Investor Relations

Solomon Systech Announces 2012 Annual Results

Forging Ahead through Higher-growth Smart Applications

Sales Up 26% to US$65.1 Million

Gross Profit Increased by 60% to US$25.1 Million

With Gross Margin at 38.6%

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Forging Ahead through Higher-growth Smart Applications


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For the Year Ended 31 December





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(Hong Kong – 20 March 2013) – Solomon Systech (International) Limited (“Solomon Systech” or “the Group”; SEHK: 2878) announced its annual results for the year ended 31 December 2012 (“2012”). 


In 2012, Solomon Systech recorded a sales revenue of US$65.1 million, an increase of around 26% year-on-year (2011: US$51.6 million). The sales growth was mainly attributed to the Group’s strategy to shift its product mix towards high-end, high-growth applications, which caused the blended average selling price of the products to increase by 22%. Also as a result, gross profit for the year has surged by around 60% to US$25.1 million, with gross margin improved by around 8 percentage points to 38.6% (2011: 30.5%). The Group managed to attain a profit of US$5.9 million for the year from core businesses (including finance income from treasury function) before the results of associated companies, a significant improvement compared with the loss of US$15.6 million in 2011. Having taken into the account the loss from the results of associated companies, the Group recorded a net loss of US$1.4m, still a great improvement from the net loss of US$17.6m in 2011.


Dr. Humphrey Leung, Managing Director of the Group, said, “In 2012, the Group achieved solid growth despite challenging market conditions by executing its strategy of focusing on the higher growth, value-added smart product application market. By boosting our technical competence, customer services and marketing outreach, particularly in the focused applications, we have strengthened our foundation for future growth.”


Business Review

Solomon Systech shipped a total of approximately 103 million display IC units in 2012, an increase of around 3% year-on-year. The unit shipments recorded a strong year-on-year growth in particular in the fourth quarter of 2012. The book-to-bill-ratio for the year was 1.07 (2011: 0.97).


For the Mobile Display business, the Group has introduced a number of innovative solutions for higher resolution applications with higher average selling prices, in particular smartphones and tablets. The Group’s high speed display interface controllers were successfully incorporated into a number of the world’s top-tier smartphone models launched into the market. The Group has also secured design wins for its capacitive touch panel controllers for a variety of smart display applications, ensuring that the Group can capture the rapidly growing market demand.


As for the Advanced Display business, the Group’s New Display product families supporting e-paper display technologies have recorded a satisfactory sales growth of 66% year-on-year in 2012. The Group has successfully launched a series of new solutions custom made for a number of world-leading electronic shelf label (ESL) makers, further extended its market outreach.


Regarding the Large Display business, the Group has since March 2012 become a key IC driver supplier of Panda-LCD, a major manufacturer of large TFT-LCD panels and modules in China. Total IC shipments of this unit have reached 16.2 million units.


The unit shipments of the Display System Solution business unit surged 138% in 2012. This was mainly attributed to a strong growth in demand for its display graphic controllers for use in 3D active shutter glasses and smartphones, as well as its multimedia processors. During the year, the Group co-developed the award-winning 3D dual-LCoS mini projector, the world’s first, with The Hong Kong Applied Science and Technology Research Institute as well as secured additional design wins in pico projectors and multimedia education projectors from the world’s top projector makers. These successes demonstrate that the Group’s transformation from an IC component company into a system solutions provider has started to bear fruit.


Its Green Power business unit has achieved a 75% increase in total shipments year-on-year as demand grew. New products and solutions targeting the LED lighting market were introduced, and the Group has become an LED solution provider to a world leader in LED technology.



The semiconductor industry is expected to rebound and grow steadily in 2013. Riding on the growth momentum in 2012, the Group is striving to introduce more innovative, high quality products and system solutions to capture the higher-growth smart product application market and extend its market outreach.


Continue to Boost Growth in the Focused Product Applications

Smartphones and tablets, in particular those with HD/FHD resolution, high speed and low power consumption, are expected to exhibit strong growth in 2013. The Group is working with leading display module makers to develop new technologies and ICs to capitalize on this trend. The TFT LCD driver controllers for HD smartphones are scheduled to start mass production in 2013. In addition, the Group is developing AMOLED driver controllers for smartphone applications. The Group plans to continue to develop other products using 3D display technology to further expand its product portfolio.


The Group is also striving to tap further into the smart devices markets with good potential, in particular ESLs and smart LED lighting. These applications are all forecast to exhibit strong double-digit growth.


China will be a market bright spot

China has become the second largest market for tablet shipments and is forecast to surpass the US in 2013 to become the biggest smartphone market in the world. In the long run, the China market is projected to represent 38% of the worldwide IC market by 2017. With more sales and marketing efforts devoted to the China market in 2012, the Group aims to tap further into this rapidly growing market through its established offices and sales network in China.


Dr. Leung concluded, “In 2013, we shall continue to forge ahead with our growth strategy of focusing on innovative solutions and technologies that target smart product applications. At the same time, we shall boost new product introduction to achieve more design wins. Another strategic focus would be to improve customer service and support as well as to strengthen sales and marketing outreach. Now that the Group’s foundation has been strengthened and core competencies further reinforced, I am convinced that as market conditions continue to improve, we can achieve even greater success.”




Solomon Systech (International) Limited


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