Tuesday, June 18, 2024
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Focusing on High-performance Advanced Packaging and Global Layout, JCET Achieved Quarter-on-Quarter Growth in Q2 2023

Q2 2023 Financial Highlights:

  • Revenue was RMB 6.31 billion, an increase of 7.7% quarter-on-quarter.
  • Generated RMB 1.19 billion cash from operations. With net capex investments of RMB 0.75 billion, free cash flow for the quarter was RMB 0.44 billion.
  • Net profit was RMB 0.39 billion, an increase of 250.8% quarter-on-quarter.
  • Earnings per share was RMB 0.22, as compared to RMB 0.39 in Q2 2022.

1H 2023 Financial Highlights:

  • Revenue was RMB 12.17 billion.
  • Generated RMB 2.42 billion cash from operations. With net capex investments of RMB 1.56 billion, free cash flow for the first half of 2023 was RMB 0.86 billion.
  • Net profit was RMB 0.5 billion.
  • Earnings per share was RMB 0.28, as compared to RMB 0.87 in 1H 2022.

SHANGHAI, Aug. 25, 2023 /PRNewswire/ — Today, JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) back-end manufacturing and technology services, announced its financial results for the first half year of 2023. The financial report shows that in the first half of 2023, JCET achieved revenue of RMB 12.17 billion, and net profit of RMB 0.5 billion. In Q2 2023 JCET achieved revenue of RMB 6.31 billion, an increase of 7.7% quarter-on-quarter, and net profit of RMB 0.39 billion, an increase of 250.8% quarter-on-quarter.

In the first half of 2023, the global semiconductor industry was in the fluctuating stage of bottoming out and rebounding. JCET adhered to high-performance advanced packaging technologies and product development mechanism, focusing on solutions for emerging applications such as high performance computing and storage, enhanced strategic layout of production capacity, and further strengthened its market position in the global IC industry.

JCET continues to enhance its technological innovation, with R&D investment of RMB 0.67 billion in the first half of this year, a year-on-year increase of 5.0%. The company’s multi-dimensional fan-out heterogeneous integration solution XDFOI™ for 2.5D/3D packaging achieved HVM, providing high-performance chiplet package solutions and production capacity for global customers. In collaboration with multiple customers in the field of high-density SiP technology, JCET has achieved the development and mass production of multiple RFFE modules and AiP modules in the 5G millimeter-wave market. The company is intensifying its market exploration in sectors such as automotive electronics, industrial electronics, and high-performance computing. During the reporting period, revenue from automotive electronics achieved a year-on-year growth of 130%. The company has established a subsidiary with controlling stake in the Lingang New Area of Shanghai, reinforcing its strategic capacity layout in the field of automotive electronics.

In addition, the company has optimized various operational expenses and asset structures, maintaining a stable cash flow capability. It has achieved positive free cash flow for 15 consecutive quarters.

While pursuing its own development, JCET actively engages in philanthropic efforts, contributing to society in areas such as health and environmental protection, disaster relief during floods, and science popularization initiatives.

Mr. Li Zheng, CEO of JCET, said, “JCET has always centered its focus on customers, and achieved quarter-on-quarter growth in performance for the second quarter of this year. Looking ahead, the direction of high-performance advanced packaging technology driving the innovation of the IC industry has become increasingly clear. JCET remains committed to achieving high-quality development through professional and international management, and will continue to create value for investors and the IC industry.”

For more information, please refer to the JCET 1H FY2023 Report.

About JCET Group

JCET Group is the world’s leading integrated-circuit manufacturing and technology services provider, offering a full range of turnkey services that include semiconductor package integration design and characterization, R&D, wafer probe, wafer bumping, package assembly, final test and drop shipment to vendors around the world.

Our comprehensive portfolio covers a wide spectrum of semiconductor applications such as mobile, communication, compute, consumer, automotive and industry etc., through advanced wafer level packaging, 2.5D/3D, System-in-Packaging, and reliable flip chip and wire bonding technologies. JCET Group has two R&D centers in China and Korea, six manufacturing locations in China, Korea and Singapore, and sales centers around the world, providing close technology collaboration and efficient supply-chain manufacturing to customers in China and around the world.

 

 

 

CONSOLIDATED BALANCE SHEET (Unaudited)                                                                

RMB in millions

Jun 30, 2023

Dec 31, 2022

ASSETS

Current assets

  Currency funds

5,352

2,459

  Trading financial assets

2,006

4,316

  Derivative financial assets

0

18

  Accounts receivable

3,545

3,689

  Receivables financing

105

59

  Prepayments

127

110

  Other receivables

63

61

  Inventories

3,003

3,152

  Other current assets

251

279

Total current assets

14,452

14,143

Non-current assets

  Long-term receivables

41

40

  Long-term equity investments

744

765

  Other equity investments

456

440

  Investment properties

87

89

  Fixed assets

19,574

19,517

  Construction in progress

710

807

  Right-of-use assets

567

578

  Intangible assets

483

483

  Goodwill

2,293

2,210

  Long-term prepaid expenses

22

28

  Deferred tax assets

274

247

  Other non-current assets

106

61

Total non-current assets

25,357

25,265

Total assets

39,809

39,408

LIABILITIES AND EQUITY  

Jun 30, 2023

Dec 31, 2022

Current liabilities

  Short-term borrowings

1,211

1,174

  Derivative financial liabilities

2

0

  Notes payable

215

339

  Accounts payable

4,603

4,634

  Contract liabilities

273

214

  Employee benefits payable

689

984

  Taxes and surcharges payable

158

210

  Other payables

396

378

  Current portion of long-term liabilities

2,857

3,096

  Other current liabilities

4

4

Total current liabilities

10,408

11,033

Non-current liabilities

  Long-term borrowings

3,013

2,721

  Lease liabilities

549

562

  Long-term employee benefits payable

11

14

  Deferred income

362

340

  Deferred tax liabilities

14

40

  Other non-current liabilities

41

55

Total non-current liabilities

3,990

3,732

Total liabilities

14,398

14,765

Equity

  Paid-in capital

1,787

1,780

  Capital reserves

15,265

15,080

  Accumulated other comprehensive income

750

400

  Specialized reserves

2

0

  Surplus reserves

229

229

  Unappropriated profit

7,292

7,154

Total equity attributable to owners of the parent

25,325

24,643

Minority shareholders

86

0

Total equity

25,411

24,643

Total liabilities and equity

39,809

39,408

 

 

 

CONSOLIDATED INCOME STATEMENT (Unaudited)                                                                                                     

RMB in millions, except share data

Three months ended

Six months ended

Jun 30, 2023

Jun 30, 2022

Jun 30, 2023

Jun 30, 2022

Revenue

6,313

7,455

12,173

15,594

Less: Cost of sales

5,359

6,107

10,525

12,706

          Taxes and surcharges

27

27

47

43

          Selling expenses

51

48

100

97

          Administrative expenses

175

236

347

494

          Research and development expenses

360

315

669

638

          Finance expenses

(7)

(8)

51

15

            Including: Interest expenses

68

49

131

92

                     Interest income

27

9

35

16

Add: Other income

40

26

73

83

         Investment income / (loss)

(24)

28

(21)

40

            Including: Income / (loss) from investments in associates and joint ventures

(10)

(2)

(21)

(7)

         Gain / (loss) on changes in fair value of financial assets/liabilities 

37

(17)

46

(14)

         Credit impairment (loss is expressed by “-“)

(6)

2

(1)

(5)

         Asset impairment (loss is expressed by “-“)

(5)

(65)

0

(64)

         Gain / (loss) on disposal of assets 

13

9

16

23

Operating profit / (loss)

403

713

547

1,664

Add: Non-operating income

2

1

3

6

Less: Non-operating expenses

0

1

4

1

Profit / (loss) before income taxes

405

713

546

1,669

Less: Income tax expenses

19

31

50

126

Net profit / (loss) 

386

682

496

1,543

Classified by continuity of operations

  Profit / (loss) from continuing operations

386

682

496

1,543

Classified by ownership

  Net profit / (loss) attributable to owners of the parent

386

682

496

1,543

  Net profit / (loss) attributable to minority shareholders

0

0

0

0

Add: Unappropriated profit at beginning of period

7,264

5,196

7,154

4,335

Less: Cash dividends declared

358

356

358

356

Unappropriated profit at end of period (attributable to owners of the parent)

7,292

5,522

7,292

5,522

Other comprehensive income, net of tax

481

419

350

386

Comprehensive income attributable to owners of the parent

481

419

350

386

Comprehensive income not be reclassified to profit or loss

6

0

17

0

  Remeasurement gains or losses of a defined benefit plan

0

0

1

0

  Change in the fair value of other equity investments

6

0

16

0

Comprehensive income to be reclassified to profit or loss

475

419

333

386

  Comprehensive income using the equity method that may be reclassified to profit or loss

0

(7)

0

(7)

  Cash flow hedge reserve

0

(13)

0

(18)

  Exchange differences of foreign currency financial statements

475

439

333

411

Total comprehensive income

867

1,101

846

1,929

  Including:

     Total comprehensive income attributable to owners of the parent

867

1,101

846

1,929

     Total comprehensive income attributable to minority shareholders

0

0

0

0

Earnings per share

  Basic earnings per share

0.22

0.39

0.28

0.87

  Diluted earnings per share

0.22

0.39

0.28

0.87

 

 

 

CONSOLIDATED CASH FLOW STATEMENT (Unaudited)

RMB in millions

Three months ended

Six months ended

Jun 30, 2023

Jun 30, 2022

Jun 30, 2023

Jun 30, 2022

CASH FLOWS FROM OPERATING ACTIVITIES

  Cash receipts from the sale of goods and the rendering of services

6,178

8,184

13,162

16,999

  Receipts of taxes and surcharges refunds

122

32

216

147

  Other cash receipts relating to operating activities

110

62

163

132

Total cash inflows from operating activities

6,410

8,278

13,541

17,278

  Cash payments for goods and services

4,069

5,766

8,454

11,612

  Cash payments to and on behalf of employees

878

1,060

2,072

2,309

  Payments of all types of taxes and surcharges

254

314

466

501

  Other cash payments relating to operating activities

22

93

128

171

Total cash outflows from operating activities

5,223

7,233

11,120

14,593

Net cash flows from operating activities

1,187

1,045

2,421

2,685

CASH FLOWS FROM INVESTING ACTIVITIES

  Cash receipts from returns of investments

4,350

4,160

8,280

5,160

  Cash receipts from investment income

38

32

52

38

  Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets

7

8

32

34

  Net cash receipts from disposal of subsidiaries and other business units

0

(1)

0

27

Total cash inflows from investing activities

4,395

4,199

8,364

5,259

  Cash payments to acquire fixed assets, intangible assets and other long-term assets

749

651

1,588

1,550

  Cash payments for investments

3,200

4,310

5,980

5,960

Total cash outflows from investing activities

3,949

4,961

7,568

7,510

Net cash flows from investing activities

446

(762)

796

(2,251)

CASH FLOWS FROM FINANCING ACTIVITIES

  Cash proceeds from investments by others

230

0

230

0

      Including: Cash receipts from capital contributions from minority shareholders of subsidiaries

86

0

86

0

  Cash receipts from borrowings

1,317

985

1,664

1,515

Total cash inflows from financing activities

1,547

985

1,894

1,515

  Cash repayments for debts

755

988

1,740

1,734

  Cash payments for distribution of dividends or profit and interest expenses

414

49

467

90

  Other cash payments relating to financing activities

16

446

48

589

Total cash outflows from financing activities

1,185

1,483

2,255

2,413

Net cash flows from financing activities

362

(498)

(361)

(898)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

45

59

37

57

NET INCREASE IN CASH AND CASH EQUIVALENTS

2,040

(156)

2,893

(407)

Add: Cash and cash equivalents at beginning of period

3,306

2,512

2,453

2,763

CASH AND CASH EQUIVALENTS AT END OF PERIOD

5,346

2,356

5,346

2,356