Vtech Holdings Limited · HKEX:303

Vtech — Investor Presentation (2003)

23 slides from Vtech's investor presentation, 2003

  1. Slide 1: Corporate Governance Scorecard Project

    Corporate Governance Scorecard Project Organized by:- Sponsored by:- HKIoD Corporate Governance Development Foundation Mr. Herbert H M Hui Mr. Peter S H Wong Executed by:- Prof Stephen Y L Cheung City University of Hong Kong 1

  2. Slide 2: Research Committee

    Research Committee • Coordinator – Prof. Stephen Y L Cheung (City University of Hong Kong) • Members – Dr. Aristotelis Stouraitis (City University of Hong Kong) – Dr. J. Thomas Connelly (Chulalongkorn University) – Dr. Piman Limpaphayom (Chulalongkorn University) – Ms. Lynda Zhou (City University of

  3. Slide 3: Research Methodologies I

    Research Methodologies I • Survey results based on publicly available information • HSI, HSHKCI, HSCCI, and HSCEI constituent stocks • Based on information disclosed in 2002 • 168 major companies are covered 3

  4. Slide 4: Surveyed Companies I (as at 9/2003)

    Surveyed Companies I (as at 9/2003) Allied Group (373) Brilliance Chi (1114) China Pharma (1093) CNAC (1110) Allied Ppt (HK) (56) BYD Company (1211) China Res Land (1109) CNOOC (883) Angang Newsteel (347) Cafe De Coral H (341) China Res Logic (1193) CNPC (Hong Kong) (135) Anhui Conch (914) Cathay Pa

  5. Slide 5: Surveyed Companies II (as at 9/2003)

    Surveyed Companies II (as at 9/2003) Esprit Holdings (330) GZI Transport (1052) HSBC Holdings (5) Jiangxi Copper (358) First Pacific (142) HAECO (44) Huadian Power (1071) Johnson Elec H (179) Fong's Ind (641) Hang Lung Group (10) Huaneng Power (902) K M Bus Hold (62) Forefront Int'l (885) Hang Lung

  6. Slide 6: Surveyed Companies III (as at 9/2003)

    Surveyed Companies III (as at 9/2003) MTR Corporation (66) Shanghai Ind H (363) Sinopec Kantons (934) TVB (511) New Asia Realty (49) Shanghai Pechem (338) Smartone Tele (315) Varitronix Intl (710) New World Dev (17) Shangri-la Asia (69) SW Kingsway (188) Vitasoy Int'l (345) Next Media (282) Shenzhen

  7. Slide 7: Research Methodologies II

    Research Methodologies II • Avoids subjectivity bias • Not dependent on companies’ willingness • However, not as rich as an internal assessment ... • ... and captures only what the companies released in public and their documentation • Written request was sent to individual companies. Only a few com

  8. Slide 8: Objectives of Corporate Scorecard for Hong Kong Listed Companies

    Objectives of Corporate Scorecard for Hong Kong Listed Companies Encourage adoption of best practice of corporate governance in Hong Kong through a systematic evaluation of current practices Hopefully Set up processes to Define a methodology/ Develop specific criteria evaluate corporate framework to

  9. Slide 9: Consistency

    Consistency • Each company was rated by two different members • The overall results were cross-checked by academics 9

  10. Slide 10: Scorecard Followed The Five OECD Corporate Governance Principle

    Scorecard Followed The Five OECD Corporate Governance Principle Number of OECD principle questions & sub-questions • OECD is A. Rights of 16 internationally shareholders recognized B. Equity of 10 shareholders • HKEx guidelines C. Role of 4 comprehensively stakeholders D. Disclosure and 30 covered t

  11. Slide 11: Positive Correlation between Good Corporate Governance and Company Valuation

    Positive Correlation between Good Corporate Governance and Company Valuation 2002 End 10 9 8 7 6 Tobin's Q 5 4 3 2 1 0 30.00 35.00 40.00 45.00 50.00 55.00 60.00 65.00 70.00 75.00 80.00 Score 11

  12. Slide 12: Market Valuation (Tobin's Q) by Corporate Governance Entry Quartile

    Market Valuation (Tobin’s Q) by Corporate Governance Entry Quartile Mean Score 1.80 1.60 Market Value (Tobin's Q) 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 1 2 3 4 Ranking 12

  13. Slide 13: Corporate Governance Performance by Indices

    Corporate Governance Performance by Indices Strong 80 Range 75 70 Mean 65 60 Scores 55 HSI 50 HSHKCI HSCCI All 45 HSCEI 40 35 30 Weak 數 數 數 數 13

  14. Slide 14: Corporate Governance Performance by Industries

    Corporate Governance Performance by Industries Strong 80 Range 75 70 Mean 65 60 Scores 55 50 45 40 35 30 All Industrial Properties Finance Utilities Consolidated Hotel & Enterprises Misc Weak 14

  15. Slide 15: Corporate Governance Performance by Categories

    Corporate Governance Performance by Categories Strong 110 Range 100 Mean 90 B 80 82.78 D C 74.88 70 Scores 69.54 E 60 60.7 50 A 40 42.96 30 20 Weak A: Rights of Shareholders ( 利) B: Equitable Treatment of Shareholders ( ) C: Role of Stakeholders in Corporate Governance (利 理 ) D: Disclosure and Trans

  16. Slide 16: A. Rights of Shareholders

    A. Rights of Shareholders ( 利) Improvements: 84.49 • Improve the quality of Notice to Call Shareholders Meeting • Attendance of all Board members • AGM minute – any Q&A sessions? 27.79 – any resolutions being solved? 16

  17. Slide 17: B. Equitable Treatment of Shareholders

    B. Equitable Treatment of Shareholders ( ) Improvements: 93.33 • Provide rationale/ explanation for related-party transactions • Allow minority shareholders to influence the Board 63.33 • To facilitate voting by proxy 17

  18. Slide 18: C. Role of Stakeholders in Corporate Governance

    C. Role of Stakeholders in Corporate Governance (利 理 ) 100 Improvements: • Disclose more details on the safety and welfare of its employees • Long-term employee incentive plan 41.67 18

  19. Slide 19: D. Disclosure and Transparency

    D. Disclosure and Transparency ( ) Improvements: 90.33 • Transparency in ownership structure • Quality of Annual Report – Basis of Board members’ 64.01 remuneration – Operating risks • Communication with shareholders – Website’s contents 19

  20. Slide 20: E. Board Responsibilities

    E. Board Responsibilities ( ) Improvements: 81.67 • A set of written corporate governance rules • Corporate vision/mission • The quality of the Audit Committee Report in the Annual Report 41.67 – Attendance – Internal control – Management control, etc. 20

  21. Slide 21: Results

    Results • NOT finger-pointing exercise • Important input for policy-makers, companies, and the public • Score for individual companies will not be made public • Feedback report can be obtained for individual companies 21

  22. Slide 22: The Top 10 Best Performing Companies

    The Top 10 Best Performing Companies (by alphabetical order) • Asia Satellite (1135) • Bank of East Asia (23) • China Mobile (941) • CLP Holdings (2) • HK & S Hotels (45) • HKEx (388) • HSBC Holdings (5) • Linmark Group (915) • MTR Corporation (66) • Vtech Holdings (303) 22

  23. Slide 23: END

    ~ END ~ 23

Vtech Holdings — Investor Presentation (2003) on 6ix