Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — FY2018 Earnings Presentation
19 slides from Solomon Systech (international)'s earnings presentation, Mar 13, 2019
Slide 1: SSIL 2018 Annual Results Announcement
SSIL 2018 Annual Results Announcement 13 Mar 2019 P. 1
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or solicitation to anyone in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation or is unlawful without compliance with any registration, filing or
Slide 3: Highlights, Financial Review, Business Review, Outlook
Highlights Financial Review Business Review Outlook SSIL 2018 Annual Results Announcement 13 Mar 2019 P. 3
Slide 4: Highlights
Highlights Revenue amounted to US$98.1 million Gross profit was US$28.2 million Gross margin was 28.7% Net loss was US$13.8 million Loss per share was 0.55 US cent (4.26 HK cents) Book-to-bill ratio for the year was 1.0 The Board resolved not to propose any final dividend for the year
Slide 5: Financial Review
Highlights Financial Review Business Review Outlook SSIL 2018 Annual Results Announcement 13 Mar 2019 P. 5
Slide 6: Financial Review - Profit and Loss
Financial Review - Profit and Loss (US$ million) 2018 2017 Variance Revenue 98.1 82.5 +19% Gross profit 28.2 29.3 Gross margin 28.7% 35.6% -6.9% Pts Net loss 13.8 10.3 (US cents) Loss per share 0.55 0.41 Dividends per share Nil Nil Book-to-bill ratio 1.0 1.1 SSIL 2018 Annual Results Announcement 13
Slide 7: Financial Review - Financial Remarks
Financial Review - Financial Remarks Key Factors Revenue US$98.1m • Revenue: up 19% (‘17: US$82.5m) • Unit shipments: up 37% YOY Gross Profit US$28.2m • Gross margin: 28.7% (’17: 35.6%) (’17: US$29.3m) Total US$48.7m • Product R&D costs: Operating (’17: US$49.7m) - US$31.5m (’17: US$34.5m) - down 9%
Slide 8: Financial Review - Balance Sheet
Financial Review - Balance Sheet (US$ million) As at 31 Dec 2018 2017 Variance Total assets 107.0 116.2 -7.9% Total borrowings 0.2 0.3 -33.3% Shareholders’ funds 79.0 91.8 -13.9% Cash and cash equivalents 13.4 23.3 -42.5% (HK Cents) Shareholders’ funds per 25 29 -13.8% share Net cash per share 4.2 7
Slide 9: Financial Review - Cash and cash equivalents Analysis 2018 vs 2017
Financial Review – Cash and cash equivalents Analysis 2018 vs 2017 Cash and cash equivalents @31 Dec: Change • US$13.4m (’18) vs US$23.3m (’17) -US$9.9m Major Cash Inflow US$ Major Cash Outflow US$ • Interest and +0.5m • Net cash used in -26.8m Dividend Received Operating Activities • Change in FVTP
Slide 10: Business Review
Highlights Financial Review Business Review Outlook SSIL 2018 Annual Results Announcement 13 Mar 2019 P. 10
Slide 11: Business Review - Sales & Shipments
Business Review – Sales & Shipments 2018 Total Revenue ~US$98.1 million (Up 19% YoY) 2018 Total Shipments: ~295.8 million units (Up 37% YoY) Product Revenue & Shipment (2014-2018) 350.0 120.0 300.0 295.8 100.0 250.0 80.0 215.2 200.0 187.3 60.0 185.8 150.0 114.7 40.0 100.0 20.0 50.0 0.0 0.0 2014
Slide 12: Business Review - Advanced Display Products
Business Review – Advanced Display Products Total Shipments: Advanced Display • Increased 15% year-on-year to 184.4 million units PMOLED Display Driver IC (DDI) • 2H performance less robust due to reduced market demand for certain applications • Scored design wins with key international brands:
Slide 13: Business Review - Advanced Display Products
Business Review – Advanced Display Products World’s 1st PMOLED TDDI IC SSD7317 garnered key industry awards: 1. The IET Innovation Awards 2018 - Highly Commended 2. 2018 Hong Kong Awards for Industries - Technological Achievement Award 3. Gold Panel Awards 2018 in Taiwan - Outstanding Product Award
Slide 14: Business Review - Large Display Products
Business Review – Large Display Products Large Display Total Shipments: • Increased 289% year-on-year to 58.0 million units Increased Share in Key Customer’s Business • Increased share of 4K UHD TV and FHD monitor business with Nanjing CEC Panda Flat Panel Display Technology (Panda-FPD) New IC
Slide 15: Business Review - Others
Business Review – Others Total Shipments: Increased 34% year-on-year to 53.4 million Mobile Display/ units. Mobile Touch Mobile Touch Products • maXTouch® touch controller IC for flexible AMOLED displays scored design wins with international brands: smartphones, tablets, smart watches • Adopted
Slide 16: Outlook
Highlights Financial Review Business Review Outlook SSIL 2018 Annual Results Announcement 13 Mar 2019 P. 16
Slide 17: Outlook
Outlook PMOLED TDDI IC Advanced • Expected to start mass production in 2H 2019 Display PMOLED display driver IC • Capitalize on market trends (smart handheld devices, wristbands with grayscale displays) Bistable display driver IC • Continue to capture strong growth of ESL market & develop new
Slide 18: Summary
Summary Total revenue & unit shipments recorded double-digit growth 2018 Summary Net loss due to: • Diminished gross profit margins resulting from provision of slow moving inventories • High amortization charges on IP and related investments, • Decrease in net finance income due to less favorabl
Slide 19: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com
Solomon Systech (International) — FY2018 Earnings Presentation on 6ix