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]
晶门半导体(02878) - 2018 - 年度财报