Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — H1 2022 Earnings Presentation
27 slides from Solomon Systech (international)'s earnings presentation, September 2022
Slide 1: 2022 Interim Results Presentation
2022 Interim Results Presentation Six months ended 30 June 2022 Stock code: 2878 September 2022
Slide 2: Table of Contents
TABLE OF CONTENTS 1. Financial Highlights 2. Financial Review 3. Business Review 4. Outlook 5. Appendix: Company Introduction & Acclaim /2
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS 4 SOLOMON SYSTECH
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS • Revenue increased by about 45.1% to US$108.5 million • Gross profit jumped by 45.0% to US$42.2 million; gross profit margin remained stable at 38.9% • Operating profit surged by 105.9% • Profit attributable to owners of the parent surged by 103.2% to US$21.8 million • Earnings
Slide 5: Financial Review
FINANCIAL REVIEW 4 SOLOMON SYSTECH
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS 1H 2022 1H 2021 Change % (US$ million) (US$ million) Revenue 108.5 74.8 +45.1% Gross profit 42.2 29.1 +45.0% Gross margin 38.9% 38.9% - Research and development costs 14.9 12.1 23% Profit attributable to owners of the 21.8 10.7 +103.2% parent Earnings per share (US cents) 0.87 0
Slide 7: Balance Sheet
BALANCE SHEET As at 30 June 2022 As at 31 Dec 2021 Change % (US$ million) (US$ million) Total assets 168.6 139.9 +20.5% Shareholders’ funds 105.9 86.7 +22.1% Bank deposits and cash 59.4 41.8 +42.1% Shareholders’ funds per share 32.9 27.0 +21.9% (HK cents) Net cash per share (HK cents) 18.7 13.2 +41.
Slide 8: Revenue Trend by Products
REVENUE TREND BY PRODUCTS (US$’000) New Display ICs (US$’000) 60,000 Mobile Display & Mobile Touch ICs 50,435 40,000 37,517 50,000 39,590 35,000 40,000 30,000 31,696 26,195 30,000 25,000 16,304 16,945 20,000 16,116 15,866 16,883 20,000 15,000 10,000 10,000 0 5,000 1H 2020 2H 2020 1H 2021 2H 2021 1H
Slide 9: Revenue by Products
REVENUE BY PRODUCTS 1H 2022 1H 2021 Large Display ICs Large Display ICs 6% 12% Mobile Display & New Display ICs Mobile Display & New Display ICs Mobile Touch ICs Mobile Touch ICs 46% 42% 34% 22% 14% 23% OLED ICs OLED ICs /9
Slide 10: Trade Receivable Ageing
TRADE RECEIVABLE AGEING (Based on invoice date) As at 30 June 2022 As at 31 Dec 2021 (US$ million) (US$ million) 1-30 days 16.5 9.8 31-60 days 5.4 6.5 61-90 days 3.2 5.5 91-180 days 2.2 2.4 Total 27.4 24.1 / 10
Slide 11: Trade Payable Ageing
TRADE PAYABLE AGEING (Based on invoice date) As at 30 June 2022 As at 31 Dec 2021 (US$ million) (US$ million) 1-30 days 13.0 14.7 31-60 days 7.9 6.5 61-90 days 2.3 2.4 Over 90 days 0.5 0.3 Total 23.7 23.9 / 11
Slide 12: Consolidated Cash Flow
CONSOLIDATED CASH FLOW 1H 2022 1H 2021 Change % (US$ million) (US$ million) Net cash generated from operating 20.1 7.6 +162.8% activities Net increase in cash and cash 21.5 3.9 +447.1% equivalents Total bank deposits and cash 59.4 54.6 +8.8% / 12
Slide 13: Business Review
BUSINESS REVIEW 4 SOLOMON SYSTECH
Slide 14: New Display ICs
NEW DISPLAY ICS ➢ Increase in Demand from Electronic Shelf Labels (ESL) in European and North American markets • New Display IC products showed significant growth in revenue of 56.9% due to better product mix and shifting of focus to more sophisticated products • ESL gaining popularity for automatin
Slide 15: OLED Display ICs
OLED DISPLAY ICS OLED Display ➢ World’s leading PMOLED display driver IC player with dominant market share ➢ OLED Display ICs • Strong market demand for PMOLED wearables, smart home solutions and IoT/AIoT solutions ➢ Mini-LED • Our mini-LED DDI solutions for 50” to 100” indoor signage display have b
Slide 16: Mobile Display ICs
MOBILE DISPLAY ICS ➢ Mobile Display and Mobile Touch ICs • Increase in sales revenue of 120.3% YoY • Successfully secured manufacturing orders for game console controller ICs for 2022 and 2023, which will notably contribute to Group’s revenue base • The Group launched its first full-colour TDDI spec
Slide 17: Large Display ICs
LARGE DISPLAY ICS Large Display ➢ New IC for entertainment • Sales revenue was lower YoY due to the impact of COVID-19 and change in customer preference • The Group has launched a high-speed Peer-to-peer (P2P) display driver IC for the 165Hz high-refresh-rate gaming monitor and 8K HDTV • The latest
Slide 18: Outlook
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Slide 19: Outlook
OUTLOOK OLED Display ICs New Display ICs Develop the advanced technology of micro-LED IC Continue to develop the 7- solution for brighter and colour or full colour e-paper power-efficient appliances Mobile Display and Large Display ICs Mobile Touch ICs Respond to the demand of P2P Leverage the devel
Slide 20: Company Introduction
COMPANY INTRODUCTION 4 SOLOMON SYSTECH
Slide 21: Our Networks
Our Networks Head Office Sales Networks Hong Kong Hong Kong Shenzhen Technology Centers Beijing Hong Kong Nanjing Nanjing Shanghai Shenzhen Taiwan Taiwan Japan Korea USA Europe / 21
Slide 22: About Solomon Systech
ABOUT SOLOMON SYSTECH A leading semiconductor company providing IC products and system solutions for display applications ⚫ Established in Hong Kong in 1999 ⚫ Listed on the main board of the HKSE since 2004 (HKSE: 2878) / 22
Slide 23: Key Business Units
KEY BUSINESS UNITS Solomon Systech IC & System Solutions New Display OLED Display Mobile Display Large Display Bistable Display OLED Display/Touch Mobile Driver • Source DDI • Dot-Matrix Bistable • PMOLED TDDI • TFT Display Driver DDI • PMOLED Display IC (DDI) • Gate DDI • Segment Bistable Driver IC
Slide 24: Fabless Business Model
FABLESS BUSINESS MODEL Co-development Display IC & System solution Customers R&D Marketing Branding IP Group Logistics Management QM Outsourced 1. Mask making 2. Wafer Fabrication 3. Packaging and testing / 24
Slide 25: Competitive Edges
SSA ON “See, Strong R&D Team Focusing On Technological Innovation Support a Comprehensive Range of Display Technologies Rich Patent Portfolio: > 600 Experienced Management with International Perspective Support of CEC, a Fortune Global 500 company Global Sales & Distribution Network SOLOMON SYSTECH
Slide 26: Thank You
solomon-systech.com THANK YOU
Slide 27: 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
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