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]
晶门半导体(02878) - 2021 - 年度财报