Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — H1 2023 Earnings Presentation
30 slides from Solomon Systech (international)'s earnings presentation, September 2023
Slide 1: 2023 Interim Results Presentation
2023 Interim Results Presentation Stock code: 2878 September 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 was US$85.3 million (21.4% decrease YoY and 3.7% increase compared to 2H 2022) ❖ Gross profit was US$27.9 million; GP margin was 32.7% ❖ Operating profit decreased by 39.0% YoY and increased by 109.3% compared to 2H 2022 ❖ Profit attributable to owners of the parent wa
Slide 5: Financial Review
FINANCIAL REVIEW SOLOMON
Slide 6: Financial Highlights
Financial Highlights (US$ million) 120 1H2023 2H2022 1H2022 100 80 (US$ million) 60 Revenue 85.3 82.3 108.5 40 Gross profit 27.9 23.3 42.2 R&D expenses 10.6 12.2 14.9 20 Profit attributable to 6.1 21.8 0 owners of the 13.2 1H 2022 2H 2022 1H 2023 parent Revenue Gross profit R&D expenses Profit attri
Slide 7: Balance Sheet
Balance Sheet As at 30 Jun 2023 As at 31 Dec 2022 Change % (US$ million) (US$ million) Total assets 160.2 158.3 +1.2% Shareholders’ equity 120.2 109.2 +10.1% Bank deposits and cash 77.5 51.6 +50.2% Shareholders’ equity per 37.3 33.9 +10.0% share (HK cents) Net cash per share 24.1 16.0 +50.6% (HK cen
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 2020 2021 2022 2023 Large Display ICs OLED Display ICs 2H 2H 1H 1H 2020 2021 2022 2023 2020 2021 2022 2023 8
Slide 9: Revenue By Products
Revenue By Products Large Display ICs 1H2023 Large Display ICs 1H2022 4% 6% Mobile Display & New Display ICs Mobile Display & New Display ICs Mobile Touch ICs Mobile Touch ICs 46% 47% 39% 34% 14% 11% OLED ICs OLED ICs 9
Slide 10: Receivable Ageing Analysis
Receivable Ageing Analysis (Based on invoice date) As at 30 Jun 2023 As at 31 Dec 2022 (US$ million) (US$ million) 1 - 30 days 15.2 11.6 31 - 60 days 3.1 3.7 61 - 90 days 2.3 2.8 91 - 180 days 1.1 4.4 180 - 365 days 0.8 1.0 Total 22.5 23.5 10
Slide 11: Payable Ageing Analysis
Payable Ageing Analysis (Based on invoice date) As at 30 Jun 2023 As at 31 Dec 2022 (US$ million) (US$ million) 1 - 30 days 7.7 8.0 31 - 60 days 4.9 3.5 61 - 90 days 1.3 4.2 Over 90 days - 0.1 Total 13.9 15.8 11
Slide 12: Consolidated Cash Flow
Consolidated Cash Flow 1H2023 1H2022 Change % (US$ million) (US$ million) Net cash generated from 28.7 20.1 +43.1% operating activities Net increase in cash and 26.9 21.5 +25.1% cash equivalents Total bank deposits and cash 77.5 59.4 +30.5% 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. Revenue from the New Display IC products decreased by 19.9% YoY, mainly due to a slowdown in demand and keen competi
Slide 15: OLED Display IC
OLED Display IC 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 1H 2023, demand for PMOLED smart home appliances and healthcare products related to the COVID-19 pandemic, such as oximeters, shrunk
Slide 16: Mobile Display & Mobile Touch ICs
Mobile Display & Mobile Touch ICs ▪ Mobile Display and Mobile Touch ICs products reported a 10.8% YoY decrease in sales revenue, mainly due a slow recovery in demand for consumer electronics caused by the global economy and a persistent high level of inflation. ▪ Steady market demand for game consol
Slide 17: Large Display ICs
Large Display ICs New IC for entertainment ▪ The large screen market was affected by factors such as the post-pandemic era and sluggish market demand, which resulted in huge losses for panel makers and in turn, an unsatisfactory performance in the sales of Large Display ICs. ▪ The Group managed to c
Slide 18: Outlook
OUTLOOK
Slide 19: Outlook
Outlook New Display ICs OLED Display ICs ▪ Continue to develop and ▪ Promotes the world’s first small- promote the 7-colour or full sized passive matrix micro-LED colour e-paper, and move display driver IC – SSD2363 towards large-size displays launched by the Group ▪ Continue to develop PMOLED smart
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 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 ❖ World-leading market share for electronic shelf labels (ESL) applications in 2023 ❖ Ranked 1st in global market share for PMOLED applications for consecutive years Hong Kong Awards for Industries - EE Awards Asia 2022 - China Semiconductor Innovative Products Technological Ac
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 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-LED ❖
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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