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VTech Holdings Ltd Annual Report 2010 01
CORPORATE PROFILE
VTech is one of the world’s largest suppliers of corded and cordless telephones and
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 efficient 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 11
countries and approximately 36,000 employees, including over 1,500 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 invests significantly in R&D 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 Pacific.
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.
Shares of VTech Holdings Limited are listed on The Stock Exchange of Hong Kong
Limited (HKSE: 303). Ordinary shares are also available in the form of American
Depositary Receipts (ADRs) through The Bank of New York Mellon (ADR: VTKHY).
CONTENTS
1 Financial Highlights
2 Letter to Shareholders
5 Management Discussion and Analysis
8 Products and Services Overview
16 Review of Operations – North America
18 Review of Operations – Europe
20 Review of Operations – Asia Pacific & Other Regions
22 Corporate Affairs
25 Year in Review
28 Corporate Governance Report
31 Directors and Senior Management
33 Report of the Directors
36 Independent Auditor’s Report
37 Consolidated Financial Statements
39 Notes to the Financial Statements
66 VTech in the Last Five Years
67 Corporate Information
68 Information for Shareholders