Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — FY2015 Earnings Presentation
22 slides from Solomon Systech (international)'s earnings presentation, Mar 23, 2016
Slide 1: SSIL 2015 Annual Results Announcement
SSIL 2015 Annual Results Announcement 23 Mar 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: Highlights, Financial Review, Business Review, Outlook
Highlights Financial Review Business Review Outlook SSIL 2015 Annual Results Announcement 23 Mar 2016 P. 3
Slide 4: Highlights
Highlights Sales amounted to US$70.9 million Gross profit was US$23.2 million Gross margin was 32.7% Net loss was US$6.4 million Loss per share was 0.26 US cent (2.02 HK cents) Book-to-bill ratio for the year was 1.1 The Board resolved not to propose any final dividend for the year end
Slide 5: Financial Review
Highlights Financial Review Business Review Outlook SSIL 2015 Annual Results Announcement 23 Mar 2016 P. 5
Slide 6: Financial Review - Profit and Loss
Financial Review - Profit and Loss (US$ million) 2015 2014 Remarks Sales 70.9 60.1 ↓ 18% ↓ Gross profit 23.2 20.8 12% Gross margin 32.7% 34.6% ↓ 1.9pts Net profit/(loss) (6.4) (3.0) (HK cent) Earnings/(loss) per share (2.02) (0.95) Dividends per share Nil Nil Book-to-bill ratio 1.1 1.1 SSIL 2015 Ann
Slide 7: Financial Review - Financial Remarks
Financial Review - Financial Remarks Key Factors Sales US$70.9m • Unit shipments: up 62% YOY (‘14: US$60.1m) • Blended ASP: down 27% YOY Gross US$23.2m • Gross margin: 32.7% (’14: 34.6%) Profit (’14: US$20.8m) Total US$31.4m • Product R&D costs: US$19.5m (’14: US$16.3m) Operating (’14: US$27.4m) • S
Slide 8: Financial Review - Balance Sheet
Financial Review - Balance Sheet As at 31 Dec (US$ million) 2015 2014 YoY Total assets 123.4 130.1 Total borrowings 0.3 0.4 Shareholders’ funds 108.5 115.3 -6% Net cash 26.1 35.3 -26% (HK cents) Shareholders’ funds per share 34 36 Net cash per share 8 11 SSIL 2015 Annual Results Announcement 23 Mar
Slide 9: Financial Review - Net Cash Analysis 2015 vs 2014
Financial Review – Net Cash Analysis 2015 vs 2014 Net Cash @31 Dec: Change • US$26.1m (’15) vs US$35.3m (’14) -US$9.2m Major Cash Inflow US$ Major Cash Outflow US$ • Interest and +2.3m • Net cash Used in -10.9m Dividend Received Operating Activities • Disposal of Treasury +1.8m • Capital Expenditure
Slide 10: Business Review
Highlights Financial Review Business Review Outlook SSIL 2015 Annual Results Announcement 23 Mar 2016 P. 10
Slide 11: Business Review – Product Shipments
Business Review – Product Shipments Total unit shipments in 2015: around 186 million units ( 62% year-on-year) Product Shipments 2013-2015 200 70% 186 180 60% 160 62% 50% 140 40% 120 115 Million Units 30% 100 91 27% 20% 80 10% 60 0% 40 20 -10% -12% 0 -20% 2013 2014 2015 Product Shipment (By Year)
Slide 12: Business Review – Advanced Display
Business Review – Advanced Display Unit shipment: Advanced • Increased 91% year-on-year to 131.6 million Display units PMOLED display driver ICs Wearable • Scored design wins with global wearable Health & Fitness health & fitness devices brands Device • Developed new ICs: for larger and curved d
Slide 13: Business Review – Mobile Display
Business Review – Mobile Display Unit shipment Mobile • Increased 2% year-on-year to 14.0 million Display units TFT In-cell touch display driver ICs (TDDI) • New product for FWVGA display adopted by renowned smartphone brand and started mass production in Q4 • Started to develop new products for
Slide 14: Business Review – Mobile System
Business Review – Mobile System Mobile Unit shipment System • Increased 58% year-on-year to 9.5 million units Touch panel controller ICs • In-Cell touch products scored design-win with a top-tier smartphone manufacturer Wearable • Out-Cell touch products for renowned tablets Health & Fitness sta
Slide 15: Business Review - Large Display
Business Review - Large Display Large Unit shipment Display • Increased 17% year-on-year to 30.6 million units Large TFT display driver ICs • First half-year: substantial increase • Second half-year: reduced demand for specific HDTV categories due to excess inventory • New products: WQHD monitor
Slide 16: Outlook
Highlights Financial Review Business Review Outlook SSIL 2015 Annual Results Announcement 23 Mar 2016 P. 16
Slide 17: Our Strategy
Our Strategy Growth at Full Speed Return to Profitability Focus on Bright Growth Spots Change for the Better Capitalize on Leverage New Technologies Enhance Effectiveness and Strong Potential Markets & Capitalize on Fast Growth Efficiency Applications • China as a key market • Technologies: TDDI, •
Slide 18: Outlook – Smartphones
Outlook – Smartphones • Focus on emerging technologies with strong potential: In-cell TDDI, high resolution DDI and AMOLED In-cell TDDI for FWVGA panels • Continue mass production New In-cell TDDI for FHD/HD panels • Complete development in 1st half-year DDI for FHD IGZO panels • Reach out to
Slide 19: Outlook – Smart TVs
Outlook – Smart TVs • Leverage key customer’s enlarged production capacity and business development plan New TFT display driver IC for 4k2k TV • Proceed to sample development New TFT display driver IC for FHD notebooks • Samples ready for qualification SSIL 2015 Annual Results Announcement 23 Ma
Slide 20: Outlook – Other Smart Devices
Outlook – Other Smart Devices • Capitalize on the continued strong growth of wearables and other surging Internet of Things (IoT) devices New PMOLED display driver IC for low power, high brightness & high resolution applications • Samples ready New AMEPD display driver ICs • Increase market shar
Slide 21: Summary
Summary Growth momentum further accelerated: robust year-on-year growth 2015 Summary in unit shipments Focused on high growth, high volume smart device applications Strengthened technological capability Expanded product and application portfolios Gross Profit Margin Target to stay in line
Slide 22: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com
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