JCET Continues Strong 2021 with Another Record High Performance in Q3

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Oct 27, 2021, 07:59 ET

JCET Q3 2021 Financial Highlights:

Revenue was RMB 8.10 billion, an increase of 19.3% year on year. A record high third quarter in the company's history.
Generated RMB 1.91 billion cash from operations, an increase of 29.2% year on year. With net capex investments of RMB 1.27 billion, free cash flow for the quarter was RMB 0.64 billion.
Net profit was RMB 0.79 billion, a record high third quarter in the company's history.
Earnings per share was RMB 0.45, as compared to RMB 0.25 in Q3 2020.

SHANGHAI, Oct. 27, 2021 /PRNewswire/ -- Today, JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services announced its financial results for the third quarter of 2021. According to the financial report, JCET achieved revenue of RMB 8.10 billion in the third quarter, an increase of 19.3% year on year, and net profit of RMB 0.79 billion, a record high third quarter in the company's history.

Ms. Janet Chou, CFO of JCET said, "We delivered another quarter of record highs in revenue and profit in Q3. Our balance sheet continues to be strengthened with significant improvements in our key financial metrics. JCET's outstanding performance in 2021 is the result of the successful execution of our focused growth strategy."

Mr. Li Zheng, CEO of JCET said, "After delivering record high results in the first half of 2021, JCET continued its positive momentum of steady growth in the third quarter. In the second half of this year, JCET's global manufacturing centers continue to optimize their mass production technologies and operational efficiency. All manufacturing centers continue to enhance their R&D and innovation capabilities for advanced technologies. In particular, the XDFOI™ series of products for 3D packaging was launched in July providing industry-leading ultra-high density heterogeneous integration solutions for a wide range of global customers engaged in high performance computing. The company's development over the past 50 years has built a solid foundation for the more internationalized management strategies implemented by JCET in recent years. With the support of shareholders and the collaborative efforts of all our employees, JCET is growing together with its customers and partners and has entered a new phase of technology leadership and steady growth."

Click to view: JCET 2021 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

			As of
			Sep 30, 2021	Dec 31, 2020
ASSETS
Current assets
Currency funds			2,980	2,235
Trading financial assets			1,925	5
Derivative financial assets			2	8
Accounts receivable			4,218	3,846
Receivables financing			44	41
Prepayments			336	158
Other receivables			31	41
Inventories			3,674	2,946
Other current assets			129	149
Total current assets			13,339	9,429
Non-current assets
Long-term receivables			38	42
Long-term equity investments			772	949
Other equity investments			430	430
Investment properties			93	96
Fixed assets			18,219	17,790
Construction in progress			1,015	866
Right-of-use assets			661	0
Intangible assets			444	526
Goodwill			2,058	2,071
Deferred tax assets			85	128
Other non-current assets			1	1
Total non-current assets			23,816	22,899
Total assets			37,155	32,328

LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings			3,827	5,288
Derivative financial liabilities			17	0
Notes payable			422	513
Accounts payable			6,034	4,499
Contract liabilities			342	173
Employee benefits payable			916	858
Taxes and surcharges payable			139	109
Other payables			286	254
Current portion of long-term liabilities			1,357	2,131
Other current liabilities			12	21
Total current liabilities			13,352	13,846
Non-current liabilities
Long-term borrowings			2,415	2,978
Bonds payable			0	999
Lease liabilities			638	0
Long-term payables			0	592
Long-term employee benefits payable			4	4
Deferred income			335	375
Deferred tax liabilities			132	124
Total non-current liabilities			3,524	5,072
Total liabilities			16,876	18,918
Equity
Paid-in capital			1,780	1,603
Capital reserves			14,984	10,242
Accumulated other comprehensive income			(160)	(83)
Surplus reserves			120	120
Unappropriated profit			3,544	1,518
Total equity attributable to owners of the parent			20,268	13,400
Minority shareholders			11	10
Total equity			20,279	13,410
Total liabilities and equity			37,155	32,328


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

	Three months ended		Nine months ended
	Sep 30, 2021	Sep 30, 2020	Sep 30, 2021	Sep 30, 2020
Revenue	8,099	6,787	21,917	18,763
Less: Cost of sales	6,576	5,631	18,006	15,863
Taxes and surcharges	16	11	58	28
Selling expenses	49	59	145	175
Administrative expenses	276	252	743	687
Research and development expenses	312	277	860	768
Finance expenses	20	179	176	482
Including: Interest expenses	70	131	270	433
Interest income	14	12	34	31
Add: Other income	38	17	135	97
Investment income / (loss)	15	(1)	299	(8)
Including: Income / (loss) from investments in associates and joint ventures	3	(1)	286	(8)
Gain / (loss) on the net position hedging	(8)	6	(11)	1
Gain / (loss) on changes in fair value of financial assets/liabilities	0	28	0	28
Credit impairment (loss is expressed by "-")	14	(1)	14	(7)
Asset impairment (loss is expressed by "-")	(34)	0	(52)	(25)
Gain / (loss) on disposal of assets	16	33	30	42
Operating profit / (loss)	891	460	2,344	888
Add: Non-operating income	0	3	6	3
Less: Non-operating expenses	8	10	11	18
Profit / (loss) before income taxes	883	453	2,339	873
Less: Income tax expenses	89	55	222	108
Net profit / (loss)	794	398	2,117	765
Classified by continuity of operations
Profit / (loss) from continuing operations	794	398	2,117	765
Classified by ownership
Net profit / (loss) attributable to owners of the parent	793	398	2,116	764
Net profit / (loss) attributable to minority shareholders	1	0	1	1
Add: Unappropriated profit at beginning of period	2,751	598	1,517	231
Less: Cash dividends payable	0	0	89	0
Other reductions	0	2	0	2
Unappropriated profit at end of period (attributable to owners of the parent)	3,544	994	3,544	994
Other comprehensive income, net of tax	24	(354)	(78)	(197)
Comprehensive income attributable to owners of the parent	24	(354)	(78)	(197)
Comprehensive income not be reclassified to profit or loss	0	(10)	1	(10)
Remeasurement gains or losses of a defined benefit plan	0	0	1	0
Change in the fair value of other equity investments	0	(10)	0	(10)
Comprehensive income to be reclassified to profit or loss	24	(344)	(79)	(187)
Comprehensive income using the equity method that may be reclassified to profit or loss	0	0	(21)	0
Cash flow hedge reserve	(4)	(1)	(9)	1
Exchange differences of foreign currency financial statements	28	(343)	(49)	(188)
Total comprehensive income	818	42	2,039	567
Including:
Total comprehensive income attributable to owners of the parent	817	42	2,038	566
Total comprehensive income attributable to minority shareholders	1	0	1	1
Earnings per share
Basic earnings per share	0.45	0.25	1.23	0.48
Diluted earnings per share	0.45	0.25	1.23	0.48


CONSOLIDATED CASH FLOW STATEMENT (Unaudited)				RMB in millions

	Three months ended		Nine months ended
	Sep 30, 2021	Sep 30, 2020	Sep 30, 2021	Sep 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services	8,048	6,468	22,834	19,360
Receipts of taxes and surcharges refunds	107	105	340	528
Other cash receipts relating to operating activities	94	244	207	767
Total cash inflows from operating activities	8,249	6,817	23,381	20,655
Cash payments for goods and services	4,995	4,241	14,415	13,584
Cash payments to and on behalf of employees	1,057	856	3,327	2,644
Payments of all types of taxes and surcharges	210	81	589	313
Other cash payments relating to operating activities	75	159	257	482
Total cash outflows from operating activities	6,337	5,337	18,588	17,023
Net cash flows from operating activities	1,912	1,480	4,793	3,632
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments	2,455	6	2,852	6
Cash receipts from investment income	13	0	13	0
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets	93	38	261	65
Total cash inflows from investing activities	2,561	44	3,126	71
Cash payments to acquire fixed assets, intangible assets and other long-term assets	1,365	726	3,013	2,062
Cash payments for investments	2,420	0	4,376	0
Total cash outflows from investing activities	3,785	726	7,389	2,062
Net cash flows from investing activities	(1,224)	(682)	(4,263)	(1,991)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others	0	0	4,966	0
Cash receipts from borrowings	2,268	1,418	4,629	9,950
Other cash receipts relating to financing activities	0	0	347	0
Total cash inflows from financing activities	2,268	1,418	9,942	9,950
Cash repayments for debts	2,985	2,311	8,515	10,452
Cash payments for distribution of dividends or profit and interest expenses	161	120	366	425
Other cash payments relating to financing activities	212	206	771	491
Total cash outflows from financing activities	3,358	2,637	9,652	11,368
Net cash flows from financing activities	(1,090)	(1,219)	290	(1,418)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	1	(48)	(7)	(33)
NET INCREASE IN CASH AND CASH EQUIVALENTS	(401)	(469)	813	190
Add: Cash and cash equivalents at beginning of period	3,381	2,525	2,167	1,866
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,980	2,056	2,980	2,056