Vtech 2007 Annual Report Download - page 2

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Corporate Profi le
VTech is one of the world’s largest suppliers of corded
and cordless telephones and a leading supplier of
electronic learning products. It also provides highly
sought-after contract manufacturing services. Founded
in 1976, the Group’s mission is to be the most cost
effective designer and manufacturer of innovative, high
quality consumer electronics products and to distribute
them to markets worldwide in the most effi cient manner.
With headquarters in the Hong Kong Special
Administrative Region and state-of-the-art
manufacturing facilities in mainland China, VTech
currently has a presence in 10 countries and over 30,000
employees, including around 1,300 R&D professionals in
R&D centres in Canada, Hong Kong and mainland 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 invested US$45.2 million in R&D in the
fi nancial year 2007 and launches numerous new
products each year. VTech sells its products via a strong
brand platform supported by an extensive distribution
network of leading retailers in North America, Europe
and Asia. Apart from the well-known VTech brand,
the Group has the rights to use the AT&T brand in
connection with the manufacture and sale of its wireline
telephones and accessories.
In addition, VTech has license agreements with licensors
of well-known children’s characters that allow it to use
those characters in the cartridges for its popular V.Smile
product range and certain electronic learning products.
Shares of VTech Holdings Limited are listed on both the
Hong Kong and London stock exchanges (HKSE: 303;
LSE: VTH). Ordinary shares are also available in the form
of American Depository Receipts (ADRs) through the
Bank of New York (ADR: VTKHY).
Contents
01 Financial Highlights
02 Letter to Shareholders
05 Management Discussion and
Analysis
08 Review of Operations –
Telecommunication Products
10 Review of Operations –
Electronic Learning Products
12 Review of Operations –
Contract Manufacturing Services
14 Corporate Affairs
16 Year in Review
18 Corporate Governance Report
20 Directors and Senior Management
24 Report of the Directors
29 Independent Auditor’s Report
30 Consolidated Financial Statements
31 Notes to the Financial Statements
53 VTech in the Last Five Years
54 Corporate Information
55 Information for Shareholders
56 VTech Group of Companies
01VtechContents(E).indd1 2007/7/511:44:08PM