JCET 1H 2021 Net Profit Jumps 261%, Earnings Surpass FY 2020 Mark

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Aug 20, 2021, 13:57 ET

Q2 2021 Financial Highlights:

Revenue was RMB 7.11 billion, an increase of 13.4% year on year. A record high second quarter in the company's history.
Generated RMB 1.68 billion cash from operations, an increase of 67.1% year on year. With net capex investments of RMB 0.92 billion, free cash flow for the quarter was RMB 0.76 billion.
Net profit was RMB 0.94 billion, a record high second quarter in the company's history.
Earnings per share was RMB 0.54, as compared to RMB 0.15 in Q2 2020.

1H 2021 Financial Highlights:

Revenue was RMB 13.82 billion, an increase of 15.4% year on year.
Generated RMB 2.88 billion cash from operations, an increase of 33.9% year on year. With net capex investments of RMB 1.48 billion, free cash flow for the first half of 2021 was RMB 1.40 billion.
Net profit was RMB 1.32 billion, an increase of 261.0% year on year，a record high in the company's history.
Earnings per share was RMB 0.78, as compared to RMB 0.23 in 1H 2020.
Successfully completed private placement of RMB 5 billion in April 2021.

SHANGHAI, Aug. 20, 2021 /PRNewswire/ -- JCET (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, today announced its financial results for the first half year of 2021. According to the financial report, in 1H 2021, JCET maintained its momentum of growth and strong profitability, with revenue of RMB 13.82 billion and net profit of RMB 1.32 billion, which achieved 15.4% and 261.0% year on year growth respectively.

Ms. Janet Chou, CFO of JCET said, "Thanks to the solid execution of our team and strong customer demand, JCET delivered another record setting quarter in 2021 with gross margin expanding 260 basis points year on year in Q2. With strong operating cash generation and robust free cash flow, we further strengthened our balance sheet."

Along with a strong financial performance, JCET had many additional key accomplishments in Q2 2021. In April, JCET established the "Design Service Business Center" and "Automotive Electronics Business Center" to strengthen efficient interaction and synergistic development with the industry ecosystem and provide seamless and efficient full lifecycle technical service support to customers. JCET completed a private placement raising approximately RMB 5 billion to enhance capabilities in SiP, QFN, BGA and other finished chip manufacturing solutions to better meet the needs of 5G communication devices, big data, automotive electronics and other market applications. And in June, JCET completed the acquisition of Analog Devices Inc.'s Singapore test facility that enabled the continued expansion of JCET test business in Singapore and the rapid and steady advancement of its global business strategies.

Mr. Li Zheng, CEO of JCET said, "The dynamic and innovative applications in the post-Moore era have driven the rapid upgrade of advanced packaging and backend chipset manufacturing solutions, and this gives JCET great opportunities for growth. In recent years, JCET has been partnering with our global customers, continuously increasing investment in advanced technologies, and strengthening our professional and international management and production operation systems, resulting in record revenue and net profit in the first half of 2021. In the future, we will continue to invest in R&D of advanced technology solutions, optimize operational capabilities, strengthen our professional team, and implement a talent incentive mechanism under the guidance and support of the Board of Directors, to lay a solid foundation for the sustainable development of JCET."

About JCET:

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

	As of
	Jun 30, 2021	Dec 31, 2020
ASSETS
Current assets
Currency funds	3,381	2,235
Financial assets held for trading	1,955	5
Derivative financial assets	0	8
Accounts receivable	3,661	3,846
Receivables financing	73	41
Prepayments	244	158
Other receivables	30	41
Inventories	2,919	2,946
Other current assets	108	149
Total current assets	12,371	9,429
Non-current assets
Long-term receivables	40	42
Long-term equity investments	769	949
Other equity investments	430	430
Investment properties	94	96
Fixed assets	17,349	17,790
Construction in progress	1,671	866
Right-of-use assets	664	0
Intangible assets	458	526
Goodwill	2,050	2,071
Deferred tax assets	79	128
Other non-current assets	1	1
Total non-current assets	23,605	22,899
Total assets	35,976	32,328

LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings	3,197	5,288
Derivative financial liabilities	5	0
Notes payable	348	513
Accounts payable	5,059	4,499
Contract liabilities	332	173
Employee benefits payable	765	858
Taxes and surcharges payable	98	109
Other payables	336	254
Including: Dividends payable	89	0
Current portion of long-term liabilities	1,891	2,131
Other current liabilities	12	21
Total current liabilities	12,043	13,846
Non-current liabilities
Long-term borrowings	2,315	2,978
Bonds payable	999	999
Lease liabilities	561	0
Long-term payables	125	592
Long-term employee benefits payable	3	4
Deferred income	337	375
Deferred tax liabilities	132	124
Total non-current liabilities	4,472	5,072
Total liabilities	16,515	18,918
Equity
Paid-in capital	1,780	1,603
Surplus reserves	14,984	10,242
Accumulated other comprehensive income	(185)	(83)
Specialized reserves	120	120
Unappropriated profit	2,751	1,518
Total equity attributable to owners of the parent	19,450	13,400
Minority shareholders	11	10
Total equity	19,461	13,410
Total liabilities and equity	35,976	32,328

CONSOLIDATED INCOME STATEMENT (Unaudited)				RMB in millions, except share data

	Three months ended		Six months ended
	Jun 30,2021	Jun 30,2020	Jun 30,2021	Jun 30,2020
Revenue	7,106	6,268	13,818	11,976
Less: Cost of sales	5,793	5,271	11,430	10,232
Taxes and surcharges	22	9	42	17
Selling expenses	47	59	97	116
Administrative expenses	237	226	467	435
Research and development expenses	291	276	548	491
Finance expenses	61	156	157	303
Including: Interest expenses	90	149	200	303
Interest income	15	10	20	19
Add: Other income	56	46	97	80
Investment income / (loss)	286	(6)	284	(7)
Including: Income / (loss) from investments in associates and joint ventures	285	(6)	283	(7)
Gain / (loss) on the net position hedging	(1)	(4)	(3)	(5)
Credit impairment (loss is expressed by "-")	(4)	(11)	0	(6)
Asset impairment (loss is expressed by "-")	11	(28)	(17)	(25)
Gain / (loss) on disposal of assets	9	5	15	9
Operating profit / (loss)	1,012	273	1,453	428
Add: Non-operating income	5	0	6	0
Less: Non-operating expenses	1	2	3	8
Profit / (loss) before income taxes	1,016	271	1,456	420
Less: Income tax expenses	80	38	133	53
Net profit / (loss)	936	233	1,323	367
Classified by continuity of operations
Profit / (loss) from continuing operations	936	233	1,323	367
Classified by ownership
Net profit / (loss) attributable to owners of the parent	936	233	1,322	367
Net profit / (loss) attributable to minority shareholders	0	0	1	0
Add: Unappropriated profit at beginning of period	1,904	365	1,518	231
Cash dividends payable	89	0	89	0
Unappropriated profit at end of period (attributable to owners of the parent）	2,751	598	2,751	598
Other comprehensive income, net of tax	(148)	27	(101)	157
Comprehensive income attributable to owners of the parent	(148)	27	(101)	157
Comprehensive income not be reclassified to profit or loss	0	0	1	0
Remeasurement gains or losses of a defined benefit plan	0	0	1	0
Comprehensive income to be reclassified to profit or loss	(148)	27	(102)	157
Comprehensive income using the equity method	(20)		(21)
Cash flow hedge reserve	5	5	(5)	3
Exchange differences of foreign currency financial statements	(133)	22	(76)	154
Total comprehensive income	788	260	1,222	524
Including:
Total comprehensive income attributable to owners of the parent	788	260	1,221	524
Total comprehensive income attributable to minority shareholders	0	0	1	0
Earnings per share
Basic earnings per share	0.54	0.15	0.78	0.23
Diluted earnings per share	0.54	0.15	0.78	0.23

CONSOLIDATED CASH FLOW STATEMENT (Unaudited) RMB in millions

	Three months ended		Six months ended
	Jun 30,2021	Jun 30,2020	Jun 30,2021	Jun 30,2020
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services	7,346	6,857	14,785	12,892
Receipts of taxes and surcharges refunds	76	200	233	423
Other cash receipts relating to operating activities	62	230	113	523
Total cash inflows from operating activities	7,484	7,287	15,131	13,838
Cash payments for goods and services	4,347	5,117	9,420	9,342
Cash payments to and on behalf of employees	1,142	829	2,270	1,788
Payments of all types of taxes and surcharges	249	142	379	232
Other cash payments relating to operating activities	69	195	181	323
Total cash outflows from operating activities	5,807	6,283	12,250	11,685
Net cash flows from operating activities	1,677	1,004	2,881	2,153
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments	396	0	396	0
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets	132	20	168	27
Total cash inflows from investing activities	528	20	564	27
Cash payments to acquire fixed assets, intangible assets and other long-term assets	1,051	659	1,648	1,337
Cash payments for investments	1,955	0	1,955	0
Total cash outflows from investing activities	3,006	659	3,603	1,337
Net cash flows from investing activities	(2,478)	(639)	(3,039)	(1,310)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others	4,966	0	4,966	0
Cash receipts from borrowings	737	2,601	2,360	8,531
Other cash receipts relating to financing activities	0	0	347	0
Total cash inflows from financing activities	5,703	2,601	7,673	8,531
Cash repayments for debts	2,867	2,393	5,529	8,141
Cash payments for distribution of dividends or profit and interest expenses	71	141	205	305
Other cash payments relating to financing activities	452	111	559	285
Total cash outflows from financing activities	3,390	2,645	6,293	8,731
Net cash flows from financing activities	2,313	(44)	1,380	(200)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(15)	(7)	(8)	16
NET INCREASE IN CASH AND CASH EQUIVALENTS	1,497	314	1,214	659
Add: Cash and cash equivalents at beginning of period	1,884	2,211	2,167	1,866
CASH AND CASH EQUIVALENTS AT END OF PERIOD	3,381	2,525	3,381	2,525