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]
晶门半导体(02878) - 2023 - 年度业绩