香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致 的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：2878） 截至2024年6月30日止6個月 中期業績公告 | --- | |----------| | | | | | | | | | 百萬美元 | | | 1 中期業績 晶門半導體有限公司（統稱「本公司」）的董事宣佈本公司及其附屬公司（統稱「本集團」）截至2024年 6月30日止6個月的未經審核簡明綜合中期業績連同上年度同期的比較數字列載如下： 中期簡明綜合損益表 截至2024年6月30日止6個月 | --- | --- | --- | --- | |----------------------------------------------|-------|--------------------------------|---------------| | | | 未經審核 \n6 月 30 日止 \n2024 | 6 個月 \n2023 | | | ...

Financial Performance - Total assets as of December 31, 2023, were US$157.4 million, a decrease of 0.5% from US$158.3 million in 2022[16]. - Shareholders' funds increased by 16.3% to US$126.9 million in 2023, up from US$109.2 million in 2022[16]. - The current ratio improved to 4.96 in 2023, compared to 3.02 in 2022, indicating better short-term financial health[24]. - In 2023, the shipment volume increased by 7.4% year-on-year to approximately 336 million units, despite a 19.8% decrease in sales revenue to US$153.2 million due to price reductions[41]. - Profit attributable to owners decreased by 30.1% year-on-year to US$19.4 million, with earnings per share at 0.8 US cents[41]. - Revenue for 2023 was US$153.2 million, a decrease of 19.8% from US$190.8 million in 2022[159]. - Gross profit for 2023 was US$46.3 million, down 29.2% from US$65.5 million in 2022[159]. - Gross margin decreased to 30.3% in 2023, down 4.0 percentage points from 34.3% in 2022[159]. - The Group's net profit attributable to shareholders decreased by 30.1% year-on-year to $19.4 million, with earnings per share at $0.008[55]. Market Trends and Projections - The semiconductor industry is expected to see a recovery in the second half of 2024, with IDC predicting a 14% growth in the Asia-Pacific market[26]. - The global Electronic Shelf Label (ESL) market is projected to reach US$1.73 billion in 2024, driven by retail trends and ESG considerations[29]. - The semiconductor market is anticipated to bottom out in 2024, with the Group maintaining a cautious optimism based on its strong R&D capabilities and diversified product portfolio[34]. - The Group anticipates a market recovery in the second half of 2024 as inventory levels improve and consumer electronics demand rebounds[70]. - The macroeconomic environment remains uncertain with weak demand growth, but wafer fabs have started to lower average prices, which is expected to positively impact the Group's gross profit in 2024[110]. Product Development and Innovations - Solomon Systech continues to lead in Passive Matrix OLED (PMOLED) display ICs, enhancing display performance while reducing system power consumption[21]. - The company offers a range of custom IC solutions, leveraging over 20 years of experience in display IC development[11]. - Solomon Systech's MiniLED/µLED display driver solutions are tailored for high-resolution devices, addressing growing market demand[11]. - The Group launched the world's first small-sized passive matrix micro-LED display driver IC – SSD2363 in 2023, reinforcing its leading position in the PMOLED display driver IC market[33]. - The Group's new icon IC products, launched in 2023, cover displays up to 4 inches and are expected to enhance market share in large-panel smart home appliances[37]. - The Group's new four-color display IC solution for the Spectra™ 3100 platform was launched in the second half of 2023, with mass production of large display applications expected to start in H1 2024[60]. - The Group is developing automotive driver IC solutions, targeting mass production in Q4 2024 for major automotive systems in Mainland China[52]. - The Group's new display IC solutions are being developed for various applications, including gaming monitors and smart TVs, with a focus on high refresh rates and resolution[95]. - The Group's bistable display technology offers high contrast, wide viewing angles, and power savings, making it suitable for low-power-consuming monitors[151]. - The Group's PMOLED drivers employ a proprietary driving scheme to reduce power consumption and enhance display performance, making them ideal for portable devices[143]. Operational Highlights - The Group's delivery volume grew by 7.4% year-on-year, reaching approximately 336 million units, despite a 19.8% decrease in sales revenue to $153.2 million due to falling product prices[55]. - The average selling price of new display IC products dropped, impacting revenue, as sales of three-color display labels slowed due to retailers waiting for the launch of four-color displays[84]. - The overall inventory level of the industry decreased by approximately 42% compared to the end of the previous year, helping to reduce operating risks[81]. - The Group's mini-LED backlight solution is actively being marketed for specific applications across various fields[50]. - The Group is committed to expanding the application of IC products to areas such as translators and large retail signage applications, aligning with the global trend towards energy-efficient displays[127]. Employee and Corporate Governance - As of December 31, 2023, the Group had a total workforce of 302 employees, with approximately 87% holding a bachelor's degree or above and 34% holding a master's degree or higher[119]. - The company dedicated over 10,354 man-hours to training and development in 2023, focusing on both technical and soft skills[167]. - The company emphasizes employee well-being, providing health insurance and promoting a healthy work-life balance[168]. - The Company has taken appropriate insurance cover to indemnify its Directors against possible claims and liabilities arising out of the Group's business and activities[192]. - The Board has scheduled to meet at least four times a year, allowing for open discussion on strategy, operational and financial performance, and internal control[194]. - The Company Secretary is responsible for distributing detailed documents to the Directors prior to Board meetings to ensure informed decision-making[195].

Financial Performance - Revenue decreased by 19.8% to $153.2 million[2] - Gross profit was $46.3 million, down 29.2%[2] - Gross margin decreased by 4.0 percentage points to 30.3%[2] - Net profit attributable to shareholders was $19.4 million, a decline of 30.1%[2] - Earnings per share were $0.8 (6.2 HK cents)[2] - Total comprehensive income for the year was $17.4 million, down from $25.1 million[8] - The group's pre-tax profit for 2023 was $19,443,000, a decrease of 30.3% from $27,833,000 in 2022[41] - The company's revenue decreased by approximately 19.8% to $153.2 million in 2023, down from $190.8 million in 2022[71] - Net profit attributable to shareholders was $19.4 million, a decrease of about 30.1% compared to $27.8 million in 2022, with earnings per share of $0.8, down by $0.3 from the previous year[71][77] - Gross profit for the period was $46.3 million, with a gross margin of 30.3%, down from $65.5 million and 34.3% in 2022[72] - Total expenses for the year were approximately $30.2 million, a decrease of 23.9% from $39.7 million in 2022[74] - Research and development costs were $17.8 million, down 34.2% from $27.1 million in 2022, representing 11.6% of sales compared to 14.2% in the previous year[74] Assets and Equity - Non-current assets totaled $8.8 million, down from $12.1 million[10] - Current assets increased to $148.6 million from $146.1 million[10] - Total equity attributable to shareholders was $126.9 million, up from $109.2 million[10] - Non-current assets in Hong Kong, China, and Taiwan totaled $6,988,000 in 2023, down from $9,359,000 in 2022[25] - The total amount of accounts receivable and other receivables was $32,496,000 in 2023, down from $49,425,000 in 2022[44] - The group’s contract liabilities decreased to $3,738,000 in 2023 from $10,570,000 in 2022, primarily due to a reduction in advance payments received[52] - Cash and cash equivalents totaled $86.3 million, up from $51.6 million in 2022, with no significant borrowings apart from a $1.7 million loan from a subsidiary[83] Dividends and Shareholder Returns - The board does not recommend a final dividend for the year ending December 31, 2023[2] - The group did not declare or pay dividends for the years ended December 31, 2023, and 2022[41] - The company did not recommend the payment of a final dividend for the year[99] Operational Highlights - The company operates a single business segment focused on the design, development, and sale of proprietary IC products and system solutions[20] - The company has a diverse customer base, with significant sales in Hong Kong, mainland China, Taiwan, the US, Japan, and Europe[21] - The company received various government subsidies for R&D projects during the year, totaling $902,000, compared to $2,002,000 in 2022[34] - Interest income from bank loans increased to $2,547,000 in 2023, compared to $363,000 in 2022[35] - The average selling price of new display IC products decreased due to market competition and the transition to new generation products, impacting revenue[56] - The group’s overall inventory decreased by approximately 42% compared to the end of the previous year, reducing operational risks[54] - The company plans to continue focusing on developing high-value products that meet market demand despite slower-than-expected market recovery[70] Employee and Governance - As of December 31, 2023, the group had a total of 302 employees, with approximately 37% based in Hong Kong and the remainder in mainland China and Taiwan[94] - Employee salaries and benefits decreased from approximately $24.9 million in 2022 to about $22.1 million, a reduction of 11%, primarily due to a decline in average employee numbers[94] - The audit committee reviewed the group's full-year performance for the year ending December 31, 2023[97] - Ernst & Young confirmed that the preliminary financial results were consistent with the group's draft financial statements for the year[98] - The company has adhered to the corporate governance code and standards for securities transactions by directors throughout the year[96] - There were no purchases, sales, or redemptions of the company's listed shares by the company or its subsidiaries during the year[95] Product Development and Innovation - The company launched the world's first small-size passive micro-LED display driver IC, SSD2363, suitable for displays of 3 inches or below, targeting high-brightness applications in wearables, home appliances, and industrial uses[66] - The shipment volume of new display IC products showed stable growth, driven by the introduction of four-color display labels in Q4 2023, enhancing the company's position in the electronic shelf label market[61] - The company is actively developing large-size display driver IC solutions for commercial displays, high-end gaming monitors, and smart TVs, with new products expected to enter mass production in Q3 2024[65] - The company has initiated strategic cooperation with a major display manufacturer in Shenzhen to develop automotive driver IC solutions, aiming for mass production in Q4 2024[65] - The company is expanding its product applications into large color electronic retail signage, with plans for mass production of displays over 20 inches in size expected in H1 2024[67] - The company received the 2023 EE Awards Asia for the SSD2363, recognizing it as the "Product Award - Best MCU/Driver IC (Asia)" for its innovative micro-LED technology[68] - The company is focusing on energy-efficient display solutions, aligning with global sustainability trends, and aims to transition to multi-color and large-size displays[62] - The company is collaborating with international e-book brands to launch full-color e-book readers, with display IC shipments expected to grow continuously in 2024[67] - The company is enhancing its product portfolio with various mobile display and touch IC solutions, including MIPI bridge ICs and display control ICs, to support a wide range of consumer and industrial products[64] - The company is committed to R&D collaboration to accelerate entry into target markets, leveraging its technological advantages and extensive intellectual property[66]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：2878） 有關2022年年報的補充公告 茲提述晶門半導體有限公司（「本公司」）於2023年4月27日刊發截至2022年12月31日 止年度之年報（「2022年年報」）。除文義另有指明者外，本公告所用詞彙與2022年 年報所用者具有相同涵義。 董事會就2013購股權計劃提供以下補充資料： (a) 截至2022年12月31日止年度授出購股權之詳情如下： 授出購股權 價值 公平值 數目 （以千位計） （以千位計） （以千位計） （美元） （港元） ...

Share Options - As of June 30, 2023, the weighted average exercise price of unexercised share options was HK$0.684, with a total of 30,150,000 options remaining[3]. - During the period, 1,300,000 share options were exercised at a weighted average subscription price of HK$0.2181, generating approximately US$37,000 in cash before expenses[15]. - The company granted 5,900,000 share options during the period at an average exercise price of HK$0.470[3]. - The average closing price of the company's ordinary shares on the exercise date of share options was HK$0.49[37]. - The company had 354,297 dilutive share options outstanding for the six months ended June 30, 2023, compared to 1,283,976 in the same period of 2022[27]. - The total number of share options granted during the year is 30,150 thousand units[200]. - The total number of share options exercised during the year is 5,900 thousand units[200]. - The total number of share options lapsed/forfeited during the year is 1,300 thousand units[200]. - The total number of share options held as of June 30, 2023 is 27,150 thousand units[200]. - The exercise price per share for options granted on June 22, 2022 is HK$0.530[200]. - The exercise price per share for options granted on March 24, 2023 is HK$0.546[200]. - The exercise price per share for options granted on May 25, 2023 is HK$0.463[200]. - The vesting period for options granted on June 22, 2022 is from June 22, 2022 to June 21, 2023[200]. - The exercise period for options granted on May 25, 2023 is from May 25, 2023 to May 25, 2025[200]. - The total number of share options held on June 30, 2023 is 30,150 thousand units[200]. Financial Performance - Revenue for the six months ended June 30, 2023, was US$85.3 million, a decrease of 21.4% compared to US$108.5 million in the same period of 2022[63]. - Gross profit for the same period was US$27.9 million, down 33.8% from US$42.2 million year-over-year[63]. - Profit attributable to owners of the parent was US$13.2 million, reflecting a decline of 39.5% from US$21.8 million in the prior year[63]. - Earnings per share decreased to 0.53 US cents, a drop of 39.1% compared to 0.87 US cents in the previous year[63]. - Profit before tax decreased to $13,165,000, a decline of 39.5% from $21,771,000 in the previous year[66]. - Profit for the period was $13,165,000, compared to $21,758,000 in the same period last year, representing a decrease of 39.5%[67]. - Total comprehensive income for the period was $10,731,000, down from $21,871,000, a decrease of 51.0%[67]. - The profit for the period ending June 30, 2023, is reported at US$13.165 million, compared to US$21.760 million for the same period in 2022, indicating a decrease of approximately 39.5%[97]. Assets and Liabilities - Total assets increased to US$160.2 million, a slight rise of 1.2% from US$158.3 million at the end of 2022[62]. - Shareholders' funds rose to US$120.2 million, marking a 10.1% increase from US$109.2 million at the end of 2022[62]. - Cash and cash equivalents at the end of the period were US$70.874 million, up from US$46.420 million in the previous year[54]. - Total current assets increased to $151,435,000 from $146,126,000, reflecting a growth of 3.5%[69]. - Net current assets rose to $111,800,000, compared to $97,739,000, indicating an increase of 14.3%[69]. - Total assets less current liabilities amounted to $120,575,000, up from $109,876,000, a growth of 9.5%[69]. - The total liabilities related to contracts decreased from US$6,346,000 at the end of 2022 to US$5,773,000 as of June 30, 2023[9]. - Trade payables as of June 30, 2023, amounted to US$13,935,000, a decrease from US$15,807,000 as of December 31, 2022[9]. - The ageing analysis of trade payables showed that 1-30 days overdue payables were US$7,715,000, while those overdue by 61-90 days were US$1,311,000[13]. - Trade receivables as of June 30, 2023, amounted to US$17,678,000, down from US$19,227,000 as of December 31, 2022, reflecting a decrease of approximately 8.06%[33]. - The impairment provision for trade receivables was US$173,000 as of June 30, 2023, slightly improved from US$214,000 in the previous year[33]. - The company reported a reversal of impairment losses of US$41,000 during the period[7]. Dividends - No interim dividend was declared for the six months ended June 30, 2023, consistent with the previous year[30]. - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2023[64]. - The company did not declare or pay any dividends for the year ended December 31, 2022[28]. Market Performance - Sales in Hong Kong and Mainland China amounted to US$46,427,000, down from US$62,675,000, reflecting a decline of 26%[132]. - The Group's sales in Taiwan decreased by 47.3% to US$9,899,000 from US$18,734,000[132]. - Sales in Japan increased by 31.1% to US$11,968,000 compared to US$9,092,000 in the previous year[132]. - The Group's sales in Europe rose by 65.5% to US$12,600,000 from US$7,618,000[132]. - Revenue from new display ICs was US$39,847,000, down from US$49,731,000 in the previous year, representing a decline of 19.0%[156]. - The largest customer contributed US$32,566,000 in sales, accounting for over 10% of the Group's total revenue, compared to US$43,146,000 from the largest customer in the same period last year[159]. Financial Management - The current ratio improved to 3.82 from 3.02, indicating better short-term financial stability[44]. - The debt to equity ratio remained low at 0.00, down from 0.013, reflecting a strong equity position[44]. - The fair value of financial instruments approximates their carrying amounts due to their short-term nature, indicating effective liquidity management[94]. - The Group's cash and cash equivalents, along with other financial assets, have been assessed to have fair values closely aligned with their carrying amounts, ensuring stability in financial reporting[94]. - The Group has not identified any significant impact on its financial position or performance due to the recent accounting policy changes[88]. - The Group did not make any provision for Hong Kong profits tax due to available tax losses from prior years[179]. Operational Insights - The company specializes in the design, development, and sales of integrated circuits for various display applications, indicating ongoing focus on innovation and market expansion[74]. - The Group has maintained a single operating segment focused on the design, development, and sales of proprietary IC products and system solutions[148]. - The Group's operating segments are assessed by the Executive Director and senior management to allocate resources effectively[126]. - The Group has applied amendments to HKAS 1 and HKAS 12 since January 1, 2023, which are expected to impact annual consolidated financial statements but did not affect interim financial information[111][115]. - The Group has adopted new and revised HKFRSs, including HKFRS 17 for insurance contracts, which may impact future financial reporting[108].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致 的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：2878） 截至2023年6月30日止6個月 中期業績公告 財務摘要 • 銷售額下跌約21.4%至85.3百萬美元 • 毛利為27.9百萬美元，毛利率為32.7% • 本公司擁有人應佔期內溢利淨額為13.2百萬美元 • 每股盈利為0.53美仙（等同於4.11港仙） ...

Financial Performance - In 2022, the Group's sales revenue grew by 13.5% to US$190.8 million, and profit attributable to owners of the parent increased by 16.8% to US$27.8 million[25]. - In 2022, the Group's sales revenue increased by 13.5% to $190.8 million, with a profit attributable to shareholders rising by 16.8% to $27.8 million[29]. - Revenue for 2022 was US$190.8 million, representing a 13.5% increase from US$168.1 million in 2021[48]. - Gross profit decreased to US$65.5 million in 2022, down 2.7% from US$67.3 million in 2021, resulting in a gross margin decline of 5.7 percentage points to 34.3%[48]. - The Group's earnings per share increased by 10% to $0.011 in the reporting year[29]. - Shareholders' funds rose by 26.0% to US$109.2 million in 2022, up from US$86.7 million in 2021[63]. - Total assets as of December 31, 2022, were US$158.3 million, a 13.2% increase from US$139.9 million in 2021[63]. - The current ratio improved to 3.02 in 2022 from 2.35 in 2021, indicating better short-term financial health[63]. Market Trends and Challenges - The semiconductor market is expected to shrink further in 2023 due to declining demand for chips in smartphones and personal computers[20]. - The semiconductor industry entered a destocking phase in the second half of 2022, with expectations for the global chip market to shrink further in 2023 due to declining demand for semiconductors in smartphones and personal computers[31]. - The consumer electronics market is expected to face short-term growth challenges due to weakened consumer demand and the rebound effect from the previous overheating of the electronics industry[131]. - The semiconductor industry is projected to continue de-stocking in the first half of 2023, with more opportunities for downstream collaboration in product development anticipated in the second half as COVID-19 restrictions ease in mainland China[141]. Product Development and Innovation - The Group commenced mass production of Active Matrix Electrophoretic Display (AMEPD) driver ICs for Advanced Color e-Paper (ACeP) products in 2022, with a launch of Spectra™ 3100 scheduled for 2023[2]. - The Group launched the IC-SSD2363, the world's first small-sized passive matrix micro-LED display driver, in Q1 2023, targeting applications in wearable devices and home appliances[3]. - The Group's new generation electronic ink platform, Spectra™ 3100, is expected to launch in 2023, enhancing growth potential for new display IC business[90]. - The Group is co-developing a human interface display platform targeting mass production in the second half of 2023[102]. - The Group continues to expand its product portfolio by launching new PMOLED display ICs with built-in Character ROMs[42]. - The Group's large display IC solutions support applications in monitors, notebooks, and large-size TVs across various resolutions including HD, FHD, QHD, and UHD 4K/8K[46]. - The Group is preparing to capitalize on the global economic recovery, actively seeking opportunities despite ongoing market challenges[140]. - The Group emphasizes the importance of novel product development to keep pace with rapid technological advancements and market trends[106]. - The Group plans to focus on developing AR and VR products to capture opportunities in the Metaverse[111]. Strategic Focus and Market Position - The Group remains the world's largest manufacturer of display driver ICs for PMOLED display products, maintaining a dominant market share in terms of units shipped in 2022[30]. - The Group has strategically adjusted its product mix to focus on high-demand areas such as electronic shelf labels, smart home products, and industrial applications[30]. - The Group aims to enhance its R&D capabilities and diversify its product portfolio to capture opportunities arising from the digital economy[11]. - The Group has secured orders for game controller ICs and MIPI Bridge ICs to be delivered in 2024, ensuring stable income and cash flow[10]. - The demand for game console controller ICs is rapidly increasing, with successful manufacturing orders secured into 2024, contributing significantly to the Group's sustainable revenue base[104]. - Solomon Systech is shifting resources towards smart home devices and industrial appliances in response to favorable demand in these sectors[79]. Cost Management and Pricing Strategy - The Group adjusted the average unit price of some products in 2022 to maintain competitiveness amid changing market conditions[25]. - The average selling price of some products was adjusted in 2022 to maintain competitiveness amid market changes[29]. - The Group adjusted the average selling price of its products in response to rising raw material prices and production costs[98]. - Despite the easing of supply chain issues and chip shortages, raw material costs remain under pressure, prompting the Group to focus on cost control and the development of high value-added products[139]. Corporate Governance - The Remuneration Committee confirmed the remuneration policy for Executive Directors and reviewed their performance in 2022[171]. - The Nomination Committee consists of one Non-executive Director and three Independent Non-executive Directors, ensuring a majority of independent members[172]. - The Remuneration Committee meets at least once a year to review and approve compensation arrangements for Executive Directors and senior management[190]. - The remuneration bands for Executive Directors include 3 individuals earning up to HK$1,000,000, 4 earning between HK$1,500,001 and HK$2,000,000, 1 earning between HK$2,000,001 and HK$2,500,000, and 1 earning between HK$5,500,001 and HK$6,000,000[193]. - The Board has adopted a nomination policy to ensure a balance of skills, experience, and diversity among Directors[197]. - The Group is currently revisiting accounting policy disclosures to ensure consistency with amendments to HKAS 1 effective from January 1, 2023[200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：2878） 2022年全年業績公佈 財務摘要 • 銷售額上升約13.5%至190.8百萬美元。 • 毛利為65.5百萬美元，下跌2.7%。 • 毛利率為34.3%，下跌5.7個百分點。 • 本公司擁有人應佔溢利淨額為27.8百萬美元，增長16.8%。 • 每股盈利為1.1美仙（8.6港仙）。 • 董事會不建議派付2022年12月31日止年度之末期股息。 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was US$108.5 million, representing a 45.1% increase from US$74.8 million in the same period of 2021[9]. - Gross profit for the same period was US$42.2 million, up 45.0% from US$29.1 million year-on-year[9]. - Profit attributable to owners of the parent reached US$21.8 million, a significant increase of 103.2% compared to US$10.7 million in the prior year[9]. - Earnings per share for the period was US$0.87, which is a 102.3% increase from US$0.43 in the previous year[9]. - Total comprehensive income for the period was US$21.9 million, compared to US$10.6 million in the prior year[17]. - The company reported a profit for the period of US$21,760,000 for the six months ended June 30, 2022, compared to US$10,710,000 for the same period in 2021, representing a substantial increase of 103.5%[25]. - The group's profit attributable to owners of the parent for the period was $21,760,000, compared to $10,710,000 for the same period in 2021, representing a 103% increase[102][104]. - Basic earnings per share increased to $0.0087 for the six months ended June 30, 2022, from $0.0043 in the same period of 2021[102][104]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to US$168.6 million, reflecting a 20.5% increase from US$139.9 million at the end of 2021[8]. - Shareholders' funds increased to US$105.9 million, a rise of 22.1% from US$86.7 million as of December 31, 2021[8]. - Total non-current assets decreased to US$17,676,000 as of June 30, 2022, from US$18,323,000 as of December 31, 2021, representing a decline of 3.5%[21]. - Total current assets increased significantly to US$150,888,000 as of June 30, 2022, compared to US$121,590,000 as of December 31, 2021, marking an increase of 24.1%[21]. - Total current liabilities rose to US$61,381,000 as of June 30, 2022, up from US$51,633,000 as of December 31, 2021, indicating an increase of 18.5%[21]. - Net current assets improved to US$89,507,000 as of June 30, 2022, compared to US$69,957,000 as of December 31, 2021, reflecting a growth of 28.0%[21]. - Net assets increased to US$105,882,000 as of June 30, 2022, from US$86,707,000 as of December 31, 2021, showing a rise of 22.0%[21]. - Trade receivables as of June 30, 2022, amounted to $27,389,000, an increase from $24,112,000 as of December 31, 2021[115]. - Trade and bills payables increased to $25,916,000 as of June 30, 2022, compared to $23,919,000 as of December 31, 2021, reflecting an increase of approximately 8.4%[124]. - Accrued expenses and other payables totaled $59,512,000 as of June 30, 2022, up from $50,149,000 as of December 31, 2021, representing a growth of about 18.5%[124]. Cash Flow - Net cash flows from operating activities increased to $20,076,000 for the six months ended June 30, 2022, compared to $7,640,000 in the same period of 2021, representing a growth of 163%[30]. - Net cash flows from investing activities were $2,043,000, a significant improvement from a net outflow of $711,000 in the prior year[30]. - The company reported a net increase in cash and cash equivalents of $21,472,000 during the period, compared to an increase of $3,925,000 in the same period last year[30]. - Cash and cash equivalents rose to US$47,420,000 as of June 30, 2022, compared to US$24,757,000 as of December 31, 2021, an increase of 91.5%[21]. - Cash and cash equivalents at the end of the period totaled $46,420,000, down from $54,634,000 at the end of June 2021, reflecting a decrease of 15%[30]. Dividends - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022[10]. - The company did not pay any dividends during the current period, contrasting with $2,570,000 paid in the same period of 2021[30]. - The company did not declare an interim dividend for the six months ended June 30, 2022, compared to no interim dividend declared for the same period in 2021[110][113]. Research and Development - Research and development costs for the period were US$14.9 million, compared to US$12.1 million in the same period last year[15]. Market and Industry Trends - The semiconductor market is expected to continue healthy growth, driven by demand across various industries including automotive and home appliances[189]. - The ongoing chip shortage and geopolitical tensions have disrupted global supply chains and increased inflationary pressures[187]. - The home gaming console market is experiencing robust growth, with leading brands launching enhanced touch and display functionalities[188]. - Electronic shelf labels (ESL) are set to revolutionize the retail industry, improving staff efficiency and enhancing the shopping experience[188]. - The pandemic has accelerated the demand for smart home appliances and IoT devices, further boosting the semiconductor industry's growth[180]. - The global semiconductor market is expected to maintain a healthy growth momentum despite ongoing challenges such as inflation and geopolitical instability[192]. Strategic Focus - The company aims to optimize and adjust its product mix to meet stringent customer requirements for quality and functionality, leveraging economies of scale and solid relationships with upstream foundries for cost control[195][198]. - The company is focused on developing next-generation solutions that are versatile, efficient, and cost-effective, utilizing research resources and proprietary patents accumulated over the past two decades[196][199]. - The company recognizes the challenges posed by higher-than-expected inflation, which is driving up production and business costs[194][198]. - The company is committed to providing value-added products and solutions to cater to fast-changing market trends and emerging technologies[195][198]. - The company is positioned to capitalize on niche markets that can provide higher profit margins through innovative solutions[196][199]. - The Group's strategy of adjusting the product mix to focus on better customer experiences has proven effective in driving performance[181]. - The Group secured stable upstream supply by leveraging relationships with key foundries, ensuring capacity to meet rising product demand[181].

Financial Performance - The Group's sales revenue increased by 38.6% year-on-year to US$168.1 million in 2021[17] - Profit attributable to owners of the parent rose from US$11.7 million in 2020 to US$23.8 million in 2021, representing an increase of over 103.0%[17] - Gross profit increased by 87.6% to US$67.3 million, with a gross margin of 40.0%, up from 29.6% in the previous year[7] - The Group achieved a sales revenue of $168.1 million in 2021, an increase of over 38.6% compared to 2020[34] - Profit attributable to the owners of the parent increased by over 103.0% to $23.8 million, with earnings per share rising to 1.0 US cents, up 100% from 2020[34] - The average gross profit margin improved significantly by 10.4 percentage points to 40.0% in 2021 from 29.6% in 2020[34] - Total expenses for the year amounted to about US$45.1 million, representing an increase of 48.0% compared to US$30.5 million in 2020[123] - Product R&D costs amounted to US$30.4 million, an increase of 80.3% from US$16.9 million in 2020, with a R&D costs to sales ratio of 18.1%[124] - Solomon Systech reported a significant increase in revenue, achieving a total of HKD 1.2 billion for the fiscal year 2021, representing a growth of 15% year-over-year[166] - Solomon Systech anticipates continued growth, projecting a revenue increase of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[166] Asset and Shareholder Information - Total assets grew by 48.5% to US$139.9 million as of December 31, 2021[8] - Shareholders' funds increased by 36.8% to US$86.7 million as of December 31, 2021[8] - The Group maintained a net cash position with a gearing ratio of 0.002 as of December 31, 2021[135] - Total cash and cash equivalents were US$41.8 million as at December 31, 2021, down from US$51.0 million in 2020[137] Operational Efficiency and Market Strategy - The current ratio decreased to 2.35 from 2.83 in the previous year, indicating a slight decline in liquidity[9] - The book-to-bill ratio improved to 1.5 from 1.4, suggesting a positive outlook for future orders[7] - The Group focuses on higher gross profit products and strategic partnerships with internationally renowned brands to adapt to market needs[18] - The Group aims to maintain healthy growth and capture new opportunities amid rapid technological advancements and changing consumer demands[18] - The Group is focusing on high-margin products and has adjusted its product mix accordingly to meet market demand[34][40] - The Group's business structure and product portfolio have become more mature and diversified, enabling it to capture opportunities from changing consumption patterns and technological advancements[26][28] - The Group is focused on optimizing resource management and enhancing operational efficiency while maintaining strict financial discipline[50] Product Development and Innovation - The Group launched the world's first TDDI chips targeting IoT and wearable devices, expanding its OLED Display ICs business to smart home appliances[24][25] - The Group has over 660 patent rights registered worldwide, supporting continuous innovation and maintaining market leadership[43] - The Group plans to increase investment in R&D for next-generation display IC solutions to capitalize on the growing demand in wearable devices and game console controllers[51] - The Group's MIPI solutions for display are ready for production and expected to reach the market in Q2 2022, showcasing its commitment to high-resolution and low-power display technologies[73] - The Group is developing a new ESL IC solution that supports seven colors, aimed at increasing revenue and global visibility[88] - The Group aims to leverage its high-speed and high-resolution display IC technology to develop enhanced AR and VR products, targeting the Metaverse market potential[88] Workforce and Corporate Governance - As of December 31, 2021, the Group had a total workforce of 326 employees, a decrease from 341 employees in 2020[89] - Approximately 67% of the Group's employees are engineers specializing in product design and development[93] - About 89% of the Group's employees hold a bachelor's degree or above, with 32% holding a master's degree or higher[93] - The Group dedicated over 1,086 man-hours to training and development in 2021, covering both technical and soft skill training[100] - The company has adopted corporate governance principles emphasizing a quality board, effective internal controls, and stringent disclosure practices, complying with all applicable Code Provisions for the year ended December 31, 2021[189] - The Board consists of one Executive Director, three Non-executive Directors, and three Independent Non-executive Directors, ensuring a diversity of views for effective decision-making[198] - The management is committed to continuously improving corporate governance practices, observing developments in Hong Kong and overseas, particularly in the UK and USA[188] Community Engagement and Corporate Social Responsibility - The Group actively participated in "Barrier Busters 2021," an event aimed at raising awareness of the challenges faced by people with disabilities[101] - The Group participated in the Community Chest Virtual Walk for Millions, which took place from 9 January to 23 January 2022[107] - The Group's commitment to corporate social responsibility is integrated into its corporate culture, focusing on sustainable development and community support[108]