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42 VTech Holdings Ltd Annual Report 2009
NOTES TO THE FINANCIAL STATEMENTS
2 OPERATING PROFIT
The operating profit is arrived at after charging/(crediting) the following:
2009 2008
Note US$ million US$ million
Auditors’ remuneration
– audit services 0.8 0.7
– audit related services 0.1 0.1
– tax services 0.4 0.5
– other services –0.2
Impairment loss recognised
for stock obsolescence 3.3 15.2
Reversal of provision for
stock obsolescence (4.8) –
Impairment loss recognised/
(reversal) for doubtful
debts 12 1.7 (2.6)
Royalties 22.5 28.9
Provision for defective goods 16 35.0 54.1
Net foreign exchange
loss/(gain) 28.2 (20.5)
Net (gain)/loss on forward
foreign exchange contracts 19 (0.6) 9.8
Net realised and unrealised
(gains)/losses on financial
assets at fair value
through profit or loss (0.2) 0.3
3 DIRECTORS’ AND INDIVIDUALS’ EMOLUMENTS
Directors’ emoluments
Fees
Salaries,
allowances
and benefits
in kind
Discretionary
bonuses
Contributions
to retirement
benefit
schemes
Share-based
payments
(vii)
2009
Total
US$ million US$ million US$ million US$ million US$ million US$ million
Executive directors (i)
Allan WONG Chi Yun –0.8 1.4 0.1 0.8 3.1
Edwin YING Lin Kwan (iii) –0.2 0.2 – – 0.4
PANG King Fai –0.3 0.3 –0.3 0.9
Andy LEUNG Hon Kwong (iv) –0.1 0.1 – – 0.2
Independent non-executive directors (ii)
Raymond CH’IEN Kuo Fung (v) ––––––
William FUNG Kwok Lun ––––––
Denis Morgie HO Pak Cho (vi) ––––––
Michael TIEN Puk Sun ––––––
Patrick WANG Shui Chung ––––––
–1.4 2.0 0.1 1.1 4.6
Fees
Salaries,
allowances
and benefits
in kind
Discretionary
bonuses
Contributions
to retirement
benefit
schemes
Share-based
payments
(vii)
2008
Total
US$ million US$ million US$ million US$ million US$ million US$ million
Executive directors (i)
Allan WONG Chi Yun –0.8 2.5 0.1 0.5 3.9
Edwin YING Lin Kwan –0.3 0.6 0.1 –1.0
PANG King Fai –0.3 0.6 0.1 –1.0
Independent non-executive directors (ii)
Raymond CH’IEN Kuo Fung ––––––
William FUNG Kwok Lun ––––––
Michael TIEN Puk Sun ––––––
Patrick WANG Shui Chung ––––––
–1.4 3.7 0.3 0.5 5.9
2009 2008
Note US$ million US$ million
Staff related costs
– salaries and wages 161.9 153.0
– pension costs: defined
contribution schemes 17 4.9 3.3
– pension costs: defined
benefit scheme 17 1.3 1.0
– severance payments 1.6 0.7
– equity-settled
share-based
payment expenses 1.8 0.8
171.5 158.8
Cost of inventories 920.7 969.0
Depreciation of tangible
assets 731.7 29.0
Amortisation of leasehold
land payments 80.1 0.1
Loss on disposal of tangible
assets 0.4 0.5
Operating leases charges:
minimum lease payments
– land and buildings 12.0 12.2
– others 2.6 3.1