Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — FY2019 Earnings Presentation
17 slides from Solomon Systech (international)'s earnings presentation, Mar 27, 2020
Slide 1: 2019 Annual Results Announcement
2019 Annual Results Announcement 27 Mar 2020 Stock code: 2878
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
4 SOLOMON SYSTECH
Slide 4: Highlights
HIGHLIGHTS • Revenue amounted to US$108.3 million • Gross profit was US$21.3 million • Gross margin was 19.7% • Net loss was US$27.8 million • Loss per share was 1.1 US cent (8.53 HK cents) • Book-to-bill ratio for the year was 1.1 • The Board resolved not to propose any final dividend for the year
Slide 5: Financial Review
FINANCIAL REVIEW
Slide 6: Profit & Loss
PROFIT & LOSS (US$ million) 2019 2018 Variance Revenue 108.3 98.1 +10% Gross profit 21.3 28.2 Gross margin 19.7% 28.7% -9% Pts Net loss 27.8 13.8 (US cents) Loss per share 1.1 0.55 Dividends per share Nil Nil Book-to-bill ratio 1.1 1.0 /6
Slide 7: Financial Remarks
FINANCIAL REMARKS Key Factors Revenue US$108.3m • Revenue: up 10% (‘18: US$98.1m) • Unit shipments: up 4% YOY Gross Profit US$21.3m • Gross margin: 19.7% (’18: 28.7%) (’18: US$28.2m) Total Operating US$40.2m • Product R&D costs: Expenses (’18: US$48.7m) - US$24.7m (’18: US$31.5m) - down 22% YoY - 22
Slide 8: Balance Sheet
BALANCE SHEET (US$ million) As at 31 Dec 2019 2018 Variance Total assets 76.9 107.0 -28.1% Total borrowings 0.2 0.2 - Shareholders’ funds 51.3 79.0 -35.1% Cash and cash equivalents 18.0 13.4 +34.3% (HK Cents) Shareholders’ funds per share 16 25 -36.0% Net cash per share 5.6 4.2 +33.3% /8
Slide 9: Cash & Cash Equivalents Analysis 2019 vs 2018
CASH & CASH EQUIVALENTS ANALYSIS 2019 VS 2018 Cash and cash equivalents @31 Dec: Change • US$18.0m (’19) vs US$13.4m ('18) +US$4.6m Major Cash Inflow US$ Major Cash Outflow US$ • Interest and Dividend +0.2m • Net cash used in -2.9m Received Operating Activities • Proceeds from disposal of +9.2m • Le
Slide 10: Business Review
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Slide 11: Sales & Shipments
SALES & SHIPMENTS • 2019 total revenue: ~US$108.3 (+10% YoY) • 2019 total shipments: ~308.7 million units (+4% YoY) Product Revenue & Shipment (2015-2019) 350.0 108.3 120.0 300.0 98.1 308.7 100.0 82.5 295.8 250.0 70.9 68.4 80.0 200.0 215.2 60.0 150.0 185.8 187.3 40.0 100.0 50.0 20.0 0.0 0.0 2015 201
Slide 12: Advanced Display
ADVANCED DISPLAY Advanced Display Total Shipments: • Decreased 27% year-on-year to 134.9 million units PMOLED Display Driver IC (DDI) • 1H business grew steadily, the overall sales of standard PMOLED display driver ICs of the Group was weakened due to dwindling demand in some application markets
Slide 13: Large Display
LARGE DISPLAY Large Display Total Shipments: • Increased 111% year-on-year to 122.6 million units Obtained qualification • As a display control driver integrated circuit engineering research centre for display driver controls in Nanjing New IC • Continued to collaborate with fab in Chengdu to
Slide 14: Others
OTHERS Mobile Display/ Total Shipments: Decreased 4% year-on-year to 51.2 million units. Mobile Touch Mobile Display Products • In-cell TDDI IC for FHD+ LTPS panels and DDI IC for FHD IGZO panels well recognized by smartphone manufacturers in the Mainland, with mass production commencing in 2H •
Slide 15: Outlook
~ QUTLOOK
Slide 16: Outlook
OUTLOOK PMOLED TDDI IC • Expected to start mass production in 1H 2020 Advanced PMOLED display driver IC • Capitalize on growth potentials of smart home appliances and AIoT with grayscale displays Display Bistable display driver IC • Continue its strong growth momentum, bolstered by retail auto
Slide 17: Thank You
solomon-systech.com THANK YOU
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