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Corporate Affairs
VTech Holdings Ltd Annual Report 200618
1 2
VTech and Our Shareholders
VTech is committed to enhancing
shareholders’ value by:
• Strengthening the competitive
position of the Group’s businesses
• Continuous efforts to achieve
sustainable growth in shareholders’
returns and in the Group’s return on
investment
• Ensuring timely, true, comprehensive
and non-selective disclosure of the
Group’s financial information and
operating performance
Returns – Dividends
The dividend payout ratio of the Group
links to its operating earnings
performance, financial position and
future investment opportunities. In the
financial year 2006, the dividend
payout ratio was 59.3% of the Group’s
net profit, against 53.3% in the
previous financial year.
Returns – Share Performance
During the financial year 2006, VTech
shares have traded more actively. The
highest trading price for the year hit
HK$36.8 on 31st March 2006 while the
lowest trading price was HK$10.65,
recorded on six trading days in April
and May 2005.
Communications
Two-way communications are crucial to
the success of every company. VTech
adopts a proactive investor relations
and communications programme to
keep investors and shareholders up
to date on the Group’s latest
developments. At the same time,
shareholders and investors are invited
to give their suggestions to the Group.
This two-way communication fosters
mutual understanding and improves
the relationship between the Group
and the investment community.
Investor Briefings
During the financial year 2006, VTech
held over 50 one-on-one meetings
with investors, organised either by the
Group itself or by renowned brokerage
houses in Hong Kong, to keep them
abreast of the latest company
developments. In addition, the Group
organised site visits for shareholders
and potential institutional investors to
its advanced manufacturing facilities in
mainland China, giving them a better
understanding of the Group’s
manufacturing capability.
Results Announcement Webcast
VTech webcasts its key financial
announcements, allowing investors not
able to be present to watch the event,
accompanied by the detailed slide
presentations and other important
financial information.
Quarterly Newsletter
The Group’s quarterly newsletter
continues to keep investors informed
of the latest developments at VTech.
Starting from the calendar year 2006,
the html version of the newsletter has
been introduced to replace the pdf
version. With a more dynamic and
interactive design, shareholders and
investors will find it easier to locate the
information they want.
Investor Relations Website
For both institutional and retail investors,
the corporate website www.vtech.com
provides up-to-date information on the
Group’s financial data, stock information
and business developments. All key
information such as the financial calendar,
press releases, stock exchange
announcements, slide presentations,
annual and interim reports can be
downloaded from the investor relations
section. Shareholders and investors can
also send queries to the Group directly
using our online form.
VTech and Our Employees
The average number of employees for
the financial year 2006 was 24,500, an
increase of 4.7% from 23,400 in the
previous financial year. Employee costs
for the year ended 31st March 2006
were approximately US$115 million, as
compared to US$107 million in the
financial year 2005. The increase in the
yearly average number of employees
was mainly in response to the sales
increase at the ELP and CMS businesses.
The Group has established an incentive
bonus scheme and a share option
scheme for its employees, in which the
benefits are determined based on the
performances of the Group and of
individual employees.
VTech benefits from the loyalty and
enthusiasm of its employees and takes
care to maintain a motivated workforce.
Open Communications
Open communications are critical to
successful employee relations and
VTech has sought to use the latest
technology to expand the scope of its
dialogue with employees at all levels.
VTech’s intranet enables efficient
communication between the worldwide