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SSIL 2006 Interim Results 3 August
Table of contents Table of contents
- Summary
- Financial review
- Business review
- Outlook
3 August 2006 Hong Kong www.solomon-systech.com Table of contents - - PowerPoint PPT Presentation
3 August 2006 Hong Kong www.solomon-systech.com Table of contents - - PowerPoint PPT Presentation
3 August 2006 Hong Kong www.solomon-systech.com Table of contents Table of contents Summary Financial review Business review Outlook SSIL 2006 Interim Results 3 August P. 2 www.solomon-systech.com www.solomon-systech.com
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Summary Summary Summary Summary
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- Unit shipment was up 16%, year-on-year
- Sales amounted to approximately US$150 million
- Net profit was about US$18 million
- Basic EPS reached 5.7 HK cents for the 6-month
period
- Dividend per share was 2.0 HK cents
- Global market share in mobile phone display ICs
was roughly 20%
Results summary Results summary
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F inancial Review F inancial Review F inancial Review F inancial Review
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Profit and loss Profit and loss
31% 25% Gross margin 4.0 2.0 Dividends per share 11.7 5.7 Earnings per share
(HK cents) 20% 12% Net margin
- 51%
36.3 17.9 Net profit
- 36%
57.9 37.0 Gross profit
- 20%
185.7 149.4 Sales
Change 2005 2006 (US$ million) YoY Six months ended 30 June
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Balance sheet Balance sheet
(HK cents)
2% 176.3 180.1 Shareholders’ funds
- 33%
159.2 106.0 Net cash
- 33%
49 33 Net cash per share 2% 55 56 Shareholders’ funds per share N/A Nil Nil Total borrow ings
- 3%
238.2 230.2 Total assets
YoY Change As at 30 June 2005 As at 30 June 2006 (US$ million)
Note: Net cash includes all bank deposits, other financial assets, cash and cash equivalents less bank loans All per share figures are based on the outstanding shares of the Company at the period-end
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Business Review Business Review Business Review Business Review
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Units shipment by product line Units shipment by product line
20 40 60 80 100 120 140 1H 2002 1H 2003 1H 2004 1H 2005 1H 2006 Units (million) MI SC. L-TFT OLED m-TFT CSTN MONO
Note: L-TFT denotes large display driver ICs Miscellaneous includes other IC products
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Change in blended ASP Change in blended ASP
1.29 1.61 1.69 1.71 1.20 0.0 0.5 1.0 1.5 2.0 1H 2002 1H 2003 1H 2004 1H 2005 1H 2006 US$
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Gross margin and market share Gross margin and market share
0% 10% 20% 30% 40% 50% 2002 2003 2004 2005 1H 2006 0% 5% 10% 15% 20% 25% Gross margin SSIL market share (RHS)
Assumptions: (1) The percentage of mobile phone with dual display versus the total mobile phone shipment – 20% (2002), 23% (2003), 27% (2004), 30% (2005) and 23% (1H 2006) (2) The percentage of the Group’s display ICs used in mobile phones – 90% (2002 – 2004), 85% (2005) & 90% (1H 2006) (3) Mobile phone shipment in million units – 439 (2002), 521 (2003), 713 (2004), 813 (2005) & 445 (1H 2006)
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New products & applications New products & applications
STN / CSTN m-TFT New display OLED
- Solid relationship with
core customers
- New m-TFT phone apart
from RAZR
- E-paper & microdisplay
products launched
- Image processors for car
AV system
- New application in main
display of mobile phone
- New design-wins from
top-tier brand names
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- Mobile Display
– STN / CSTN ! More cost down, features rich display ICs – m-TFT / LTPS ! Broader customers base & products offering – OLED ! New products for main display, MP4 & notebook PC
- New Display / Display System
– Electrophoretic display ! Aiming high volume, low-cost phones – Timing controller ! Targeting large panel customers – MIPI interface ICs ! High speed connectivity for 3G phones
New products expected in 2H New products expected in 2H
To strengthen leading position with competitive products
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O utlook O utlook O utlook O utlook
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- Keen competition from global & regional players
- Balanced wafers supply & room for wafer cost reduction
- Cost saving from yield improvement & die-shrink
- Display industry ASP trending down
- Mobile + consumer electronics
- Taiwan / China + Japan / Korea
- Electrophoretic Display ICs into mass production
- Expanded products portfolio for CSTN & m-TFT areas
- Mobile phone market moderate growth
- Limited visibility for 4Q and mindful of channel inventory
- OLED demand recovery from 1H
Competition Cost Price Customers Products Market
General views on 2H General views on 2H
Most favorable Most unfavorable
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