Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — FY2017 Earnings Presentation
20 slides from Solomon Systech (international)'s earnings presentation, Mar 13, 2018
Slide 1: SSIL 2017 Annual Results Announcement
SSIL 2017 Annual Results Announcement 13 Mar 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 2017 Annual Results Announcement 13 Mar 2018 P. 3
Slide 4: Highlights
Highlights Sales amounted to US$82.5 million Gross profit was US$29.3 million Gross margin was 35.5% Net loss was US$10.3 million Loss per share was 0.41 US cent (3.20 HK cents) Book-to-bill ratio for the year was 1.1 The Board resolved not to propose any final dividend for the year en
Slide 5: Performance Charts
Performance Charts SALES ( U S $ MI L L I O N ) GROSS PROFIT MARGIN ( % ) 37 90 82.5 36 80 70.9 35.5 70 35 68.4 60 34 34.4 50 LBITDA ( U S $ MIL L IO N ) 32.7 33 40 -5 2015 2016 2017 32 30 -5.2 -5.4 20 -5.4 31 -5.6 10 -5.6 30 0 -5.8 29 2015 2016 2017 2015 2016 2017 -6 -6.2 -6.3 -6.4 -6.6 SSIL 2017 A
Slide 6: Financial Review
Highlights Financial Review Business Review Outlook SSIL 2017 Annual Results Announcement 13 Mar 2018 P. 6
Slide 7: Financial Review - Profit and Loss
Financial Review - Profit and Loss (US$ million) 2017 2016 Variance Sales 82.5 68.4 +21% Gross profit 29.3 23.5 Gross margin 35.5% 34.4% +1.1pts Net loss 10.3 6.9 (US cents) Loss per share 0.41 0.28 Dividends per share Nil Nil Book-to-bill ratio 1.1 1.0 SSIL 2017 Annual Results Announcement 13 Mar 2
Slide 8: Financial Review - Financial Remarks
Financial Review - Financial Remarks Key Factors Sales US$82.5m • Sales: up 21% (‘16: US$68.4m) • Unit shipments: up 15% YOY • Blended ASP: up 5.0% YOY Gross Profit US$29.3m • Gross margin: 35.5% (’16: 34.4%) (’16: US$23.5m) Total US$49.7m • Product R&D costs: Operating (’16: US$36.0m) - US$34.5m (’
Slide 9: Financial Review - Balance Sheet
Financial Review - Balance Sheet (US$ million) As at 31 Dec 2017 2016 Variance Total assets 116.2 115.6 Total borrowings 0.3 0.2 Shareholders’ funds 91.8 101.0 -9.2% Net cash 23.2 24.5 -5.3% (HK Cents) Shareholders’ funds per 29 32 share Net cash per share 7.3 7.7 SSIL 2017 Annual Results Announceme
Slide 10: Financial Review - Net Cash Analysis 2017 vs 2016
Financial Review – Net Cash Analysis 2017 vs 2016 Net Cash @31 Dec: Change • US$23.2m (’17) vs US$24.5m (’16) -US$1.3m Major Cash Inflow US$ Major Cash Outflow US$ • Interest and +1.1m • Net cash Used in -10.3m Dividend Received Operating Activities • Change in FVTPL +17.4m • Acquisition of -4.0m Su
Slide 11: Business Review
Highlights Financial Review Business Review Outlook SSIL 2017 Annual Results Announcement 13 Mar 2018 P. 11
Slide 12: Business Review – Sales & Shipments
Business Review – Sales & Shipments 2017 Total Sales: ~US$82.5 million 2017 Total Shipment: ~215.2 million units Product Sales & Shipment (2013-2017) 250.0 90 80 200.0 70 60 150.0 50 40 100.0 30 20 50.0 10 0.0 0 2013 2014 2015 2016 2017 Sales (US$ Million) Shipment (Million Units) SSIL 2017 Annu
Slide 13: Important Milestone
Important Milestone Set up Solomon Systech (China) Limited (or Nanjing Technology Center) strategically in Nanjing Jiangbei New District Opening Ceremony: Nov 2017 SSIL 2017 Annual Results Announcement 13 Mar 2018 P. 13
Slide 14: Business Review – Main Display
Business Review – Main Display Total Sales: Increased 31% year-on-year to US$41.3m Main Display Touch Controller IC • Scored design-wins and design-in projects with key international brands (smartphones/smart watches/tablets/video game console controllers) Touch & Display Driver Integration (T
Slide 15: Business Review – Advanced Display
Business Review – Advanced Display Total Sales: Advanced Display • Increased 12% year-on-year to US$41.2 million PMOLED Display Driver IC (DDI) • Continued to score design-wins leveraging fast-growing wearables, smart home appliances, 4K set-top boxes, healthcare devices, etc. • New product for
Slide 16: Outlook
Highlights Financial Review Business Review Outlook SSIL 2017 Annual Results Announcement 13 Mar 2018 P. 16
Slide 17: Main Display – Outlook
Main Display – Outlook TDDI • Design-wins from 2017 to start mass production • Launch new TDDIs for FHD+ and HD+ infinity screen with Mobile Display IC 21:9 aspect ratio • Reach out to IDH for top brand smartphones to boost growth Touch Controller IC • Achieve more design wins, especially for AM
Slide 18: Advanced Display – Outlook
Advanced Display – Outlook Capture Market Trends PMOLED Launch new products with top brands for color wristbands Display Develop other new products, e.g. PMOLED TDDI Driver IC Extend Applications to Increase Revenue Stream Smart handheld devices, smart home appliances, etc. Capture Growi
Slide 19: Summary
Summary Total sales, unit shipments & gross profit increased 2017 Summary Net loss due to: • One-off write-off of obsolete inventories • Technological investment (R&D cost and related amortization expenses) Important Milestone: set up Solomon Systech (China) Limited (or Nanjing Technology Cent
Slide 20: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com
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