JCET Finished Strong 2021 Leveraging Innovative Technologies and Manufacturing Core Competencies to Provide Value to Customers

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Mar 30, 2022, 07:34 ET

Q4 2021 Financial Highlights:

Revenue was RMB 8.59 billion, an increase of 11.5% year on year. A record high fourth quarter in the company's history.
Generated RMB 2.64 billion cash from operations, an increase of 46.2% year on year. With net capex investments of RMB 1.34 billion, free cash flow for the quarter was RMB 1.30 billion.
Net profit was RMB 0.84 billion, a record high fourth quarter in the company's history.
Earnings per share was RMB 0.49, as compared to RMB 0.34 in Q4 2020.

Full Year 2021 Financial Highlights:

Revenue was RMB 30.50 billion, an increase of 15.3% year on year. A record high in the company's history.
Generated RMB 7.43 billion cash from operations, an increase of 36.7% year on year. With net capex investments of RMB 4.09 billion, free cash flow was RMB 3.34 billion.
Net profit was RMB 2.96 billion, a record high in the company's history.
Earnings per share was RMB 1.72, as compared to RMB 0.81 in 2020.

SHANGHAI, March 30, 2022 /PRNewswire/ -- JCET (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, today announced its full year financial results for the year ended December 31, 2021. According to the financial report, in 2021 JCET achieved robust growth and historical profitability, with revenue of RMB 30.5 billion and net profit of RMB 2.96 billion.

In 2021, JCET further enhanced its international operations and management, integrated and improved the efficiency of its global resources, and strengthened the synergy among its global manufacturing operations. JCET's 6 factories are moving forward in tandem, and through lean production and continuous improvements in cost control, JCET's sustainable profitability has been further enhanced. At the same time, through diversified optimization and integration, JCET's supply chain is more robust and resilient. These all enable JCET to provide timely, sustainable, stable and high-quality products and services to its global customers.

Over the past three years, JCET's revenue and profit have improved significantly, and the company's operations and production have entered a steady cycle, with a long-term mechanism for stable growth gradually taking shape. The investment in fixed assets and forward-looking R&D is becoming stronger and more strategic. With last year's completion of the RMB 5 billion private placement, acquisition of ADI's Singapore test facility and mass production of the new plant in Suqian, JCET has built up its capability to serve a diversified customer base, operating from a position of strength.

"In 2021, JCET continued to strengthen its level of professional and international management, and production efficiency was further improved." said Mr. Li Zheng, JCET's Chief Executive Officer. "At the same time, the company's advantages in technological innovation and our global production structure have been further optimized, thereby positioning us to achieve solid growth in our performance throughout the semiconductor supply and demand cycle. With the evolution from 'packaging and testing' to 'chipset backend manufacturing', the value of packaging and testing in the industry will be re-perceived and will promote the multi-party synergistic development of IC ecology, bringing new development opportunities for the company. In 2022, the JCET management team is confident that we will be able to continue our upward momentum and create value for our customers by providing the best products and services," continued Mr. Zheng.

For more information, please refer to the JCET FY2021 report.

CONSOLIDATED BALANCE SHEET (Audited)					RMB in millions

				Dec 31, 2021	Dec 31, 2020
ASSETS
Current assets
Currency funds				2,761	2,235
Trading financial assets				2,670	5
Derivative financial assets				5	8
Accounts receivable				4,271	3,846
Receivables financing				28	41
Prepayments				183	158
Other receivables				77	41
Inventories				3,193	2,946
Assets classified as held for sale				99	0
Other current assets				130	149
Total current assets				13,417	9,429
Non-current assets
Long-term receivables				38	42
Long-term equity investments				770	949
Other equity investments				418	430
Investment properties				93	96
Fixed assets				18,424	17,790
Construction in progress				661	866
Right-of-use assets				622	0
Intangible assets				447	526
Goodwill				2,023	2,071
Deferred tax assets				185	128
Other non-current assets				1	1
Total non-current assets				23,682	22,899
Total assets				37,099	32,328

LIABILITIES AND EQUITY				Dec 31, 2021	Dec 31, 2020
Current liabilities
Short-term borrowings				2,193	5,288
Derivative financial liabilities				2	0
Notes payable				579	513
Accounts payable				5,298	4,499
Contract liabilities				458	173
Employee benefits payable				1,062	858
Taxes and surcharges payable				235	109
Other payables				414	254
Liabilities classified as held for sale				45	0
Current portion of long-term liabilities				1,052	2,131
Other current liabilities				3	21
Total current liabilities				11,341	13,846
Non-current liabilities
Long-term borrowings				3,751	2,978
Bonds payable				0	999
Lease liabilities				568	0
Long-term payables				0	592
Long-term employee benefits payable				20	4
Deferred income				337	375
Deferred tax liabilities				82	124
Total non-current liabilities				4,758	5,072
Total liabilities				16,099	18,918
Equity
Paid-in capital				1,780	1,603
Capital reserves				14,984	10,242
Accumulated other comprehensive income				(281)	(83)
Surplus reserves				174	120
Unappropriated profit				4,334	1,518
Total equity attributable to owners of the parent				20,991	13,400
Minority shareholders				9	10
Total equity				21,000	13,410
Total liabilities and equity				37,099	32,328


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

	Three months ended			Year ended
	Dec 31, 2021	Dec 31, 2020		Dec 31, 2021	Dec 31, 2020
Revenue	8,585	7,701		30,502	26,464
Less: Cost of sales	6,882	6,512		24,887	22,374
Taxes and surcharges	19	20		77	48
Selling expenses	49	50		194	225
Administrative expenses	299	350		1,042	1,037
Research and development expenses	326	252		1,186	1,020
Finance expenses	29	152		206	634
Including: Interest expenses	43	136		313	569
Interest income	4	11		37	42
Add: Other income	35	88		170	185
Investment income / (loss)	16	6		315	(2)
Including: Income / (loss) from investments in associates and joint ventures	(4)	(3)		281	(11)
Gain / (loss) on the net position hedging	11	(5)		0	(4)
Gain / (loss) on changes in fair value of financial assets/liabilities	(12)	39		(12)	67
Credit impairment (loss is expressed by "-")	9	1		23	(7)
Asset impairment (loss is expressed by "-")	(216)	(62)		(268)	(87)
Gain / (loss) on disposal of assets	2	126		32	168
Operating profit / (loss)	826	558		3,170	1,446
Add: Non-operating income	12	3		18	6
Less: Non-operating expenses	7	3		18	21
Profit / (loss) before income taxes	831	558		3,170	1,431
Less: Income tax expenses	(13)	17		210	125
Net profit / (loss)	844	541		2,960	1,306
Classified by continuity of operations
Profit / (loss) from continuing operations	844	541		2,960	1,306
Classified by ownership
Net profit / (loss) attributable to owners of the parent	843	540		2,958	1,304
Net profit / (loss) attributable to minority shareholders	1	1		2	2
Add: Unappropriated profit at beginning of period	3,544	994		1,518	231
Less: Extract statutory surplus accumulation	53	0		53	0
Cash dividends payable	0	0		89	0
Less: Other reductions	0	16		0	17
Unappropriated profit at end of period (attributable to owners of the parent）	4,334	1,518		4,334	1,518
Other comprehensive income, net of tax	(120)	(308)		(197)	(505)
Comprehensive income attributable to owners of the parent	(120)	(308)		(197)	(505)
Comprehensive income not be reclassified to profit or loss	(14)	(40)		(13)	(50)
Remeasurement gains or losses of a defined benefit plan	(2)	(2)		(1)	(2)
Change in the fair value of other equity investments	(12)	(38)		(12)	(48)
Comprehensive income to be reclassified to profit or loss	(106)	(268)		(184)	(455)
Comprehensive income using the equity method that may be reclassified to profit or loss	0	0		(21)	0
Cash flow hedge reserve	10	(3)		2	(1)
Exchange differences of foreign currency financial statements	(116)	(265)		(165)	(454)
Total comprehensive income	724	233		2,763	801
Including:
Total comprehensive income attributable to owners of the parent	723	232		2,761	799
Total comprehensive income attributable to minority shareholders	1	1		2	2
Earnings per share
Basic earnings per share	0.49	0.34		1.72	0.81
Diluted earnings per share	0.49	0.34		1.72	0.81


CONSOLIDATED CASH FLOW STATEMENT (Audited)					RMB in millions

	Three months ended			Year ended
	Dec 31, 2021	Dec 31, 2020		Dec 31, 2021	Dec 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services	9,611	7,989		32,445	27,350
Receipts of taxes and surcharges refunds	49	(42)		389	486
Other cash receipts relating to operating activities	30	139		237	905
Total cash inflows from operating activities	9,690	8,086		33,071	28,741
Cash payments for goods and services	6,031	4,891		20,445	18,475
Cash payments to and on behalf of employees	937	1,143		4,265	3,787
Payments of all types of taxes and surcharges	19	186		608	499
Other cash payments relating to operating activities	68	63		324	545
Total cash outflows from operating activities	7,055	6,283		25,642	23,306
Net cash flows from operating activities	2,635	1,803		7,429	5,435
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments	3,281	6		6,133	12
Cash receipts from investment income	20	9		33	9
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets	10	253		271	318
Net cash receipts from disposal of subsidiaries and other business units	0	56		0	56
Other cash receipts relating to investing activities	10	81		10	81
Total cash inflows from investing activities	3,321	405		6,447	476
Cash payments to acquire fixed assets, intangible assets and other long-term assets	1,345	1,268		4,358	3,330
Cash payments for investments	4,029	5		8,405	5
Total cash outflows from investing activities	5,374	1,273		12,763	3,335
Net cash flows from investing activities	(2,053)	(868)		(6,316)	(2,859)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others	0	0		4,965	0
Cash receipts from borrowings	2,524	5,775		7,153	15,725
Other cash receipts relating to financing activities	(347)	0		0	0
Total cash inflows from financing activities	2,177	5,775		12,118	15,725
Cash repayments for debts	3,099	5,738		11,613	16,190
Cash payments for distribution of dividends or profit and interest expenses	26	189		392	614
Including: Dividends or profit paid to non-controlling shareholders of subsidiaries	3	3		3	3
Other cash payments relating to financing activities	(166)	676		605	1,167
Total cash outflows from financing activities	2,959	6,603		12,610	17,971
Net cash flows from financing activities	(782)	(828)		(492)	(2,246)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(17)	4		(25)	(29)
NET INCREASE IN CASH AND CASH EQUIVALENTS	(217)	111		596	301
Add: Cash and cash equivalents at beginning of period	2,980	2,056		2,167	1,866
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,763	2,167		2,763	2,167