Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — H1 2018 Earnings Presentation
19 slides from Solomon Systech (international)'s earnings presentation, Aug 22, 2018
Slide 1: 2018 Interim Results Announcement
18 August 2014 Hong Kong SSIL 2018 Interim Results Announcement 22 Aug 2018 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 Interim Results Announcement 22 Aug 2018 P. 3
Slide 4: Highlights
Highlights Sales amounted to US$45.7 million Gross profit was US$14.6 million Gross margin was 32.0% Net loss was US$6.3 million Loss per share was 0.25 US cent (1.94 HK cents) Book-to-bill ratio for the year was 1.1 The Board resolved not to propose any interim dividend for the six mo
Slide 5: Performance Charts
Performance Charts SALES ( U S $ MI L L I O N ) GROSS PROFIT MARGIN ( % ) 40 50 38.6 35 32.9 45 45.7 32.0 30 40 25 38.6 20 35 32.9 15 30 10 25 LBITDA ( U S $ MIL L IO N ) 5 -3.1 0 20 2016 2017 2018 2016 2017 2018 2016 2017 2018 -3.6 -3.3 -3.4 -4.1 -4.6 -5.1 -5.6 -6.1 -6.4 -6.6 SSIL 2018 Interim Resu
Slide 6: Financial Review
Highlights Financial Review Business Review Outlook SSIL 2018 Interim Results Announcement 22 Aug 2018 P. 6
Slide 7: Financial Review - Profit and Loss
Financial Review - Profit and Loss (US$ million) 1H 2018 1H 2017 Variance Sales 45.7 38.6 +18% Gross profit 14.6 14.7 Gross margin 32.0% 38.1% -6.1pts Net loss 6.3 5.6 (US cents) Loss per share 0.25 0.23 Dividends per share Nil Nil Book-to-bill ratio 1.1 1.1 SSIL 2018 Interim Results Announcement 22
Slide 8: Financial Review - Financial Remarks
Financial Review - Financial Remarks Key Factors Sales US$45.7m • Sales: up 18% YOY (1H17: US$38.6m) • Unit shipments: up 60.0% YOY • Blended ASP: down 26.0% YOY Gross US$14.6m • Gross margin: 32.0% (1H17: 38.1%) Profit (1H17: US$14.7m) Total US$25.2m • Product R&D costs: Operating (1H17: US$23.8m)
Slide 9: Financial Review - Balance Sheet
Financial Review - Balance Sheet (US$ million) As at 30 Jun Variance 2018 2017 Total assets 117.5 116.2 Total borrowings 0.2 0.3 Shareholders’ funds 86.1 91.8 -6.2% Net cash 21.8 23.3 -6.4% (HK Cents) Shareholders’ funds per 27 29 share Net cash per share 6.8 7.3 SSIL 2018 Interim Results Announceme
Slide 10: Financial Review - Net Cash Analysis 2018 vs 2017
Financial Review – Net Cash Analysis 2018 vs 2017 Net Cash: Change • US$21.8m (30 Jun’18) vs US$23.3m (31 Dec’17) -US$1.5m Major Cash Inflow US$ Major Cash Outflow US$ • Interest and +0.3m • Net cash Used in -12.3m Dividend Received Operating Activities • Change in FVTPL +11.3m • Capital Expenditure
Slide 11: Business Review
Highlights Financial Review Business Review Outlook SSIL 2018 Interim Results Announcement 22 Aug 2018 P. 11
Slide 12: Business Review - Sales & Shipments
Business Review – Sales & Shipments 1H2018 Total Sales: ~US$45.7 million (up 18% year-on-year) 1H2018 Total Shipments: ~144.9 million units (up 60% year-on-year) Product Sales & Shipment 50 160 45 140 40 120 35 100 30 25 80 20 60 15 40 10 20 5 0 0 1H2014 1H2015 1H2016 1H2017 1H2018 Sales (US$ Mi
Slide 13: Business Review - Advanced Display
Business Review – Advanced Display Total Sales: Advanced • Surged 39% year-on-year to US$25.9 million Display PMOLED Touch and Display Driver Integration (TDDI) IC • World’s 1st: an important industry milestone • Potential revenue driver • Sample ready for customer outreach. PMOLED Display Dri
Slide 14: Business Review - Main Display
Business Review – Main Display Total Sales: Slight reduction of 1% to US$19.8m Main Display maXTouch® Touchscreen Controller IC • Scored design-wins: major international smartphone/tablet brands Large TFT LCD DDI • Over 70% sales growth • Increased share in Nanjing CEC Panda Flat Panel Display
Slide 15: Outlook
Highlights Financial Review Business Review Outlook SSIL 1H 2018 Interim Results Announcement 22 Aug 2018 P. 15
Slide 16: Advanced Display - Outlook
Advanced Display – Outlook Strong Potential: PMOLED Capture Market Trends: bank keys, smart home appliances, Display wristbands with grayscale display Driver IC PMOLED TDDI IC: expected to start pilot production in Q4 Growth Momentum to Continue: Bistable Strong Growth of ESL Market: in partic
Slide 17: Main Display - Outlook
Main Display – Outlook maXTouch® Touchscreen Controller IC Business Continues to Grow: • Design wins garnered in 1H to start mass production Mobile Display IC • New foldable AMOLED touch controller IC: sample ready by end 2018 and start mass production in 2019 TDDI • Capture opportunities from s
Slide 18: Summary
Summary Strong increase in total sales (18%) & unit shipments (60%) 2018 1H Summary Greatly enhanced R&D talent pool and new product development Net loss due to: • specific provisions for slow moving inventories; • decrease in average selling price due to special price reduction of certain old
Slide 19: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com
Solomon Systech (International) — H1 2018 Earnings Presentation on 6ix