Revenue and Profitability - Revenue increased by approximately 24% to US$56.6 million compared to US$45.7 million in the same period last year[3] - Total revenue for the six months ended June 30, 2019, was US$56,599,000, an increase of 24% compared to US$45,685,000 in the same period of 2018[108] - Gross profit was US$10.0 million, resulting in a gross margin of 17.6%, down from 32.0% in the previous year[3] - Gross profit for the period was US$10.0 million, with a gross margin of 17.6%, down from US$14.6 million and 32.0% in the first half of 2018[194] - The Group reported a loss before tax of US$9,569,000 for the six months ended June 30, 2019, compared to a loss of US$6,266,000 in the same period of 2018[136] - A net loss attributable to the Company's equity holders was reported at US$9.6 million, compared to a loss of US$6.3 million in the same period of 2018[196] Expenses - Selling and distribution expenses were US$1.8 million, while administrative expenses totaled US$6.4 million[7] - Selling and distribution expenses were US$1.8 million, and administrative expenses were US$6.4 million, both representing a decrease from the corresponding period in 2018[194] - Research and development costs were US$14.0 million, reflecting the company's commitment to innovation despite financial losses[7] - Research and development costs amounted to US$14.0 million, a decrease from US$16.6 million in the first half of 2018[196] - Finance income decreased significantly to US$0.327 million from US$2.147 million in the previous year[7] - The Group reported a net finance income of US$0.3 million, down from US$2.1 million in the first half of 2018[196] Financial Position - Total assets decreased to US$98.4 million from US$107.0 million year-over-year[3] - Total non-current assets decreased from $23,213,000 as of December 31, 2018, to $22,855,000 as of June 30, 2019, representing a decline of 1.55%[11] - Current assets increased significantly from $75,537,000 as of December 31, 2018, to $80,891,000 as of June 30, 2019, marking an increase of 7.06%[11] - Total equity attributable to owners of the parent decreased from $78,460,000 as of December 31, 2018, to $68,865,000 as of June 30, 2019, reflecting a decline of 12.28%[13] - The company reported a loss for the period, with accumulated losses reaching $(67,369,000) as of June 30, 2019[13] - The company’s total current liabilities slightly decreased from $27,667,000 as of December 31, 2018, to $27,531,000 as of June 30, 2019, a reduction of 0.49%[11] - The net current assets decreased from $56,130,000 as of December 31, 2018, to $48,006,000 as of June 30, 2019, a decline of 14.49%[11] - The Group's non-current assets totaled US$21,673,000 as of June 30, 2019, slightly down from US$21,907,000 at the end of 2018[111] Cash Flow - Net cash from operating activities improved to $3,739,000 for the six months ended June 30, 2019, compared to a cash outflow of $12,368,000 in the same period of 2018[16] - Cash and cash equivalents at the end of the period rose to $24,556,000, up from $13,395,000 at the beginning of the period, indicating a substantial increase of 83.33%[16] - The net cash from investing activities for the six months ended June 30, 2019, was $8,200,000, compared to $10,413,000 in the same period of 2018[16] Dividends - The company did not declare an interim dividend for the six months ended June 30, 2019[5] - The company reported no dividend declared for the year ended December 31, 2018, and also resolved not to declare an interim dividend for the six months ended June 30, 2019[143][145] Lease Accounting - The Group adopted new and revised HKFRSs for the first time for the current period, with no significant financial impact except for HKFRS 16 Leases[29] - HKFRS 16 requires lessees to account for all leases under a single on-balance sheet model, which did not affect the Group's financials as a lessor[34] - The Group adopted HKFRS 16 using the modified retrospective method with an initial application date of January 1, 2019, without restating comparative information for 2018[35] - The Group recognized lease liabilities of US$3,238,000 as of January 1, 2019, based on the present value of remaining lease payments discounted at an incremental borrowing rate of 5.5%[53] - The total assets increased by US$3,238,000 due to the adoption of HKFRS 16, reflecting the increase in right-of-use assets[52] - The Group's lease liabilities increased due to the transition to HKFRS 16, reflecting the recognition of lease liabilities[52] Shareholder Information - The company had 2,480,252,351 shares issued and fully paid as of June 30, 2019, unchanged from the previous period[158] - The weighted average number of ordinary shares for diluted loss per share calculation remained stable at 2,480,028,242 shares for both periods[141] - The company granted 2,000,000 share options in May 2019 to the newly appointed Acting Chief Executive Officer[160] - The company granted 2,000,000 share options on May 9, 2019, with a total share option value of HK$118,000 (US$15,000) and an exercise price of HK$0.248[165] Market and Customer Information - Solomon Systech (International) Limited specializes in fabless semiconductor design, development, and sales for various smart devices, including smartphones and healthcare devices[18] - The Group operates in a single segment focused on the design, development, and sales of proprietary IC products and system solutions for various applications[94] - The Group's products were primarily sold to customers located in Hong Kong and Taiwan during the review period[97] - The largest customer contributed US$20,142,000 and the second largest contributed US$7,196,000, both exceeding 10% of total revenue for the period[117] Financial Instruments - The Group's financial instruments' fair values are assessed to be reasonable and appropriate at the end of the reporting period[78] - The Group's financial asset at fair value through profit or loss, specifically the call option over non-controlling interests, had a fair value of US$343,000 as of 30 June 2019, down from US$467,000 at the end of 2018, indicating a fair value loss of US$124,000[90] - The volatility used in the valuation of the call option is 50%, with a higher volatility leading to a higher fair value[79] - The risk-free interest rate for the valuation of the call option ranged from 1.43% to 1.5% as of 30 June 2019, compared to 1.18% to 3.01% at the end of 2018[79] - The price-to-sales ratio for the call option was 0.61 as of 30 June 2019, down from 0.72 at the end of 2018, suggesting a decrease in the perceived value of sales relative to the option[79]

Financial Performance - Revenue increased by approximately 19% to US$98.1 million in 2018, compared to US$82.5 million in 2017[6] - Gross profit was US$28.2 million, a decrease of about 3.9% from the previous year, with a gross margin of 28.7%, down 6.9 percentage points[7] - The Group recorded a net loss of US$13.8 million in 2018, compared to a net loss of US$10.3 million in 2017[6] - Total sales and shipments increased by around 19% and 37% to approximately US$98.1 million and 295.8 million units respectively[9] - The Group's total sales for the year ended December 31, 2018, were US$98.1 million, an increase from US$82.5 million in 2017, representing a growth of approximately 19.5%[34] - A net loss of US$13.8 million was recorded in 2018, compared to a net loss of US$10.3 million in 2017, indicating an increase in losses of approximately 34.3%[34] Cash and Financial Position - The Group's net cash position and financial assets at FVTPL remained healthy at around US$22.2 million as of December 31, 2018[9] - Total cash and cash equivalents as of 31 December 2018 amounted to US$13.4 million, down from US$23.3 million in 2017[51] - The Group disposed of approximately 60% of its net investment in financial assets to meet cash requirements during 2018[44] - The FVTPL Portfolio is expected to provide a stable stream of income, consisting mainly of marketable bonds and mutual funds[50] Operational Highlights - The Group's revenue growth was primarily driven by strong performance in bistable display driver ICs and large panel display driver ICs[26] - The PMOLED TDDI IC is expected to start mass production in 2019, contributing to future revenue streams[20] - Solomon Systech China has significantly increased its business share with key customer Panda-FPD, contributing to overall revenue growth[19] - The Group has achieved design wins for electronic shelf labels and mobile touch controller ICs with leading manufacturers, enhancing its customer base[20] - The Group launched several new products in 2018, including the significant PMOLED Touch and Display Driver Integration (TDDI) IC, expected to be a key revenue driver in 2019 and beyond[54] Research and Development - The Group's R&D expenditure in 2018 was approximately US$31.5 million, representing about 64.7% of total expenses and 32.1% of total revenue for the year[87] - The Group has been granted 9 patents and filed 23 patents in 2018, strengthening its intellectual property portfolio for future business growth[90] - The Group's bistable display driver IC business is projected to maintain strong growth momentum in 2019, driven by the trend towards unmanned stores and retail automation[77] Employee and Corporate Culture - As of December 31, 2018, the Group employed a total of 409 staff worldwide, with 332 being technical engineering staff[332] - Approximately 87% of the Group's employees hold a bachelor's degree or above, and around 43% have earned a master's degree or higher[332] - The Group dedicated over 4,300 man-hours to training and development in 2018, covering various areas including industrial and technical training[101] - The Company organized a range of activities in 2018 to promote employee well-being and work-life balance, including leisure activities for employees and their families[102] Corporate Governance - The company has adopted corporate governance principles emphasizing a quality board, effective internal controls, and stringent disclosure practices[144] - The Company has established its own written guidelines for directors and relevant employees regarding securities transactions[146] - The Company has a commitment to maintaining high standards of corporate governance as critical for long-term business success[144] - The Board consists of two Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors, ensuring a diverse range of views for effective decision-making[152][157] Strategic Initiatives - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%[121] - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative semiconductor technologies[122] - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[123] - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 40% over the next five years[128]