Focusing on Key Applications of Advanced Packaging, JCET Growth Accelerated Quarter-on-Quarter in Q3 2023
Q3 2023 Financial Highlights:
- Revenue was RMB 8.26 billion, an increase of 30.8% quarter-on-quarter
- Net profit was RMB 0.48 billion, an increase of 24% quarter-on-quarter
- Earnings per share was RMB 0.26
Q3 YTD 2023 Financial Highlights:
- Revenue was RMB 20.43 billion
- Net profit was RMB 0.97 billion
- Earnings per share was RMB 0.54
SHANGHAI, Oct. 27, 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 third quarter of 2023. The financial report shows that in the third quarter, JCET achieved revenue of RMB 8.26 billion, an increase of 30.8% quarter-on-quarter, and net profit of RMB 0.48 billion, an increase of 24% quarter-on-quarter.
JCET has focused on key applications of advanced packaging this year, continuously enhancing its overall solution capabilities for application scenarios, optimizing production capacity layout, and further strengthening its leading position in the global IC packaging and test industry.
JCET has achieved innovative breakthroughs in markets such as automotive electronics, 5G communications, high-performance computing (HPC), and wide bandgap power devices. Seizing market opportunities driven by the acceleration of the electric vehicle market, JCET's automotive electronics business has maintained rapid growth. In the first three quarters of this year, the company's automotive electronics revenue increased by 88% year-on-year. In the 5G communications-related market, JCET provided global customers with services in R&D and HVM, further solidifying its leading position in areas including Antenna in Package (AiP) modules, RF power amplifiers (PA), and radio frequency front end (RFFE) modules.
Leveraging high-density heterogeneous SiP technologies and advantageous global production layouts, JCET intensifies its efforts with customers in AI and HPC domains for advanced packaging solutions development and product introductions, accelerating market expansion in high-computation systems, power management, high-performance storage, and smart terminals. In the power semiconductor market, the high-density integration solutions developed by JCET in collaboration with global customers on wide bandgap power devices are widely used in the automotive and industrial energy storage, with ongoing production capacity expansion.
JCET continues to enhance its technological innovation, with R&D investment of RMB 1.08 billion in the first three quarters of 2023, a year-on-year increase of 10.4%. The company continues to promote the construction of high-performance packaging production capacities and upgrade existing factories towards advanced packaging technologies. In addition, JCET improves lean production capabilities, strengthens inventory control and supply chain management, and ensures that the company's operations remain highly efficient.
Mr. Li Zheng, CEO of JCET, said, "In recent years, JCET, by focusing on high-performance advanced packaging technologies, has made breakthrough progress in collaboration with major customers on the high-end chip business and achieved significant quarter-on-quarter growth in performance for the third quarter of this year. The company will seize new opportunities arising from the restructuring of the global industrial chain and will continue to promote the healthy development of IC back-end manufacturing."
Click to view: JCET 2023 Third Quarter 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 |
||||||||
Sep 30, 2023 |
Dec 31, 2022 |
||||||||
ASSETS |
|||||||||
Current assets |
|||||||||
Currency funds |
4,678 |
2,459 |
|||||||
Trading financial assets |
3,611 |
4,316 |
|||||||
Derivative financial assets |
0 |
18 |
|||||||
Accounts receivable |
4,652 |
3,689 |
|||||||
Receivables financing |
96 |
59 |
|||||||
Prepayments |
130 |
110 |
|||||||
Other receivables |
73 |
61 |
|||||||
Inventories |
4,190 |
3,152 |
|||||||
Other current assets |
303 |
279 |
|||||||
Total current assets |
17,733 |
14,143 |
|||||||
Non-current assets |
|||||||||
Long-term receivables |
19 |
40 |
|||||||
Long-term equity investments |
731 |
765 |
|||||||
Other equity investments |
449 |
440 |
|||||||
Investment properties |
87 |
89 |
|||||||
Fixed assets |
19,035 |
19,517 |
|||||||
Construction in progress |
1,076 |
807 |
|||||||
Right-of-use assets |
585 |
578 |
|||||||
Intangible assets |
640 |
483 |
|||||||
Goodwill |
2,278 |
2,210 |
|||||||
Long-term prepaid expenses |
20 |
28 |
|||||||
Deferred tax assets |
266 |
247 |
|||||||
Other non-current assets |
88 |
61 |
|||||||
Total non-current assets |
25,274 |
25,265 |
|||||||
Total assets |
43,007 |
39,408 |
|||||||
LIABILITIES AND EQUITY |
Sep 30, 2023 |
Dec 31, 2022 |
|||||||
Current liabilities |
|||||||||
Short-term borrowings |
1,721 |
1,174 |
|||||||
Derivative financial liabilities |
2 |
0 |
|||||||
Notes payable |
162 |
339 |
|||||||
Accounts payable |
6,274 |
4,634 |
|||||||
Contract liabilities |
203 |
214 |
|||||||
Employee benefits payable |
727 |
984 |
|||||||
Taxes and surcharges payable |
189 |
210 |
|||||||
Other payables |
377 |
378 |
|||||||
Current portion of long-term liabilities |
2,468 |
3,096 |
|||||||
Other current liabilities |
4 |
4 |
|||||||
Total current liabilities |
12,127 |
11,033 |
|||||||
Non-current liabilities |
|||||||||
Long-term borrowings |
4,027 |
2,721 |
|||||||
Lease liabilities |
537 |
562 |
|||||||
Long-term employee benefits payable |
12 |
14 |
|||||||
Deferred income |
375 |
340 |
|||||||
Deferred tax liabilities |
6 |
40 |
|||||||
Other non-current liabilities |
51 |
55 |
|||||||
Total non-current liabilities |
5,008 |
3,732 |
|||||||
Total liabilities |
17,135 |
14,765 |
|||||||
Equity |
|||||||||
Paid-in capital |
1,789 |
1,780 |
|||||||
Capital reserves |
15,316 |
15,080 |
|||||||
Accumulated other comprehensive income |
679 |
400 |
|||||||
Specialized reserves |
2 |
0 |
|||||||
Surplus reserves |
229 |
229 |
|||||||
Unappropriated profit |
7,771 |
7,154 |
|||||||
Total equity attributable to owners of the parent |
25,786 |
24,643 |
|||||||
Minority shareholders |
86 |
0 |
|||||||
Total equity |
25,872 |
24,643 |
|||||||
Total liabilities and equity |
43,007 |
39,408 |
CONSOLIDATED INCOME STATEMENT (Unaudited) |
RMB in millions, except share data |
||||||||
Three months ended |
Nine months ended |
||||||||
Sep 30, 2023 |
Sep 30, 2022 |
Sep 30, 2023 |
Sep 30, 2022 |
||||||
Revenue |
8,257 |
9,184 |
20,430 |
24,778 |
|||||
Less: Cost of sales |
7,071 |
7,616 |
17,596 |
20,323 |
|||||
Taxes and surcharges |
36 |
26 |
82 |
69 |
|||||
Selling expenses |
55 |
45 |
155 |
142 |
|||||
Administrative expenses |
190 |
312 |
536 |
805 |
|||||
Research and development expenses |
413 |
343 |
1,082 |
980 |
|||||
Finance expenses |
26 |
(26) |
77 |
(11) |
|||||
Including: Interest expenses |
84 |
51 |
215 |
143 |
|||||
Interest income |
35 |
5 |
70 |
21 |
|||||
Add: Other income |
103 |
55 |
176 |
138 |
|||||
Investment income / (loss) |
(12) |
25 |
(34) |
65 |
|||||
Including: Income / (loss) from investments in associates and joint ventures |
(12) |
1 |
(34) |
(6) |
|||||
Gain / (loss) on changes in fair value of financial assets/liabilities |
17 |
(25) |
62 |
(40) |
|||||
Credit impairment (loss is expressed by "-") |
(2) |
22 |
(3) |
17 |
|||||
Asset impairment (loss is expressed by "-") |
(26) |
(61) |
(26) |
(125) |
|||||
Gain / (loss) on disposal of assets |
5 |
18 |
21 |
41 |
|||||
Operating profit / (loss) |
551 |
902 |
1,098 |
2,566 |
|||||
Add: Non-operating income |
0 |
40 |
3 |
46 |
|||||
Less: Non-operating expenses |
1 |
0 |
5 |
1 |
|||||
Profit / (loss) before income taxes |
550 |
942 |
1,096 |
2,611 |
|||||
Less: Income tax expenses |
72 |
33 |
122 |
159 |
|||||
Net profit / (loss) |
478 |
909 |
974 |
2,452 |
|||||
Classified by continuity of operations |
|||||||||
Profit / (loss) from continuing operations |
478 |
909 |
974 |
2,452 |
|||||
Classified by ownership |
|||||||||
Net profit / (loss) attributable to owners of the parent |
478 |
909 |
974 |
2,452 |
|||||
Net profit / (loss) attributable to minority shareholders |
0 |
0 |
0 |
0 |
|||||
Add: Unappropriated profit at beginning of period |
7,293 |
5,522 |
7,154 |
4,335 |
|||||
Less: Cash dividends declared |
0 |
0 |
357 |
356 |
|||||
Unappropriated profit at end of period (attributable to owners of the parent) |
7,771 |
6,431 |
7,771 |
6,431 |
|||||
Other comprehensive income, net of tax |
(70) |
446 |
280 |
832 |
|||||
Comprehensive income attributable to owners of the parent |
(70) |
446 |
280 |
832 |
|||||
Comprehensive income not be reclassified to profit or loss |
(7) |
(14) |
10 |
(14) |
|||||
Remeasurement gains or losses of a defined benefit plan |
0 |
0 |
1 |
0 |
|||||
Change in the fair value of other equity investments |
(7) |
(14) |
9 |
(14) |
|||||
Comprehensive income to be reclassified to profit or loss |
(63) |
460 |
270 |
846 |
|||||
Comprehensive income using the equity method that may be reclassified to profit or loss |
0 |
7 |
0 |
0 |
|||||
Cash flow hedge reserve |
0 |
(9) |
0 |
(26) |
|||||
Exchange differences of foreign currency financial statements |
(63) |
462 |
270 |
872 |
|||||
Total comprehensive income |
408 |
1,355 |
1,254 |
3,284 |
|||||
Including: |
|||||||||
Total comprehensive income attributable to owners of the parent |
408 |
1,355 |
1,254 |
3,284 |
|||||
Total comprehensive income attributable to minority shareholders |
0 |
0 |
0 |
0 |
|||||
Earnings per share |
|||||||||
Basic earnings per share |
0.26 |
0.51 |
0.54 |
1.38 |
|||||
Diluted earnings per share |
0.26 |
0.51 |
0.54 |
1.38 |
CONSOLIDATED CASH FLOW STATEMENT (Unaudited) |
RMB in millions |
||||||||
Three months ended |
Nine months ended |
||||||||
Sep 30, 2023 |
Sep 30, 2022 |
Sep 30, 2023 |
Sep 30, 2022 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||||||
Cash receipts from the sale of goods and the rendering of services |
7,574 |
8,201 |
20,737 |
25,200 |
|||||
Receipts of taxes and surcharges refunds |
52 |
126 |
267 |
273 |
|||||
Other cash receipts relating to operating activities |
126 |
87 |
289 |
218 |
|||||
Total cash inflows from operating activities |
7,752 |
8,414 |
21,293 |
25,691 |
|||||
Cash payments for goods and services |
5,840 |
5,534 |
14,293 |
17,146 |
|||||
Cash payments to and on behalf of employees |
899 |
948 |
2,972 |
3,257 |
|||||
Payments of all types of taxes and surcharges |
180 |
193 |
646 |
694 |
|||||
Other cash payments relating to operating activities |
221 |
43 |
349 |
214 |
|||||
Total cash outflows from operating activities |
7,140 |
6,718 |
18,260 |
21,311 |
|||||
Net cash flows from operating activities |
612 |
1,696 |
3,033 |
4,380 |
|||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||||||
Cash receipts from returns of investments |
3,601 |
3,390 |
11,881 |
8,550 |
|||||
Cash receipts from investment income |
15 |
17 |
68 |
55 |
|||||
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets |
99 |
76 |
131 |
110 |
|||||
Net cash receipts from disposal of subsidiaries and other business units |
0 |
3 |
0 |
30 |
|||||
Total cash inflows from investing activities |
3,715 |
3,486 |
12,080 |
8,745 |
|||||
Cash payments to acquire fixed assets, intangible assets and other long-term assets |
845 |
1,138 |
2,434 |
2,688 |
|||||
Cash payments for investments |
5,181 |
4,101 |
11,161 |
10,061 |
|||||
Total cash outflows from investing activities |
6,026 |
5,239 |
13,595 |
12,749 |
|||||
Net cash flows from investing activities |
(2,311) |
(1,753) |
(1,515) |
(4,004) |
|||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|||||||||
Cash proceeds from investments by others |
32 |
0 |
262 |
0 |
|||||
Including: Cash receipts from capital contributions from minority shareholders of subsidiaries |
0 |
0 |
86 |
0 |
|||||
Cash receipts from borrowings |
4,823 |
1,446 |
6,487 |
2,961 |
|||||
Total cash inflows from financing activities |
4,855 |
1,446 |
6,749 |
2,961 |
|||||
Cash repayments for debts |
3,723 |
796 |
5,464 |
2,530 |
|||||
Cash payments for distribution of dividends or profit and interest expenses |
78 |
405 |
545 |
495 |
|||||
Other cash payments relating to financing activities |
22 |
169 |
69 |
758 |
|||||
Total cash outflows from financing activities |
3,823 |
1,370 |
6,078 |
3,783 |
|||||
Net cash flows from financing activities |
1,032 |
76 |
671 |
(822) |
|||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
(7) |
37 |
30 |
95 |
|||||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
(674) |
56 |
2,219 |
(351) |
|||||
Add: Cash and cash equivalents at beginning of period |
5,346 |
2,356 |
2,453 |
2,763 |
|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
4,672 |
2,412 |
4,672 |
2,412 |
SOURCE JCET Group
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