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About this Report

VTech published its first Sustainability Report for the financial year

2013. The purpose of the report was not only to communicate our

sustainability strategies, management approaches and performances

with our stakeholders, but also comprehensively introduce our ongoing

activities for our sustainable development toward the societies and

environment in which we operate.

VTech considers sustainability as a direction for our long-term

development. In our Sustainability Report 2016, we not only continued

to follow the Core option of the Global Reporting Initiative (GRI)

Sustainability Reporting G4 Guidelines (G4 Guidelines) and its principles

of balance, comparability, accuracy, timeliness, clarity and reliability, but

also made reference to the updated Stock Exchange of Hong Kong

Limited (the Stock Exchange) Environmental, Social and Governance

(ESG) Reporting Guide (ESG Guide)

1

to define our report content. In

order to identify and assess the material concerns of our stakeholders,

we have also conducted materiality assessment surveys through a

number of stakeholder engagement activities to determine the factors

that have material impacts on our sustainable growth, and included

them in the summary of our sustainability strategies and targets.

Reporting Period and Scope

The scope of this report includes data and activities from our

headquarters in Hong Kong, our three manufacturing facilities in China

and overseas sales offices, unless specifically stated otherwise. During

the financial year 2016 (FY2016), there were no significant changes in

VTech’s operation locations, share capital structure, location of suppliers

or our supply chain structure.

Reporting period: FY2016 (1 April 2015 to 31 March 2016), as per the

financial period of our Annual Report 2016. The Sustainability Report is

issued on an annual basis.

Organisation covered: VTech Holdings Limited and its subsidiaries (the

Company).

Assurance

This report was subject to VTech’s internal audit process and reviewed

by the Company’s Audit Committee.

Reference Guidelines

GRI G4 Guidelines

Stock Exchange ESG Guide

Full details of the VTech Sustainability Report 2016 are available on

1 Environmental, Social and Governance Reporting Guide set out in Appendix 27 to the

Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited