Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — H1 2019 Earnings Presentation
19 slides from Solomon Systech (international)'s earnings presentation, Aug 21, 2019
Slide 1: 2019 Interim Results Announcement
18 August 2014 Hong Kong SSIL 2019 Interim Results Announcement 21 Aug 2019 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 2019 Interim Results Announcement 21 Aug 2019 P. 3
Slide 4: Highlights
Highlights Revenue amounted to US$56.6 million Gross profit was US$10.0 million Gross margin was 17.6% Net loss was US$9.6 million Loss per share was 0.39 US cent (3.02 HK cents) Book-to-bill ratio for the period was 1.1 The Board resolved not to propose any interim dividend for the si
Slide 5: Financial Review
Highlights Financial Review Business Review Outlook SSIL 2019 Interim Results Announcement 21 Aug 2019 P. 5
Slide 6: Financial Review - Profit and Loss
Financial Review - Profit and Loss (US$ million) 1H 2019 1H 2018 Variance Revenue 56.6 45.7 +24% Gross profit 10.0 14.6 Gross margin 17.6% 32.0% -14.4pts Net loss 9.6 6.3 (US cents) Loss per share 0.39 0.25 Dividends per share Nil Nil Book-to-bill ratio 1.1 1.1 SSIL 2019 Interim Results Announcement
Slide 7: Financial Review - Financial Remarks
Financial Review - Financial Remarks Key Factors Revenue US$56.6m • Sales: up 24% YOY (1H18: US$45.7m) • Unit shipments: up 12% YOY • Blended ASP: up 10% YOY Gross US$10.0m • Gross margin: 17.6% (1H18: 32.0%) Profit (1H18: US$14.6m) Total US$22.2m • Product R&D costs: Operating (1H18: US$25.2m) - US
Slide 8: Financial Review - Balance Sheet
Financial Review - Balance Sheet (US$ million) As at 30 Jun Variance 2019 2018 Total assets 98.4 107.0 Total borrowings 0.2 0.2 Shareholders’ funds 69.4 79.0 -12% Net Cash 24.6 13.4 +83.6% (HK Cents) Shareholders’ funds per 22 25 share Net cash per share 7.7 4.2 SSIL 2019 Interim Results Announcemen
Slide 9: Financial Review - Net Cash Analysis 2019 vs 2018
Financial Review – Net cash Analysis 2019 vs 2018 Net Cash: Change • US$24.6m (30 Jun’19) vs US$13.4m (31 Dec’18) +US$11.2m Major Cash Inflow US$ Major Cash Outflow US$ • Net Cash from +3.7m • Capital Expenditure -0.1m Operating Activities • Interest and +0.1m • Principal portion of -0.7m Dividend R
Slide 10: Business Review
Highlights Financial Review Business Review Outlook SSIL 2019 Interim Results Announcement 21 Aug 2019 P. 10
Slide 11: Business Review – Revenue & Shipments
Business Review – Revenue & Shipments 1H2019 Total Revenue: ~US$56.6 million (up ~24% YoY) 1H2019 Total Shipments: ~162.6 million units (up ~12% YoY) Product Revenue & Shipment 60 180 56.6 162.6 160 50 45.7 144.9 140 40 38.6 120 33.4 32.9 100 30 90.7 80 82.7 84.4 20 60 40 10 20 0 0 1H2015 1H2016
Slide 12: Business Review – Advanced Display Products
Business Review – Advanced Display Products Total Shipments: Advanced Display • Decreased ~37% year-on-year to ~66.7 million units PMOLED Display Driver IC (DDI) • Volatile macroeconomic environment dampened demand for wearables and other applications, and changed AD’s product mix • Maintained b
Slide 13: Business Review – Large Display Products
Business Review – Large Display Products Large Display Total Shipments: • Increased ~476% year-on-year to ~67.9 million units Increased Business with Nanjing Customer & New Customers in Chengdu & Xianyang • Design wins: gaming monitors, Full HD monitors, and TV of various sizes and resolutions
Slide 14: Business Review – Others
Business Review – Others Mobile Display/ Total Shipments: Mobile Touch • Increased ~4% year-on-year to ~28.0 million units Mobile Touch Products • AMOLED touchscreen controller IC for foldable/flexible smartphones designed-in with a key module manufacturer in PRC • Products for a well-known vide
Slide 15: Outlook
Highlights Financial Review Business Review Outlook SSIL 1H 2019 Interim Results Announcement 21 Aug 2019 P. 15
Slide 16: Outlook
Outlook Advanced PMOLED TDDI IC Display • Expect to start mass production by end 2019 • Next generation product (higher resolution, In-Cell & Out-Cell touch, larger-size displays, more touch keys) under development PMOLED display driver IC • Products targeting smart home appliances to start mass
Slide 17: Outlook
Outlook Advanced Strong growth momentum: Large Display • Further ramp up shipments to Nanjing customer, and also to Display customers in Chengdu & Xianyang Driver ICs New P2P display driver IC expected to start mass production in second half of 2019 Mobile Touch Products Others Leverage desi
Slide 18: Summary
Summary Total revenue & unit shipments recorded double-digit growth 2019 1H Summary despite challenging market conditions Net loss due to: • Diminished gross profit margins resulting from provision of slow moving inventories • Decreased net finance income Improved quarter-on-quarter performanc
Slide 19: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com
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