SMIT Announces 2019 Annual Results
Continue the Diversification Roadmap
Actively Explore New Businesses Opportunities
Highlights
For EDA business,in respect of the national science and technology project of "Development and Application of Full Process Electronic Design Automation System for Chip Design"undertaken by the Group,the Group has fully deployed the industrial layout formulation through cooperation with universities and institutions,coordination between enterprises within the industry and carrying out capital market activities and has made various achievements during the year.
For the CAM business,the Group records an increase in revenue by 6.5% compared with last year. The Russian region accounts for 17.2% of the total sales of CAM products,which increases for about 34.5% year on year. The Group takes the lead in completing the deployment of CI + 1.4 products in Europe. Moreover,the integration of smart-card-less conditional access technology with various conditional access companies has been completed and the customized CI + 1.3 functional products to a number of operators has been launched.
Prior to its deemed disposal before year end,S2C,a then subsidiary of the Group,has satisfied customer's demand by improving product profile and putting forth new product. The increasing orders brought great contribution on Group's sales revenue during 2019.
HONG KONG,March 30,2020 --SMIT Holdings Limited ("SMIT" or the "Company," together with its subsidiaries,the "Group") (stock code: 2239),a global leading CAM supplier,has announced its annual results for the year ended 31 December 2019(the "Year").
In 2019,the Group adhered to its strategy on diversification,with integrated circuit (IC) as itscore focus,actively exploring new businesses on top of our sound and traditional business.The Group recorded a revenue of US$38.1million in 2019 ascompared to that of US$41.3 million in 2018,representing ayear-on-year decrease of 7.8%. Net profit increased by 836.7%to US$12.3million mainly attributable to an one-off gain on the deemed disposal of the equity interests in S2C Shanghai Co,Ltd. ("S2C Shanghai"). Basic earnings per share for the year wereUS3.3 cents (2018: US0.4 cent). To reciprocate for ourshareholders'support,the Board has proposed a final dividendpayment of US0.001 cents per share with a total dividend payout ofUS$410,139.
During the year,the Group hasdeployedits industry layout formulation onthe electronic design automation (EDA) system for the undertakenNational MajorProject.The main achievements include the joint establishment of the EDA Research Institute between the Group and Xidian University (hereinafter referred to as "Xidian") aiming to facilitate the technology research and development in related fields,training of high calibres and cultivating of the industry by further relying on the advantageous resources of both parties through numbers of material strategic cooperation with Xidian. The Group also entered into a strategic cooperation agreement with Shanghai Lingang Group,the only large scale state-owned enterprise of Shanghai SASACwhich primarily engages in businesses of industrial park investment,development and operation of auxiliary services in relation to the industrial park,pursuant to which both parties would carry out in-depth cooperation focusing on the semiconductor industry. In addition,in January 2020,the Group injected additional RMB90 million share capital into Shenzhen Giga Design Automation Co.,Ltd,a company specialized in the development of EDA design software. The capital injection will allow the Group to increase its cooperation with it and further enhance the Group's capabilities in developing the full process EDA system.
During the year,the Group records an increase in revenue from sales of CAM products by 6.5% compared with last year. The Russian region has benefited from a significant increase in the number of satellite users,its revenue increases by 34.5% year on year,which accounts for about 17.2% of CAM's total sales. The Group takes the lead in completingthe deployment of CI + 1.4 products in Europeand also displayed the latest CI + 2.0 andHbbTV products with major industry partnersduring the IBC exhibition in September.Besides,the integration of smart-card-less conditional access technology with various conditional access companies has been completed and the customized CI + 1.3 functional products to a number of operators have been launched.
Prior to its deemed disposal before year end,accountsforapproximately26.5%oftotalrevenue.In 2019,it optimized product performance and services and enhanced its production capacity significantly. S2C experienced an organic growth in revenue mainly driven by its completed range of products,which can meet the needs of various customers. After the existing mature products have undergone early market cultivation,the number of additional orders from customers has grown rapidly,especially in the Japanese and American markets. The new products launched in 2019 are highly modular and integrated,which were widely recognized in the market once launched,with orders growing rapidly.
Mr Shuai Hongyu,President of SMIT,said,"Looking ahead to 2020,the Group will make full use of itsadvantageous position in the industrial chain,comprehensively integrate major resources,adhere to the strategy of independent researchand development,combination of industry,academy and research,investment and mergersand acquisitions,and comprehensively deployEDA field. Meanwhile,being the largest shareholder of S2C Shanghai,the Group will continue to provide to full support to the future development of S2C Shanghai. The Group will adhere to integratedcircuit design as the core focus,and security andapplications products as the pillar. On thebasis of ensuring the steady developmentof traditional businesses,it will continue toexplore new revenue growth points,and exploreopportunities in the chip design industry inmultiple dimensions to achieve diversifieddevelopment. While enhancing the overallstrength of the Group,it will create greatervalue for shareholders.
About SMIT Holdings Limited (Stock code: 2239)
SMIT Holdings Limited is a semiconductor holding company which listed on the main board of Hong Kong Stock Exchange in 2016. Its business mainly covers development and sales of security products,development and sales of rapid hardware-based verification systems and softwares,and development and application of full process electronic design automation system for chip design etc.
