JCET Q2 2024 Net Profit Attributable to the Parent Increased by 258% Quarter-on-Quarter, Hitting a Record High for Revenue

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Aug 23, 2024, 06:59 ET

Q2 2024 Financial Highlights：

Revenue was RMB 8.64 billion, an increase of 36.9% year-on-year and 26.3% quarter-on-quarter. A record high Q2 in the company's history.
Generated RMB 1.65 billion cash from operations. With net capex investments of RMB 0.93 billion, free cash flow for the quarter was RMB 0.72 billion.
Net profit attributable to owners of the parent was RMB 0.48 billion, an increase of 25.5% year-on-year and 258.0% quarter-on-quarter.
Earnings per share was RMB 0.27, as compared to RMB 0.22 in Q2 2023.

1H 2024 Financial Highlights：

Revenue was RMB 15.49 billion, an increase of 27.2% year-on-year.
Generated RMB 3.03 billion cash from operations. With net capex investments of RMB 1.87 billion, free cash flow for the first half of 2024 was RMB 1.16 billion.
Net profit attributable to owners of the parent was RMB 0.62 billion, an increase of 25.0% year-on-year.
Earnings per share was RMB 0.35, as compared to RMB 0.28 in 1H 2023.

SHANGHAI, Aug. 23, 2024 /PRNewswire/ -- Today, JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) back-end manufacturing and technology services, announced its financial results for the first half year of 2024. The financial report shows that in the first half of 2024, JCET achieved revenue of RMB 15.49 billion, and net profit attributable to owners of the parent of RMB 0.62 billion, both increased over 25%. In Q2 2024 JCET achieved revenue of RMB 8.64 billion, an increase of 36.9% year-on-year, a record high Q2 in the company's history, and net profit attributable to owners of the parent of RMB 0.48 billion, an increase of 25.5% year-on-year and 258.0% quarter-on-quarter, generating RMB 1.65 billion cash from operations.

During the reporting period, the company's capacity utilization has significantly increased, with enlarged investment to expand production capacity of core production lines. In the first half of the year, the revenue of communications, computing, and consumer electronics businesses increased respectively by 48%, 23%, and 33% year-on-year. The company is consistently strengthening the research and development in advanced packaging technologies, with R&D investment of RMB 0.82 billion in 1H 2024, a year-on-year increase of 22.4%.

JCET is also actively promoting strategic projects to enhance its smart manufacturing. After two years construction, the new advanced packaging factory "JCET Microelectronics Wafer-level Microsystems Integration High-end Manufacturing Base" with an area of over 130,000 square meters is progressing with equipment mobilization. The new automotive chip back-end manufacturing base has completed building the factory structure. The acquisition of a high-density memory chip packaging factory has obtained necessary approvals, and the project is progressing towards completion.

Mr. Li Zheng, CEO of JCET, said, "JCET actively promotes innovative applications of advanced packaging technologies and continues to expand its production capacity in China, Singapore and South Korea, with steady growth in performance in the first half of 2024. The company will continue to increase investment in R&D and strategic projects, strengthen innovation cooperation in the industrial chain and sustainable development, and create higher value for shareholders, customers, employees and society."

For more information, please refer to the JCET 1H FY2024 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 industrial, through advanced wafer-level packaging, 2.5D/3D, System-in-Package, and reliable flip chip and wire bonding technologies. JCET Group has two R&D centers in China and Korea, eight manufacturing locations in China, Korea, and Singapore, and sales centers around the world, providing close technology collaboration and efficient supply-chain manufacturing to our global customers.

CONSOLIDATED BALANCE SHEET (Unaudited)			RMB in millions

			Jun 30, 2024	Dec 31, 2023
ASSETS
Current assets
Currency funds			10,621	7,325
Trading financial assets			1,605	2,306
Derivative financial assets			0	4
Accounts receivable			4,066	4,185
Receivables financing			71	38
Prepayments			132	104
Other receivables			115	87
Inventories			3,408	3,195
Other current assets			393	375
Total current assets			20,411	17,619
Non-current assets
Long-term receivables			31	33
Long-term equity investments			666	695
Other equity investments			434	447
Investment properties			84	86
Fixed assets			18,408	18,744
Construction in progress			2,039	1,053
Right-of-use assets			519	563
Intangible assets			659	662
Goodwill			2,262	2,248
Long-term prepaid expenses			13	17
Deferred tax assets			377	364
Other non-current assets			66	48
Total non-current assets			25,558	24,960
Total assets			45,969	42,579

LIABILITIES AND EQUITY			Jun 30, 2024	Dec 31, 2023
Current liabilities
Short-term borrowings			467	1,696
Derivative financial liabilities			2	0
Notes payable			300	223
Accounts payable			5,773	4,782
Contract liabilities			260	185
Employee benefits payable			732	781
Taxes and surcharges payable			116	167
Other payables			368	354
Current portion of long-term liabilities			1,806	1,491
Other current liabilities			2	3
Total current liabilities			9,826	9,682
Non-current liabilities
Long-term borrowings			7,749	5,777
Lease liabilities			480	530
Long-term payables			3	0
Long-term employee benefits payable			14	14
Deferred income			438	384
Other non-current liabilities			38	41
Total non-current liabilities			8,722	6,746
Total liabilities			18,548	16,428
Equity
Paid-in capital			1,789	1,789
Capital reserves			15,228	15,237
Accumulated other comprehensive income			591	543
Specialized reserves			1	0
Surplus reserves			257	257
Unappropriated profit			8,680	8,239
Total equity attributable to owners of the parent			26,546	26,065
Minority shareholders			875	86
Total equity			27,421	26,151
Total liabilities and equity			45,969	42,579


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

	Three months ended		Six months ended
	Jun 30, 2024	Jun 30, 2023	Jun 30, 2024	Jun 30, 2023
Revenue	8,645	6,313	15,487	12,173
Less: Cost of sales	7,410	5,359	13,417	10,525
Taxes and surcharges	22	27	35	47
Selling expenses	64	51	118	100
Administrative expenses	209	175	433	347
Research and development expenses	438	360	819	669
Finance expenses	(19)	(7)	(11)	51
Including: Interest expenses	99	68	192	131
Interest income	80	27	141	35
Add: Other income	47	40	86	73
Investment income / (loss)	(4)	(24)	(14)	(21)
Including: Income / (loss) from investments in associates and joint ventures	(12)	(10)	(29)	(21)
Gain / (loss) on changes in fair value of financial assets/liabilities	0	37	(5)	46
Credit impairment (loss is expressed by "-")	(14)	(6)	(7)	(1)
Asset impairment (loss is expressed by "-")	(20)	(5)	(38)	0
Gain / (loss) on disposal of assets	2	13	5	16
Operating profit / (loss)	532	403	703	547
Add: Non-operating income	0	2	1	3
Less: Non-operating expenses	2	0	2	4
Profit / (loss) before income taxes	530	405	702	546
Less: Income tax expenses	47	19	85	50
Net profit / (loss)	483	386	617	496
Classified by continuity of operations
Profit / (loss) from continuing operations	483	386	617	496
Classified by ownership
Net profit / (loss) attributable to owners of the parent	484	386	619	496
Net profit / (loss) attributable to minority shareholders	(1)	0	(2)	0
Add: Unappropriated profit at beginning of period	8,374	7,264	8,239	7,154
Less: Cash dividends declared	178	358	178	358
Unappropriated profit at end of period (attributable to owners of the parent）	8,680	7,292	8,680	7,292
Other comprehensive income, net of tax	36	481	48	350
Comprehensive income attributable to owners of the parent	36	481	48	350
Comprehensive income not be reclassified to profit or loss	(8)	6	(13)	17
Remeasurement gains or losses of a defined benefit plan	0	0	0	1
Change in the fair value of other equity investments	(8)	6	(13)	16
Comprehensive income to be reclassified to profit or loss	44	475	61	333
Exchange differences of foreign currency financial statements	44	475	61	333
Total comprehensive income	519	867	665	846
Including:
Total comprehensive income attributable to owners of the parent	520	867	667	846
Total comprehensive income attributable to minority shareholders	(1)	0	(2)	0
Earnings per share
Basic earnings per share	0.27	0.22	0.35	0.28
Diluted earnings per share	0.27	0.22	0.35	0.28


CONSOLIDATED CASH FLOW STATEMENT (Unaudited)			RMB in millions

	Three months ended		Six months ended
	Jun 30, 2024	Jun 30, 2023	Jun 30, 2024	Jun 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services	8,784	6,178	16,590	13,162
Receipts of taxes and surcharges refunds	81	122	198	216
Other cash receipts relating to operating activities	181	110	283	163
Total cash inflows from operating activities	9,046	6,410	17,071	13,541
Cash payments for goods and services	6,078	4,069	11,254	8,454
Cash payments to and on behalf of employees	1,056	878	2,248	2,072
Payments of all types of taxes and surcharges	197	254	289	466
Other cash payments relating to operating activities	61	22	253	128
Total cash outflows from operating activities	7,392	5,223	14,044	11,120
Net cash flows from operating activities	1,654	1,187	3,027	2,421
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments	4,800	4,350	9,050	8,280
Cash receipts from investment income	2	38	15	52
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets	2	7	5	32
Total cash inflows from investing activities	4,804	4,395	9,070	8,364
Cash payments to acquire fixed assets, intangible assets and other long-term assets	937	749	1,870	1,588
Cash payments for investments	4,650	3,200	8,350	5,980
Total cash outflows from investing activities	5,587	3,949	10,220	7,568
Net cash flows from investing activities	(783)	446	(1,150)	796
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others	6	230	776	230
Including: Cash receipts from capital contributions from minority shareholders of subsidiaries	0	86	765	86
Cash receipts from borrowings	728	1,317	3,007	1,664
Total cash inflows from financing activities	734	1,547	3,783	1,894
Cash repayments for debts	657	755	1,963	1,740
Cash payments for distribution of dividends or profit and interest expenses	272	414	352	467
Other cash payments relating to financing activities	34	16	53	48
Total cash outflows from financing activities	963	1,185	2,368	2,255
Net cash flows from financing activities	(229)	362	1,415	(361)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	2	45	4	37
NET INCREASE IN CASH AND CASH EQUIVALENTS	644	2,040	3,296	2,893
Add: Cash and cash equivalents at beginning of period	9,977	3,306	7,325	2,453
CASH AND CASH EQUIVALENTS AT END OF PERIOD	10,621	5,346	10,621	5,346