Thank you, Grace. Good afternoon, ladies and gentlemen, and all viewers online.

I would like to share with you the financial highlights of the group for the year ended 31st of March 2026 compared with the last financial year. As you see from the slide, the revenue of the group reduced by 6.9% to $2,027.5 million.

It was mainly due to the decrease in revenue in all regions. The gross profit of the group reduced by 3.4% to $663.4 million.

Our gross profit margin, however, improved from 31.5% to 32.7%. The higher gross profit margin was mainly due to the lower cost of materials arising from the decline in material prices and change in product mix, increase in selling prices, and stronger European currencies against US dollar, as well as the lower freight charges compared with the last financial year.

This offset the additional tariffs imposed on the goods imported into the US and the increase in direct labor costs largely driven by the increase in minimum wages in China and Malaysia during the year. Our operating profit reduced by 9.4% to $171 million, and our operating profit margin also reduced from 8.7% to 8.4%.

The lower operating profit and operating profit margin were mainly due to the lower gross profit as well as the increased spending on advertising and promotional activities as a percentage of the group's revenue compared with the last financial year. Our profit attributable to shareholders reduced by 14.5% to $134.1 million, and our net profit margin also reduced from 7.2% to 6.6%.

The lower net profit and net profit margin were mainly due to the lower operating profit and operating profit margin, as well as the increase in effective tax rate of the group from 15.4% to 19.6%, arising from the implementation of the global minimum tax in Hong Kong in accordance with the BEPS 2.0 framework. As a result, our basic earnings per share reduced by 14.7% to 52.9 US cents, and our board of directors has proposed a final dividend of 36 US cents, bringing the total dividend per share for the year to 53 US cents.

Turning to the revenue by region, our sales in North America market reduced by 9.1% to $811.6 million. The decline in revenue was mainly due to the lower sales in all our three product lines.

Europe remained the largest market of the group, accounting for 44.4% of the group's revenue. Our gross revenue in Europe reduced by 6.3% to $899.9 million.

It was mainly due to the lower sales of contract manufacturing services, which offset the higher sales of our electronic learning products and telecom products. In Asia Pacific region, the revenue of the group reduced by 2.1% to $294.7 million.

It was mainly due to the lower sales of our telecom products and contract manufacturing services, which offset the higher sales of our electronic learning products. Other regions include Latin America, Middle East, and Africa.

The group's revenue in other regions reduced by 5.3% to $21.3 million. The decline in sales in other regions was mainly due to the lower sales of our telecom products, which offset the higher sales of our electronic learning products.

Our stock balance as at 31st of March 2026 increased from $316.8 million to $402.9 million, an increase of 11.7% compared with the last financial year. Our stock turnover days also increased from 106 days to 128 days.

The higher stock balance was mainly due to the early production of the group's products to cater for the increased demand in the first half of the financial year 2027, as well as the inclusion of the US tariffs in the inventory of finished goods as at 31st of March 2026. Our trade debtors balance as at 31st of March 2026 reduced from $267.8 million to $257.7 million compared with the last financial year.

Our trade debtors turnover days, however, increased slightly from 56 days to 60 days. The higher trade debtors balance was mainly due to the decrease in revenue in the fourth quarter of the financial year 2026 compared with the same period of the last year.

Our financial position remained strong. We were debt-free, and our net cash balance as at 31st of March 2026 reduced from $335.6 million to $264 million, a decrease of 21.3% compared with the same period of the last year.

The lower net cash balance was mainly due to the decrease in net cash generated from the operating activities compared with the last financial year. This offset the higher opening cash balance and the lower dividend payment, as well as the favorable foreign currency exchange movement on the group's net asset, arising from the appreciation of the foreign currencies against US dollar during the period.

That's all of my presentation. I will now invite Mr.

Andy Leung to share with you our operations review. Mr.

Leung, please.

Thank you, Shereen, and welcome to everyone joining us today. We begin the review of our operations with costs.

The group gross profit margin in the financial year 2026 rose to 32.7% as compared with 31.5% in the financial year 2025. This was mainly due to the reduction in material prices.

A more favorable product mix, increases in product prices, the strength of European currency against US dollar, and the lower freight charges also contribute to the improvement in margin. The gains were partially offset by additional tariffs imposed on the US-bound products and higher direct labor costs.

We are now turned to the operation performance of each region. We begin with North America, where group revenue decreased to 9.1% to $811.6 million as sales of ELPs, telecom products, and CMS all declined.

North America was VTech second-largest market, accounting for 40% of the group revenues. ELP revenue in North America fell by 12.7% to $388.5 million.

This was mainly driven by sales decline in the US following the change in US tariff policy. The new tariffs caused a temporary suspension of shipments to the US for several weeks.

This induced the group to raise prices for most of the US-bound products, and retailers delayed store sets for the autumn season. These developments negatively affect orders and in-store sales in the first half of the financial year 2026.

Matters improved in the second half. However, US sales essentially flat comparing with the same period of last year.

In the calendar year of 2025, the group, combining the VTech and LeapFrog brands, retained its leadership in electronic learning toys from infants through toddler to preschool in the US. In Canada, despite a serious decline in the financial year 2026, the group maintained its position as the largest manufacturer of infant, toddler, and preschool toys.

Standalone products saw sales decrease, with declines across all key product categories. This was mainly due to the lower shipments to the US in the first half of the financial year 2026 following the change in US tariff policy.

Core learning products and key product lines all post sales decreases for both the VTech and LeapFrog brands. Platform products reported sales growth driven by new product launches.

The LeapFrog brand was boosted by the launch of exciting new motion-based learning system, LeapFrog LeapMove, which performed well during the holiday season. This offset lower sales of children's educational tablets.

Sales of Magic Adventures Globe and the interactive reading systems held steady. By contrast, VTech-branded platform products reported sales decline, mainly because of lower sales of KidiZoom smartwatch and Touch and Learn Activity Desk.

Subscriptions to LeapFrog Academy were stable. Telecom products revenue in North America fell by 9.7% to $161.5 million.

Sales of all three category declined. Sales of residential phones fell as a result of the ongoing contraction of the US market.

Despite these headwinds, the group continues to introduce new products and retain its popularity with consumers. Consequently, the group, combining the AT&T and VTech brands, remained the number one cordless phone brand in the US in the financial year 2026.

Commercial phones revenue also experienced a decline, as higher sales of hotel phones were insufficient to offset weakness in SIP phones, multiline analog phones, and headsets. Growth in hotel phone category was driven by increasing sales of next-gen product line.

Although the new Snom D8 series of SIP desk phones launched successfully in US and was well received by the market, SIP phones recorded fewer sales owing to reduction in orders from a customer. Multiline analog phones posted a decline as the products reached the end of their life cycles.

Sales of headsets sales were lower due to reduced order from a customer. Other telecommunication products reported a sales decrease, as higher sales of IoT products were offset by lower sales of baby monitors and CareLine residential phones.

IoT products posted higher sales of thermostats for hotel channels. However, these were offset by lower sales of baby monitor due to increasing competition.

In addition, CareLine residential phones experienced lower order because of weak end—because of weak end-user demand. During the financial year 2026, VTech maintained its position as the number one baby monitor brand in the US and Canada.

CMS revenue in North America decreased by 2.9% to $261.6 million, as lower sales of professional audio equipment and industrial products offset higher sales of IoT products. Professional audio equipment recorded a slight sales decline as orders of audio mixers from a major customer fell.

Sales of industrial products also decreased, as there were fewer order from smart water leakage detectors. This offset higher sales of PCBA of vending machine when more employee returned to office-based working.

In contrast, IoT products saw sales growth driven by rising orders for smart basketball hoop game console, which had been well received by the consumer and are now being sold by major US retailer. Sales of solid-state lighting remained stable.

Orders at our facility in Tecate in Mexico grew significantly as more US customer move their product from China to Mexico for the requirement of nearshore manufacturing. Looking now at Europe.

Group revenue in Europe decreased by 6.3% to $899.9 US dollar—million million US dollar, as higher sales of ELP and telecom products were offset by declines for CMS. Europe was VTech largest market, accounting for 44.4% of the group revenue.

ELP revenue in Europe went up by 1.5% to $311.7 million, as higher sales of platform products offset lower sales of standalone products. Geographically, sales rose in France, Spain, the Netherlands, and Italy, offsetting declines in UK and Germany.

In calendar year 2025, the group retained its position as the largest infant and toddler toy manufacturer in France, the UK, Germany, Spain, the Netherlands, and Belgium. In standalone products, LeapFrog sales were higher, led by infant products, the Magic Adventures lines, and eco-friendly toys.

VTech saw lower sales, as an increase in preschool products, electronic learning aids, and the Kidi line failed to offset decline in infant and toddler products, KidiZoom camera, Switch & Go Dinos, Marble Rush, and eco-friendly toys. Platform products saw higher sales, with growth in LeapFrog products offsetting a decline for VTech.

The increase at LeapFrog was driven by the launch of LeapMove, higher sales of interactive reading systems, and Magic Adventures Globe. For VTech, sales of KidiZoom smartwatch, children's educational tablets, Touch and Learn Activity Desk, and KidiCom all declined.

Revenue from telecom products in Europe increased by 6% to $224.1 million. Sales of residential phones, commercial phones, and smart phones increased.

However, other telecommunication products posted a decline. In residential phones, growth was mainly driven by increasing sales of Gigaset product lines.

The launch of new Gigaset models, including entry-level products such as the AD100, Basic 100, Essential 300 series, boosted growth. These were joined by the Comfort 600 SIM, which offset consumer the—offered the consumer the convenience of a home phones without the need for landline.

Sales performed especially well in Germany, France, Italy, and Spain. As a result, Gigaset increased its market share and retained its number one position in the DECT phone market in Europe.

Sales of commercial phones and smart phones are also increased. This result from higher order from a customer as—as well as rising sales of Snom-branded SIP phones and Gigaset smart phones.

An existing customer has relocated the production of its IP phone to Gigaset facility in Germany, helped Gigaset commercial phone sales higher. It was augmented by the launch of Gigaset single cell DECT system and Comfort 500HX for the home and small office market.

Snom-branded SIP phones also reported growth driven by the expansion of its single cell DECT portfolio catering to a small and medium-sized enterprise and startups. During the period, Gigaset smart phones introduced several new models.

This include the GX6 series that is designed for institution with strong security and privacy requirement, alongside with model that are especially designed for the elderly. Sales of other telecommunication products in Europe decreased.

Both baby monitors and CAT-iq headsets posted sales decreases. Sales of baby monitor fell mainly because of lower sales in the UK market.

The decline in CAT-iq headset resulted from a lower order from customers. CMS revenue in Europe decreased by 17.1% to $364.1 million, as lower sales of hearables, home appliances, IoT products, automotive products, and smart energy storage systems offset increase increases for professional audio equipment and communication products.

Sales of medical and health products were stable. Sales of hearables decreased significantly.

In addition to the market demand had fallen since the end of COVID, customer is facing keen competition. The change in outsourcing strategy to more focus on ODM service also negatively impacting CMS revenue.

Fewer order for PCBA for washing machine resulted in lower sales of home appliance. Despite stable demand for smart meters, sales of IoT products declined, as orders for internet-connected thermostats and air conditioning control were affected by the over-inventory of a customer due to keen market competition.

Automotive products sales were lower as orders for electric vehicle chargers declined. Sales of smart energy storage system were negatively affected by the removal of subsidies by Swedish government.

By contrast, new product launches and market share gained by customer drove professional audio equipment sales higher. Communication products benefited from higher orders for Wi-Fi routers.

This was a result of new product launches and a reduction in customer inventory. Medical and health products sales were stable, as lower order for hair removal products were balanced by rising orders for hearing aids.

This conclude my presentation. I will now hand over to King for the rest.

Thank you, Andy. Good afternoon, ladies and gentlemen.

In Asia Pacific, group revenue fell 2.1% to $294 million. The region accounted for 14.5% of overall group revenue.

Declines in telecommunication products and CMS more than offset growth in ELPs. Revenue from ELPs grew 4.9% to $72 million.

This increase was driven by Australia and China. In Australia, the launch of LeapMove and strong marketing boosted LeapFrog and VTech sales.

For calendar year 2025, VTech remained the largest manufacturer of electronic learning toys from infancy through toddler to preschool in the country. In China, the Go!

Go! Smart Wheels line, eco-friendly toys, and role-playing toys recorded strong sales.

Telecommunication products revenue decreased 7% to $17 million, due to lower sales in Australia and Japan. In Australia, the decline reflected lower baby monitor sales.

In Japan, sales were impacted by lower orders for residential phones from an ODM customer. CMS revenue decreased 3.9% to $205 million.

Sales declined for professional audio equipment, medical and health products, as well as communication products. DJ equipment sales was stable.

Sales of professional audio equipment declined as orders for microphones for KOLs decreased. In medical and health products, sales of diagnostic ultrasound systems decreased due to the customer's market share loss.

Communication products sales were affected by lower orders for marine radios. The customer shifted a greater portion of production in-house following further depreciation of the Japanese yen.

During the financial year 2026, CMS expanded its customer base in China with the support of the new Product Introduction Centre in Shenzhen. Other regions, namely Latin America, the Middle East, and Africa: group revenue decreased 5.3% to $21 million.

This region accounted for 1.1% of overall group revenue. Lower sales of telecommunication products more than offset an increase for ELPs.

ELPs revenue increased 8.6% to $10 million. Growth in the Middle East and Africa offset a decline in Latin America.

Telecommunication products revenue fell 15.2% to $11 million. Sales declined in Latin America, the Middle East, and Africa.

CMS revenue in other regions was immaterial for the financial year 2026. This concludes our review of operations.

We now turn to the outlook. The US tariff situation appears to have stabilized to some extent, allaying certainty to purchase decisions.

However, the conflict in the Middle East is driving up prices for energy and oil-related products, as well as for freight rates. The resulting inflation is dampening consumer sentiment.

Any further deterioration of the situation in the Middle East could exacerbate price increases and tighten supply. Adding to these pressures, strong demand from AI companies is causing serious shortages of certain electronic components.

Despite this challenging operating environment, group revenue is expected to grow in the financial year 2027. Sales of ELPs and telecommunication products are forecast to increase, while CMS revenue remains steady year on year.

Gross profit margin is projected to decline, reflecting rising material costs. ELPs revenue in the financial year 2027 is projected to increase, supported by solid performance from both standalone and platform products.

The group's robust product lineup for calendar year 2026 has already garnered encouraging retailer support. Sales of standalone products are expected to rebound, underpinned by an expanded infant, toddler, and preschool product lineup.

Revenue will be further driven by two additions to the popular KidiStar musical toy line: the Rockstar Guitar and DJ Mixer Pro. Completing the lineup is a growing portfolio of licensed products featuring popular IPs.

These include Toy Story 5, Bluey, PAW Patrol, as well as Spidey and His Amazing Friends. Among them, LeapFrog's Toy Story 5 Explore and Learn Lilypad is expected to perform especially well.

Growth in China is also driven by strong product offerings. These are led by a brand-new range featuring the iconic Japanese IP, Anpanman, and complemented by additions to the popular Peppa Pig range.

For platform products, growth momentum will be fueled by strong second-year sales of the award-winning LeapMove. Its software library will be expanded to include titles based on licensed characters, as well as those that support the new two-player mode.

Telecommunication products sales are forecast to increase in the financial year 2027, underpinned by a solid pipeline of new products. Residential phones sales will benefit from new LTE home devices in the US and Europe.

A strengthened Gigaset portfolio is expected to drive further market share market share gains. Sales of commercial phones and smart phones are projected to increase, fueled by expanded ranges and product innovations.

Key launches include the Crew PTT push-to-talk solution for the multicell DECT system, new Wi-Fi phones for the Gigaset pro range, and new Snom SIP desktop models. Next generation of Gigaset smart phones, GX30 and GX50, will further support growth.

The ongoing transfer of the customer's IP phone production to Gigaset German facilities will be an additional driver for growth, as will upcoming Gigaset headsets. Innovations continue across other telecommunication products, highlighted by the rollout of a new AI-enabled baby monitor in Australia this month.

It will be followed by launches in global markets over the course of the calendar year. CMS revenue is projected to remain stable in the financial year 2027 despite lingering geopolitical uncertainty.

While customers continue to maintain lean inventories, overall business confidence has improved. Accordingly, sales across key product categories, including professional audio equipment and hearables, are expected to remain broadly stable.

Building on this foundation, CMS will continue to develop its ODM business. The facility expansion in Muar, Malaysia is on schedule for completion by mid-2027.

This expansion will double the group's existing production capacity in the country. In addition, the facility in Tecate, Mexico is now fully operational.

It provides comprehensive turnkey electronic manufacturing services to US customers, further strengthening our geographical diversification. Thank you for your attention.

This concludes our presentation. We will now be pleased to address any questions you may have.

Before taking my questions, this is Jason Lu from CITIC Securities, and I have two questions. The first question is about the electronic learning products, and we were encouraged by the strong sales performance of new launches like LeapMove and Magic Adventures Globe last year.

If I have a correct understanding, the LeapMove will be also the revenue driver in the next year. My question is, can you share any colors on the pipeline of some new products?

Also, what's the latest progress on the AI-enabled products in recent years? The second question is about the US business.

We can see that following the President Donald Trump's recent visit to China, we have seen some signs of easing in US and China relations. Could management comment on whether it is a positive factor for VTech's business expansion in the US market?

Is it reasonable to expect a stronger growth rate across all three business segments in the US market? Thank you.

I will have King answer the first question, and I will comment on the second one maybe.

Thank you for the question, Jason. If I picked up your question correctly, it is on our lineup of new products.

Like I have said over the years, every year we launch over a hundred new products, it will be obviously impractical for me to go through all of them. You started with LeapMove.

The LeapMove story is still very big in 2026. Our experience in platform products normally, the biggest year is not the first year of a platform product.

The biggest year is after the first year; it's the second, third, or even the fourth. In the case of V.Smile in the past, actually it lasted for over 10 years.

The main reason for a bigger year for LeapMove in the second year is because it will get broader retail listing, more shelf space, and more importantly, or at least as importantly, is there will be more contents, more software. Like I reported in the outlook, the software library is going to be broaden.

Our first year launch, we did not have licensed contents, and this year we're going to have a number of licensed contents. The new two players mode is actually more than double the fun of one person playing.

I'm sure our marketing colleagues are going to be trumping all this great new contents and titles and the two-player mode. Now, in terms of there are refreshers and updates for other platform products, but if I may spend a couple of minutes on standalone products.

In the outlook, we also highlighted licensed products. Toy Story 5 is going to be big, and the almost beginning to become an evergreen, PAW Patrol will continue to be very good, Bluey is will continue to be very good, Spidey and His Friends will also continue to be very good.

The share of licensed products in all the major markets have been increasing year-on-year for a number of years. In the US, the licensed products accounted for as much as 40% of the market.

Licensed product is going to be a focus for us, but and of course, there will be other what we call generic, unlicensed standalone products for the infant, toddler, and preschool ranges. Thank you.

Yes. As to your second question about the US market outlook after Trump's visit to China, all I can say is the tariff situation for the current year has been stabilized, namely the tariff after being struck down by the Supreme Court no longer apply to our products.

There's only there's only well, there's still one tariff according to Section 122 left, which is 10% to to our products. That tariff still exist, but it's still much lower than what we have last year.

In that respect, the sentiment is much better without the tariff, and the all the situation is more stabilized. Now, of course, the negative factor are the conflict in the Middle East leading to inflation in the US that may dampen certain consumer sentiment.

Overall, the US market are going to look more positive than last year. Thank you.

Thank you. I have a small one follow-up questions.

It's about the AI products of electronic learning products. Can we see some product launch on the next year or we should late always for

a

certain time? We have

I think this questions has been asked in the past. We actually have a number of products in prototypes in our lab, and we are taking a very cautious and measured approach in launching them.

I may also add, without putting words in their mouths, the major retailers, especially in the US and Europe, they are very, very cautious because it has to be very tightly managed, and one really doesn't know where the traps are in terms of data privacy, in terms of parental control, all these problems. The technology is there.

Okay. Can you hear me?

Okay. Yes, great.

Regarding tariffs, how much has been paid by VTech, and how much have you reclaimed so far?

Okay. Now, I cannot share with you the exact figure, but all I can say is we have filed all the claim into the website opened up by the customs section.

The claims are in progress. Also, at this point in time, some a small amount of tariff has been already refunded, but again, it's we can't share with you the exact amount.

That's all I can say.

Thank you. A completely different question.

If you segment your turnover in services and in say hardware, what's the percentage of services in your total turnover?

Can you repeat your question?

Yes. When you look at all your sales, some sales are services.

For example, take LeapFrog Academy. Maybe there are design services in CMS or in the phone business.

What is the percentage of these services of the total revenue of VTech,

and

is there any plan to increase this share? Okay.

Yes. Your question is essentially what are sales which is not hardware-based, okay?

Whether it's selling of software, selling of services like the LeapFrog Academy, it's still a small percentage of our overall sales. We love to increase those, particular the LeapFrog Academy, because those are very good margins to the bottom line.

At this point in time, it's still very small.

Thank you very much.

Thank you.