VTech Holding Limited Sustainability Report 2017

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Sustainability Report 2017 3
VTech is the global leader in electronic
learning toys from infancy through
toddler and preschool2 and the world’s
largest manufacturer of cordless
telephones. It also provides highly
sought-after contract manufacturing
services. Our product lines include
electronic learning products (ELPs),
telecommunication (TEL) products, and
contract manufacturing services (CMS).
With headquarters in the Hong
Kong Special Administrative Region
and state-of-the-art manufacturing
facilities in China, VTech currently has
operations in 13 countries and regions.
In FY2017, VTech has approximately
27,000 employees, including around
1,600 research and development (R&D)
professionals in R&D centres in the
United States, Canada, Germany, Hong
At VTech, we manage our business
in accordance with a number of key
external charters. We adhere to and
implement policies that are coherent
with 10 UN Global Compact principles3,
which itself is built upon many
internationally agreed principles relating
to welfare of workers, environmental
management and anti-corruption.
Since 2012, we have subscribed to the
Kong, Taiwan and China. This network
allows VTech to stay abreast of the
latest technology and market trends
throughout the world, while maintaining
a highly competitive cost structure.
The Group invests significantly in R&D
and launches numerous new products
each year. VTech sells its products via a
strong brand platform supported by an
extensive global distribution network of
leading traditional and online retailers.
VTech’s customer profile consists of
commercial buyers in our three product
lines and direct consumer purchasers
through our e-commerce business.
For the year ended 31 March 2017,
Group revenue and profit attributable
to shareholders of the Company were
US$2,079.3 million and US$179.0
Electronic Industry Citizenship Coalition
(EICC) Code of Conduct and the
International Council of Toy Industries
(ICTI) Code of Business Practices,
which are specific to our industries.
To keep abreast of the latest trends
and development within our industry,
we have participated in a number of
trade associations around the world.
million respectively. At 31 March 2017,
the Group had working capital and
total assets of US$190.9 million and
US$1,060.0 million respectively. The
Group’s total equity was US$584.7
million as at 31 March 2017.
Shares of VTech Holdings Limited are
listed on The Stock Exchange (HKSE:
303). At 31 March 2017, the number
of issued and fully paid shares of the
Company was 251,182,133 shares.
For details of our financial performance,
please refer to the financial highlights
included in our Annual Report 2017 at:
We primarily engage as members, but
where possible we will collaborate on
industry projects to help develop the
markets and industry standards. Many
of our memberships require us to meet
a Code of Conduct which provides
VTech stakeholders with further peace
of mind and confidence.
2 Source: NPD Group, Retail Tracking Service and Global Market Share Estimates by MarketWise Consumer Insights, LLC. Ranking based on total retail sales of VTech and LeapFrog
products in the combined toy categories of toddler electronic learning, toddler figures, playsets and accessories, preschool electronic learning, electronic entertainment (excluding
tablets) and walkers for the 12 months ending December 2016
3 The UN Global Compact asks companies to abide by its 10 principles, protecting the core values of the UN’s human rights, labour standards, environmental and anti-corruption policies.
See for more details.
Group Revenue in Last 5 Years Revenue by Regions
for the year ended 31 March 2017
Profit Attributable to Shareholders
of the Company in Last 5 Years
North America 48.9%
US$1,016.2 million
Europe 41.7%
US$867.8 million
Other Regions 2.2%
US$46.7 million
Asia Pacific 7.2%
US$148.6 million
2,100
1,800
1,500
1,200
900
600
300
0
FY2013 FY2014 FY2015 FY2016 FY2017
US$ million
250
200
150
100
50
0
FY2013 FY2014 FY2015 FY2016 FY2017
US$ million
Total:
US$2,079.3
million
About
1,858.0 1,898.9 1,879.8 1,856.5
2,079.3
201.5 203.8 198.1
181.4 179.0