VTECH HOLDINGS(HK:00303)2021-06-07 09:04Financial Performance - For the fiscal year ending March 31, 2021, the company reported revenue of $2,372.3 million, representing a 9.5% increase from $2,165.5 million in the previous year[5]. - Gross profit for the same period was $726.6 million, up 9.5% from $663.6 million, maintaining a gross margin of 30.6%[5]. - Operating profit increased by 21.2% to $266.2 million, compared to $219.7 million in the prior year, reflecting effective cost control measures[5]. - The company achieved a net profit attributable to shareholders of $230.9 million, a 21.1% increase from $190.7 million[5]. - Cash generated from operations was $310.9 million, an 18.0% increase from $263.5 million, indicating strong operational efficiency[5]. - Basic earnings per share increased by 21.0% to $0.916, compared to $0.757 in the previous fiscal year[9]. - The gross profit margin for the fiscal year was 30.6%, unchanged year-on-year, but below expectations due to significant increases in material prices, changes in product mix, and rising freight and labor costs[10]. - The total operating expenses rose by 3.3% to $464.6 million, but the percentage of operating expenses to total revenue decreased from 20.8% to 19.6%[25]. - As of March 31, 2021, total equity increased by 21.5% to $731.1 million, with net cash rising by 41.8% to $343.8 million[30]. Research and Development - The company invested $86.4 million in research and development, a 5.8% increase from $81.7 million, highlighting its commitment to innovation[5]. - Research and development expenses for the fiscal year 2021 were $86.4 million, a 5.8% increase from the previous year, accounting for 3.6% of total revenue[25]. Dividends and Shareholder Returns - The company declared a total dividend of $91.0 million, representing a 71.7% increase from $53.0 million in the previous year[5]. - The board proposed a final dividend of $0.740 per share, bringing the total annual dividend to $0.910, a 71.7% increase from $0.530 in the previous fiscal year, reflecting a payout ratio of 99.4%[9]. Market and Sales Performance - Despite global supply chain disruptions, all three product categories recorded revenue growth during the fiscal year[8]. - The group's revenue increased by 9.5% to $2.3723 billion for the fiscal year ending March 31, 2021, driven by sales growth in North America, Europe, and Asia-Pacific[9]. - Sales in North America reached $995.1 million, accounting for 41.9% of total revenue, while Europe generated $1,086.3 million, representing 45.8% of total revenue[23]. - The Asia-Pacific region's sales amounted to $268.4 million, contributing 11.3% to total revenue, with a growth of 3.5% compared to the previous year[23]. - Online sales grew significantly, accounting for 15.2% of total revenue, driven by increased demand for products supporting remote work and learning during the pandemic[11]. Product Development and Innovation - The company plans to launch new products in the telecommunications sector, including a high-end wireless phone with a 5-inch color display and Wi-Fi 6 integrated devices[17]. - The group plans to launch a series of environmentally friendly electronic learning products made from plant-based and recycled plastics, marking a significant step towards sustainability[14]. - The introduction of a new product development center in Shenzhen aims to support startups with design optimization and engineering services, enhancing the group's innovation capabilities[13]. - New product launches in the educational product segment are expected to drive sales growth, including the KidiZoom® Smartwatch and new versions of the LeapStart reading system[15]. Sustainability and Corporate Responsibility - The company aims to integrate sustainability into all aspects of its operations, enhancing its digital focus from design to after-sales service[18]. - The group aims to replace petrochemical-derived plastics with sustainable materials by 2030, aligning with its commitment to sustainability[80]. - The sustainable development strategy aligns with the United Nations' 17 Sustainable Development Goals, focusing on five main pillars: corporate governance and business ethics, product responsibility and value chain management, environment, employees, and society[133]. - The company has expanded its scholarship program to cover more universities in Hong Kong and mainland China, supporting students from various institutions[120]. - The company has launched new initiatives for community engagement, including a global toy donation program and participation in charity events[121]. Governance and Risk Management - The board has established a risk management and sustainability development committee to oversee the group's risk management and internal control mechanisms since its inception in 2002[147]. - The company emphasizes compliance with all applicable laws and regulations as part of its governance strategy[159]. - The company has implemented a whistleblowing policy allowing employees to report serious concerns confidentially without fear of retaliation[172]. - The company has established a continuous disclosure policy to monitor and communicate insider information to shareholders and analysts[174]. - The company conducts regular disaster recovery drills to minimize the risk of business interruptions[200]. Employee and Management Practices - The board emphasizes the importance of human resource management, including leadership succession planning, to attract, develop, retain, and motivate key talent[150]. - The company has implemented a policy for continuous disclosure since 2013, ensuring timely communication of potential insider information to shareholders[148]. - The company has established a stock option plan and a share purchase plan to incentivize eligible participants contributing to the group[189].