Solomon Systech (international) Ltd. · HKEX:2878
Solomon Systech (international) — FY2021 Earnings Presentation
21 slides from Solomon Systech (international)'s earnings presentation, Mar 23, 2022
Slide 1: 2021 Annual Results Presentation
2021 Annual Results Presentation 23 Mar 2022 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
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Slide 4: Highlights
HIGHLIGHTS • Revenue increased by about 38.6% to US$168.1 million. • Gross profit was US$67.3 million, jumped by 87.6% • Gross margin was 40.0%, increased 10.4 percentage points • Profit attributable to owners of the parent was US$23.8 million, increased by 103.0% • Earnings per share was 1.0 US cen
Slide 5: Financial Review
~ FINANCIAL REVIEW 4 SOLOMON SYSTECH
Slide 6: Profit & Loss
PROFIT & LOSS 2021 2020 Variance (US$ million) (US$ million) Revenue 168.1 121.3 +38.6% Gross Profit 67.3 35.8 +87.6% Gross Margin 40.0% 29.6% +10.4% Pts Profit Attributable to Owners of the 23.8 11.7 +103.0% Parent Earnings per Share (US cents) 1.0 0.5 +100.0% Book-to-Bill Ratio 1.5 1.4 /6
Slide 7: Revenue by Products
REVENUE BY PRODUCTS 2021 2020 +/(-) by US$’000 % US$’000 % US$’000 % New Display 71,286 42% 33,184 27% 38,102 114.8 OLED Display 34,737 21% 28,717 24% 6,020 21.0 Mobile Display and 43,078 26% 31,893 26% 11,185 35.1 Mobile Touch Large Display 19,019 11% 27,467 23% (8,448) (30.7) TOTAL 168,120 100% 12
Slide 8: Financial Remarks
FINANCIAL REMARKS Key Factors Revenue US$168.1m • Revenue: up 38.6% (2020: US$121.3m) • Unit Shipments: up 4.3% Gross Profit US$67.3m • Gross Margin: 40.0% (2020: 29.6%) (2020: US$35.8m) Total Operating US$45.1m • Product R&D Costs: Expenses (2020: US$30.5m) - US$30.4m (2020: US$16.9m) - 18.1% of Sa
Slide 9: Balance Sheet
BALANCE SHEET As at 31 Dec 2021 As at 31 Dec 2020 Variance (US$ million) (US$ million) Total Assets 139.9 94.2 +48.5% Total Borrowings 0.2 0.2 - Shareholders’ Funds 86.7 63.4 +36.7% Cash and Cash Equivalents 41.8 51.0 -18.1% Shareholders’ Funds per Share 27.0 19.8 +36.9% (HK cents) Dividend per shar
Slide 10: Trade Receivable Ageing
TRADE RECEIVABLE AGEING (Based on invoice date) As at 31 Dec 2021 As at 31 Dec 2020 (US$ million) (US$ million) 1-30 days 9.8 6.4 31-60 days 6.5 4.0 61-90 days 5.5 2.7 91-180 days 2.3 2.2 Total 24.1 15.3 / 10
Slide 11: Trade Payable Ageing
TRADE PAYABLE AGEING (Based on invoice date) As at 31 Dec 2021 As at 31 Dec 2020 (US$ million) (US$ million) 1-30 days 14.7 7.3 31-60 days 6.5 6.8 61-90 days 2.4 1.5 Over 90 days 0.3 0.2 Total 23.9 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$41.8m (31 Dec 2021) vs US$ 51.0m (31 Dec 2020) (US$9.2m) -18.1% / 12
Slide 13: Business Review
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Slide 14: Revenue & Shipments
REVENUE & SHIPMENTS • 2021 total revenue: US$168.1 million (+38.6% YoY) • 2021 total shipments: 395.7 million units (+4.3% YoY) US$ Million Million Revenue & Shipments Units 200 450 395.7 180 379.4 400 160 308.7 350 295.8 140 300 120 215.2 250 100 168.1 200 80 60 150 108.3 121.3 98.1 100 40 82.5 20
Slide 15: New Display
NEW DISPLAY z ➢ Increased Shipment Quantity Mainly Arising from Growth of Electronic Shelf Labels (ESL) • New Display IC products showed a significant growth in shipment quantity of 66.6% • Mainly brought about by our sales arising from ESL in the European and the North American markets ➢ Expandin
Slide 16: OLED Display
OLED DISPLAY ➢ World’s no. 1 PMOLED display driver IC player with a dominant OLED Display market share ➢ OLED Display ICs • Increase in revenue of over 21.0% from 2020 • SSD7317, the world’s first TDDI IC developed by the Group for targeted use in smart home products, has been launched in 2021 • Dem
Slide 17: Mobile Display
MOBILE DISPLAY ➢ Mobile Display and Mobile Touch ICs • Increase in shipment quantity of 23.5% and sales revenue of 35.1% YoY ➢ Development of new products • The Group has developed a number of new driver products and custom ICs and launched IoT TDDI for the application in wearable products: ✓ the wo
Slide 18: Large Display
LARGE DISPLAY Large Display ➢ New IC for entertainment • In 2021, 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 fo
Slide 19: Outlook
- OUTLOOK 4 SOLOMON SYSTECH
Slide 20: Outlook
OUTLOOK New Display ICs OLED Display ICs Continue to develop the 7- Develop the advanced colour or full colour e- technology of micro-LED IC solution for brighter and paper power-efficient appliances Mobile Display and Mobile Touch ICs Large Display ICs Capitalise on our capability in high- Respondi
Slide 21: Thank You
solomon-systech.com THANK YOU
Solomon Systech (International) — FY2021 Earnings Presentation on 6ix