JCET Hits New Highs for Performance in Q3, High-Performance Packaging Technology Opens New Opportunities for Semiconductor Back-end Manufacturing
Q3 2022 Financial Highlights:
- Revenue was RMB 9.18 billion, an increase of 13.4% year-on-year. A record high third quarter in the company's history.
- Generated RMB 1.70 billion cash from operations. With net capex investments of RMB 1.07 billion, free cash flow for the quarter was RMB 0.63 billion.
- Net profit was RMB 0.91 billion, a record high third quarter in the company's history.
- Earnings per share was RMB 0.51, as compared to RMB 0.45 in Q3 2021.
Q3 YTD 2022 Financial Highlights:
- Revenue was RMB 24.78 billion, an increase of 13.1% year-on-year, a record high in the company's history.
- Generated RMB 4.38 billion cash from operations. With net capex investments of RMB 2.58 billion, free cash flow for the first three quarters of 2022 was RMB 1.80 billion.
- Net profit was RMB 2.45 billion, a record high in the company's history.
- Earnings per share was RMB 1.38, as compared to RMB 1.23 in Q3 YTD 2021.
SHANGHAI, Oct. 27, 2022 /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 2022. The financial report shows that in the third quarter, JCET achieved revenue of RMB 9.18 billion, an increase of 13.4% year-on-year, and net profit of RMB 0.91 billion, an increase of 14.6% year-on-year, a record high third quarter in the company's history.
In recent years, JCET leverages its international and domestic "dual circulation" model, constantly optimizes the product structure and its business proportion, flexibly adjusts the order structure and capacity layout, and enhances its ability to withstand cyclical fluctuations.
JCET accelerated the research and development of high-performance packaging and testing technologies including 2.5D/3D chiplet integration, and the introduction of customer products. The company strengthened the development of high-value added markets such as automotive electronics, computing electronics and 5G communications, and enhanced value-added services such as high-end testing and design services. The related revenue and proportion increased rapidly. Among them, the company's advanced packaging related revenue, which mainly includes high-density system level packaging technology, large size flip chip technology and fan-out wafer level packaging technology increased by 21% year-on-year in the first three quarters. The revenue related to automotive electronics and computing electronics increased 59% year-on-year in the first three quarters. At the same time, the company's overseas factories grew strongly, and through deepening lean production and strengthening cost control, the company overcame the trend and achieved record high growth in the third quarter. The company continued to improve the management of working capital, stably produced abundant cash flow, and laid a solid foundation for sustainable development in the future.
At the same time, the company makes great efforts in innovation, cooperates with the industrial supply chain, continuously improves talent incentives, employee care and other measures, practices corporate social responsibility, and stimulates the cohesion of all employees. The company launched its first employee stock ownership plan and stock option incentive plan since its public listing, reflecting the firm confidence of all its employees in the long-term development of the company.
Mr. Li Zheng, CEO of JCET said, "In recent years, JCET has successfully introduced the mass production of high-density high-performance packaging technology to many of the world's leading IC manufacturers, providing a solid foundation for the company to expand its market share in advanced technology and solidify its steady growth. In the first three quarters of this year, the revenue and profit from JCET's high-density system-level packaging technology and fan-out wafer level packaging technology increased significantly compared with the same period last year, reflecting the significant growth in the large-scale application of semiconductor heterogeneous integrated packaging in computers, new energy vehicles, smart cars, intelligent manufacturing, and other fields. JCET will further increase its resource investment in relevant technologies and markets and is confident to continue strengthening its leading position in the global high-performance packaging market."
Click to view: JCET 2022 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, 2022 |
Dec 31, 2021 |
||||||||
ASSETS |
|||||||||
Current assets |
|||||||||
Currency funds |
2,412 |
2,761 |
|||||||
Trading financial assets |
4,151 |
2,670 |
|||||||
Derivative financial assets |
0 |
5 |
|||||||
Accounts receivable |
5,043 |
4,271 |
|||||||
Receivables financing |
98 |
28 |
|||||||
Prepayments |
205 |
183 |
|||||||
Other receivables |
72 |
77 |
|||||||
Inventories |
4,157 |
3,193 |
|||||||
Assets classified as held for sale |
0 |
99 |
|||||||
Other current assets |
132 |
130 |
|||||||
Total current assets |
16,270 |
13,417 |
|||||||
Non-current assets |
|||||||||
Long-term receivables |
35 |
38 |
|||||||
Long-term equity investments |
764 |
770 |
|||||||
Other equity investments |
434 |
418 |
|||||||
Investment properties |
90 |
93 |
|||||||
Fixed assets |
19,088 |
18,424 |
|||||||
Construction in progress |
1,107 |
661 |
|||||||
Right-of-use assets |
597 |
622 |
|||||||
Intangible assets |
484 |
447 |
|||||||
Goodwill |
2,253 |
2,023 |
|||||||
Deferred tax assets |
179 |
185 |
|||||||
Other non-current assets |
1 |
1 |
|||||||
Total non-current assets |
25,032 |
23,682 |
|||||||
Total assets |
41,302 |
37,099 |
|||||||
LIABILITIES AND EQUITY |
Sep 30, 2022 |
Dec 31, 2021 |
|||||||
Current liabilities |
|||||||||
Short-term borrowings |
1,885 |
2,193 |
|||||||
Derivative financial liabilities |
27 |
2 |
|||||||
Notes payable |
312 |
579 |
|||||||
Accounts payable |
6,700 |
5,298 |
|||||||
Contract liabilities |
332 |
458 |
|||||||
Employee benefits payable |
1,023 |
1,062 |
|||||||
Taxes and surcharges payable |
207 |
235 |
|||||||
Other payables |
498 |
414 |
|||||||
Liabilities classified as held for sale |
0 |
45 |
|||||||
Current portion of long-term liabilities |
2,096 |
1,052 |
|||||||
Other current liabilities |
4 |
3 |
|||||||
Total current liabilities |
13,084 |
11,341 |
|||||||
Non-current liabilities |
|||||||||
Long-term borrowings |
3,375 |
3,751 |
|||||||
Lease liabilities |
543 |
568 |
|||||||
Long-term employee benefits payable |
8 |
20 |
|||||||
Deferred income |
351 |
337 |
|||||||
Deferred tax liabilities |
79 |
82 |
|||||||
Total non-current liabilities |
4,356 |
4,758 |
|||||||
Total liabilities |
17,440 |
16,099 |
|||||||
Equity |
|||||||||
Paid-in capital |
1,780 |
1,780 |
|||||||
Capital reserves |
15,016 |
14,984 |
|||||||
Less: Treasury shares |
(89) |
0 |
|||||||
Accumulated other comprehensive income |
550 |
(281) |
|||||||
Surplus reserves |
174 |
174 |
|||||||
Unappropriated profit |
6,431 |
4,334 |
|||||||
Total equity attributable to owners of the parent |
23,862 |
20,991 |
|||||||
Minority shareholders |
0 |
9 |
|||||||
Total equity |
23,862 |
21,000 |
|||||||
Total liabilities and equity |
41,302 |
37,099 |
|||||||
CONSOLIDATED INCOME STATEMENT (Unaudited) |
RMB in millions, except share data |
||||||||
Three months ended |
Nine months ended |
||||||||
Sep 30, 2022 |
Sep 30, 2021 |
Sep 30, 2022 |
Sep 30, 2021 |
||||||
Revenue |
9,184 |
8,099 |
24,778 |
21,917 |
|||||
Less: Cost of sales |
7,616 |
6,576 |
20,323 |
18,006 |
|||||
Taxes and surcharges |
26 |
16 |
69 |
58 |
|||||
Selling expenses |
45 |
49 |
142 |
145 |
|||||
Administrative expenses |
312 |
276 |
805 |
743 |
|||||
Research and development expenses |
343 |
312 |
980 |
860 |
|||||
Finance expenses |
(26) |
20 |
(11) |
176 |
|||||
Including: Interest expenses |
51 |
70 |
143 |
270 |
|||||
Interest income |
5 |
14 |
21 |
34 |
|||||
Add: Other income |
55 |
38 |
138 |
135 |
|||||
Investment income / (loss) |
25 |
15 |
65 |
299 |
|||||
Including: Income / (loss) from investments in associates and joint ventures |
1 |
3 |
(6) |
286 |
|||||
Gain / (loss) on the net position hedging |
0 |
(8) |
0 |
(11) |
|||||
Gain / (loss) on changes in fair value of financial assets/liabilities |
(25) |
0 |
(40) |
0 |
|||||
Credit impairment (loss is expressed by "-") |
22 |
14 |
17 |
14 |
|||||
Asset impairment (loss is expressed by "-") |
(61) |
(34) |
(125) |
(52) |
|||||
Gain / (loss) on disposal of assets |
18 |
16 |
41 |
30 |
|||||
Operating profit / (loss) |
902 |
891 |
2,566 |
2,344 |
|||||
Add: Non-operating income |
40 |
0 |
46 |
6 |
|||||
Less: Non-operating expenses |
0 |
8 |
1 |
11 |
|||||
Profit / (loss) before income taxes |
942 |
883 |
2,611 |
2,339 |
|||||
Less: Income tax expenses |
33 |
89 |
159 |
222 |
|||||
Net profit / (loss) |
909 |
794 |
2,452 |
2,117 |
|||||
Classified by continuity of operations |
|||||||||
Profit / (loss) from continuing operations |
909 |
794 |
2,452 |
2,117 |
|||||
Classified by ownership |
|||||||||
Net profit / (loss) attributable to owners of the parent |
909 |
793 |
2,452 |
2,116 |
|||||
Net profit / (loss) attributable to minority shareholders |
0 |
1 |
0 |
1 |
|||||
Add: Unappropriated profit at beginning of period |
5,522 |
2,751 |
4,335 |
1,517 |
|||||
Less: Cash dividends payable |
0 |
0 |
356 |
89 |
|||||
Unappropriated profit at end of period (attributable to owners of the parent) |
6,431 |
3,544 |
6,431 |
3,544 |
|||||
Other comprehensive income, net of tax |
446 |
24 |
832 |
(78) |
|||||
Comprehensive income attributable to owners of the parent |
446 |
24 |
832 |
(78) |
|||||
Comprehensive income not be reclassified to profit or loss |
(14) |
0 |
(14) |
1 |
|||||
Remeasurement gains or losses of a defined benefit plan |
0 |
0 |
0 |
1 |
|||||
Change in the fair value of other equity investments |
(14) |
0 |
(14) |
0 |
|||||
Comprehensive income to be reclassified to profit or loss |
460 |
24 |
846 |
(79) |
|||||
Comprehensive income using the equity method that may be reclassified to profit or loss |
7 |
0 |
0 |
(21) |
|||||
Cash flow hedge reserve |
(9) |
(4) |
(26) |
(9) |
|||||
Exchange differences of foreign currency financial statements |
462 |
28 |
872 |
(49) |
|||||
Total comprehensive income |
1,355 |
818 |
3,284 |
2,039 |
|||||
Including: |
|||||||||
Total comprehensive income attributable to owners of the parent |
1,355 |
817 |
3,284 |
2,038 |
|||||
Total comprehensive income attributable to minority shareholders |
0 |
1 |
0 |
1 |
|||||
Earnings per share |
|||||||||
Basic earnings per share |
0.51 |
0.45 |
1.38 |
1.23 |
|||||
Diluted earnings per share |
0.51 |
0.45 |
1.38 |
1.23 |
|||||
CONSOLIDATED CASH FLOW STATEMENT (Unaudited) |
RMB in millions |
||||||||
Three months ended |
Nine months ended |
||||||||
Sep 30, 2022 |
Sep 30, 2021 |
Sep 30, 2022 |
Sep 30, 2021 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||||||
Cash receipts from the sale of goods and the rendering of services |
8,201 |
8,048 |
25,200 |
22,834 |
|||||
Receipts of taxes and surcharges refunds |
126 |
107 |
273 |
340 |
|||||
Other cash receipts relating to operating activities |
87 |
94 |
218 |
207 |
|||||
Total cash inflows from operating activities |
8,414 |
8,249 |
25,691 |
23,381 |
|||||
Cash payments for goods and services |
5,534 |
4,995 |
17,146 |
14,415 |
|||||
Cash payments to and on behalf of employees |
948 |
1,057 |
3,257 |
3,327 |
|||||
Payments of all types of taxes and surcharges |
193 |
210 |
694 |
589 |
|||||
Other cash payments relating to operating activities |
43 |
75 |
214 |
257 |
|||||
Total cash outflows from operating activities |
6,718 |
6,337 |
21,311 |
18,588 |
|||||
Net cash flows from operating activities |
1,696 |
1,912 |
4,380 |
4,793 |
|||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||||||
Cash receipts from returns of investments |
3,390 |
2,455 |
8,550 |
2,852 |
|||||
Cash receipts from investment income |
17 |
13 |
55 |
13 |
|||||
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets |
76 |
93 |
110 |
261 |
|||||
Net cash receipts from disposal of subsidiaries and other business units |
3 |
0 |
30 |
0 |
|||||
Total cash inflows from investing activities |
3,486 |
2,561 |
8,745 |
3,126 |
|||||
Cash payments to acquire fixed assets, intangible assets and other long-term assets |
1,138 |
1,365 |
2,688 |
3,013 |
|||||
Cash payments for investments |
4,101 |
2,420 |
10,061 |
4,376 |
|||||
Total cash outflows from investing activities |
5,239 |
3,785 |
12,749 |
7,389 |
|||||
Net cash flows from investing activities |
(1,753) |
(1,224) |
(4,004) |
(4,263) |
|||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|||||||||
Cash proceeds from investments by others |
0 |
0 |
0 |
4,966 |
|||||
Cash receipts from borrowings |
1,446 |
2,268 |
2,961 |
4,629 |
|||||
Other cash receipts relating to financing activities |
0 |
0 |
0 |
347 |
|||||
Total cash inflows from financing activities |
1,446 |
2,268 |
2,961 |
9,942 |
|||||
Cash repayments for debts |
796 |
2,985 |
2,530 |
8,515 |
|||||
Cash payments for distribution of dividends or profit and interest expenses |
405 |
161 |
495 |
366 |
|||||
Other cash payments relating to financing activities |
169 |
212 |
758 |
771 |
|||||
Total cash outflows from financing activities |
1,370 |
3,358 |
3,783 |
9,652 |
|||||
Net cash flows from financing activities |
76 |
(1,090) |
(822) |
290 |
|||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
37 |
1 |
95 |
(7) |
|||||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
56 |
(401) |
(351) |
813 |
|||||
Add: Cash and cash equivalents at beginning of period |
2,356 |
3,381 |
2,763 |
2,167 |
|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
2,412 |
2,980 |
2,412 |
2,980 |
|||||
SOURCE JCET Group
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