VTech Holding Limited Sustainability Report 2017

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 towards the societies and environment in

which we operate.

VTech considers sustainability as a direction for our long-term development.

In our Sustainability Report 2017, 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

Stock Exchange of Hong Kong Limited (the Stock Exchange) Environmental,

Social and Governance (ESG) Reporting Guide (ESG Guide)

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 2017

(FY2017), VTech has completed the acquisition of LeapFrog Enterprises Inc

(LeapFrog), a very strong educational toy brand in the industry and Snom

Technology GmbH (Snom), the pioneer and a leading brand of professional

and enterprise Voice over Internet Protocol (VoIP) telephones. VTech also

acquired the fixed assets from Kenny Precision Products (Shenzhen)

Company Limited for the production of high precision metal tooling and

parts. There were no other significant changes in VTech’s operation

locations, share capital structure, or our supply chain structure.

Reporting period: FY2017 (1 April 2016 to 31 March 2017), as per the

financial period of our Annual Report 2017. The Sustainability Report is

issued on an annual basis.

Organisation covered: VTech Holdings Ltd 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 2017 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