Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — H1 2016 Earnings Presentation
18 slides from Solomon Systech (international)'s earnings presentation, Aug 23, 2016
Slide 1: SSIL 2016 Interim Results Announcement
23 August 2016 Hong Kong 18 August 2014 Hong Kong SSIL 2016 Interim Results Announcement 23 Aug 2016 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: Agenda
Agenda Highlights Financial Review Business Review & Outlook Summary SSIL 2016 Interim Results Announcement 23 Aug 2016 P. 3
Slide 4: Highlights
Highlights Sales amounted to US$32.9 million Gross profit was US$10.4 million Gross margin was 31.7% Net loss was US$6.4 million Loss per share was 0.26 US cent (2.00 HK cents) Book-to-bill ratio was 1.0 The Board resolved not to propose an interim dividend for the six months ended 30
Slide 5: Financial Review
Highlights Financial Review Business Review & Outlook Summary SSIL 2016 Interim Results Announcement 23 Aug 2016 P. 5
Slide 6: Financial Review - Profit and Loss
Financial Review - Profit and Loss (US$ million) 1H16 1H15 Remarks Sales 32.9 33.4 1% Gross profit 10.4 12.0 13% Gross margin 31.7% 35.9% 4.2pts Net profit/(loss) (6.4) 0.9 (HK cent) Earnings/(loss) per share (2.00) 0.27 Dividends per share Nil Nil Book-to-bill ratio 1.0 1.1 SSIL 2016 Interim Result
Slide 7: Financial Review - Financial Remarks
Financial Review - Financial Remarks Key Factors Sales US$32.9m • Unit Shipments: up 2% YoY (1H15: US$33.4m) • Blended ASP: down 4% YoY Gross US$10.4m • Gross margin: 31.7% (1H15: 35.9%) Profit (1H15: US$12.0m) Total US$17.6m • Product R&D costs: US$9.6m (1H15: US$8.9m) Operating (1H15: US$14.7m) •
Slide 8: Financial Review - Balance Sheet
Financial Review - Balance Sheet As at 30 Jun As at 31 Dec (US$ million) 2016 2015 Change Total assets 116.2 123.4 Total borrowings 0.2 0.3 Shareholders’ funds 102.2 108.5 6% Net cash 22.0 26.1 16% (HK cents) Shareholders’ funds per share 32 34 Net cash per share 7 8 SSIL 2016 Interim Results Announ
Slide 9: Financial Review - Net Cash Analysis 2016 vs 2015
Financial Review – Net Cash Analysis 2016 vs 2015 Net Cash: Change • US$22.0m (30 Jun’16) vs US$26.1m (31 Dec’15) -US$4.1m Major Cash Inflow US$ Major Cash Outflow US$ • Interest and +1.0m • Net Cash Used in -2.8m Dividends Received Operating Activities • Treasury -2.1m Investment • Capital -0.1m Ex
Slide 10: Business Review & Outlook
Highlights Financial Review Business Review & Outlook Summary SSIL 2016 Interim Results Announcement 23 Aug 2016 P. 10
Slide 11: Business Review – Product Shipments
Business Review – Product Shipments 1H 2016 total shipments: 84.4 million units (1H 2015: 82.7 million units) #k Product Shipment #k Product Shipment 90,000 70,000 80,000 70,000 60,000 60,000 50,000 50,000 40,000 40,000 30,000 20,000 30,000 10,000 20,000 1H 2016 1H 2015 10,000 PMOLED and Bistable Di
Slide 12: Advanced Display – Business Review
Advanced Display – Business Review Overall Unit Shipments: increased by 12% to 64.1 million units • Design wins: - PMOLED – world-renowned wearable health and fitness devices - Bistable – ESLs, portable health trackers, PMOLED & Bistable medical devices, kids’ smartphones Display Driver ICs • Extend
Slide 13: Advanced Display – Outlook
Advanced Display – Outlook • Expect mild growth: - Panel manufacturing capacity expansion PMOLED • New products: Display Driver ICs - Full color display, larger die size, enhanced functional features, power efficiency, component miniaturization • Strong potential: - Growing smart hand held devices m
Slide 14: Main Display – Business Review
Main Display – Business Review Overall Unit Shipments: decreased by 20% to 20.3 million units • Touch Display Driver IC (TDDI): - Started volume shipment of TDDI for FWVGA panels Mobile Display ICs - Developed new TDDI IC for FHD panels • Display Driver IC for FHD IGZO Panels: - New IC undergoing ma
Slide 15: Main Display – Outlook
Main Display – Outlook • Touch Display Driver IC (TDDI): - High volume shipment of TDDI for FWVGA panels in the near term Mobile Display ICs - Start shipment of new TDDI for FHD panels - Develop more new TDDI for other resolutions • MIPI Bridge IC: - New bridge IC for UHD resolution - Develop new IC
Slide 16: Summary
Highlights Financial Review Business Review & Outlook Summary SSIL 2016 Interim Results Announcement 23 Aug 2016 P. 16
Slide 17: Summary
Summary Total unit shipments increased yet sales decreased slightly: ASP erosion of certain products under intense price 1H Summary competition Organizational realignment under customer-focused strategy Strengthened product and application portfolios df Favorable market conditions: LCD and
Slide 18: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com
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