Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — H1 2020 Earnings Presentation
20 slides from Solomon Systech (international)'s earnings presentation, Aug 18, 2020
Slide 1: 2020 Interim Results Announcement
2020 Interim Results Announcement 18 Aug 2020 Stock code: 2878
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
4 SOLOMON SYSTECH
Slide 4: Highlights
HIGHLIGHTS • Revenue amounted to US$58.6 million, increased by about 3.5% • Gross profit was US$15.1 million, jumped by 51.7% • Gross margin was 25.8%, increased 8.2% points • Net profit was US$4.3 million, turnaround from loss of US$9.6 million • Earnings per share was 0.18 US cent (1.40 HK cents)
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: Profit & Loss
PROFIT & LOSS 1H 2020 1H 2019 Variance (US$ million) (US$ million) Revenue 58.6 56.6 +3.5% Gross Profit 15.1 10.0 +51.7% Gross Margin 25.8% 17.6% +8.2% Pts Net Profit / (Loss) 4.3 (9.6) Earnings / (Loss) per Share (US cents) 0.18 (0.39) Dividends per Share Nil Nil Book-to-Bill Ratio 1.2 1.1 /6
Slide 7: Profit Before Tax
PROFIT BEFORE TAX 1H 2020 1H 2019 (US$ million) (US$ million) Cost of Goods Sold 44.0 41.9 (Reversal of) / Provision for Obsolete Inventory (0.8) 4.4 (Reversal of) / Impairment of Trade Receivable (0.01) 0.08 Amortisation of Intangible Assets 0.3 2.1 Depreciation of PPE 0.7 0.8 Depreciation of Right
Slide 8: Financial Remarks
FINANCIAL REMARKS Key Factors Revenue US$58.6m • Revenue: up 3.5% (1H19: US$56.6m) • Unit Shipments: up 7.9% YoY Gross Profit US$15.1m • Gross Margin: 25.8% (1H19: 17.6%) (1H19: US$10.0m) Total Operating US$13.8m • Product R&D Costs: Expenses (1H19: US$22.2m) - US$7.9m (1H19: US$14.0m) - 13% of Sale
Slide 9: Balance Sheet
BALANCE SHEET As at 30 Jun 2020 As at 31 Dec 2019 Variance (US$ million) (US$ million) Total Assets 84.7 76.9 +10.1% Total Borrowings 0.2 0.2 - Shareholders’ Funds 55.6 51.3 +8.4% Cash and Cash Equivalents 33.4 18.1 +84.5% Shareholders’ Funds per Share 17.4 16.0 +8.8% (HK cents) Net Cash per Share (
Slide 10: Trade Receivable Ageing
TRADE RECEIVABLE AGEING (Based on invoice date) As at 30 Jun 2020 As at 31 Dec 2019 (US$ million) (US$ million) 1-30 days 10.5 13.8 31-60 days 4.6 4.0 61-90 days 4.2 1.6 91-180 days 1.9 - 181-365 days 0.1 0.2 Total 21.3 19.6 / 10
Slide 11: Trade Payable Ageing
TRADE PAYABLE AGEING (Based on invoice date) As at 30 Jun 2020 As at 31 Dec 2019 (US$ million) (US$ million) 1-30 days 7.1 6.8 31-60 days 6.0 5.9 61-90 days 3.4 3.0 Over 90 days 1.5 0.1 Total 18.0 15.8 / 11
Slide 12: Cash & Cash Equivalents Analysis 2020 vs 2019
CASH & CASH EQUIVALENTS ANALYSIS 2020 VS 2019 Cash and Cash Equivalents Change • US$33.4m (30 Jun 2020) vs US$18.1m (31 Dec 2019) +US$15.3m Major Cash Inflow US$ • Net Cash generated from Operating Activities +16.3m / 12
Slide 13: Business Review
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Slide 14: Revenue & Shipments
REVENUE & SHIPMENTS • 1H2020 total revenue: ~US$58.6 million (+3.5% YoY) • 1H2020 total shipments: ~175.5 million units (+7.9% YoY) Revenue & Shipments 56.6 58.6 60 200 180 50 45.7 175.5 160 162.6 38.6 140 40 144.8 32.9 120 30 100 90.7 80 20 84.4 60 10 40 20 0 0 1H2016 1H2017 1H2018 1H2019 1H2020 Re
Slide 15: Advanced Display
ADVANCED DISPLAY Advanced Display Total Shipments: • Increased about 63.4% year-on-year to around 109 million units PMOLED Display Driver IC (DDI) • Increased orders for portable healthcare devices and related applications, triggered by the demand for healthcare products worldwide under the COVI
Slide 16: Large Display
LARGE DISPLAY Large Display Total Shipments: • Decreased about 42.7% year-on-year to around 38.9 million units Softening demand • Apart from a shortage of certain raw materials for wafer for LD products, the global demand for TVs had also slowed down due to the pandemic. New IC • Point-to-poin
Slide 17: Others
OTHERS Mobile Display/ Total Shipments: • Decreased slightly by approximately 1.4% year-on-year to around 27.6 million units Mobile Touch Mobile Display Products • The demand for mobile devices in China and consumer sentiment have gradually recovered and resumed respectively from May 2020 onward
Slide 18: Outlook
~ QUTLOOK
Slide 19: Outlook
OUTLOOK PMOLED TDDI IC • Expected to start mass production by the end of 2020 Bistable Display Driver IC Advanced • Continue its strong growth momentum, bolstered by retail automation and commercial Display applications Develop new ICs • Resources will be devoted to working with market leading
Slide 20: Thank You
solomon-systech.com THANK YOU
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