JCET Continues Solid Growth Momentum in Q1 2022

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Apr 29, 2022, 12:05 ET

Continued Optimization of Product Portfolio and Focus on High Value-Added Applications

Q1 2022 Financial Highlights：

Revenue was RMB 8.14 billion, an increase of 21.2% year on year. A record high first quarter in the company's history.
Generated RMB 1.64 billion cash from operations, an increase of 36.1% year on year. With net capex investments of RMB 0.87 billion, free cash flow for the quarter was RMB 0.77 billion.
Net profit was RMB 0.86 billion, a record high first quarter in the company's history.
Earnings per share was RMB 0.48, as compared to RMB 0.24 in Q1 2021.

SHANGHAI, April 29, 2022 /PRNewswire/ -- Today, JCET (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, announced its financial results for the first quarter of 2022. The financial report shows that the company had a positive start in 2022, achieving revenue of RMB 8.14 billion in the first quarter, up 21.2% year-on-year, and net profit of RMB 0.86 billion, both record high first quarter in the company's history.

As IC back-end manufacturing technology continues to develop in the direction of high density and low power consumption, various IC packaging solutions provide higher added value to the semiconductor industry. JCET managed well the market fluctuations and challenges by continuously optimizing its product portfolio and focusing on high value-added applications. JCET improved its market competitiveness, which was widely recognized and affirmed by customers.

JCET proactively took various preventive solutions and control measures to protect its employees' health and safety and maintain operation continuity under the current Covid-19 situation. In addition, JCET took corporate social responsibility actions and was involved deeply in local community anti-pandemic activities through charitable donations and other means. These activities contributed to our local communities and supported economic growth.

"The growth of demand for market innovation will drive the steady growth of IC back-end manufacturing market in the coming years," said Mr. Li Zheng, Chief Executive Officer of JCET. "JCET is focusing on high value-added market application areas such as automotive electronics, power devices, and high-performance computing. This will expand our technology advantages and mass production competitive advantages that we accumulated over the years in the fields of high-density wire bond package, system-in-package, wafer level packaging, high-reliability discrete devices, etc. We strive to overcome the market fluctuations and supply chain uncertainties under the current Covid-19 pandemic situation. JCET will continue to provide high-quality production and technology services to our customers." Mr. Li Zheng added "JCET announced the implementation of an equity incentive plan for employees for the first time in the company's 19 years of history. The plan will drive sustainable growth, secure shareholders' interests, and motivate our employees. With the strong support from our customers, shareholders, and partners, we have a high sense of responsibility and strong confidence for the company's future development."

For more information, please refer to the JCET Q1 FY2022 report.

CONSOLIDATED BALANCE SHEET (Unaudited)		RMB in millions

	Mar 31, 2022	Dec 31, 2021
ASSETS
Current assets
Currency funds	2,512	2,761
Trading financial assets	3,290	2,670
Derivative financial assets	2	5
Accounts receivable	3,945	4,271
Receivables financing	36	28
Prepayments	242	183
Other receivables	77	77
Inventories	3,264	3,193
Assets classified as held for sale	0	99
Other current assets	84	130
Total current assets	13,452	13,417
Non-current assets
Long-term receivables	37	38
Long-term equity investments	765	770
Other equity investments	448	418
Investment properties	92	93
Fixed assets	18,297	18,424
Construction in progress	574	661
Right-of-use assets	588	622
Intangible assets	432	447
Goodwill	2,014	2,023
Deferred tax assets	187	185
Other non-current assets	1	1
Total non-current assets	23,435	23,682
Total assets	36,887	37,099

LIABILITIES AND EQUITY	Mar 31, 2022	Dec 31, 2021
Current liabilities
Short-term borrowings	1,633	2,193
Derivative financial liabilities	6	2
Notes payable	527	579
Accounts payable	4,893	5,298
Contract liabilities	453	458
Employee benefits payable	872	1,062
Taxes and surcharges payable	273	235
Other payables	375	414
Liabilities classified as held for sale	0	45
Current portion of long-term liabilities	1,256	1,052
Other current liabilities	3	3
Total current liabilities	10,291	11,341
Non-current liabilities
Long-term borrowings	3,791	3,751
Bonds payable	0	0
Lease liabilities	528	568
Long-term payables	0	0
Long-term employee benefits payable	19	20
Deferred income	338	337
Deferred tax liabilities	99	82
Total non-current liabilities	4,775	4,758
Total liabilities	15,066	16,099
Equity
Paid-in capital	1,780	1,780
Capital reserves	14,986	14,984
Accumulated other comprehensive income	(314)	(281)
Surplus reserves	174	174
Unappropriated profit	5,195	4,334
Total equity attributable to owners of the parent	21,821	20,991
Minority shareholders	0	9
Total equity	21,821	21,000
Total liabilities and equity	36,887	37,099


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

	Three months ended
	Mar 31, 2022	Mar 31, 2021
Revenue	8,138	6,712
Less: Cost of sales	6,599	5,636
Taxes and surcharges	16	20
Selling expenses	49	49
Administrative expenses	258	230
Research and development expenses	322	258
Finance expenses	23	96
Including: Interest expenses	43	110
Interest income	7	5
Add: Other income	56	41
Investment income / (loss)	12	(2)
Including: Income / (loss) from investments in associates and joint ventures	(5)	(2)
Gain / (loss) on the net position hedging	0	(2)
Gain / (loss) on changes in fair value of financial assets/liabilities	3	0
Credit impairment (loss is expressed by "-")	(7)	4
Asset impairment (loss is expressed by "-")	1	(28)
Gain / (loss) on disposal of assets	15	6
Operating profit / (loss)	951	442
Add: Non-operating income	5	0
Less: Non-operating expenses	0	2
Profit / (loss) before income taxes	956	440
Less: Income tax expenses	95	53
Net profit / (loss)	861	387
Classified by continuity of operations
Profit / (loss) from continuing operations	861	387
Classified by ownership
Net profit / (loss) attributable to owners of the parent	861	386
Net profit / (loss) attributable to minority shareholders	0	1
Add: Unappropriated profit at beginning of period	4,334	1,518
Unappropriated profit at end of period (attributable to owners of the parent）	5,195	1,904
Other comprehensive income, net of tax	(32)	47
Comprehensive income attributable to owners of the parent	(32)	47
Comprehensive income not be reclassified to profit or loss	0	1
Remeasurement gains or losses of a defined benefit plan	0	1
Comprehensive income to be reclassified to profit or loss	(32)	46
Cash flow hedge reserve	(4)	(10)
Exchange differences of foreign currency financial statements	(28)	56
Total comprehensive income	829	434
Including:
Total comprehensive income attributable to owners of the parent	829	433
Total comprehensive income attributable to minority shareholders	0	1
Earnings per share
Basic earnings per share	0.48	0.24
Diluted earnings per share	0.48	0.24


CONSOLIDATED CASH FLOW STATEMENT (Unaudited)		RMB in millions

	Three months ended
	Mar 31, 2022	Mar 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services	8,815	7,439
Receipts of taxes and surcharges refunds	115	157
Other cash receipts relating to operating activities	70	51
Total cash inflows from operating activities	9,000	7,647
Cash payments for goods and services	5,845	5,073
Cash payments to and on behalf of employees	1,249	1,128
Payments of all types of taxes and surcharges	187	130
Other cash payments relating to operating activities	79	112
Total cash outflows from operating activities	7,360	6,443
Net cash flows from operating activities	1,640	1,204
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments	1,000	0
Cash receipts from investment income	6	0
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets	26	36
Net cash receipts from disposal of subsidiaries and other business units	28	0
Total cash inflows from investing activities	1,060	36
Cash payments to acquire fixed assets, intangible assets and other long-term assets	899	597
Cash payments for investments	1,650	0
Total cash outflows from investing activities	2,549	597
Net cash flows from investing activities	(1,489)	(561)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from borrowings	531	1,623
Other cash receipts relating to financing activities	0	347
Total cash inflows from financing activities	531	1,970
Cash repayments for debts	746	2,662
Cash payments for distribution of dividends or profit and interest expenses	42	134
Other cash payments relating to financing activities	143	107
Total cash outflows from financing activities	931	2,903
Net cash flows from financing activities	(400)	(933)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(2)	7
NET INCREASE IN CASH AND CASH EQUIVALENTS	(251)	(283)
Add: Cash and cash equivalents at beginning of period	2,763	2,167
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,512	1,884