equivalents rose to $322.1 million as of March 31, 2024, from $198.5 million the previous year[10] - Operating cash flow generated $355.2 million in 2024, a significant increase from $238.8 million in 2023[10] - Net cash holdings increased by 62.3% to $322.1 million as of March 31, 2024, driven by reduced dividend payments and increased cash generated from operations[54] - Operating cash flow increased by $97 million or 35.1% to $373.1 million in FY2024 compared to $276.1 million in FY2023, driven by improved working capital and higher EBITDA[55] Inventory and Assets - Inventory decreased to $348.0 million from $475.5 million[7] - Inventory decreased by $127.5 million in 2024, compared to a $77.8 million decrease in 2023[10] - Inventory decreased by $127.5 million to $348 million in FY2024, with inventory turnover days improving from 128 days to 101 days due to more stable supply[56][57] - Total equity increased to $645.0 million as of March 31, 2024, compared to $634.7 million the previous year[9] - Total assets decreased from $1,318.4 million in 2023 to $1,262.3 million in 2024, while total liabilities decreased from $683.7 million to $617.3 million over the same period[21] - Accounts receivable decreased from $324.3 million in 2023 to $283.7 million in 2024, with net accounts receivable dropping from $277.2 million to $224.6 million[28] - Accounts payable and accrued expenses decreased from $468.5 million in 2023 to $418.8 million in 2024, with accounts payable falling from $252.3 million to $199.8 million[30] - Accounts receivable decreased by $52.6 million to $224.6 million in FY2024, with overdue receivables over 30 days accounting for 2.6% of total receivables[58][59] - Accounts payable decreased by $52.5 million to $199.8 million in FY2024, with payable turnover days improving from 102 days to 91 days due to reduced raw material purchases[59][60] Acquisitions and Investments - The company successfully acquired assets of Gigaset Communications GmbH[3] - The company completed the acquisition of certain assets from Gigaset Communications GmbH for an initial purchase price of €27.5 million (approximately $29.1 million) on April 5, 2024[32] - VTech completed the acquisition of Gigaset's assets for €27.5 million, expanding its presence in the DECT phone, business phone solutions, and Android smartphone markets[42] - Gigaset's acquisition strengthens VTech's position as a global leader in the home phone market, with complementary product lines and a strong sales network in Europe[43] - The company acquired Gigaset's assets, enhancing economies of scale and improving supply chain efficiency[46] - The company completed the acquisition of certain assets of Gigaset Communications GmbH for €27.5 million (~$29.1 million) to strengthen its position in the cordless phone market and expand European production[64] Regional Revenue Performance - Revenue from North America decreased to $922.6 million from $984.8 million, while Europe saw a slight decrease to $888.3 million from $917.0 million[15][16] - Revenue from the Asia-Pacific region increased slightly to $317.7 million from $315.8 million, while other regions dropped to $17.1 million from $24.1 million[15][16] - Revenue for the fiscal year ending March 31, 2024 decreased by 4.3% to $2.1457 billion, primarily due to declines in North America, Europe, and other regions, offset by growth in the Asia-Pacific region[48] - North America revenue decreased by 6.3% to $922.6 million, with electronic learning products and telecom products sales declines offsetting growth in contract manufacturing services[66] - Europe revenue decreased by 3.1% to $888.3 million, with electronic learning products and telecom products sales declines offsetting growth in contract manufacturing services[70] - VTech's revenue in the Asia-Pacific region increased by 0.6% to $317.7 million, with contract manufacturing services sales rising by 8.7% to $226.0 million, offsetting declines in electronic learning products and telecommunications products[75] - Revenue in other regions (Latin America, Middle East, and Africa) decreased by 29.0% to $17.1 million, primarily due to declines in electronic learning products and telecommunications products[76] Product Performance - Revenue from electronic learning products decreased to $810.6 million from $891.4 million, with North America contributing $415.9 million[15][16] - Revenue from telecom products decreased to $307.9 million from $378.3 million, with North America contributing $201.0 million[15][16] - Revenue from contract manufacturing services increased to $1,027.2 million from $972.0 million, with Europe contributing $495.5 million[15][16] - Sales of electronic learning products declined, with independent products accounting for 89% of total electronic learning product sales, up from 87% in the previous fiscal year[39] - VTech's educational tablets, KidiZoom Smartwatch, Touch & Learn Activity Desk, and KidiBuzz/KidiCom sales declined, while Magic Adventures Globe saw slight growth[40] - Commercial phones and other telecom products accounted for 60% of telecom revenue in FY2024, up from 57% in the previous fiscal year[40] - VTech's contract manufacturing revenue hit a record high in FY2024, driven by growth in professional audio equipment, medical and nursing products, communication products, and smart energy storage systems[41] - Electronic learning products revenue in North America fell by 11.8% to $415.9 million due to weakened consumer demand and a shrinking toy market[66] - Telecom products revenue in North America dropped by 16.2% to $201 million, with declines across all three product categories[67] - Contract manufacturing services revenue in North America increased by 11.8% to $305.7 million, driven by professional audio equipment[69] - Electronic learning products revenue in Europe fell by 4.4% to $315.6 million, with declines in both standalone and platform products[70] - VTech's telecommunications products revenue in Europe decreased by 19.9% to $77.2 million due to declines in home phones, business phones, and other telecommunications products[72] - Contract manufacturing services revenue in Europe increased by 1.0% to $495.5 million, driven by growth in medical and care products, communication products, and smart energy storage systems[73] - Electronic learning products revenue in the Asia-Pacific region decreased by 11.3% to $70.4 million, with growth in mainland China offset by declines in Australia and Japan[75] - Telecommunications products revenue in the Asia-Pacific region fell by 25.0% to $21.3 million, with declines in Australia, Japan, and Hong Kong[75] - Electronic learning products revenue in other regions dropped by 17.1% to $8.7 million, with sales declines across Latin America, the Middle East, and Africa[76] - Telecommunications products revenue in other regions fell by 38.2% to $8.4 million, driven by sales declines in Latin America, the Middle East, and Africa[76] Market Position and Product Launches - The company's KidiZoom® Duo DX and Magic Adventures™ Globe maintained leading positions in their respective categories in key markets[39] - A new sales office for electronic learning products in Italy began contributing to revenue in the fiscal year 2024[39] - VTech maintained its leadership position in the US and Canada infant and preschool electronic learning toy market in 2023[66] - VTech remained the leader in the US home phone market in the 2024 fiscal year[67] - VTech launched several new products, including the V-Care VC2105 smart baby monitor with AI technology, in the 2024 fiscal year[69] - VTech's contract manufacturing services won recognition from US clients, including awards for "Best Supplier" and "Preferred Supplier"[69] - VTech's baby monitors in the UK performed well, solidifying its position as the top baby monitor brand in the country[73] - VTech was awarded the "Most Trusted Baby Monitor Brand" in the UK by BrandSpark International's 2024 UK Trust Study[73] - VTech's first AI-powered baby monitor was successful, and the company plans to launch a more advanced second-generation product[44] Corporate Governance and Compliance - The company's Chairman and Group CEO, Dr. Wong Tze Wai, holds both positions, deviating from the Corporate Governance Code's recommendation for separation of roles, but the Board believes this structure benefits the company's sustainable development and long-term shareholder interests[77] - The company's Audit Committee reviewed and approved the audited consolidated financial statements for the fiscal year ending March 31, 2024, with no objections[79] - The company did not purchase, sell, or redeem any listed securities during the fiscal year ending March 31, 2024[81] - The trustee of the company's Share Award Scheme acquired 322,900 shares from the Stock Exchange for a total of approximately $2,000,000 during the fiscal year ending March 31, 2024[81] - The company has established committees including Audit, Nomination, Remuneration, and Risk Management & Sustainability, each with defined terms of reference[78] - The company's directors and designated employees confirmed compliance with the Model Code for Securities Transactions during the fiscal year ending March 31, 2024[80] - The Audit Committee also reviewed and approved the revised policy for non-audit services provided by external auditors, key ESG matters, and the 2024 Sustainability Report[79] Operational and Strategic Developments - The company plans to expand production facilities in Malaysia and Mexico, with the Mexico plant expected to be fully operational by June 2024[45] - VTech expects revenue growth in FY2025, driven by new product launches in electronic learning products and contributions from Gigaset[44] - VTech plans to integrate Gigaset's operations into its global R&D, procurement, production, sales, marketing, and logistics by the end of FY2025[44] - Research and development expenses decreased by 1.9% to $81.7 million, accounting for 3.8% of total revenue[51] - Capital expenditures totaled $32.4 million in FY2024 for tangible assets including machinery, equipment, and facility improvements[62] - Average number of employees increased slightly to 19,700 in FY2024, with employee-related costs decreasing to $349 million from $370 million in FY2023[65] Challenges and External Factors - The company faced challenges in North America and Europe due to high inflation and interest rates, which suppressed consumer demand and business investment[39] - Material supply improvements allowed the company to efficiently clear backlogs and fulfill new orders in its contract manufacturing services[39] - Exchange rate fluctuations had a negative impact of $6.1 million on cash and cash equivalents in 2024[10] - Share-based compensation expenses for the share award plan were $3.1 million in 2024, slightly down from $3.3 million in 2023[10] - Depreciation of tangible assets decreased to $33.2 million in 2024 from $34.7 million in 2023[10] - Depreciation expenses for tangible assets increased from $34.7 million in 2023 to $33.2 million in 2024, and depreciation expenses for right-of-use assets increased from $21.1 million to $21.6 million[22] - Total taxes increased from $19.3 million in 2023 to $24.7 million in 2024, with Hong Kong taxes rising from $12.0 million to $13.9 million and overseas taxes increasing from $7.0 million to $11.2 million[23] - Dividends paid in 2024 totaled $149.2 million, down from $171.8 million in 2023[10] - Net cash used in investing activities was $54.4 million in 2024, up from $27.5 million in 2023[10] - Prepayments for the acquisition of non-current assets totaled $22.7 million as of March 31, 2024, for the purchase of both tangible and intangible assets[27] - The group acquired tangible assets worth $32.4 million in 2024, up from $27.9 million in 2023[26]

Revenue Performance - Revenue for the first half of the fiscal year 2024 decreased by 2.1% to $1.14 billion, down from $1.1648 billion in the same period last year[2]. - Revenue in North America decreased by 7.7% to $489.4 million, accounting for 42.9% of the group's total revenue[2]. - Revenue in Europe decreased by 0.4% to $468.7 million, with electronic learning products and telecommunications products contributing to the decline[5]. - The group's revenue in the Asia-Pacific region increased by 12.7% to $171.5 million, driven by a rise in contract manufacturing services sales[7]. - Revenue from telecommunications products in North America decreased by 16.1% to $139 million, attributed to a shrinking market and reduced shelf space for AT&T brand phones[3]. - Revenue from electronic learning products in the Asia-Pacific region fell by 16.5% to $35 million, impacted by declines in Australia and Japan[7]. - Revenue from telecommunications products in the Asia-Pacific region decreased by 16.5% to $11.6 million, primarily due to declines in Japan and Hong Kong[7]. - Total revenue for the six months ended September 30, 2023, was $1,140.9 million, a decrease of 2.3% compared to $1,164.8 million for the same period in 2022[32][33]. Profitability - Profit attributable to shareholders increased by 14.1% to $93.6 million, primarily due to a reduction in sales and distribution costs and an improvement in gross margin[2]. - Basic earnings per share increased by 13.8% to 37.0 cents, compared to 32.5 cents in the same period last year[2]. - The company reported a net profit of $93.6 million for the first six months, an increase of 11.6% compared to $82.0 million in the previous year[14]. - The net profit attributable to shareholders for the same period was $93.6 million, up $11.6 million or 14.1%, with a net profit margin increasing from 7.0% to 8.2%[19]. - The operating profit was $110.3 million, an increase of $11.3 million or 11.4% compared to the same period last year, with an operating margin rising from 8.5% to 9.7%[18]. Dividends - The board declared an interim dividend of 17.0 cents per share, unchanged from the interim dividend declared in the first half of the fiscal year 2023[2]. - The company declared an interim dividend of $0.17 per share for the six months ended September 30, 2023, maintaining the same level as the previous year, resulting in a total dividend payout of $43.0 million[44]. - The company declared dividends totaling $106.2 million during the reporting period, which is a decrease from $128.9 million in the previous year[28]. Cost Management - Total operating expenses decreased from $231.6 million to $214.8 million, with the percentage of total revenue dropping from 19.9% to 18.8%[18]. - The company plans to continue strict inventory and operating expense controls to enhance profitability despite the challenging economic environment[11]. Product Performance - Sales of electronic learning products in North America fell by 21.8% to $284 million, primarily due to weak market demand[2]. - The decline in sales of LeapFrog platform products was offset by an increase in sales of eco-friendly toys[2]. - The introduction of new products, including the Magic Adventures Telescope, contributed to growth in the LeapFrog product line despite overall declines in other categories[5]. - The group expanded its eco-friendly toy series, adding three new wooden toys made from 100% FSC certified wood[3]. - The group maintained its leadership position as the largest manufacturer of infant and preschool electronic learning toys in the US and Canada[2]. Cash Flow and Assets - As of September 30, 2023, the group's cash net amount was $108.5 million, an increase of $98.4 million from $10.1 million a year earlier, primarily due to increased cash generated from operating activities[20]. - Cash generated from operating activities for the six months ended September 30, 2023, was $63.0 million, significantly up from $19.0 million in the same period last year, marking a year-over-year increase of 231.6%[27]. - The total current assets decreased to $1,061.6 million from $1,228.1 million year-over-year, a reduction of about 13.6%[26]. - The total liabilities decreased to $592.7 million from $794.6 million year-over-year, indicating a reduction of about 25.5%[26]. Shareholder Information - As of September 30, 2023, the total number of issued shares is 252,882,466[93]. - Credit Suisse Trust Limited holds 74,101,153 shares, representing approximately 29.30% of total shares[93]. - The company emphasizes good corporate governance and transparency to enhance shareholder value[95]. - The company is committed to sustainable performance and accountability to shareholders[95]. Corporate Governance - The company continues to comply with all corporate governance codes as of September 30, 2023, with a focus on risk management and internal controls[96]. - The board structure includes a majority of independent non-executive directors, ensuring a balance of power and authority distribution[96]. - The company has a robust internal audit function that is deemed effective and sufficient[96]. Future Outlook - The company expects a slight decline in overall revenue for the fiscal year due to adverse economic conditions, but profitability is expected to improve due to reduced material prices and shipping costs[11]. - New product launches, such as the KidiZoom Smartwatch MAX and Turbo Edge Riders™, are anticipated to drive sales growth in the second half of the fiscal year[12]. - The telecommunications product sales are expected to decline throughout the fiscal year, particularly in North America, while new product introductions in Europe are expected to boost growth[12].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 偉易達集團 - 1 - 2023/2024中期業績 VTech Holdings Limited 偉易達集團* （於百慕達註冊成立之有限公司） （股票代號：303） 中期業績 截至二零二三年九月三十日止六個月 | --- | |----------------------------------------------| | | | 業績表現概要 | | 集團收入減少 2.1% 至 11 億 4,090 萬美元 | | 毛利率由 28.3% 上升至 28.5% | | 本公司股東應佔溢利增加 14.1% 至 9,360 萬美元 | | 中期股息每股普通股 17.0 美仙，維持不變 | • 不明朗的經濟環境令集團全年展望更加保守 • 財務狀況保持穩健 未經審核中期業績 偉易達集團（「偉易達」或「本公司」）的董事（「董事」）謹此公布本公司及其附屬公司（「本集 團」）截至二零二三年九月三十日止六個月的未經審核 ...

vtech 2023 年報 股份代號：303 ... 概念及設計：YELLOW CREATIVE (HK) LIMITED www.yellowcreative.com | --- | --- | --- | --- | --- | --- | |-------|-------|-------|--------------------------|-------|-----------------------------------| | | | | | | | | | | | | | | | | | | 目錄 | | | | | | 2 | 集團簡介 | | | | | | 3 | 財務摘要 | | | | | | 4 | 主席報告 | | | | | | 9 | 管理層討論及分析 | | | | | | | 財務回顧 | | | | | | | 業務回顧 | | | | | | | | | | | | | 18 | 產品及服務概況 | | | | | | | | | | | | | 30 | 大事摘要 | | | | | | | | | | | | | 34 | 可持續發展 | | | | | | 37 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 VTech Holdings Limited 偉易達集團* (於百慕達註冊成立之有限公司) (股份代號：303) 截至二零二三年三月三十一日止年度 全年業績 | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | 業績表現概要 集團收入下跌 5.4% 至 22 億 4,170 萬美元 毛利率為 28.3% ，而二零二二財政年度為 28.2% 本公司股東 ...

Financial Performance - For the first half of the fiscal year 2023, VTech Holdings reported a revenue increase of 4.5% to $1.1648 billion, up from $1.1148 billion in the same period last year[2]. - The net profit attributable to shareholders rose by 6.6% to $82 million, compared to $77 million in the previous fiscal year[2]. - Gross margin improved to 28.3%, up from 27.4% in the same period last year, primarily due to a decrease in material costs and direct labor costs[2]. - Operating profit for the six months ended September 30 was $99.0 million, an increase of $8.2 million from the previous year, with an operating margin of 8.5%[15]. - Total comprehensive income for the period was $33.0 million, down from $82.0 million in the previous year, indicating a decline of 59.9%[25]. - The company reported a profit of $82.0 million for the six months ended September 30, 2022, compared to $76.9 million for the same period in 2021, representing a growth of 1.4%[25]. Market Performance - North America remains VTech's largest market, accounting for 45.5% of total revenue, with sales in this region increasing by 6.5% to $530.5 million[2]. - Sales of electronic learning products in North America increased by 4.5% to $266.5 million, driven by strong demand for the KidiZoom® camera series and new learning watches[3]. - The telecommunications segment in North America saw a revenue decline of 5.6% to $123.9 million, primarily due to decreased sales of commercial and home phones[4]. - Revenue in Europe decreased by 3.2% to $470.4 million, with electronic learning products' sales rising by 5.4% to $159.3 million, but not enough to offset declines in telecommunications products[7]. - The sales of baby monitors in the U.S. increased due to expanded shelf space and popularity of new product lines, solidifying market leadership in North America[6]. - In the first six months of the fiscal year 2023, the Asia-Pacific region's revenue increased by 27.9% to $152.2 million, with all product categories showing growth[10]. Product Development and Innovation - New product launches, including the Level Up Gaming Chair™ and Clean Sweep Learning Caddy™, received recognition in holiday gift guides and toy awards[4]. - The company's electronic learning products received multiple awards, including the "Toy of the Year" for the Magic Adventures Microscope[8]. - Revenue from electronic learning products in the Asia-Pacific region increased by 6.9% to $41.9 million, driven by sales growth in Australia and Japan, offsetting declines in mainland China[11]. Strategic Initiatives - VTech has expanded its production facilities in Malaysia and Mexico to enhance competitiveness and prepare for future growth[2]. - The company announced an interim dividend of 17.0 cents per share, consistent with the previous fiscal year's interim dividend[2]. - VTech's strategy includes restructuring production bases to improve efficiency and global competitiveness, initiated since 2018[2]. - The company plans to invest in new product development and market expansion to drive future growth despite economic uncertainties[14]. Financial Outlook and Challenges - The company expects a complex and volatile operating environment for the second half of the fiscal year, with high energy costs and inflation persisting[14]. - The company has revised its full-year outlook, now anticipating a year-on-year revenue decline, while gross margins are expected to remain stable[14]. - Revenue for electronic learning products is now projected to decline for the full year, contrary to previous expectations of moderate growth[14]. Corporate Governance and Compliance - The company maintains a commitment to good corporate governance, emphasizing transparency, accountability, and independence[82]. - The company has complied with all corporate governance codes as of September 30, 2022, and has adhered to most recommended best practices[83]. - The risk management and internal control mechanisms have been continuously reviewed to ensure compliance with applicable laws and regulations[83]. - The company has implemented additional preventive measures and technical improvements to mitigate cybersecurity risks[83]. Shareholder Information - The company declared an interim dividend of 17.0 US cents per ordinary share for the six months ended September 30, 2022, to be paid on December 15, 2022[84]. - The company has a dedicated investor relations email: investor_relations@vtech.com[91]. - The company is incorporated in Bermuda with limited liability[91]. - The main registered office is located at 23rd Floor, Tai Ping Industrial Centre, Block 1, 57 Ting Kok Road, Tai Po, New Territories, Hong Kong[91].

Financial Performance - The group's revenue for the fiscal year ended March 31, 2022, slightly decreased by 0.1% to $2,370.5 million from $2,372.3 million in the previous fiscal year[9]. - The profit attributable to shareholders dropped by 25.2% to $172.7 million, primarily due to significant cost increases leading to a decline in gross profit[9]. - The gross profit margin for the fiscal year was 28.2%, down from 30.6% in the previous fiscal year[10]. - Basic earnings per share decreased by 25.2% to 68.5 cents, compared to 91.6 cents in the previous fiscal year[9]. - Operating profit fell by 23.4% to $203.8 million from $266.2 million in the previous fiscal year[5]. - The group's cash generated from operations was $181.8 million, a decrease of 41.5% compared to $310.9 million in the previous fiscal year[5]. - Gross profit for the fiscal year was $669.1 million, a decrease of $57.5 million or 7.9% from the previous year, with the gross margin dropping from 30.6% to 28.2%[21]. - Net profit attributable to shareholders was $172.7 million, a decrease of $58.2 million or 25.2%, resulting in a net profit margin of 7.3% compared to 9.7% in the previous year[24]. Dividends - The board proposed a final dividend of 51.0 cents per share, resulting in a total annual dividend of 68.0 cents, a reduction of 25.3% from 91.0 cents in the previous fiscal year[9]. - The company announced an interim dividend of $0.17 per share and proposed a final dividend of $0.51 per share, totaling $0.68 for the fiscal year, down from $0.91 in the previous year[26]. - The dividend payout ratio for the fiscal year 2022 was maintained at 99.4% of the company's profit attributable to shareholders, indicating a strong commitment to shareholder returns[177]. Market and Product Performance - Online sales increased, contributing to 15.4% of total revenue, with the electronic learning products business achieving record sales exceeding $1 billion in the fiscal year 2022[12]. - The sales of independent products accounted for 84% of total electronic learning product sales, up from 82% in the previous fiscal year[13]. - The telecommunications product segment saw growth in commercial phones and other telecom products, with their revenue percentage increasing from 49% to 59% of total telecom product revenue[13]. - Despite challenges, the company maintained its leading position in the U.S. baby monitor market, supported by strong demand for infant and preschool products[13]. - The company successfully launched the new product series Marble Rush™, which won multiple awards and generated additional revenue[13]. Supply Chain and Operational Challenges - The company faced production and supply chain disruptions due to the COVID-19 pandemic, along with increased costs from global material and shipping container shortages[8]. - Gross margin decreased significantly due to unprecedented increases in shipping costs caused by global container shortages, along with higher direct labor costs and production expenses compared to the previous fiscal year[12]. - Semiconductor shortages negatively impacted sales of children's educational tablets, while the LeapFrog Academy™ subscription volume also declined due to supply issues[13]. - The company took measures to mitigate supply chain disruptions, including redesigning products to reduce costs and increasing inventory of key components[12]. Sustainability Initiatives - The company launched its first eco-friendly electronic learning product line, utilizing plant-based plastics, recycled plastics, and FSC-certified wood[14]. - Over 94% of the packaging materials for electronic learning products are recyclable, with approximately 85% made from recycled materials[14]. - The company has established a five-year sustainability plan, "Sustainability Plan 2025," with measurable objectives and targets for each fiscal year from 2021 to 2025[80]. - The company aims to use more sustainable materials in product manufacturing and adopt environmentally friendly transportation methods in supply chain management[80]. - The company has implemented various green manufacturing and sustainable supply chain initiatives to address climate change[91]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange, with a commitment to transparency and accountability[85]. - The board of directors has adopted an organized procedure for performance evaluation every two years since 2017, focusing on the effectiveness and contributions of the board members[107]. - The company has established a risk management committee in 2002, which was renamed the Risk Management and Sustainability Committee in May 2013, to oversee risk management and sustainability strategies[88]. - The board consists of three executive directors, one non-executive director, and four independent non-executive directors, ensuring a diverse skill set and experience[99]. Community Engagement and Social Responsibility - The company actively promotes a culture of accountability and community service, focusing on supporting those in need[170]. - The company donated over 4,400 electronic learning toys to children in need as part of its collaboration with Save the Children[170]. - The company contributed over $193,000 to charitable activities in the fiscal year 2022, receiving multiple awards for its corporate social responsibility efforts[170]. - Over 2,600 volunteers were recruited, contributing more than 21,000 hours of community service in the fiscal year 2022[170]. Future Outlook - The company anticipates moderate revenue growth for electronic learning products in the fiscal year 2023, driven by a strong product portfolio and improved inventory management[15]. - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 10% to 12% driven by new product launches and market expansion strategies[185]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[185].