Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — H1 2021 Earnings Presentation
22 slides from Solomon Systech (international)'s earnings presentation, Aug 18, 2021
Slide 1: 2021 Interim Results Presentation
2021 Interim Results Presentation 18 Aug 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$74.8 million, increased by about 27.7% • Gross profit was US$29.1 million, jumped by 92.4% • Gross margin was 38.9%, increased 13.1% points • Profit attributable to owners of the parent was US$10.7 million • Earnings per share was 0.43 US cent (equivalent to 3.33
Slide 5: Financial Review
~ FINANCIAL REVIEW 4 SOLOMON SYSTECH
Slide 6: Profit & Loss
PROFIT & LOSS 1H 2021 1H 2020 Variance (US$ million) (US$ million) Revenue 74.8 58.6 +27.7% Gross Profit 29.1 15.1 +92.4% Gross Margin 38.9% 25.8% +13.1% Pts Profit Attributable to Owners of the 10.7 4.4 +143.1% Parent Earnings per Share (US cents) 0.43 0.18 +138.9% Book-to-Bill Ratio 2.0 1.2 /6
Slide 7: Revenue by Products
REVENUE BY PRODUCTS 1H 2021 1H 2020 +/(-) by US$’000 % US$’000 % US$’000 % New Display 31,696 42% 16,298 28% 15,398 94.5 OLED Display 17,377 23% 12,758 22% 4,619 36.2 Mobile Display and 16,883 23% 16,088 27% 795 4.9 Mobile Touch Large Display 8,872 12% 13,430 23% (4,558) (33.9) TOTAL 74,828 100% 58,
Slide 8: Financial Remarks
FINANCIAL REMARKS Key Factors Revenue US$74.8m • Revenue: up 27.7% (1H2020: US$58.6m) • Unit Shipments (million pcs): up 19.3% Gross Profit US$29.1m • Gross Margin: 38.9% (1H2020: 25.8%) (1H2020: US$15.1m) Total Operating US$18.8m • Product R&D Costs: Expenses (1H2020: US$13.8m) - US$12.1m (1H2020:
Slide 9: Balance Sheet
BALANCE SHEET As at 30 June 2021 As at 31 Dec 2020 Variance (US$ million) (US$ million) Total Assets 113.3 94.2 +20.2% Total Borrowings 0.2 0.2 - Shareholders’ Funds 72.0 63.4 +13.4% Cash and Cash Equivalents 54.6 50.8 +7.5% Shareholders’ Funds per Share 22.4 19.8 +13.1% (HK cents) Net Cash per Shar
Slide 10: Trade Receivable Ageing
TRADE RECEIVABLE AGEING (Based on invoice date) As at 30 June 2021 As at 31 Dec 2020 (US$ million) (US$ million) 1-30 days 14.4 6.4 31-60 days 3.3 4.0 61-90 days 2.5 2.7 91-180 days 1.9 2.2 Total 22.1 15.3 / 10
Slide 11: Trade Payable Ageing
TRADE PAYABLE AGEING (Based on invoice date) As at 30 June 2021 As at 31 Dec 2020 (US$ million) (US$ million) 1-30 days 12.7 7.3 31-60 days 3.2 6.8 61-90 days 1.6 1.5 Over 90 days 0.1 0.2 Total 17.6 15.8 / 11
Slide 12: Cash & Cash Equivalents Analysis 2021 v 2020
CASH & CASH EQUIVALENTS ANALYSIS 2021 V 2020 Cash and Cash Equivalents Change • US$54.6m (30 June 2021) vs US$ 50.8m (31 Dec 2020) +US$3.8m +7.5% Major Cash Inflow (Outflow) US$ • Net Cash generated from Operating Activities (1H 2021) 7.6m / 12
Slide 13: Business Review
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Slide 14: Revenue & Shipments
REVENUE & SHIPMENTS • 1H2021 total revenue: US$74.8 million (+27.7%YoY) • 1H2021 total shipments: 209.4 million units (+19.3%YoY) Revenue & Shipments 74.8 250 70 209.4 56.6 58.6 60 200 50 45.7 38.6 162.6 175.5 150 40 32.9 144.8 30 100 90.7 20 84.4 50 10 0 0 1H2016 1H2017 1H2018 1H2019 1H2020 1H2021
Slide 15: New Display
NEW DISPLAY z ➢ New version of e-paper technology demonstrated Solomon Systech’s technological advancement • Successful launch of e-paper technology - Spectra™ 3100, the next-generation ink platform in 1H2021 • Spectra™ 3100 combined four of the most commonly used colours in the retail industry: b
Slide 16: OLED Display
OLED DISPLAY ➢ World’s no. 1 PMOLED display driver IC player with over 70% market share OLED Display ➢ PMOLED Display Driver IC (“DDI”) • Strong market demand from PMOLED wearables, smart home solutions and IoT/AIoT solutions • Demand on handheld healthcare devices increased continuously given the h
Slide 17: Mobile Display
MOBILE DISPLAY ➢ Mobile Display (“MD”) Products • The Group has continued to diversify the Mobile Display product portfolio spanning In-Cell Touch Display Driver IC, TFT Display Driver IC, STN Display Driver IC, MIPI Bridge IC, and Display Controller IC, as well as both industrial and consumer produ
Slide 18: Large Display
LARGE DISPLAY Large Display ➢ New IC for entertainment • In 1H 21, Solomon Systech has launched its high-speed Peer-to- peer (P2P) display driver IC for the 165Hz high refresh rate gaming monitor and 8K TV • The Group continued with its marketing plans to promote the higher functionality display IC
Slide 19: Outlook
~ OUTLOOK 4 SOLOMON SYSTECH
Slide 20: Outlook
OUTLOOK ➢ Bistable Display Driver IC • Continue its strong growth momentum and developing new generation of IC • Continue to pursue the next generation bistable display solution for developing the 7-colour or full New colour e-paper Display • Consumer’s pursuit of product versatility and lightweight
Slide 21: Outlook
OUTLOOK ➢ MD Products • Demand in the 1H of 2021 is expected to be kept up and supported by the signs of China’s economic Mobile recovery and 5G adoption, MIPI, TDDI and DDI products will be in demand. Display • The increasing adoption of 5G mobile technology is expected to boost the MD business • R
Slide 22: Thank You
solomon-systech.com THANK YOU
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