Vtech 2006 Annual Report Download - page 31

Report of the Directors
VTech Holdings Ltd Annual Report 200628
The directors have pleasure to present their report and the
audited financial statements of the Group for the year ended
31st March 2006.
Principal Activity
The principal activity of the Group is the design, manufacture
and distribution of consumer electronics products.
Group Results and Dividends
The results of the Group for the year ended 31st March 2006
are set out in the consolidated income statement on page 33.
An interim dividend of US6.0 cents (2005: US1.0 cent) per
ordinary share was paid to shareholders on 4th January 2006.
The directors have recommended the payment of a final
dividend of US26.0 cents (2005: US12.0 cents) per ordinary
share payable on 14th August 2006 to shareholders in respect
of the year ended 31st March 2006 whose names appear on
the register of members of the Company as at the close of
business on 11th August 2006 subject to the approval of the
shareholders of the Company at the forthcoming annual
general meeting.
The final dividend will be paid in United States dollars save
that those shareholders with a registered address in Hong
Kong will receive the equivalent amount in Hong Kong dollars
and those registered in the United Kingdom will receive the
equivalent amount in Sterling both calculated at the rates of
exchange as quoted to the Company by The Hongkong and
Shanghai Banking Corporation Limited at its mid rate of
exchange prevailing on 2nd August 2006.
Commentary on Performance
A commentary on the performance of the Group is included
in the review of operations set out on pages 10 to 17.
Group Financial Summary
A summary of the results and of the assets and liabilities of
the Group for the last five financial years is set out on
page 54.
Tangible Assets
Details of the movements in tangible assets are shown in
note 8 to the financial statements.
Share Capital, Share Options and Warrants
Details of the movements in share capital, share options and
warrants of the Company during the year are set out in
note 17 to the financial statements.
Reserves
Movements in the reserves of the Group and the
Company during the year are set out in note 18 to the
financial statements.
Donations
During the year, the Group made charitable and other
donations in aggregate of US$87,000.
Directors
The Board of the Company during the year and up to
21st June 2006 comprised:
Allan WONG Chi Yun (Chairman and Group Chief
Executive Officer)
Albert LEE Wai Kuen (Deputy Chairman)
Raymond CH’IEN Kuo Fung (Independent Non-executive
Director)
William FUNG Kwok Lun (Independent Non-executive
Director)
Michael TIEN Puk Sun (Independent Non-executive
Director)
Patrick WANG Shui Chung (Independent Non-executive
Director)
Mr. Allan WONG Chi Yun and Mr. Albert LEE Wai Kuen shall
retire from the Board in accordance with Bye-law 112 of the
Bye-laws of the Company, and being eligible, shall offer
themselves for re-election as directors of the Company at the
forthcoming annual general meeting.
Brief biographical details of directors and senior management
are set out on pages 24 to 27.
Directors’ Service Contracts
None of the directors has a service contract with any company
in the Group which is not determinable by the Group within
one year without payment of compensation, other than
statutory compensation.
The director’s service contract entered into between the
Company and Mr. Allan WONG Chi Yun in 1999 has no expiry
date, but can be terminated by the giving of 2 months’ prior
notice, and is exempt from the shareholders’ approval
requirement under Rule 13.68 of the Listing Rules.