Financial Performance - Total assets as of December 31, 2023, were US$157.4 million, a decrease of 0.5% from US$158.3 million in 2022[16]. - Shareholders' funds increased by 16.3% to US$126.9 million in 2023, up from US$109.2 million in 2022[16]. - The current ratio improved to 4.96 in 2023, compared to 3.02 in 2022, indicating better short-term financial health[24]. - In 2023, the shipment volume increased by 7.4% year-on-year to approximately 336 million units, despite a 19.8% decrease in sales revenue to US$153.2 million due to price reductions[41]. - Profit attributable to owners decreased by 30.1% year-on-year to US$19.4 million, with earnings per share at 0.8 US cents[41]. - Revenue for 2023 was US$153.2 million, a decrease of 19.8% from US$190.8 million in 2022[159]. - Gross profit for 2023 was US$46.3 million, down 29.2% from US$65.5 million in 2022[159]. - Gross margin decreased to 30.3% in 2023, down 4.0 percentage points from 34.3% in 2022[159]. - The Group's net profit attributable to shareholders decreased by 30.1% year-on-year to $19.4 million, with earnings per share at $0.008[55]. Market Trends and Projections - The semiconductor industry is expected to see a recovery in the second half of 2024, with IDC predicting a 14% growth in the Asia-Pacific market[26]. - The global Electronic Shelf Label (ESL) market is projected to reach US$1.73 billion in 2024, driven by retail trends and ESG considerations[29]. - The semiconductor market is anticipated to bottom out in 2024, with the Group maintaining a cautious optimism based on its strong R&D capabilities and diversified product portfolio[34]. - The Group anticipates a market recovery in the second half of 2024 as inventory levels improve and consumer electronics demand rebounds[70]. - The macroeconomic environment remains uncertain with weak demand growth, but wafer fabs have started to lower average prices, which is expected to positively impact the Group's gross profit in 2024[110]. Product Development and Innovations - Solomon Systech continues to lead in Passive Matrix OLED (PMOLED) display ICs, enhancing display performance while reducing system power consumption[21]. - The company offers a range of custom IC solutions, leveraging over 20 years of experience in display IC development[11]. - Solomon Systech's MiniLED/µLED display driver solutions are tailored for high-resolution devices, addressing growing market demand[11]. - The Group launched the world's first small-sized passive matrix micro-LED display driver IC – SSD2363 in 2023, reinforcing its leading position in the PMOLED display driver IC market[33]. - The Group's new icon IC products, launched in 2023, cover displays up to 4 inches and are expected to enhance market share in large-panel smart home appliances[37]. - The Group's new four-color display IC solution for the Spectra™ 3100 platform was launched in the second half of 2023, with mass production of large display applications expected to start in H1 2024[60]. - The Group is developing automotive driver IC solutions, targeting mass production in Q4 2024 for major automotive systems in Mainland China[52]. - The Group's new display IC solutions are being developed for various applications, including gaming monitors and smart TVs, with a focus on high refresh rates and resolution[95]. - The Group's bistable display technology offers high contrast, wide viewing angles, and power savings, making it suitable for low-power-consuming monitors[151]. - The Group's PMOLED drivers employ a proprietary driving scheme to reduce power consumption and enhance display performance, making them ideal for portable devices[143]. Operational Highlights - The Group's delivery volume grew by 7.4% year-on-year, reaching approximately 336 million units, despite a 19.8% decrease in sales revenue to $153.2 million due to falling product prices[55]. - The average selling price of new display IC products dropped, impacting revenue, as sales of three-color display labels slowed due to retailers waiting for the launch of four-color displays[84]. - The overall inventory level of the industry decreased by approximately 42% compared to the end of the previous year, helping to reduce operating risks[81]. - The Group's mini-LED backlight solution is actively being marketed for specific applications across various fields[50]. - The Group is committed to expanding the application of IC products to areas such as translators and large retail signage applications, aligning with the global trend towards energy-efficient displays[127]. Employee and Corporate Governance - As of December 31, 2023, the Group had a total workforce of 302 employees, with approximately 87% holding a bachelor's degree or above and 34% holding a master's degree or higher[119]. - The company dedicated over 10,354 man-hours to training and development in 2023, focusing on both technical and soft skills[167]. - The company emphasizes employee well-being, providing health insurance and promoting a healthy work-life balance[168]. - The Company has taken appropriate insurance cover to indemnify its Directors against possible claims and liabilities arising out of the Group's business and activities[192]. - The Board has scheduled to meet at least four times a year, allowing for open discussion on strategy, operational and financial performance, and internal control[194]. - The Company Secretary is responsible for distributing detailed documents to the Directors prior to Board meetings to ensure informed decision-making[195].
晶门半导体(02878) - 2023 - 年度财报