Good afternoon, ladies and gentlemen. Welcome to our webcast. Today, VTech Holdings Limited is announcing its results for the six months ended 30 September 2021. Let me introduce our management. Mr. King Fai 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. Leung will review the group's operations. Mr. Pang will then give the management outlook for the coming year. 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 September 2021, compared with the same period of the last year. As you see from the slide, the revenue of the group reduced by 0.8% to $1,114.8 million. The decrease in revenue was driven by the lower sales in Europe, Asia Pacific, and other regions, which offset the increase in revenue in North America. The gross profit of the group reduced by 14.6% to $304.9 million, and our gross profit margin also reduced from 31.8%- 27.4%.
The reduction in gross profit and gross profit margin was mainly due to the higher material prices, especially electronic components and plastic materials, as well as a drastic increase in freight costs arising from the container shortages. As for the direct labor costs and manufacturing overheads, they were also higher than the same period of last year, which were mainly due to the appreciation of renminbi and the unstable supply of materials impacting the productivity gain. A change in product mix also contributed to the decline in gross profit margin. Our operating profit reduced by 36.3% to $19.8 million, and our operating profit margin also reduced from 12.7%- 8.1%. The decline in both operating profit and operating profit margins was mainly due to the decrease in gross profit and gross profit margin, which offset the reduction in total operating expenses.
Operating profit in the first half of the current financial year also included government subsidy of $0.2 million in response to COVID-19, as compared with an amount of $4 million in the same period of the last year. Other net income also included a fair value gain of $0.2 million on an investment in a company which has a shareholding in a listed entity that designs and distributes integrated circuit products, as compared with a fair value loss of $1.1 million in the same period of the last year. Our profit attributable to shareholders reduced by 37.8% to $76.9 million, and our net profit margin also reduced from 11%- 6.9%. As a result, our basic earning per share reduced by 37.8% to $0.135 , and our Board of Directors has declared an interim dividend per share of $0.17 .
Turning to the revenue by region, North America remained the largest market of the group, accounting for 44.6% of the group's revenue. Our sales in North America increased by 1% to $497.9 million. The increase in revenue was mainly due to the higher sales of our telecom products and Contract Manufacturing Services, which offset the lower sales of our Electronic Learning Products. Our sales to European market reduced by 0.3% to $485.8 million. It was mainly due to the lower sales of Electronic Learning Products and telecom products, which offset the higher sales of our Contract Manufacturing Services. In Asia Pacific region, the revenue of the group reduced by 8.6% to $119 million. The reduction in revenue was mainly due to the lower sales of all our three product lines. Other regions include Latin America, Middle East, and Africa.
The group revenue in other region reduced by 6.9% to $12.1 million. The decline in sales in other regions was mainly due to the lower sales of all our three product lines. The group's stock balance as at 30 September 2021 increased from $436.1 million- $599.4 million, an increase of 37.4% compared with the same period of the last year. The stock turnover days also increased from 120 days- 141 days compared with the same period of the last year. The highest stock level was mainly due to the stock up of raw materials in view of the unstable material supply, as well as the deferral of shipments to the customers due to the shortage of containers from shipping carriers. The group's trade debt balance as at 30 September 2021 reduced from $521.7 million- $507.9 million.
Our trade debt has turnover days, however, increased from 60 days- 66 days. The increase in trade debt as turnover day was mainly due to the change in customer mix compared with the same period of the last year. As at 30 September 2021, the group had a net cash balance of $25.8 million, including deposit and cash of $32.2 million, and then borrowings of $26.4 million. A decrease of 81.2% comparable to the same period last year of $147.1 million. The reduction in net cash balance was mainly due to the decline in EBITDA, increase in working capital investment, and a higher dividend payment comparable to the same period of the last year. Nevertheless, the group's financial positions remain strong, and we have adequate liquidity to meet the current and future working capital requirements. This is the end of my presentation.
I will now hand over to Mr. Andy Leung to share with you our operations review. Mr. Leung, please.
Thank you, Shereen. Good afternoon, everyone. Welcome to join us today. Our review operation begins as usual with a look at the cost pictures. The group gross profit margin in the first six months of the financial year 2022 was 27.4% as compared with 31.8% in the same period last year. The decline in gross profit margin was mainly due to higher material prices, especially of electronic components, plastic material, as well as a drastic increase in freight costs arising from container shortages. With appreciation of the RMB and the unstable supply of material impacting productivities, direct labor costs and manufacturing overheads were also higher than the same period last year. A change in product mix also contributed to the decrease in gross profit margin.
Looking at our four regions, group profit margin in North America increased by 1% to $497.9 million in the first six months of the financial year. Higher sales of telecom products and CMS offset lower sales of ELPs. North America remained VTech's largest market, accounting for 44.6% of group revenue. Our ELP revenue in North America declined by 8.3% to $255 million. As material shortages and supply chain issue led to production and shipment delay despite strong orders.
This resulted in lower channel inventory and a delayed availability of some new products. Both standalone and platform products experienced sales declines. During the first nine months of the calendar year 2021, the group maintained its leadership as the number one manufacturer of electronic learning toys from infancy through toddler and preschool in the U.S. In Canada, we maintained the number one manufacturer in the infants, toddler, and preschool toys category.
Standalone products saw lower sales of both VTech and LeapFrog brands. For VTech, growth in KidiZoom camera, Switch & Go Dinos ranges was offset by decline in Go! Go! Smart family of product, Go! Go! and playset, preschool product, and the Kidi lines. Sales of infants and toddler products held steady.
The standalone product category was expanded with the introduction of KidiZoom PrintCam and Marble Rush line. A new range of eco-friendly toys made from plant-based and reclaimed plastic saw four new Really Go added to Go! Go! Smart Wheels, and the launch of Sort & Recycle Ride-On Truck. For LeapFrog, sales of infants, toddler, and preschool products were lower. The brand offering was, however, expanded by the launch of exciting new products, such as LeapLand Adventures and On-the-Go Story Pal.
They were joined by a new range of role-play toys, including Car Alarm Backpack and Scanner, and Tropical Fun Learning Pot, an interactive cooking pot that utilized plant-based plastic. The brand also launched a line of eco-friendly toys made with 100% FSC-certified wood, which have kicked off with Touch and Learn Letter ABC Board and Interactive Wooden Animal Puzzle. Platform products recorded sales decreases for both the VTech and LeapFrog brands. At VTech, higher sales of Touch and Learn activity desks were insufficient to offset lower sales of KidiBuzz and KidiZoom smartwatches. As the new KidiBuzz 3 and KidiZoom Smartwatch DX3 did not reach retail shelf until September because of material supply and logistic delay. At LeapFrog, growth of Magic Adventures Globe was offset by declines in children's educational tablet and interactive reading system.
To strengthen the reading product offering, the LeapStart range saw the addition of LeapStart Learning Success Bundle, and LeapReader was expanded with the LeapReader Learn-to-Read 10-Book Mega Pack. Telecom product revenue in North America rose by 0.8% to $131.3 million, as higher sales of commercial phone and higher telecommunication product offset lower sales of residential phones. Commercial phone benefited from the gradual resumption of business activities. Snom brand VoIP phone and small to medium-sized business phone saw higher sales, supported by increased order from very active reseller. Sales of hotel phones also recover. For headset, the sales increase came from an existing customer. Other telecom products were boosted by rising sales of baby monitors as the group secure additional placement in key retailer, expanded its online presence, and launched new models.
In the first six months of the financial year 2022, VTech baby monitor strengthened their position as the number one brand in the U.S. and Canada. Sales of residential phone saw a decline as the market returned to normal following the lifting of lockdowns, during which consumer had purchased more residential phone for home use. During the period, VTech maintained its leadership position in the U.S. residential phone market. CMS revenue in North America increased by 31.9% to $111.1 million as the lifting of COVID-19 restriction led to a surge in demand for certain type of professional audio equipment, industrial product, solid-state lighting, and medical and health product. Sales of professional audio equipment used in the lecture theaters, music concert, and churches rose as social distance measure were relaxed.
Industrial products benefited from the resumption of business activities, both taking order for printed circuit board assembly for coin and locks mechanism machine. Orders for industrial printer recover as the market returned to normal. Sales of solid-state lighting rebounded as project-based demand resumed. For medical and health product, sale trend higher, driven by increased order for hearing aids. Let's now turn to Europe. Group revenue in Europe decreased by 0.3% to $ 485.5 million in the first six months of the financial year 2022, as higher sales of CMS were offset by lower revenue from ELP and telecommunication products. Europe remain our second-largest market, accounting for 43.6% of the group revenue. With lower sales of both standalone and platform products, ELP revenue in Europe fell by 4.1% to $ 151.1 million. Material shortages and logistic issue led to production and shipment delays.
This resulted in lower inventory levels, delay availability of some new products, and delayed sale contributions. Geographically, sales increased in France, but declined in other key markets in the regions. In the first nine months of calendar year 2021, VTech maintained the number one infants and toddler toy manufacturer in France, the U.K., Germany, and Benelux countries. In standalone products, the LeapFrog brand achieved higher sales. Growth was led by infants, toddler, and preschool products, augmented by the launch of LeapLand Adventures. For the VTech brand, higher sales of Switch & Go Dinos were offset by decline in other categories. In September, the new product line Marble Rush hit the shelf in all major European markets, adding incremental sales. During the first six months, VTech expanded its award-winning KidiZoom camera offering with the addition of KidiZoom Video Studio HD and KidiZoom PrintCam in key European markets.
Initial sell-through of both products have been good. For platform products, both the VTech and LeapFrog brands post sales decline. The decrease came as material supply and logistic problem resulted in certain new product not reaching the shelf until after September, delaying their sales contributions. This included a new generation of the interactive reading system, Lift-a-Flap Mega Magic Book and KidiCom Advance 3.0. VTech branded children's educational tablets recorded higher sales. However, this were offset by lower revenue from KidiZoom smartwatches, Touch and Learn activity desks, and KidiCom Max. For LeapFrog, sales of interactive reading system, and Magic Adventures Globe registered decline. Revenue from telecom product in Europe decreased by 9.1% to $47.7 million, as lower sales of residential phones offset growth in commercial phone and other telecom-related products. In Europe, the group sells residential phone in the region on an ODM basic.
The shortage of semiconductor lead to the shipment delays and a reduction in sales to customers. Commercial phones and other telecom-related products benefited from resumption of business activity as COVID-19 restriction were eased, which led to rising sales of Snom-based business phone and a recovery in sales of hotel phones. CAT-iq headset also registered a sale increase as order from an existing customer grow. Baby monitors, in contrast, experienced a sales decline, mainly due to the shortage of semiconductors. Despite this, VTech baby monitors make good inroads in the U.K. following the launch of a new product line up. IAD saw the launch of a new product featuring Wi-Fi 6 in the first half of the financial year. Sales of this product category were down due to the shortage of semiconductors. CMS revenue in Europe increased by 3.5% to $287 million as COVID-19 restriction eased.
Sales of home appliance, IoT products, medical and health products, communication products, and automotive-related product rose, offsetting decline in professional audio equipment and hearables. Home appliance saw demand recover to pre-pandemic levels. IoT products were boosted by the resumption of smart meter installations. Medical and health product grew from increasing order for health and beauty products and hearing aids. Communication product benefited from higher order for Wi-Fi routers. Sales of automotive-related products were supported by increasing orders for smart electric vehicle chargers. Although demand for hearable remained strong, sales were negatively affected by the material shortages, which also reduced sales of professional audio equipment for home use. Next, Asia Pacific. Group revenue in Asia Pacific decreased by 8.6% to $119 million in the first six months of the financial year 2022, with lower sales of ELP, telecom product, and CMS. The region represented 10.7% of group revenue.
Revenue from ELP in Asia Pacific fell by 3% to $39.2 million, mainly due to lower sales in Australia and mainland China. In Australia, sales of both VTech and LeapFrog products were lower. This was due to the closure of retail stores as a result of lockdown, as well as to material shortages and shipment delays. Despite this, in the first nine months of the calendar year 2021, VTech maintained its position as the number one manufacturer in infants and toddler toy category in Australia. In Mainland China, growth was seen in offline channel, boosted by the launch of a new range of infants and preschool products, as well as a new line of Switch & Go Dinos based on a popular animation series called Miniforce. However, this was offset by a decline in online sales.
Telecom products revenue in Asia Pacific decreased by 15.8% to $30.3 million, as lower sales in Japan and Hong Kong offset growth in Australia. In Japan, sales were lower as order for residential phone from an existing customer declined. In Hong Kong, lower sales of IAD resulted in an overall decrease. VTech, nonetheless, launched a new generation of Home Gateway in Hong Kong and received good market feedback. In Australia, higher sales of baby monitors contributed to growth in the country, offsetting a decline in residential phone. CMS revenue in Asia Pacific decreased by 10.1% to $66.5 million, as lower sales of professional audio equipment offset increases in medical and health products. The professional audio category was affected by the lower sales of DJ equipment as production at the group factory in Malaysia was impacted by the COVID-19 movement control order in the country.
In contra, sales of medical and health product rebounded. Order for diagnostic ultrasound system and hearing aids increased as hospital began to rebalance budget away from COVID-19 related equipment. The resumption of visitor activity boosted order for hearing aids. Finally, group revenue in other region, comprising Latin America, the Middle East and Africa, fell by 6.9% to $12.1 million in the first six months of the financial year. The decrease was still to the lower sales of all three product lines. Other region accounted for 1.1% of the group revenue. ELP revenue in other region declined by 1.7% to $5.8 million. Higher sale in Latin America were offset by lower sales in Middle East and Africa. Telecom product revenue in other region decreased by 10.1% to $6.2 million. The decline was still to sell decreases in Middle East, which offset increases in Latin America and Africa.
CMS and other revenue was $0.1 million in the first six months of the financial year as compared to $0.2 million in the corresponding period of the last financial year. Thank you. This concludes my presentation. I will now hand over to King for the outlook.
Thank you, Andy. Greetings, everyone. All of group's three businesses continue to enjoy robust order book, indicating strong demand for our products. Looking ahead to the second half, as channel inventory, especially new product availability, continues to improve, we'll expect sales of both ELPs and telecommunication products to pick up. CMS revenue, however, is forecast to decline year-on-year due to global material shortages. Overall, the group expects lower full year revenue compared with the previous financial year. The group's gross profit margin for the full financial year 2022 is forecast to improve over the first half, due mainly to product mix. When compared to the previous full financial year, however, full financial year 2022 gross profit margin is expected to decline.
To combat material supply and logistic issues, which seems unlikely to abate in the short run, we have been implementing a number of measures. We have and continue to re-engineer products to lower costs and utilize alternative components. We are signing long-term contracts with material suppliers to secure stable supply and are increasing our stock of critical components. We are sourcing alternative shipping carriers to secure containers. Furthermore, we are advancing production of goods to allow for increased shipment and transportation time. Looking at the three businesses. ELP revenue is forecast to increase slightly for the full financial year. Owing to shipment delays, some orders have been postponed from the first half of the financial year to the second half. With the entire range of new products now on retailer shelves, and with improved overall channel inventory, sales in North America and Europe are gaining momentum.
New contents for the award-winning Go! Go! Cory Carson animation series are being launched globally and will continue throughout autumn and winter. Subscriptions to LeapFrog Academy, however, have flattened since schools reopened. In Asia Pacific, as lockdowns are lifted and retail stores resume trading in Australia, sales are forecasted to rebound. Overall sales in mainland China, however, are expected to report a full-year decline. Telecom products. With a slew of slated new product launches, sales of telecommunication products in the second half are expected to improve over the first half. This said, with no reprieve in sight on global material supply, full-year revenue is hard to predict. Nevertheless, the good performance of baby monitors and recovery in commercial phones are expected to continue. The baby monitor lineup strengthens as the full range of LeapFrog branded baby monitors with a baby care app is launched this month in North America.
V-Hush, a smart sleep training device with 100 bedtime stories and Bluetooth features, will hit the shelf in the fourth quarter of the financial year. A new feature-rich VTech work from home desktop cordless telephone will also be available in the U.S. in January 2022. A work from anywhere product series will start to ship globally in the fourth quarter of the financial year. It includes an all-in-one projector plus camera, a Bluetooth conference speaker with audio recording function, and a lineup of professional headsets. A new series of advanced Snom SIP desktop headsets and a multi-cell SIP DECT mobility system will be rolled out in Europe in the last quarter of this financial year. CMS. CMS revenue is expected to decline year-on-year.
Despite solid order book and a large backlog, global material shortages make it difficult to repeat the strong second half performance of the previous financial year. To reduce the impact caused by shortages, we are recommending and working with customers on adopting alternative components. We are also providing much longer demand forecasts to material suppliers. As the COVID-19 surge in Malaysia eases, the production of DJ equipment is gradually returning to normal. On avenues for growth, our new product introduction center in Shenzhen has proved successful in attracting new businesses from startups, thereby establishing a strong reputation in the Greater Bay Area of Southern China. In April 2021, we completed the acquisition of a facility in Tecate, Mexico. While it currently focuses on professional loudspeakers, once the COVID-19 situations allows, we will begin expanding its CMS capability to other product categories. Thank you. This completes our presentation.
We now look forward to answering your questions.
Thank you, King. We will now begin the Q&A session. Please tap the raise hand button if you wish to ask a question. The first question comes from Christine Chen of HSBC. Christine, please go ahead.
Okay. Thank you, management, for taking my question. I have several questions. The first one is that, as we see that the net cash has actually decreased a lot. Just want to check if management has any change on the dividend payout policy. Second question is, actually, we have seen that the prices for some electronic component, especially for the consumer electronics, has been seeing signs of stabilize or even decline recently. I am not sure if Management expects the pressure on price to be slightly eased in second half.
Maybe Shereen about that too.
As explained in my presentation section, reduction in net cash balance was mainly due to the increase in working capital investment, especially in increase in our stock balance due to the stock up of raw material in view of the unstable material supply. As for our dividend payout policy, as you see, even though our net profit reduced by 37.8% compared with the same period of the last year, but we still keep the dividend per share for the interim at $0.17. That means our dividend payout policies will not change in the full years if we have a net profit, and we will keep the existing dividend payout ratio of around, say, 98%-99% dividend payout ratio for the full year.
Yeah. As to your second question, I think the component prices are still high. We probably will not see a stabilization in the price of components and semiconductor components until at least the first quarter or even the second quarter next year.
Okay.
Okay, got it. Thank you so much.
Okay, good. Our next question come from Tsai Chi from Oaklands . Tsai, you can go ahead.
Hi, Tsai Chi here. Good afternoon. May I ask about how bad is the situation in terms of the delay that impacted the sales of ELP products? If there were no such delay, how much more sales should we be seeing? The second question is that on the baby monitor products, I see that there are two companies in Canada and probably America. One of them is called Owlet, O-W-L-E-T. They are doing this baby monitor product with prevention of SIDS, kind of products. They have been doing extremely well. I do not know about their market share, but since VTech is a very large player, probably the number one brand over there. Would you be able to come up with some similar products to counter that competitors? Thank you.
Can you repeat your first question, Tsai Chi?
Okay. Hi. The first question is that if there were no delay in the container shipments.
Yeah.
Roughly how would our ELP revenue look like? Just want to know, it is not so much about the product sellability, it is more about the shipment that dragged the sales.
Yeah. Okay. Let me give you a general answer. On all of our three product divisions, we have more orders that we can fulfill due to shortage of components and also shortage of containers to ship to our customers. If we eliminate the bottleneck of container, certainly our sales will go up. As to hypothetically, if we do not have shortage on container, how much sales we can go up, we do not give numbers at this point in time. Definitely, we have more orders than we can fulfill at this point. As to your second question about baby monitors, one of our competitor you mentioned in Canada called Owlet. We are aware of those products. Some of our competition is claiming a lot of features. We are also coming up with products with similar features as many of our competitors.
I have to be warned also that some of our competitors are actually warned by the FDA not to claim those certain functions because according to the FDA, it is not legal to claim certain things unless you are approved by FDA. We will be very careful in those claims in baby monitors.
Okay. Tsai Chi, is that good? Okay, good. Any more questions? The next question comes from Luz Kim of CICC. Luz, you can go ahead.
Okay. Thank you, Grace. On average, VTech would have to raise its prices by 16% in order to regain profitability of 2020. Are you prepared to execute such price increases? That is my first question. The second question is, I was surprised that sales in Go! Go! Cory Carson products declined despite the support of the Netflix series. Could you elaborate a bit on this one? Thirdly, I just want to double-check. Did you say that toys are on time for Christmas sales? Yes, these are my three questions. Thank you.
Well, Luz, I wish we could raise price by 16%. Certainly, we have raised our price for our products, but not close to what you are suggesting. We wish we can. Probably we should, because some of the price increases are short-term, we believe. I think we can only raise the prices depending on competition, depending on how much the market can bear, and how much the price increase will affect our sales. So it's a fine balance in how much price we raised. To answer your question, we did raise the price, but not quite close to what you have suggested. Second question, and third question, I would leave it to King to answer.
Hi, Luz. Yeah, we are quite disappointed. Numerically, the first half sales of Go! Go! Cory Carson toys were lower than last year. The main reason was because we lost brick-and-mortar store support. Well, we lost some brick-and-mortar store supports on this line. So at this point in time, we are selling in a reduced number of doors and then mainly selling online. But we are working very hard to pump up marketing and with the winning of the Daytime Emmys and with new contents, we are mounting a major comeback. As on the third question, if I picked it up correctly, you are asking if the toys managed to make it on time for Christmas. At this point in time, the vast majority, almost all of them have. Obviously, they did not get on the shelves in the ideal time that we had wanted to earlier.
But at this point in time, they should be on the shelves. Retailers, they're also adjusting to delayed availability of products, not just from VTech, but across the toy aisle. Most of them, if not all, are pushing back their major promotions. So there are still lots of good deals and bargains to be had later this month and in December.
Luz? Is it good? Okay. Our next question come from Eric Lau of Citi Research. Eric, please go ahead.
Hey. Hi, Chairman. Thank you for the presentation. I have a couple of questions. Also the ASP inflation. You mentioned you have raised the ASP. Can we get more color? When did you raise the ASP, and what percentage you did raise by far? Are you going to raise the ASP further in second half? If so, what is the degree then? Thank you.
It's not across the board, raising of prices in a single %. The price increase is product-dependent, and also depending on competition. Also different from telephones or toys. It's a very complex calculation. In general, I think we have raised the price, and also the timing is different. In general, we raise prices between 5%-10% depending on the product and depending on the timing. We will continue to, depending on the cost, if the cost continues to escalate, we will continue to raise the price. But also bear in mind that many of the price increases are not reflected, even on the first half. There's a certain delay factor when we raise the price. Most of the prices we will be raising are on the new products.
On the new products, then we can calculate the full price margins on the new products. That is the situation we are seeing.
Okay, thank you. My second question is, what is the sales impact because of the semi shortage during this first half?
As I said earlier, we have more orders than we can ship because of component shortages. Essentially, the semiconductors. I think you can safely say that if there's no component shortages, our sales will be higher. By how much? We don't have a figure, but anything from 5%-15% is possible.
I see. Thank you. One more question is the gross profit margin down 4.4 percentage points. Can we have a color, how much from material cost hike, from freight charge hike, and also the FX like renminbi strength? Thank you.
Yes. I think Shereen can give some colors on that.
Okay.
Some reduction.
For the reduction in GP margin of 4.4 percentage points, as we have explained earlier, it mainly depends on the four factors. One is material prices increase. The second one is the freight cost. The third one is the renminbi. The fourth one is the change in product mix. You can use this sequence to determine the degree of the increase in those, say, negative factors affecting our GP margin. That means the material price is the number one factor. The second factor is the freight cost. The third factor is the renminbi. The fourth factor is the change in product mix. In total is 4.4 percentage points decrease in gross profit margin compared with last year.
For the largest one, material cost, can we say, it probably attribute more or less maybe 2 percentage points for the margin?
Close to. Not exactly.
Yeah. Okay. Thank you. Thank you very much. I am good. Thank you.
Good. Our next question comes from Tsai Chi again. Tsai Chi, you can go ahead.
Hi. Okay. Tsai Chi here. A couple questions. Just now, on the working capital, I notice that a big chunk of the increase actually is go to the trade debtors. Number one question is, can you share with us anything change there in terms of the credit period and is there any difficulty in collections? Second question is on your smart battery, EV battery charger business. Can you share more insight with us on either the market size or, I do not know, you can share about the brand or roughly how that stuff, that market work? Yeah. The third question is on your online sales in China. There is a decline on the online sales in China. It appears that China has been a very roughly, very tough market for us, for VTech, in the last couple of years.
I notice there are a lot of toys out there, all sort of toys out there on the China online marketplace. How do you see VTech build a very strong business and brand and platform in China? Is it possible to replicate your success in America, in China as well? Yeah. These are the three questions.
Regarding the credit period or the collections of accounts receivables, actually, you will see our presentations. Our trade debtors balance as of 30 September 2021, actually was lower than the same period of last year by around 2.6%. Our revenue reduction is just 0.8%. Even though the trade debtors turnover day increased a bit from 60 days- 66 days. There is no problem with our debtor collection.
Regarding the EV chargers. According to the EMS business nature, I cannot tell you much about the product, as the customer has the full product ownership. However, I can tell you that it is a charger to charge the battery of automotive within a short period of time safely.
Okay. If I pick it up, I think Tsai Chi's question is not just on online. You are right in pointing out, Tsai Chi, that we have encountered a fair amount of difficulties in the last two years, especially, with our toys business in China. This said, we are dead set on growing that business, and the opportunities are abundant. The Chinese market changes very quickly, and what we need to do is to be able to take the best advantage of our capability to bring out products that is high quality and bearing the good VTech brand.
Also to operate very effectively, especially for online, in pushing the products out to the channels. This is what we are working very hard on. But we definitely see a lot of opportunities for growth in China.
Okay, good. I am afraid that that is all we have the time for. This concludes our today's presentation. Thank you for joining us.
Thank you.