Solomon Systech (International) Ltd. · HKEX:2878
Solomon Systech (International) — H1 2011 Earnings Presentation
21 slides from Solomon Systech (International)'s earnings presentation, Aug 18, 2011
Slide 1: SSIL 2011 Interim Results Announcement
18 August 2011 Hong Kong SSIL 2011 Interim Results Announcement 18Aug2011 P. 1
Slide 2: Table of contents
Table of contents ` Summary ` Financial Review ` Business Review ` Outlook SSIL 2011 Interim Results Announcement 18Aug2011 P. 2
Slide 3: Summary
Summary SSIL 2011 Interim Results Announcement 18Aug2011 P. 3
Slide 4: Results summary
Results summary ` Units shipment down 22% to 54 million units ` Sales decreased by 28% to US$27.5 million ` Gross profit decreased by 21% to US$8.9 million ` Gross profit margin increased by 3 percentage points to 32.5% ` Net Loss US$5.2 million ` Book to bill ratio @ 30 Jun 2011 was 1.1 ` Basic los
Slide 5: Financial Review
Financial Review SSIL 2011 Interim Results Announcement 18Aug2011 P. 5
Slide 6: Profit and loss
Profit and loss (US$ million) 1H11 1H10 YoY Sales 27.5 38.0 (28%) Gross profit 8.9 11.2 (21%) Gross profit margin 32.5% 29.5% 3pts. Net loss (5.2) (3.9) 31% Net margin (18.9%) (10.4%) (HK cents) Basic Loss per share 1.6 1.2 31% Dividends per share Nil Nil Book to Bill ratio 1.1 1.6 SSIL 2011 Interim
Slide 7: Financial Remarks
Financial Remarks Key Factors Sales 28% Unit shipment 22% YoY Blended ASP 8% YoY Net loss Gross profit $8.9m 21% down YoY • US$5.2m • Gross margin 32.5% (‘10: 29.5%) Operating expenses $14.2m 1% up YoY • S&D down 9%, Admin expenses down 16% and R&D up 15% YoY Finance income - Net • US$0.2m Gain (’10
Slide 8: Balance sheet
Balance sheet As at 30 As at 31 HoH (US$ million) Jun 2011 Dec 2010 Change Total assets 142.9 154.2 (7%) Total borrowings 0.7 0.8 - Shareholders’ funds 129.7 135.0 (4%) Net cash 82.6 79.6 4% (HK cents) Shareholders’ funds per share 41 43 (4%) Net cash per share 26 25 4% SSIL 2011 Interim Results Ann
Slide 9: Net cash delta analysis Jun vs Dec
Net cash delta analysis Jun 11 vs Dec 10 ` Net Cash @ : ` US$ 82.6 m (30 Jun 11) vs $79.6m (31 Dec 10) ` Major Cash Outflow ` Loss & Working Capital Change - US$ 1.1m ` Plant, Property & Equipment - US$ 0.5m ` Land use rights in BJ - US$ 1.0m ` Financial Assets Net Increase - US$ 0.7m ` Major Cash I
Slide 10: Business Review
Business Review SSIL 2011 Interim Results Announcement 18Aug2011 P. 10
Slide 11: Blended average selling price
Blended average selling price ` 1H11 blended ASP = US$0.51, down 8% YoY HoH YoY 1.00 20% Blended Unit ASP (US$) 0.66 10% Blended ASP Change 0.56 0.51 0.50 0% 1H09 2H09 1H10 2H10 1H11 -10% -20% 0.00 1H09 1H10 1H11 -30% SSIL 2011 Interim Results Announcement 18Aug2011 P. 11
Slide 12: Unit shipment by product line
Unit shipment by product line ` Total unit shipment for 1H 2011: 54 million Mobile Display Advanced Display Display System Green Power Mobile Display Advanced Display Display System Green Pow er 80.0 100% 69 70.0 90% 80% Unit shipment distribution IC unit shipment (mu) 60.0 54 70% 50.0 60% 41 40.0 5
Slide 13: Examples of 1H11 design-wins
Examples of 1H11 design-wins New Customers, New Products, New Applications Mobile Display Advanced Display 3.5” Smartphone 3D Display 7” Android Phone with HSSI Mobile Phone Electronic Shelf Health Care Product Camera Tablet Label Display System Solution Green Power LED Spotlight LED Backlight Pocke
Slide 14: Outlook
Outlook SSIL 2011 Interim Results Announcement 18Aug2011 P. 14
Slide 15: Business Plan
Business Plan ` Display IC Mobile Display ` Production ramp-up for multi-touch capacitive Multi-touch Applications panel controllers for smartphone and tablet applications ` New product line of display interface controller starts shipment in Q3’11 for smartphone applications 3D Display Camera ` Laun
Slide 16: Business Plan
Business Plan ` Display IC Advanced Display ` PMOLED: diversify applications to automotive, industrial & healthcare market segments ` AMOLED: partnership with module makers in China Mobile Phone and Taiwan targeting mobile phone applications Applications ` OLED Lighting: start product design on new
Slide 17: Business Plan
Business Plan ` System Solutions Display System Solution Android 3D Projector ` Increase sales of system solutions for multimedia products with advanced features, such as HD and 3D ` Enhance MagusCoreTM solutions with advanced software features for projector applications to increase market coverage
Slide 18: Strategic Investment
Strategic Investment Invest in Booming Internet TV Market ` SSIL subscribed approx. 24% of the issued share capital of C2 on 9 Aug 2011 at a consideration of US$9 million. ` C2 – USA/China-based fabless semiconductor company focusing on development and sales of SoC for Internet TV. Reasons for Inves
Slide 19: Synergies Achieved Through C2 Investment
Strategic Investment Synergies Achieved Through C2 Investment TV Display IC 30” – 100” TOTAL SOLUTIONS Touch Advanced Panel Green Display Large Power – Mobile BLU Display Display Synergies Synergies Software Synergies SoC/ Display System Solution C2 Mobile Devices TV SSIL 2011 Interim Results Announ
Slide 20: Outlook Overview
Outlook Overview ` Overall ` Stable growth: strategic investment and development of new technologies and products. ` Cautious about global economy: weak US economy, lingering European sovereign debt issues and aftermath of Japan earthquake ` Gross Profit Margin: Stay in line with industry ` Operatin
Slide 21: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com SSIL 2011 Interim Results Announcement 18Aug2011 P. 21
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