11 September 2008 Hong Kong SSIL 2008 Interim Results Announcement - - PowerPoint PPT Presentation

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SSIL 2008 Interim Results Announcement 11Sep2008

11 September 2008 Hong Kong

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SSIL 2008 Interim Results Announcement 11Sep2008

Table of contents

! Summary ! Financial Review ! Business Review ! Outlook

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SSIL 2008 Interim Results Announcement 11Sep2008

Summary

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SSIL 2008 Interim Results Announcement 11Sep2008

! Unit shipment 61mu ! Sales US$51 million ! Net loss US$6.0 million ! Basic loss per share 1.95 HK cents ! No interim dividend was declared by the Board ! Book to bill ratio @ 30 Jun-08 was 0.90

Results summary

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SSIL 2008 Interim Results Announcement 11Sep2008

Financial Review

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SSIL 2008 Interim Results Announcement 11Sep2008

Profit and loss

0.67 0.90 Book to Bill ratio 24.1% 21.7% Gross margin 1.0 Nil Dividends per share 3.1

• 1.95

Earnings per share*

(HK cents)

9.5%

• 11.7%

Net margin 9.8 (6.0) Net (loss) / profit

• 56%

25.0 11.0 Gross profit

• 51%

103.4 50.8 Sales

Change 2007 2008 (US$ million) YoY Six months ended 30 June

* Basic EPS calculation is based on the weighted average number of shares for the period

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SSIL 2008 Interim Results Announcement 11Sep2008

Balance sheet

(HK cents)

• 7%

172.1 160.6 Shareholders’ funds

• 8%

137.8 126.3 Net cash

• 8%

44 40 Net cash per share

• 7%

55 51 Shareholders’ funds per share N/A Nil Nil Total borrowings

• 7%

202.4 189.2 Total assets

HoH Change As at 31 Dec 2007 As at 30 Jun 2008 (US$ million)

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SSIL 2008 Interim Results Announcement 11Sep2008

Financial remarks

Sales 51% Unit shipment 38% YoY Blended ASP 20% YoY Net Loss US$6.0m Operating loss (US$6.0m)

• SG&A + R&D savings

2.6% YoY Capex US$3.1m US$0.9m Strategic Investment US$2.2m Property / Plant / Equipment Key Factors

• Gross profit reduction

56.0% YoY Interest income US$2.6m Investment impairment (US$1.1m) Financial asset unrealized loss (US$1.4m)

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SSIL 2008 Interim Results Announcement 11Sep2008

Business Review

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SSIL 2008 Interim Results Announcement 11Sep2008

Blended average selling price

! 1H08 blended ASP = US$0.83, down 20% YoY

! Sequential decline rate moderating

1.69 1.71 1.20 1.05 0.83 0.00 0.50 1.00 1.50 2.00 1H04 1H05 1H06 1H07 1H08 Blended Unit ASP (US$)

• 50%

0% 50% 1H04 2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 Blended ASP Change HoH YoY

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SSIL 2008 Interim Results Announcement 11Sep2008

Unit shipment by product line

!

Mono & Color STN: Declined as more mobile phones switched to m-TFT

!

m-TFT: Up 29% YoY as design-wins ramped

!

OLED: Decline 15% YoY as market stabilizing in new applications

!

New Display: Down 67%, e-paper technology still in early stage of commercialization

!

Display System: Small quantity shipped

Note: Others include large panel TFT (L-TFT) driver IC and other IC products

0% 20% 40% 60% 80% 100% 1H04 1H05 1H06 1H07 1H08 Unit shipment distribution mono STN CSTN m-TFT OLED New Display System Others

20 40 60 80 100 120 140 1H04 1H05 1H06 1H07 1H08 IC unit shipment (mu) mono STN CSTN m-TFT OLED New Display System Others

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SSIL 2008 Interim Results Announcement 11Sep2008

Examples of 1H08 design-wins

Study Machine GPS Mobile Phone

Mobile Display (STN, TFT) Display System

Instrument Keyboard

OLED

Mobile Digital TV Control Panel MP3

New Customers, New Products, New Applications

MP3

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SSIL 2008 Interim Results Announcement 11Sep2008

Outlook

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SSIL 2008 Interim Results Announcement 11Sep2008

2H 2008 Outlook

! Sales

! Uncertain economic condition ! Challenging based on the book to bill ratio

! Gross profit margin

! Pressure from market ASP erosion

! Operating expenses

! Maintain control; Invest in focused R&D projects

! New businesses or customers

! Continue development for system solution ! Strategic investment in growing industry

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SSIL 2008 Interim Results Announcement 11Sep2008

! Display Panel

Mobile Display

! m-TFT ! Audio / Video equipments,

GPS, mobile phone

! OLED ! Mobile phone, MP3,

industrial, accessories New Display

! E-paper ! Electronic shelf label,

IC card, storage devices

Continuous Development

Customer, Product and Application Diversification

Mobile Phone - TFT Keyboard GPS Electronic Shelf Label IC Card MP3 Storage Device Mobile Phone - OLED

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SSIL 2008 Interim Results Announcement 11Sep2008

! Display System

! Total system solutions ! including multimedia system IC,

software, hardware, end product reference design

! Focus applications ! mobile digital TV, portable media player,

personal navigation device, digital photo frame

! Example ! 3Q’08 launch of CMMB MDTV in China with IDHs.

Continuous Development

Customer, Product and Application Diversification

Mobile Digital TV

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SSIL 2008 Interim Results Announcement 11Sep2008

! Solid state lighting Business

! Extend display applications into energy-saving “green” products arena ! Invest in high brightness LED supplier ! formulating supply chain relationship ! Develop new associated IC and system ! LED drivers, controllers ! Focus applications ! General lighting, street lighting, large outdoor display

Strategic Investment in Growing Industry

Customer, Product and Application Diversification

Street Lighting General Lighting Large Outdoor Display

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SSIL 2008 Interim Results Announcement 11Sep2008

Thank You

Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com