Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — FY2020 Earnings Presentation
20 slides from Solomon Systech (international)'s earnings presentation, Mar 23, 2021
Slide 1: 2020 Annual Results Announcement
2020 Annual Results Announcement 23 Mar 2021 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$121.3 million, increased by about 12.0%. • Gross profit was US$35.8 million, jumped by 68.1%. • Gross margin was 29.6%, increased 9.9% points. • Profit attributable to owners of the parent was US$11.7 million, turnaround from loss of US$27.3 million. • Earnings pe
Slide 5: Financial Review
~ FINANCIAL REVIEW 4 SOLOMON SYSTECH
Slide 6: Profit & Loss
PROFIT & LOSS 2020 2019 Variance (US$ million) (US$ million) Revenue 121.3 108.3 +12.0% Gross Profit 35.8 21.3 +68.1% Gross Margin 29.6% 19.7% +9.9% Pts Profit / (Loss) Attributable to Owners of 11.7 (27.8) the Parent Earnings / (Loss) per Share (US cents) 0.5 (1.1) Dividends per Share (HK cents) 0.
Slide 7: Profit / (Loss) Before Tax
PROFIT / (LOSS) BEFORE TAX After Charging / (Crediting): 2020 2019 (US$ million) (US$ million) Cost of Goods Sold 85.3 79.8 (Reversal of) / Provision for Obsolete Inventory (0.3) 6.7 Impairment of Trade Receivable - 0.08 Amortisation of Intangible Assets 0.5 3.9 Depreciation of PPE 1.3 1.7 Depreciat
Slide 8: Financial Remarks
FINANCIAL REMARKS Key Factors Revenue US$121.3m • Revenue: up 12.0% (2019: US$108.3m) • Unit Shipments: up 379.4m pcs (2019: 308.7m pcs) 22.9% YoY Gross Profit US$35.8m • Gross Margin: 29.6% (2019: 19.7%) (2019: US$21.3m) Total Operating US$30.5m • Product R&D Costs: Expenses (2019: US$53.8m) - US$1
Slide 9: Balance Sheet
BALANCE SHEET As at 31 Dec 2020 As at 31 Dec 2019 Variance (US$ million) (US$ million) Total Assets 94.2 76.9 +22% Total Borrowings 0.2 0.2 - Shareholders’ Funds 63.4 51.3 +23.6% Cash and Cash Equivalents 50.8 18.1 +180.7% Shareholders’ Funds per Share 19.8 16.0 +23.8% (HK cents) Net Cash per Share
Slide 10: Trade Receivable Ageing
TRADE RECEIVABLE AGEING (Based on invoice date) As at 31 Dec 2020 As at 31 Dec 2019 (US$ million) (US$ million) 1-30 days 6.4 13.8 31-60 days 4.0 4.0 61-90 days 2.7 1.6 91-180 days 2.2 - 181-365 days - 0.2 Total 15.3 19.6 / 10
Slide 11: Trade Payable Ageing
TRADE PAYABLE AGEING (Based on invoice date) As at 31 Dec 2020 As at 31 Dec 2019 (US$ million) (US$ million) 1-30 days 7.3 6.8 31-60 days 6.8 5.9 61-90 days 1.5 3.0 Over 90 days 0.2 0.1 Total 15.8 15.8 / 11
Slide 12: Cash & Cash Equivalents Analysis 2020 vs 2019
CASH & CASH EQUIVALENTS ANALYSIS 2020 VS 2019 Cash and Cash Equivalents Change • US$50.8m (31 Dec 2020) vs US$18.1m (31 Dec 2019) +US$32.7m +180.7% Major Cash Inflow (Outflow) US$ • Net Cash generated from Operating Activities (FY 2020) 34.0m • Net Cash outflow from Operating Activities (FY 2019) (3
Slide 13: Business Review
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Slide 14: Revenue & Shipments
REVENUE & SHIPMENTS • 2020 Total Revenue: About US$121.3 million (+12.0% YoY) • 2020 Total Shipments: About 379.4 million units (+22.9% YoY) Revenue & Shipments (2016 – 2020) 450.0 140.0 121.3 400.0 120.0 108.3 350.0 98.1 379.4 100.0 300.0 82.5 68.4 295.8 308.7 80.0 250.0 200.0 215.2 60.0 150.0 187.
Slide 15: Advanced Display
ADVANCED DISPLAY Advanced Display ➢ Total Shipments: • Increased about 82.2% year-on-year to around 245.8 million units ➢ PMOLED Display Driver IC (“DDI”) • Increased orders for portable healthcare devices and related applications, triggered by the demand for healthcare products worldwide under the
Slide 16: Large Display
LARGE DISPLAY Large Display ➢ Total Shipments: • Decreased about 35.6% year-on-year to around 78.9 million units ➢ Softening Demand • The slowing global demand for TVs due to the Pandemic in 1H of 2020 and model transition in 2H of 2020 resulted in a drop in revenue driven by Large Display(“LD”) pro
Slide 17: Others
OTHERS Mobile Display/ ➢ Total Shipments: • Increased by approximately 6.8% year-on-year to around 54.7 million units Mobile Touch ➢ Mobile Display (“MD”) Products • The demand for mobile devices in China and the consumer sentiment have gradually recovered starting from 2H of 2020, which ultimately
Slide 18: Outlook
~ OUTLOOK 4 SOLOMON SYSTECH
Slide 19: Outlook
OUTLOOK ➢ PMOLED TDDI IC • Anticipated to enter mass production in smart home appliances ➢ Bistable Display Driver IC • Continue its strong growth momentum, developing a new generation that supports multiple Advanced colors Display ➢ Develop New ICs • Resources will be devoted to working with market
Slide 20: Thank You
solomon-systech.com THANK YOU
Solomon Systech (International) — FY2020 Earnings Presentation on 6ix