Vtech 2010 Annual Report Download - page 35

VTech Holdings Ltd Annual Report 2010 33
Report of the Directors
The directors have pleasure to present their report and the
audited financial statements of the Group for the year ended
31 March 2010.
Principal Activity
The principal activity of the Group is design, manufacture and
distribution of consumer electronic products.
Group Results and Dividends
The results of the Group for the year ended 31 March 2010 are
set out in the consolidated income statement on page 37.
An interim dividend of US16.0 cents (2009: US12.0 cents) per
ordinary share was paid to shareholders on 31 December 2009.
The Board has recommended the payment of a final dividend of
US62.0 cents (2009: US41.0 cents) per ordinary share payable on
2 August 2010 to shareholders in respect of the year ended
31 March 2010 whose names appear on the register of members
of the Company as at the close of business on 30 July 2010
subject to the approval of the shareholders of the Company at
the forthcoming annual general meeting.
The final dividend will be payable in United States dollars save
that those shareholders with a registered address in Hong Kong
will receive the equivalent amount in Hong Kong dollars which
will be calculated at the rate of exchange as quoted to the
Company by The Hongkong and Shanghai Banking Corporation
Limited at its mid rate of exchange prevailing on 21 July 2010.
Commentary on Performance
A commentary on the performance of the Group is included in
the review of operations set out on pages 16 to 21.
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 66.
Tangible Assets
Details of the movements in tangible assets are shown in note 7
to the financial statements.
Share Capital and Share Options
Details of the movements in share capital and share options
of the Company during the year are set out in note 18 to the
financial statements.
Reserves
Movements in the reserves of the Group and the Company
during the year are set out in the consolidated statement of
changes in equity on page 39 and in note 19 to the financial
statements respectively.
Donations
During the year, the Group made charitable and other donations
in aggregate of US$91,000.
Directors
The directors who held office during the year and up to
14 June 2010 (the date of this report) were:
Executive Directors
Allan WONG Chi Yun Chairman and Group Chief Executive Officer
PANG King Fai
Andy LEUNG Hon Kwong
Independent Non-executive Directors
William FUNG Kwok Lun
Denis Morgie HO Pak Cho
Michael TIEN Puk Sun
Patrick WANG Shui Chung
Dr. PANG King Fai, Dr. William FUNG Kwok Lun and Mr. Michael
TIEN Puk Sun shall retire by rotation in accordance with Bye-law
112 of the Bye-laws of the Company, all of the above directors
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 31 to 32.
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 Dr. 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.
Directors’ Interests in Contracts
No contracts of significance in relation to the Group’s business to
which the Company or its subsidiaries was a party and in which a
director of the Company had a material interest, whether directly
or indirectly, subsisted at the end of the year or at any time
during the year.
Share Option Scheme
The Company operates a share option scheme for the purposes
of providing incentives and rewards to eligible participants who
contribute to the success of the Group’s operations. Eligible
participants of these share option schemes include executive
directors and employees of the Company and its subsidiaries.
On 10 August 2001, the Company adopted a share option
scheme (the “2001 Scheme”) under which the directors may, at
their discretion, at any time during the 10 years from the date of
adoption of the 2001 Scheme, invite employees of the Company
and any subsidiaries of the Group, including executive directors
(but excluding non-executive directors) to take up shares of the
Company in accordance with the terms of the 2001 Scheme.
Details of the 2001 Scheme are set out in note 18 to the financial
statements.