VTech Holdings Ltd announced its annual results for the year ended 31 March 2004, showing 13.5% growth in net profit to US$46.3 million and a 5.6% increase in revenue to US$915.2 million.

The telecommunication products business contributed US$687.2 million and the electronic learning products business stood at US$130.7 million. The Contract Manufacturing Services business (CMS) again produced a stable contribution to the Group with revenue at US$97.3 million.

The well-diversified nature of CMS, as well as its ability to deliver high quality products, flexible and price competitive services to its medium-sized customers contributed to stable development. By product category, professional audio equipment accounted for 30.5% of the total revenue of the operating unit, followed by power supplies at 26.1% and wireless products at 13.4%.

During the financial year 2004, CMS was accredited ISO13488 and TS16949 quality certifications, which enable VTech to enter the production of automotive parts and medical equipment. Following the full operation of the new R&D centre in Shenzhen, the business has been able to offer full turnkey solutions to customers. The enhancement in customer service level resulted in a record number of customer awards in the financial year 2004.

CMS will continue to benefit from the organic growth offered by the global EMS (Electronic Manufacturing Services) market, which is expected to see a double-digit sales increase in calendar year 2004. CMS will also expand the customer base through selected media advertising, participation in trade fairs, as well as increased investment in business development and product design support for customers.