Financial Performance - Total sales reached US$121.3 million, representing a year-on-year increase of approximately 12.0%[15] - Profit attributable to owners of the parent was US$11.7 million, a significant recovery from a loss of US$27.3 million in 2019[11] - The Group achieved a turnaround from loss to profit, driven by an increase in average gross profit margin and total gross profit due to changes in product sales mix, effective cost control, and the sale of non-current assets[30] - The company reported a total revenue of US$121.3 million for the year ended December 31, 2020, representing a 12% increase compared to US$108.3 million in 2019[94] - The gross margin amount for the year ended December 31, 2020, was US$35.8 million, a jump of over 68.1% from US$21.3 million in 2019[94] - The company achieved a turnaround from a loss of US$27.3 million in 2019 to a profit of US$11.7 million in 2020[94] - The overall book-to-bill ratio for the year ended December 31, 2020, was 1.4, compared to 1.1 in 2019[94] - The increase in gross profit was attributed to a change in product sales mix and strong demand for higher margin Advance Display products[94] Operational Highlights - Total shipments amounted to 379.4 million units, reflecting a year-on-year increase of 22.9%[15] - The Group's total unit shipments increased by 22.9% to 379.4 million units in 2020, compared to 308.7 million units in 2019[64] - Advanced Display (AD) products saw a significant growth of approximately 82.2%, with unit shipments reaching 245.8 million units in 2020, up from 134.9 million units in 2019[66] - The Group's LD business experienced a 35.6% year-on-year decline in total shipments, totaling approximately 78.9 million units in 2020, down from 122.6 million units in 2019[76] - Revenue from mobile display (MD) products increased by approximately 6.8% year-on-year, reaching around 54.7 million units in 2020, compared to 51.2 million units in 2019[76] Research and Development - The Group invested approximately US$16.9 million in R&D, representing about 55% of total operating expenses and 13.9% of total revenue for the year[78] - The Group was granted 28 patents and filed 15 patents in 2020, enhancing its competitive advantage with a total of around 650 patents[78] - The Group is focused on enhancing its R&D capabilities to support next-generation products and protect intellectual property[18] - New product development efforts include the introduction of innovative semiconductor solutions aimed at enhancing display and touch technologies, with an expected launch in Q1 of the next fiscal year[132] Market Strategy - The semiconductor industry is expected to grow steadily in 2021, driven by advancements in technology and increased demand for smart devices[27] - The Group is committed to becoming a leading global semiconductor company, focusing on the design, development, and sales of integrated circuit chip products and system solutions[31] - The Group has formulated strategies to enhance supply-chain resilience to secure production capacity amid economic challenges[39] - The Group has shifted focus to the smart home appliances market, successfully completing design-in projects for products like smart electric toothbrushes and smart thermostats[70] - The Group is promoting a new bistable display driver IC for medium-sized ESL panels (2.6 to 4 inches) targeting the European and U.S. markets[71] Corporate Governance - The company has a strong board with diverse expertise in technology, finance, and market development, enhancing its strategic decision-making capabilities[120] - The board includes members with advanced degrees in engineering, economics, and law, reflecting a well-rounded leadership team[119] - The company has adopted a Board Diversity Policy to enhance transparency and governance, focusing on a range of diverse perspectives in member selection[144] - The Board consists of three Independent Non-executive Directors, representing more than one-third of the Board, meeting the minimum requirements under Rule 3.10(1) and Rule 3.10A of the Listing Rules[186] - The Company has implemented a Service Term Policy limiting the terms of Non-executive Directors and Independent Non-executive Directors to no more than nine consecutive years[189] Employee and Social Responsibility - The company organized various activities in 2020 to promote employee well-being and work-life balance[91] - The Group actively participated in the "Greater Bay Area Youth Employment Scheme" to recruit and retain talents in innovation and technology[46] - The company is committed to fulfilling its corporate social responsibility and will publish its ESG report for 2020[94] - As of December 31, 2020, the Group had a total workforce of 341 employees, with approximately 88% holding a bachelor's degree or above[84] Future Outlook - The company provided a positive outlook for the next fiscal year, projecting revenue growth of BB% driven by new product launches and market expansion strategies[132] - The Group anticipates high demand for its P2P gaming monitor products in 2021, with challenges related to wafer capacity for large size DDI products[81] - Demand for mobile devices in China has gradually recovered, boosting revenue from MD products related to TDDI and DDI[76] - The Group's bistable display driver IC business is expected to maintain strong growth momentum in 2021, driven by retail automation and increased consumer demand during the pandemic[81]
晶门半导体(02878) - 2020 - 年度财报