Good afternoon, ladies and gentlemen, and welcome to all viewers online. Today, VTech Holdings Limited is announcing its results for the year ended 31st of March 2014. For your reference, the webcast of this announcement, accompanied by the presentation you will see shortly, will be available on VTech website starting at 10:30 P.M. this evening, Hong Kong time. Here to present the results, on my left are Mr. King Pang, Executive Director and Group President. Mr. Allan Wong, Chairman and Group CEO of VTech Holdings. Mr. Andy Leung, Executive Director and CEO of Contract Manufacturing Services. And Ms. Shereen Tong, Group Chief Financial Officer. First of all, Ms. Tong will present the Group financial performance. Next, Mr. Pang will review the Group's operations. Mr. Wong will then talk about the Group strategies and the business outlook. We will finish our presentation with a Q&A session.
Now, may I invite Ms. Tong to open today's presentation. Ms. Tong, please.
Thank you, Grace. Good afternoon, ladies and gentlemen, and all viewers online. First of all, I would like to share with you the financial highlights of the Group for the year ended 31st of March 2014, compared with the same period of the last year. As you see from the slide, the revenue of the Group rose by 2.2% to $1,898.9 million. It was also our record revenue for the fourth consecutive year. The gross profit of the Group rose by 6.1% to $634.3 million. Our gross profit margin also improved from 32.2% to 33.4%. The increase in both gross profit and gross profit margin was mainly due to the decline in material cost, which offset the higher labor cost and manufacturing overhead arising from the increase in wages and production capacity, as well as the renminbi appreciation during the financial year 2014.
Our operating profit rose by 1% to $226.1 million. The improvement in operating profit was mainly due to the increase in gross profit and gross profit margin, which offset the increase in total operating expenses. Our operating profit margin, however, reduced slightly from 12% to 11.9%. The decrease in operating profit margin was mainly due to the increase in total operating expenses as percentage of the Group's revenue, which was mainly arising from the increased spending on the Group's advertising and promotional activities, especially for our children's educational tablets, in response to the key market competition. Our profit attributable to shareholders rose by 0.9% to $203.3 million, while our net profit margin reduced slightly from 10.8% to 10.7%. As a result, our basic earning per share rose by 0.6% to $0.811 .
Our Board of Directors has proposed a final dividend of $0.64 , bringing the total dividend per share for the year to $0.80 . Turning to the revenue by region, North America remains the largest market of the Group, accounting for 50.1% of the Group's revenue. Our sales in North America rose by 1.9% to $950.7 million. The growth in revenue was mainly due to the higher sales of our telecom products and contract manufacturing services business, which offset a decrease in revenue of our electronic learning products. Our sales to European market rose by 2.8% to $791.8 million. The sales growth in Europe was driven by the higher sales of our electronic learning products and contract manufacturing services business, which offset a decrease in revenue of our telecom products. In Asia- Pacific region, the revenue of the Group rose by 9.1% to $108.9 million.
The increase in revenue was due to the increase in sales of all our three product lines. Other Regions include Latin America, Middle East and Africa. The Group's revenue in Other R egions reduced by 13.5% to $47.5 million. The decrease in sales in Other Regions was mainly due to the lower sales of our telecom products and electronic learning products. Our stock balance, as at 31st of March 2014, reduced from $276.9 million to $265.9 million. Our stock turnover days also reduced from 90 days to 87 days. The decrease in stock level was mainly due to our management efforts to improve the stock management. Our trade debtors balance, as at 31st of March 2014, reduced from $224.9 million to $208.6 million. Our trade debtors turnover days also reduced from 62 days to 54 days.
The decrease in trade debtor balance was mainly due to our continuous efforts to tighten the debt collection and credit exposure management. Our financial positions remain very strong. We were debt-free, and our net cash balance as at 31st of March 2014, was $322.9 million, increased by 4.6% from the last financial year-end date. That is all my presentation. I would now invite Mr. King Pang to share with you our operations review. Mr. Pang, please.
Thank you, Shereen. Good afternoon, ladies and gentlemen, and a warm welcome to our viewers online. I will now take you through a review of our operation for the financial year 2014. After that, Mr. Wong will share with us our growth strategies, as well as our outlook for the financial year 2015. As in prior years, I will first take you through a brief review of the cost environment during the fiscal year 2014. As you have heard, Group's gross margin improved in the financial year due to lower material cost and it more than offset higher labor cost and manufacturing overheads. Manufacturing cost declined for two reasons, mainly. First, global demand for raw materials continued to be subdued during the period. Second, we continued to make strides in re-engineering and optimizing our product, which, among other things, also benefited us in terms of cost.
During the period, we also succeeded in countering the rise of minimum wage in China as we made efforts to raise productivity through automation and process improvement. As a result, in spite of high output from the Group overall, on average, we employed 11% less workers during the financial year as compared to the previous financial year. Manufacturing overheads, however, increased owing to the higher production capacity of the Group during the financial year, as well as inflations in China and appreciation of renminbi. Turning now to revenue. As usual, I will begin with North America, where Group's revenue increased by 1.9% to $950.7 million. North America remains VTech's largest market, accounting for 50.1% of Group's revenue. During this financial year, high revenue of our telecommunications products and from our contract manufacturing services offset lower revenue from electronic learning products.
Diving into electronic learning products, our ELP revenue declined by 1.1% to $358.1 million . This decrease was driven by lower sales of platform products, which include InnoTab, MobiGo, and V.Reader. In tablets specifically, we faced very strong competition in the market during the year. At the same time, sales of MobiGo 2, our children's learning game console, suffered again because of the popularity of tablets. Our children's e-reader, V.Reader, has reached the end of product life cycle during the financial year. Stand-alone products, however, posted good growth in North America. This was driven by the Go! Go! Smart Wheels line of infant vehicles, our core infant educational products, as well as our Switch & Go Dinos preschool vehicle products. During this financial year, we had the full launch of the Go! Go! Smart Wheels line in all major retailers in the U.S.
This followed from a limited launch in the prior financial year. This full launch boosted sales significantly. In this range, we offered a large number of vehicles and playsets, and among them, the train station and airport playsets were our best performers. In our core infant product line, Sit-to-Stand Learning Walker and the Alphabet Activity Cube performed especially well, and they were among the best sellers of all infant toys in the U.S. during the year. We also achieved growth, as I said, in the Switch & Go Dinos preschool vehicle line, which during the financial year, we introduced a number of new models. Telecommunication products. Telecommunication products in North America reported revenue of $398.6 million , an increase of 2.4% compared to the prior financial year.
This sales was driven by higher sales of our residential phone products, our commercial phone lines, as well as products in our other telecommunications products category. During this financial year, our residential phones benefited from further consolidation of the indoor cordless phone market, and we gained market share. Managing to maintain our number one position in the U.S. residential phone market and increasing our distance from our competitors in the market. Sales of commercial phone and other telecommunication products also increased. Positive momentum continued for our small and medium business phones, especially our SynJ and Syn248 multi-line cordless phone products. Higher sales were recorded for our baby monitor products as we expanded our distribution channels. In the area of hotel phones, we also grew, and VTech hotel phones expanded our customer database to an increasing number of the world's leading hotel chains.
CareLine, which is our home safety telephone system designed specifically for senior citizens. It achieved increased sales and received many favorable online reviews during the financial year. In March this year, we launched in North America our ErisStation, the Group's first conference phone. It features four DECT 6.0 microphones with our proprietary Orbitlink Wireless Technology. I am pleased to report that the launch was successful, and we received very favorable comments. Turning next to contract manufacturing services. In North America, our contract manufacturing services revenue increased by 6.5% to $194 million . During the financial year, sales of professional audio equipment, solid-state lighting, home appliances, and communication products all reported high revenue, and this offset lower sales of industrial products. In professional audio equipment, in North America, we added a new customer and secured many orders from an existing account.
Solid-state lighting products also posted solid growth as our new client ramped up its production and orders. Sales of home appliances and communication products also increased, supported by new product launches of our customers, as well as more orders for our Voice over IP phones. Turning next to Europe. Group revenue in Europe was $791.8 million , an increase of 2.8% compared to the prior financial year. Europe accounted for 41.7% of the Group's revenue. Starting with electronic learning products. Electronic learning products recorded a 16.5% increase in revenue , compared to the prior financial year, to $385.8 million . This increase was broad-based, being driven both by platform and boxed products or standalone products. The growth in standalone products in Europe was driven by our Toot-Toot Drivers range, which is our European name for Go! Go! Smart Wheels.
It was also contributed significantly from our core infant educational product lines, as well as Kidizoom and our Kidi line of products. I am happy to report that during the calendar year 2013, VTech was the number one market player in the overall infant toy category in France, the U.K., and Germany. In platform products, children's educational tablets continue to grow in our European markets. The InnoTab range of children's educational tablets was updated for the U.K. market through the introduction of InnoTab 3 and InnoTab 3S, while Storio 2 was sold in all our major European markets. In the calendar year 2013, for a second year in a row, Storio continued to be the number one children's educational tablet in Europe, or more specifically, the so-called [EU5 ]. Telecommunication products. Revenue decreased by 24.2% to $154.3 million . This decline was mainly due to lower sales of residential phones.
In this market, we faced decline in the fixed-line telephone market, as well as a generally weak economy. During this financial year, we also made the conscious decision to focus on higher-margin businesses. In the areas of commercial phones and other telecommunications products, sales of baby monitors, connected home devices, and hotel phones were higher. This offset lower sales of integrated access devices. In January, in Europe, we began initial shipment of our conference phone and SIP phones to the U.K. and France. These products have been very well received by both our customers as well as the end users. CMS. CMS revenue in Europe increased by 7.1% to $251.7 million . In Europe, professional audio equipment, wireless headsets, and home appliances all recorded higher sales. These offset lower revenue from switching mode power supplies, as well as medical and health products.
Professional audio equipment delivered robust growth in Europe as we benefited from new product launches by our existing customers. We have also seen higher orders from our new accounts in Germany. In the area of wireless headsets, we have seen decent growth as VTech gained market share, thanks to our better services compared to our competitors. At the same time, good sell-through of our client's products is also a factor for the higher revenue. Sales of higher home appliances also increased due to increased orders from a new Italian customer in this product category. Switching mode power supplies and medical and health products, however, saw sales decline. This is due to our switching mode power supplies customer divesting its solar power inverter business. In the area of medical and health products, our client's product did not sell as expected, resulting in lower orders. Moving on to Asia-Pacific.
In Asia-Pacific region, revenue increased by 9.1% to $108.9 million . This region represents 5.7% of Group's overall revenue. ELPs revenue in Asia-Pacific increased by 9.2% to $21.3 million . For ELP, during this financial year, strong growth was recorded in China, where we have seen revenue increases both from our traditional sales channels as well as from our online sales. Good sales increases were also seen in Korea as we made more inroads into the market. Sales in Australia, however, registered a decline. Revenue from telecommunications products in this region grew by 8.7% to $41.1 million . This was mainly due to higher sales in Australia, China, and Japan. In Australia, telecommunications products sales rose as we increased our share of cordless phone market in Australia.
During the financial year, the Group also started selling baby monitors to Australian customers, adding growth in this market. Sales in China also increased as we increased our market penetration by introducing new VTech and AT&T branded phones. In Japan, sales growth was due to the addition of a new ODM customer. Contract manufacturing services. CMS revenue rose by 9.4% to $46.5 million . In CMS, Japan posted higher sales. It was driven by more orders from the categories of marine radio, as well as medical and health products. Australia also recorded sales growth, with sales increases in professional audio equipment, home appliances, as well as medical and health products. However, sales in China and Korea were lower as orders for solid-state lighting and Bluetooth speakerphones declined. Finally, Other Regions. Again, Other Regions comprise Latin America, the Middle East, and Africa.
Group revenue in these regions declined by 13.5% to $47.5 million . Due to lower sales of telecommunications products and electronic learning products. This region accounted for 2.5% of the Group's revenue. ELP revenue in Other Regions dropped 28% to $13.4 million , where all regions recorded lower sales. Revenue from telecommunication products in Other Regions fell 7.6% to $32.9 million . With Latin America and the Middle East recording sales decreases. Contract manufacturing services revenue in Other Regions was $1.2 million , and this compared to $0.7 million in the prior financial year. This concludes my operations report. I will now ask Mr. Wong to come to share with us our growth strategy, as well as his outlook for the coming year. Allan.
Thank you, King. Good afternoon to you all. Those of you who know us well, we recall that VTech's proven strategy centers on four growth drivers: product innovation, gains in market share, geographic expansion, and operational excellence. Product innovation has given the Group leadership in core product categories while acting as the driver for growth in the new product area. Our ELPs have benefited from tremendous growth in areas beyond the learning aisle, and we will build this momentum by introducing new product ranges. The infant-toddler vehicle line, Go! Go! Smart Wheels, which we have heard from King, and its playsets were strong performers in the last financial year. Riding on their successes, we will increase our presence in the playsets with the launch of Go! Go! Smart Animals in the U.S. and Europe. More vehicles and playsets, meanwhile, will be added to the Go! Go! Smart Wheels line.
The Switch & Go Dinos range will also expand further with the introduction of Switch & Go Dinos Turbo, which will add nine new models to the range. We will also continue to broaden our learning product portfolio. More than 100 new standalone products targeting infants, toddlers, preschoolers, and grade- schoolers will be introduced globally this year. In platform products, VTech continues to innovate to capture the latest trends. Kidizoom Smartwatch is the world's first children's smartwatch with a camera. It will hit the shelves in both the U.S. and Europe this summer. To maintain momentum in children's tablets, we will upgrade InnoTab with new versions, including InnoTab MAX, which is with a larger screen. For telephone products, growth will be driven by commercial phones and other telecommunication products, which will see new offerings across the spectrum in this financial year.
A new range of SMB phones will be launched under the VTech brand. This will include a new model of conference phone and wireless microphones, new SIP phones, and a four-line SIP-based telephone system catering to the needs of small businesses. Our range of baby monitors will be enhanced by the introduction of more video and audio models. For connected home devices, in addition to Wi-Fi video, a new family of home monitoring devices based on the DECT Ultra-Low Energy standard will be launched in the second half of this financial year. In residential phones, we continue to develop products with new styling and features. The DECT platform has been re-engineered to make it more cost-competitive. This supports our strategies to revitalize the European telephone products business and strengthen our leadership position in the U.S.
We will also introduce new CAT-iq handsets in Europe, offering affordable, high-definition voice quality supporting multiple lines. The ability to offer design for manufacturing, flexible services, and manufacturing know-how in a number of product categories has made VTech CMS a leading contract manufacturer. We have a dedicated manufacturing facility offering reduced logistics and customs clearance cost. This is for customers wishing to distribute their products in China. Our stringent quality control system and experienced staff allow us to handle low to medium volume, as well as a high mix of different products. Gains in market share will continue to be the growth driver for the Group. VTech was the global leader in ELPs from infancy to preschool in 2013. Our pipeline of new products will enable the Group to strengthen our market leadership in the core learning area, while pursuing growth in new areas.
In addition to leadership in ELPs, VTech remains the world's number one manufacturer of cordless telephone in 2013. In 2014, further market share gains are expected for our telephone products in the U.S. and Asia-Pacific. Our market share in Europe and Other Regions will recover, driven by new product launches and the signing of a new major distributor for the Middle East. Our commitment to quality products and services have enabled CMS to win market share year after year. According to Manufacturing Market Insider, VTech CMS ranked among the world's top 50 EMS providers in 2013. We expect to continue to increase our CMS sales globally in the current financial year. Geographic expansion will see us put more emphasis on expanding outside North America and Western Europe in order to capture growth opportunities.
In Asia-Pacific, the potential in China is huge, and we will continue to be our most important market for development. The developed market in the regions such as Australia and Japan will continue to be a focus. We will also extend our reach to other markets here, including Taiwan, Malaysia, and Korea. In Other Regions, we aim to grow sales in Latin America and Middle East. Operational excellence underpins VTech's successes. As costs in China are set to rise further, operational efficiency is becoming increasingly important. In addition to process improvement and product optimization for manufacturing, we will increase our application of automation by deploying more commercially available and in-house custom-made machines. This will reduce the number of workers further, even as output increases. Now, let us turn to the outlook for our business.
The economic recovery in the U.S. appears to be on a sustainable footing, while the economies of Western Europe are improving. With a stabilized market environment and new products ready to be launched, we are targeting further revenue growth in the financial year 2015. Sales of ELPs are forecast to increase as the strong momentum in our standalone products carries through. Innovative products including Go! Go! Smart Animals and Switch & Go! Dinos Turbo, as well as new core learning products, will drive growth. Despite the introduction of Kidizoom Smartwatch, sales of platform products are still expected to be challenging. InnoTab, meanwhile, will face rising competition as more low-cost tablets are being introduced to the consumer electronic aisles. Telecommunication products revenue is also expected to increase. Growth will be driven by commercial phones and other telecommunication products.
As we introduce new products and make higher shipments of continuing products, sales of residential phones in Europe and Other Regions are expected to recover, while in Asia-Pacific, growth will continue. In the U.S., although the residential phone market will shrink further, VTech will continue to increase its market share. We expect CMS to grow further. Business with existing customers will increase as the Group continues to take market share from the competition. New customers will add a further stimulus to growth. To cope with higher expected demand over the next three years, we are planning to add a new CMS factory building. This will raise manufacturing capacity by 25% once it enters operation in the middle of next year. Regarding cost, the Group's gross profit margin is expected to be stable.
Material prices are expected to hold broadly steady, although labor cost and manufacturing overheads in China will continue to rise. Efficiency gains through automation, process improvements, and product optimization should offset higher cost in China. VTech's product innovation and operational efficiency have given it market-leading position in a number of areas. The Group continues to gain market share and expand geographically while maintaining a strong financial position. We will continue to explore every avenue of potential growth to generate higher return for shareholders.