Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — FY2022 Earnings Presentation
30 slides from Solomon Systech (international)'s earnings presentation, April 2023
Slide 1: 2022 Annual Results Presentation
2022 Annual Results Presentation Stock code: 2878 April 2023
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 increased by about 13.5% to US$190.8 million ❖ Gross profit was US$65.5 million; GP margin was 34.3% ❖ Operating profit increased by 18.7% ❖ Profit attributable to owners of the parent increased by 16.8% to US$27.8 million ❖ Earnings per share were 1.1 US cents (equiva
Slide 5: Financial Review
FINANCIAL REVIEW SOLOMON
Slide 6: Financial Highlights
Financial Highlights 2022 2021 Change % (US$ million) (US$ million) Revenue 190.8 168.1 +13.5% Gross profit 65.5 67.3 -2.7% GP margin 34.3% 40.0% -5.7p.p. R&D expenses 27.1 30.4 -10.9% Profit attributable to owners of the 27.8 23.8 +16.8% parent Earnings per share (US cents) 1.1 1 +10.0% Current rat
Slide 7: Balance Sheet
Balance Sheet As at 31 Dec 2022 As at 31 Dec 2021 Change % (US$ million) (US$ million) Total assets 158.3 139.9 +13.2% Shareholders’ equity 109.2 86.7 +26.0% Bank deposits and cash 51.6 41.8 +23.4% Shareholders’ funds 34 27 +25.9% per share (HK cents) Net cash per share 16 13 +23.1% (HK cents) 7
Slide 8: Revenue Trend By Products
Revenue Trend By Products New Display ICs Mobile Display & Mobile Touch ICs 2020 2021 2022 2020 2021 2022 Large Display ICs OLED Display ICs (US$’000) (US$’000) 2020 2021 2022 2020 2021 2022 8
Slide 9: Revenue By Products
Revenue By Products Large Display ICs 2022 Large Display ICs 2021 6% 11% Mobile Display & New Display ICs Mobile Display & New Display ICs Mobile Touch ICs Mobile Touch ICs 42% 46% 35% 26% 13% 21% OLED ICs OLED ICs 9
Slide 10: Receivable Ageing Analysis
Receivable Ageing Analysis (Based on invoice date) As at 31 Dec 2022 As at 31 Dec 2021 (US$ million) (US$ million) 1 - 30 days 11.6 9.8 31 - 60 days 3.7 6.5 61 - 90 days 2.8 5.5 91 - 180 days 4.4 2.3 180 - 365 days 1.0 0 Total 23.5 24.1 10
Slide 11: Payable Ageing Analysis
Payable Ageing Analysis (Based on invoice date) As at 31 Dec 2022 As at 31 Dec 2021 (US$ million) (US$ million) 1 - 30 days 8.0 14.7 31 - 60 days 3.5 6.5 61 - 90 days 4.2 2.4 Over 90 days 0.1 0.3 Total 15.8 23.9 11
Slide 12: Consolidated Cash Flow
Consolidated Cash Flow 2022 2021 Change % (US$ million) (US$ million) Net cash generated from 17.6 -6.0 - operating activities Net increase in cash and 23.2 -27.4 - cash equivalents Total bank deposits and cash 51.6 41.8 +23.4% 12
Slide 13: Business Review
BUSINESS REVIEW SOLOMON
Slide 14: New Display ICs
New Display ICs 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. Stable sales arising from ESL in the European and the North American markets, and it is also becoming an emerging tr
Slide 15: OLED Display ICs
OLED Display ICs OLED Display ICs ❖ The Group is the world’s number one PMOLED display driver IC player with a dominant market share in terms of unit of shipment in 2022. ❖ In 1H 2022, the demand for healthcare products related to the COVID- 19 pandemic, such as oximeters, was strong as the pandemic
Slide 16: Mobile Display & Mobile Touch ICs
Mobile Display & Mobile Touch ICs Game console controller ICs drives segment demand ❖ Benefiting from the strong demand for game console controller ICs, the Mobile Display and Mobile Touch ICs products reported a 55.4% increase in sales revenue. ❖ Market demand for game console controller ICs requir
Slide 17: Large Display ICs
Large Display ICs New IC for entertainment ❖ Due to the poor demand for large screens as a result of the COVID-19 pandemic, panel manufacturers suffered huge losses from the unsatisfactory sales. ❖ The Group successfully carried out the mass production of driver ICs for the 165Hz high-refresh-rate g
Slide 18: Outlook
OUTLOOK
Slide 19: Outlook
Outlook OLED Display ICs Mobile Display & Mobile Touch ICs ❖ Develop the advanced technology of ❖ Develop AR and VR products by micro-LED IC solution for brighter leveraging the pioneering technologies and power-efficient appliances in MIPI, in order to capture the market ❖ Continue to develop PMOLE
Slide 20: About the Company
ABOUT THE COMPANY SOLOMON
Slide 21: 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, originated from a department of the mobile phone producer Motorola, which Head Office Hong Kong Sales Networks specialised in the research a
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 ❖ Source DDI ❖ Segment Bistable DDI ❖ PMOLED Display Driver (DDI) IC (DDI)
Slide 23: Product Applications
Product Applications ePaper/ Electronic Shelf Label Smartphone / Tablet Medical Metaverse 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 MiniLED/μLED Custom Driver Controller Applications ❖ The fast-res
Slide 25: "Fabless" Business Model
“Fabless” Business Model Customers Co-development 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 ❖ Ranked 1st in global market share for electronic shelf labels (ESL) applications in 2022 ❖ Ranked 1st in global market share for PMOLED applications for consecutive years Hong Kong Awards for Industries - China Semiconductor Innovative Products Technological Achievement Hong
Slide 27: International Partnership
International Partnership Solomon Systech’s customers include many international labels: Brand Owners Display Module Makers 27
Slide 28: Patents
Patents ❖ Over 660 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-LED ❖
Slide 29: Thank You
solomon-systech.com 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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