Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — H1 2024 Earnings Presentation
30 slides from Solomon Systech (international)'s earnings presentation, September 2024
Slide 1: 2024 Interim Results Presentation
2024 Interim Results Presentation Stock code: 2878 September 2024
Slide 2: Contents
Contents 1. Financial Highlights 2. Financial Review 3. Business Review 4. Outlook 5. Appendix: About the Company 2
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS SOLOMON
Slide 4: Financial Highlights
Financial Highlights ❖ Revenue decreased by 27.4% YoY to US$61.9 million ❖ Gross profit was US$19.8 million; GP margin was 32.0% ❖ Profit attributable to owners of the parent was US$7.5 million (43.3% decrease YoY and 21% increase compared to 2H 2023) ❖ Earnings per share were 0.30 US cents (equival
Slide 5: Financial Review
FINANCIAL REVIEW SOLOMON
Slide 6: Financial Highlights
Financial Highlights 1H2024 1H2023 Change % (US$ million) (US$ million) Revenue 61.9 85.3 -27.4% Gross profit 19.8 27.9 -29.0% GP margin 32.0% 32.7% -0.7p.p. R&D expenses 8.0 10.6 -24.5% Profit attributable to owners of the 7.5 13.2 -43.3% parent Earnings per share (US cents) 0.30 0.53 -43.4% Curren
Slide 7: Balance Sheet
Balance Sheet As at 30 Jun 2024 As at 31 Dec 2023 Change % (US$ million) (US$ million) Total assets 171.4 157.4 +8.9% Shareholders’ equity 134.4 126.9 +5.9% Bank deposits and cash 102.1 86.3 +18.2% Shareholders’ equity per 41.7 39.4 +5.9% share (HK cents) Net cash per share 29.8 24.9 +19.6% (HK cent
Slide 8: Revenue Trend By Products
Revenue Trend By Products New Display ICs Mobile Display & Mobile Touch ICs 2H 2H 1H 1H 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Large Display ICs OLED Display ICs 2H 2H 1H 1H 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 8
Slide 9: Revenue By Products
Revenue By Products Large Display ICs 1H2024 Large Display ICs 1H2023 4% 11% Mobile Display & Mobile Touch ICs New Display ICs Mobile Display & New Display ICs 16% 59% Mobile Touch ICs 47% 39% OLED ICs 14% 11% OLED ICs 9
Slide 10: Receivable Ageing Analysis
Receivable Ageing Analysis (Based on invoice date) As at 30 Jun 2024 As at 31 Dec 2023 (US$ million) (US$ million) 1 - 30 days 12.3 12.1 31 - 60 days 3.4 2.4 61 - 90 days 1.8 1.3 91 - 180 days 1.4 1.2 180 - 365 days - 0.3 Total 18.9 17.3 10
Slide 11: Business Review
BUSINESS REVIEW SOLOMON
Slide 12: New Display IC
New Display IC As a globally leading supplier for e-paper display driver ICs with the largest market share, the Group’s customers include many of the world's top-ranked supermarkets Shipment volume of new display IC products grew steadily: ▪ Driven by the launch of large-sized four-color display lab
Slide 13: OLED Display IC
OLED Display IC OLED display ICs ▪ The Group is the world’s No.1 PMOLED display driver IC player with a dominant market share in terms of shipment volume ▪ During the Period, the shipment volume remained constant YoY New products ▪ Micro-LED display IC ‒ Launched the world’s first small-sized passiv
Slide 14: Mobile Display & Mobile Touch ICs
Mobile Display & Mobile Touch ICs ▪ Shipment volume and revenue of the mobile display and mobile touch IC products declined significantly due to the persistent sluggish personal consumption market. Sales of game console controller ICs were particularly impacted ▪ Collaborated with leading small-to-m
Slide 15: Large Display ICs
Large Display ICs Shipment and revenue of large display ICs surged ▪ Benefiting from a series of home appliance subsidy policies implemented in mainland China in late 2023 , the sales of large- sized display such as monitors and smart TVs surged, resulting in a more than double YoY growth in shipmen
Slide 16: Large Display ICs
Large Display ICs Latest developments: ▪ Display driver ICs ‒ Authorized by a major Chinese display manufacturer to develop a new generation P2P high-speed interface display driver IC (officially to commence the project in Q3 2024) ▪ Automotive driver IC Designed by Freepik ‒ Signed a strategic coop
Slide 17: Outlook
OUTLOOK
Slide 18: Outlook
Outlook New Display ICs OLED Display ICs ▪ Trial production of small-sized four-color ▪ Promote the world's first small-sized display labels is expected to commence passive micro-LED display driver IC - soon. Mass production, anticipated to SSD2363 launched by the Group boost sales alongside the lar
Slide 19: About the Company
ABOUT THE COMPANY SOLOMON
Slide 20: Our Milestones
Our Milestones Listed on main board of HKEx Set up of Shenzhen Rebranded with (stock code: 2878) Set up of Taiwan & Nanjing Technology Center new company logo Technology Center Spin-off from Motorola 1999 2000 2002 2003 2004 2017 2023 Established in Entered Hong Kong • World no.1 PMOLED display Hong
Slide 21: Our Presence
Our Presence Head Office Hong Kong Sales Networks Hong Kong Technology Centers Shenzhen Hong Kong Beijing Nanjing Nanjing Shenzhen Shanghai Taiwan Taiwan Japan Korea USA Europe 21
Slide 22: 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 ❖ Dot-Matrix Bistable DDI ❖ PMOLED TDDI ❖ TFT Display Driver IC (DDI) ❖ Source DDI ❖ Segment Bistable DDI ❖ PMOLED Display Driver ❖ In-Cell
Slide 23: Product Applications
Product Applications ePaper/ Electronic Shelf Label Smartphone / Tablet Medical Gaming Smart Home Appliances 23
Slide 24: Custom ICs
Custom ICs ❖ Custom ICs for digital, analog and mixed-signal applications ❖ One-stop solution from designing, testing to delivering ❖ Our turnkey services provide one of the most convenient and easiest ways from ASIC to SoC production Mini-LED/ Micro-LED Custom Driver Controller Applications ❖ The f
Slide 25: "Fabless" Business Model
“Fabless” Business Model Customers Develop/ Co-develop Display IC & System Solution Design & Logistics Quality Development Management Marketing Management IC Software System Solution IP Management 中国电子 Branding 的支持 Mask Wafer Packaging Making Fabrication and Testing Outsource Manufacturing 25
Slide 26: Awards & Achievements
Awards & Achievements ❖ World-leading market share for electronic shelf labels (ESL) applications ❖ Ranked 1st in global market share for PMOLED applications for consecutive years Hong Kong Awards for Industries - EE Awards Asia China Semiconductor Innovative Products Technological Achievement Award
Slide 27: International Partnership
International Partnership Solomon Systech’s customers include many international labels: Brand Owners Display Module Makers 27
Slide 28: Patents
Patents ❖ Close to 680 IC design patents from China, US, Europe and other Asia regions ❖ PMOLED ❖ Developed world’s first PMOLED TDDI ❖ Patented driving architecture in US and China ❖ ePaper ❖ Patent on fully automated panel defeat detection method which benefits IoT application ❖ Mini-LED/ Micro-LE
Slide 29: Thank You
Thank You
Slide 30: 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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