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 |
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