Solomon Systech (International) Ltd. · HKEX:2878
Solomon Systech (International) — H1 2014 Earnings Presentation
21 slides from Solomon Systech (International)'s earnings presentation, Aug 18, 2014
Slide 1: 2014 Interim Results Announcement
To be Updated 18 August 2014 Hong Kong SSIL 2014 Interim Results Announcement 18 Aug 2014 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: Agenda
Agenda Highlights Financial Review Business Review & Outlook SSIL 2014 Interim Results Announcement 18 Aug 2014 P. 3
Slide 4: Highlights
Highlights Financial Review Business Review & Outlook SSIL 2014 Interim Results Announcement 18 Aug 2014 P. 4
Slide 5: Highlights
Highlights Sales amounted to US$27.3 million Gross profit was US$9.3 million Gross margin was 34.3% Net loss was US$1.5 million Loss per share was 0.06 US cent (0.46 HK cent) Book-to-bill ratio was 1.1 The Board resolved not to propose an interim dividend for the six months ended 30 Ju
Slide 6: Financial Review
Highlights Financial Review Business Review & Outlook SSIL 2014 Interim Results Announcement 18 Aug 2014 P. 6
Slide 7: Financial Review - Profit and Loss
Financial Review - Profit and Loss (US$ million) 1H14 1H13 Remarks Sales 27.3 31.1 ↓12% Gross profit 9.3 12.8 ↓27% Gross margin 34.3% 41.0% ↓6.7pts Net profit/(loss) (1.5) 0.8 (HK cent) Earnings/(loss) per share (0.46) 0.26 Dividends per share Nil Nil Book-to-bill ratio 1.1 0.8 SSIL 2014 Interim Res
Slide 8: Financial Review - Financial Remarks
Financial Review - Financial Remarks Key Factors Sales US$27.3m • Unit Shipments: down 7% YOY (1H13: US$31.1m) Gross US$9.3m • Gross margin: 34.3% (1H13: 41.0%) Profit (1H13: US$12.8m) Total US$13.0m • R&D costs: US$7.5m (1H13: US$6.8m) Operating (1H13: US$12.5m) • S&D expenses: US$1.6m (1H13: US$1.
Slide 9: Financial Review - Balance Sheet
Financial Review - Balance Sheet As at 30 Jun As at 31 (US$ million) 2014 Dec 2013 Change Total assets 129.1 129.0 Total borrowings 0.4 0.5 Shareholders’ funds 116.4 117.8 -1% Net cash 34.2 32.9 +4% (HK cents) Shareholders’ funds per share 37 37 Net cash per share 11 10 SSIL 2014 Interim Results Ann
Slide 10: Financial Review - Net Cash Analysis 2013 vs 2014
Financial Review – Net Cash Analysis 2013 vs 2014 Net Cash: Change • US$34.2m (30 Jun ’14) vs $32.9m (31 Dec’13) +1.3m Major Cash Inflow US$ Major Cash Outflow US$ • Interest and Dividend +1.4m • Net Cash Used in -1.8m Received Operating Activities • Net Treasury +2.0m • Capital Expenditure -0.3m In
Slide 11: Business Review & Outlook
Highlights Financial Review Business Review & Outlook SSIL 2014 Interim Results Announcement 18 Aug 2014 P. 11
Slide 12: Business Review - Product Shipments
Business Review – Product Shipments Total unit shipments of 1H 2014 ~ 44.3 million units SSIL 2014 Interim Results Announcement 18 Aug 2014 P. 12
Slide 13: Business Review - Blended Average Selling Price
Business Review – Blended Average Selling Price 1H14 blended ASP = US$0.61, up ~9% HoH (2H13:US$0.56); down ~6% YoY (1H13:US$0.65) Blended ASP (YoY) Blended ASP Change (1H 2012-1H 2014) (1H 2012-1H 2014) SSIL 2014 Interim Results Announcement 18 Aug 2014 P. 13
Slide 14: Business Review & Outlook - Mobile Display
Business Review & Outlook Review TFT LCD display drivers Mobile • Developed new products targeting FHD Display smartphones & wider customer base In-cell Touch TFT LCD display drivers • Collaborated with top-tier customer Unit shipment reduced Change in business plans of key customer Outlook
Slide 15: Business Review & Outlook - Mobile System Review
Business Review & Outlook Mobile Review System Touch panel controllers • Started mass production for single-layer, multi-touch controllers targeting smartphones • Completed qualification for multi-touch controllers targeting high-end tablets MIPI display interface controllers • Developed new pro
Slide 16: Business Review & Outlook - Mobile Outlook
Business Review & Outlook Mobile Outlook System Touch panel controllers • To ramp up shipments of new products launched • To produce On-cell Touch controllers sample • To further enhance product features and performance MIPI display interface controllers • To ramp up shipment for smart watch app
Slide 17: Business Review & Outlook - Advanced Display Review
Business Review & Outlook Advanced Display Bistable display drivers • AMEPD: design-in new ESL panel sizes • Segment-type: expanded to healthcare products Electronics Shelf Labels & smart cards Glucose PMOLED display drivers Meters • Scored design wins with global wearable healthcare & fitness d
Slide 18: Business Review & Outlook - Advanced Outlook
Business Review & Outlook Advanced Outlook Display Bistable display drivers • AMEPD drivers: to continue to penetrate further into ESL market • Segment-type display drivers: to further expand application portfolio PMOLED display drivers • To score more design wins for smart watches, wearable hea
Slide 19: Business Review & Outlook - Large Display
Business Review & Outlook Large Large TFT display drivers Display • Completed qualification for 21.5” Full HD 31.5” TV monitors and 18.5” HD monitors • Started mass production for 18.5” HD monitors Unit shipment maintained • Shifting towards higher value-added products 21.5” Monitor Outlook To
Slide 20: Summary
Summary Global economy and semiconductor industry expected to keep a steady growth Overall Target smart applications with good market potential – smartphones, wearables, ESLs Enhance new product introduction and get more design wins Remain cautiously optimistic with dynamic changes of market
Slide 21: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com
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