Good afternoon, ladies and gentlemen, and welcome to all of our online viewers. Today, VTech Holdings Limited is announcing its results for the six months ended 30th of September 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. Then Mr. Wong will give his 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 six months ended 30 of September 2014, compared with the same period of the last year. As you see from the slide, the revenue of the group rose by 2.9% to $900.8 million. The increase in revenue was driven by the higher sales in Europe and Asia Pacific region, which offset a decrease in revenue in North America and other regions. Our gross profit rose by 2.7% to $219.2 million, and our gross profit margin also increased from 31.7% to 32.2%. The increase in both gross profit and gross profit margin was mainly due to the decline in material cost. The labor cost and manufacturing overheads also remained largely stable.
Our efficiency gains through automation, process improvement, and product optimizations continue to offset the higher wages in China during the period. Our operating profit rose by 7.5% to $130.2 million and our operating profit margin also increased from 11.8% to 12.6%. The increase in both operating profit and operating profit margin was mainly due to the increase in gross profit and gross profit margin, as well as the reduced spending on advertising and promotional activity as a percentage of the gross revenue, and also the decrease in our earned expenses. These offset the high employee-related costs compared with the same period of the last year. Our profit attributable to shareholders rose by 7.5% to $102.7 million, and our net profit margin also increased from 10.7% to 11.4%.
As a result, our basic earnings per share rose by 7.3% to $0.409, and our board of directors has declared an interim dividend per share of $0.17, increased by 6.3% compared with the same period of the last year. Turning to the revenue by region. North America remained the largest market of the group, accounting for 15% of the group's revenue. Our revenue in North America reduced by 1.1% to $415.6 million. The decrease in revenue was due to the lower sales of our electronic learning products and the contract manufacturing services business, which offset the increase in revenue of our telecom product in that region. As for European market, our revenue rose by 2% to $359.9 million.
The higher sales of our contract manufacturing services business and the steady revenue of our electronic learning product offset the decrease in revenue of our telecom products compared with the same period of the last year. Our revenue in Asia Pacific region increased by 16.9% to $61.6 million. The increase in revenue was driven by the higher sales of all our three product lines in the first half of the financial year. Other regions include Latin America, Middle East, and Africa. Our sales in other regions reduced by 8% to $28.7 million. The decrease in revenue in other regions was mainly due to the decrease in sales of our telecom product and electronic learning products compared with the same period of the last year. Our stock balance as at 30 of September 2014 reduced from $399.3 to 357.4 million compared with the same period of the last year.
Our stock turnover days also reduced from 126 days to 114 days compared with the same period of the last year. Our trade debtors balance as at 30 of September 2014 increased from $318.2 to 387.4 million. Our trade debtors turnover day, however, maintained the same at 59 days compared with the same period of the last year. Our financial positions remain very strong. We were debt-free, and our net cash balance as at 30 of September 2014 was $106.4 million, increased by 12.4% compared with the same period of the last year. That is all of my presentation. May I now invite Mr. King Pang to share with you our operation review. Mr. Pang, please.
Thank you, Shereen. Thank you, Shereen. Good afternoon, ladies and gentlemen, and a special welcome to our viewers online. As in past reports, I will start with an update on the cost environment. As you have just heard, the group's gross margin improved in the first half of the financial year 2015, and this is partly due to a slight easing of our cost pressures. Cost of materials was lower due to falling component prices. During this reporting period, wages in China continued to rise while the renminbi weakened slightly against the U.S. dollars. Sorry. Our labor costs and manufacturing overheads remained largely stable as automation, process improvement, and product optimization continued to generate efficiency gains for the group. I will now move to reporting our regional results one by one, starting with North America.
In North America, revenue in the first six months of the financial year was $415.6 million, down 1.1% over the same period last year. This was mainly due to lower revenue from the electronic learning products and contract manufacturing services. Despite the sales decline, North America remains the largest market for the group, accounting for 50% of group's revenue. ELP revenue of North America was $141.2 million, a 10.5% decrease. The decline was attributable to lower sales of platform products, which was only partially offset by higher sales of standalone products. Despite the challenging market, we continued to increase our presence. During the first nine months of the calendar year, we became the number one manufacturer in the category of infant and preschool electronic products in the U.S. Children's educational tablet market in the U.S. was difficult.
Our fourth generation children's education tablets, InnoTab 3 Plus and 3S Plus, hit the shelves in August 2014. However, high channel inventory and increasing competition led to heavy discounting, resulting in price pressure and reduced shipments for our tablets in the education aisle. In other platform categories, the handheld gaming console, MobiGo, is reaching the end of its product life cycle and therefore only contributed very minimal shipment.
Continuing our history of product innovation, VTech has harnessed the latest technology trend in smartwatches for adults and brought it to children with the launch of Kidizoom Smartwatch, the world's first smartwatch for children with a built-in camera. It hit retailer shelves in the U.S. in July of this year. Sales to date have been strong.
Our smartwatch has been honored in numerous top toy lists, including Walmart's Chosen by Kids Top 20 Toys, Kmart's Fab 15 list of hot toys, and The Toy Insider's Top Tech 12 list. Standalone products continued to perform well during this period in North America, led by core infant products and the Go! Go! Smart Wheels, our line of smart infant vehicles and play sets.
The newly introduced Go! Go! Smart Wheels Ultimate Amazement Park play set was named one of the hottest holiday toys by U.S. retailers, securing listing that include Walmart's Chosen by Kids Top 20 Toys and Target's Top Toy. Go! Go! Smart Animals, a brand-new extension of the successful Go! Go! Smart Wheels line, also reached U.S. retailer shelves in August. It has contributed to the growth of standalone products. Moving now to telecommunications products. Revenue from telecommunications products in North America increased by 6.8% to $215.3.
The growth was driven by higher sales of residential phones, commercial phones, and other telecommunications products. For residential phones, we continued to gain market share in North America against the backdrop of a declining market. In other telecommunication products, sales of baby monitors grew strongly as we expanded distribution channels and launched new models. Among commercial phones, sales of small to medium-sized business phones and hotel phones increased. New VTech-branded SMB phones include the ErisStation, a conference telephone with four wireless microphones. The ErisTerminal, a SIP-based business phone, and the ErisBusinessSystem, a four-line business phone system. These have been shipped to customers since April of this year and have received positive feedback. They all contributed to our incremental telecommunications revenue. Moving next to contract manufacturing services. CMS revenue in North America was $94.1 million, down 2.5% from the same period last year.
The decline was primarily due to lower sales of professional audio equipment, communications products, and home appliances, offsetting higher sales of solid-state lighting. Sales of professional audio equipment were lower as the customer completed the transfer of one of their product families to its own manufacturing facility, a facility that had excess capacity. Sales of communication products and home appliances also decreased as demand for customers' products dropped. The sales decline was partially offset by higher sales of solid-state lighting, driven by more business from an existing customer and the ramping up of orders by a new customer. During the period, we added a new customer in the area of medical and health area, generating incremental business. Moving next to Europe. Group revenue in the first six months of the financial year in Europe was up 2% to $359.9 million. This is mainly due to higher sales of CMS.
Europe is the second-largest market of the group, representing 40% of group's revenue. Electronic learning products revenue in Europe was $141.5 million, the same as the same period last year. Higher sales of standalone products offset lower sales of platform products. Among our key Western European markets, sales were high in France, Germany, Belgium, and Spain, whereas sales in the U.K. declined during these first six months. In terms of market share, during these first nine months of the calendar year 2014, VTech has further strengthened our position as the number one infant manufacturer in each of France, the U.K., and Germany. Among standalone products, infant products saw higher sales, Toot-Toot Drivers. VTech's line of smart infant vehicle play sets achieved robust growth as consumers continue to respond positively to the expanding range of vehicles, play sets, and trucks.
Toot-Toot Driver, by the way, is the product name for Switch & Go-- for Go! Go! Smart Wheels in the U.K. In the U.K., the new Toot-Toot Animals in the U.S. is called Go! Go! Smart Animals. The new Toot-Toot Animals Safari Park was one of the two VTech products selected as the Top 12 Dream Toys 2014 by the Toy Retailers Association of the U.K. In France, VTech won five 2014 Grand Prix du Jouet Awards, the highest number won by any manufacturers. The awards for two products, namely My Little Love, My Baby Learns to Talk, and My Stroller 3-in-1 interactive, were especially significant as they mark VTech's success in expanding our products into the dolls aisle. During the period under review, we also introduced our pioneering Kidizoom Smartwatch in Europe. In Europe, it's called the same name, Kidizoom Smartwatch.
It has been on shelves in all our major European markets since June and has been well-received. In the U.K., Argos and Hamleys both named it one of the top toys for Christmas 2014, and it was also honored as one of the Top 12 Dream Toys 2014 by the Toy Retailers Association. In contrast, sales of platform products decreased. This is mainly due to lower sales of education tablets and MobiGo. The children's tablet market is getting more competitive in Europe. Similar perhaps to a slighter extent than the U.S., new entrants and high channel inventory have led to heavier discounting and therefore reduced shipment. Finally, MobiGo is approaching the end of its product life cycle as well in the European markets. Moving next to telecommunications products. Telecommunication products revenue in Europe declined by 2% to $77.6 million.
Sales of residential phones were lower due to the weak economies and a declining market. This was partially offset by higher sales of commercial phones and other telecommunications products. Since January, we have been shipping our conference phone with wireless microphones and SIP phones to customers in Europe. Responses to these new products have been positive. Sales of baby monitors were also higher as we expanded the product line. Signs of improvement were seen in residential phones in this region as the sales decline in the U.K., France, and Germany has narrowed. Finally, contract manufacturing services. CMS revenue in Europe was up 6.7% to $140.8 million. Growth was achieved in most product categories, offsetting lower sales in professional audio equipment.
Sales of switching mode power supplies were higher as an existing customer increased order in its business for data center, which by the way, is a new business for them, and also in response to the upgrade from 3G to 4G technology. Wireless headsets also saw growth owing to the strong demand for a customer's products. In contrast, sales of professional audio equipment were lower as the customer transferred products requiring custom configuration to manufacturing in-house. This was partially offset by higher sales to other professional audio equipment customers. Next, Asia Pacific. Group revenue in Asia Pacific increased by 16.9% to $61.6 million, with growth in all three product lines. This region accounted for 6.8% of Group's revenue. ELP revenue in Asia Pacific was up 6.7% to $12.7 million, driven mainly by sales increases in China.
In mainland China, the full distribution of Switch & Go Dinos and the launch of Go! Go! Smart Wheels, as well as a slew of infant and preschool learning products have all contributed to higher sales. Telecommunication products revenue in Asia Pacific rose 16.1% to $22.3 million. The sales trended higher in Australia, Japan, and China. In Australia, we gained market share in residential phones while further gains were made following the launch of VTech-branded baby monitors. In Japan, sales of residential phones increased as we added a new customer, while further inroads were made into the Chinese market. CMS revenue in Asia Pacific grew 23.1% to $26.6 million. This was driven by higher sales of solid-state lighting, marine radios, as well as medical and health products.
The robust growth in solid-state lighting was attributable to increased orders arising from the Youth Olympic Games in Nanjing earlier this year. Higher sales of marine radios were due to good sell-through of a customer's products. We also saw sales increase in medical and health products supported by a customer's new product launch. Finally, other regions. Other regions include Latin America, the Middle East, and Africa. Group revenue from other regions was down 8% to $28.7 million, and this region represents 3.2% of Group's revenue. Electronic learning products revenue in other regions declined by 5.6% to $10 million, as growth in Africa was offset by lower sales in Middle East and Latin America. Telecommunication product revenue in other regions fell by 8.9% to $18.4 million. Higher sales in the Middle East were offset by lower sales in Latin America and Africa.
CMS revenue in other regions was $300,000 as compared to $400,000 in the same period last year. This concludes my presentation. I will now ask Mr. Wong to share his outlook for the second half of the financial year. Allan, please.
Thank you, King. Good afternoon, ladies and gentlemen and viewers online. I will now give my outlook for the second half of the financial year. Economic recovery in the U.S. is expected to continue, while the economy of Western Europe will remain weak. In this environment, we are targeting a modest revenue growth for the full financial year 2015, with a stable gross margin. We are expecting a slight decline in ELP sales in the full financial year. Sales of platform products will continue to be challenging, as King said earlier, in light of the keen competition in the children's tablets market. InnoTab MAX, our new Android-based flagship educational tablet that is now on the shelves in the U.S., Canada, in the U.K., and France, aims to recapture some of the market share lost to the commoditized consumer electronic tablets.
A strong performance from Kidizoom Smartwatch is expected for the remainder of the financial year. Stand-alone products will continue to perform well, with the momentum behind infant products, the Go! Go! Smart Wheels and Go! Go! Smart Animals lines carrying into the second half of the financial year. In addition, a strong lineup of new stand-alone products will start to reach the markets in spring next year. This includes Go! Go! Smart Friends, a range of colorful play sets and characters that infuse traditional role-play with MagicPoint technology. The positive momentum in telephone products is expected to carry into the second half of the financial year. We forecast sales of residential phones to hold steady despite a declining market as VTech continues to gain market share and expand geographically. For commercial phones and other telecommunication products, shipments will be higher in the second half.
Our baby monitors have achieved strong growth since we entered the field, and new models will be introduced during the second half of the financial year. New connected home devices based on the DECT ULE standard will join our growing range of other telecommunication products alongside the new CAT-iq handsets. In the fourth quarter of the financial year, a high-end integrated access device will be shipped to a new customer. This device supports VDSL vectoring and dual-band 802.11 ac. CMS is expected to achieve growth for the full financial year 2015. In the category of professional audio equipment, the reduction in orders from one customer will be partially offset by higher orders from others in this category. Sales to existing customers in switching mode power supplies, wireless headsets, and solid-state lighting will increase, while new customers will add stimulus to growth.
The new CMS factory building, which will raise manufacturing capacity by 25%, is making good progress and will commence operation as planned in the middle of the next calendar year 2015. In summary, it has been a solid start to the financial year. Looking ahead, VTech will continue to focus on the development of innovative products, gaining market share, expanding our presence geographically, and achieving operational excellence in order to generate sustainable growth for shareholders. Thank you.