JCET Will Continuously Focus on R&D and Resource Investment, Preparing for Future Market Growth
Q1 2023 Financial Summary:
- Revenue was RMB 5.86 billion.
- Generated RMB 1.23 billion cash from operations. With net capex investments of RMB 0.81 billion, free cash flow for the quarter was RMB 0.42 billion.
- Net profit was RMB 0.11 billion. Earnings per share was RMB 0.06.
SHANGHAI, April 25, 2023 /PRNewswire/ -- JCET Group (SSE: 600584), a leading global provider of integrated circuit (IC) manufacturing and technology services, today announced its financial results for the first quarter of 2023. According to the financial report, in Q1 2023 JCET achieved revenue of RMB 5.86 billion, and net profit of RMB 0.11 billion.
Consumer electronics demand has been weak causing chip companies to accumulate high inventory levels and face increasing market pressure. In order to actively and effectively respond to market changes, JCET continuously invests in high-performance, advanced packaging technology, and in fields with continuously growing demand such as automotive electronics, industrial electronics, and high-performance computing, to prepare for a new round of application demand growth.
In recent years, JCET focused on technology development and has achieved HVM of advanced packaging technologies such as system level (SiP), wafer level, and 2.5D/3D. In Q1 2023, the proportion of advanced packaging revenue in the company's revenue continuously exceeded 60%, becoming the "ballast stone" for the company's development. JCET invested RMB 1.31 billion in R&D in 2022, a year-on-year increase of 10.7%; in the first quarter of this year, R&D investment was RMB 0.31 billion, accounting for 5.3% of revenue. JCET has made breakthroughs in the field of chiplet technology, achieving ultra-large high-density fan-out flip chip heterogeneous integration of multiple chips in packages as large as 102mm x 102mm. It is also supported with a complete set of turnkey services from design to production, providing excellent microsystem integration solutions for high-performance computing applications.
In the field of automotive electronics, the company accelerates the R&D of advanced packaging technologies related to electric vehicles and autonomous driving with high-reliability standards, as well as the development of next-generation power device modules and other products, enhancing the differentiated competitiveness of advanced technologies and services and implementing them at their factories. In Q1 2023, the revenue of automotive electronics continued to grow with a year-on-year increase of 144%.
In 2023, JCET will maintain a reasonable level of growth in total capital expenditure, expanding production capacity to meet customer needs, while actively expanding the company's investment in R&D, infrastructure, technological innovation, and factory automation upgrades.
Mr. Li Zheng, CEO of JCET said, "The combination of several factors has resulted in a sustained downturn in the semiconductor market. Although the short-term performance is under pressure, JCET will continuously adhere to the strategy of promoting international and domestic business, increase investment in cutting-edge technology and resources, and focus on higher-level packaging technologies such as automotive electronic chips and diversified solutions for chiplet. The company will carry out forward-looking infrastructure, R&D, and strategic production capacity expansion, accelerate the product development and market promotion mechanisms centered on intelligent solutions, explore market demand with greater potential for future development, and provide high-quality production technology services to global customers."
For more information, please refer to the JCET Q1 2023 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, six 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 |
||||||
Mar 31, 2023 |
Dec 31, 2022 |
||||||
ASSETS |
|||||||
Current assets |
|||||||
Currency funds |
3,312 |
2,459 |
|||||
Trading financial assets |
3,180 |
4,316 |
|||||
Derivative financial assets |
4 |
18 |
|||||
Accounts receivable |
2,605 |
3,689 |
|||||
Receivables financing |
119 |
59 |
|||||
Prepayments |
132 |
110 |
|||||
Other receivables |
42 |
61 |
|||||
Inventories |
2,636 |
3,152 |
|||||
Other current assets |
276 |
279 |
|||||
Total current assets |
12,306 |
14,143 |
|||||
Non-current assets |
|||||||
Long-term receivables |
39 |
40 |
|||||
Long-term equity investments |
753 |
765 |
|||||
Other equity investments |
450 |
440 |
|||||
Investment properties |
88 |
89 |
|||||
Fixed assets |
19,045 |
19,517 |
|||||
Construction in progress |
897 |
807 |
|||||
Right-of-use assets |
551 |
578 |
|||||
Intangible assets |
477 |
483 |
|||||
Goodwill |
2,181 |
2,210 |
|||||
Long-term prepaid expenses |
25 |
28 |
|||||
Deferred tax assets |
251 |
247 |
|||||
Other non-current assets |
104 |
61 |
|||||
Total non-current assets |
24,861 |
25,265 |
|||||
Total assets |
37,167 |
39,408 |
|||||
LIABILITIES AND EQUITY |
Mar 31, 2023 |
Dec 31, 2022 |
|||||
Current liabilities |
|||||||
Short-term borrowings |
898 |
1,174 |
|||||
Derivative financial liabilities |
7 |
0 |
|||||
Notes payable |
280 |
339 |
|||||
Accounts payable |
3,504 |
4,634 |
|||||
Contract liabilities |
214 |
214 |
|||||
Employee benefits payable |
718 |
984 |
|||||
Taxes and surcharges payable |
196 |
210 |
|||||
Other payables |
377 |
378 |
|||||
Current portion of long-term liabilities |
2,847 |
3,096 |
|||||
Other current liabilities |
4 |
4 |
|||||
Total current liabilities |
9,045 |
11,033 |
|||||
Non-current liabilities |
|||||||
Long-term borrowings |
2,528 |
2,721 |
|||||
Lease liabilities |
529 |
562 |
|||||
Long-term employee benefits payable |
14 |
14 |
|||||
Deferred income |
322 |
340 |
|||||
Deferred tax liabilities |
32 |
40 |
|||||
Other non-current liabilities |
52 |
55 |
|||||
Total non-current liabilities |
3,477 |
3,732 |
|||||
Total liabilities |
12,522 |
14,765 |
|||||
Equity |
|||||||
Paid-in capital |
1,780 |
1,780 |
|||||
Capital reserves |
15,103 |
15,080 |
|||||
Accumulated other comprehensive income |
269 |
400 |
|||||
Surplus reserves |
229 |
229 |
|||||
Unappropriated profit |
7,264 |
7,154 |
|||||
Total equity attributable to owners of the parent |
24,645 |
24,643 |
|||||
Minority shareholders |
0 |
0 |
|||||
Total equity |
24,645 |
24,643 |
|||||
Total liabilities and equity |
37,167 |
39,408 |
|||||
CONSOLIDATED INCOME STATEMENT (Unaudited) |
RMB in millions, except share data |
||||||
Three months ended |
|||||||
Mar 31, 2023 |
Mar 31, 2022 |
||||||
Revenue |
5,860 |
8,138 |
|||||
Less: Cost of sales |
5,166 |
6,599 |
|||||
Taxes and surcharges |
20 |
16 |
|||||
Selling expenses |
49 |
49 |
|||||
Administrative expenses |
171 |
258 |
|||||
Research and development expenses |
309 |
322 |
|||||
Finance expenses |
57 |
23 |
|||||
Including: Interest expenses |
64 |
43 |
|||||
Interest income |
9 |
7 |
|||||
Add: Other income |
32 |
56 |
|||||
Investment income / (loss) |
2 |
12 |
|||||
Including: Income / (loss) from investments in associates and joint ventures |
(12) |
(5) |
|||||
Gain / (loss) on changes in fair value of financial assets/liabilities |
8 |
3 |
|||||
Credit impairment (loss is expressed by "-") |
5 |
(7) |
|||||
Asset impairment (loss is expressed by "-") |
6 |
1 |
|||||
Gain / (loss) on disposal of assets |
3 |
15 |
|||||
Operating profit / (loss) |
144 |
951 |
|||||
Add: Non-operating income |
0 |
5 |
|||||
Less: Non-operating expenses |
3 |
0 |
|||||
Profit / (loss) before income taxes |
141 |
956 |
|||||
Less: Income tax expenses |
31 |
95 |
|||||
Net profit / (loss) |
110 |
861 |
|||||
Classified by continuity of operations |
|||||||
Profit / (loss) from continuing operations |
110 |
861 |
|||||
Classified by ownership |
|||||||
Net profit / (loss) attributable to owners of the parent |
110 |
861 |
|||||
Net profit / (loss) attributable to minority shareholders |
0 |
0 |
|||||
Add: Unappropriated profit at beginning of period |
7,154 |
4,334 |
|||||
Unappropriated profit at end of period (attributable to owners of the parent) |
7,264 |
5,195 |
|||||
Other comprehensive income, net of tax |
(131) |
(32) |
|||||
Comprehensive income attributable to owners of the parent |
(131) |
(32) |
|||||
Comprehensive income not be reclassified to profit or loss |
11 |
0 |
|||||
Remeasurement gains or losses of a defined benefit plan |
1 |
0 |
|||||
Change in the fair value of other equity investments |
10 |
0 |
|||||
Comprehensive income to be reclassified to profit or loss |
(142) |
(32) |
|||||
Cash flow hedge reserve |
0 |
(4) |
|||||
Exchange differences of foreign currency financial statements |
(142) |
(28) |
|||||
Total comprehensive income |
(21) |
829 |
|||||
Including: |
|||||||
Total comprehensive income attributable to owners of the parent |
(21) |
829 |
|||||
Total comprehensive income attributable to minority shareholders |
0 |
0 |
|||||
Earnings per share |
|||||||
Basic earnings per share |
0.06 |
0.48 |
|||||
Diluted earnings per share |
0.06 |
0.48 |
|||||
CONSOLIDATED CASH FLOW STATEMENT (Unaudited) |
RMB in millions |
||||||
Three months ended |
|||||||
Mar 31, 2023 |
Mar 31, 2022 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||||
Cash receipts from the sale of goods and the rendering of services |
6,984 |
8,815 |
|||||
Receipts of taxes and surcharges refunds |
94 |
115 |
|||||
Other cash receipts relating to operating activities |
53 |
70 |
|||||
Total cash inflows from operating activities |
7,131 |
9,000 |
|||||
Cash payments for goods and services |
4,385 |
5,845 |
|||||
Cash payments to and on behalf of employees |
1,194 |
1,249 |
|||||
Payments of all types of taxes and surcharges |
212 |
187 |
|||||
Other cash payments relating to operating activities |
106 |
79 |
|||||
Total cash outflows from operating activities |
5,897 |
7,360 |
|||||
Net cash flows from operating activities |
1,234 |
1,640 |
|||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||||
Cash receipts from returns of investments |
3,930 |
1,000 |
|||||
Cash receipts from investment income |
14 |
6 |
|||||
Net cash receipts from disposal of fixed assets, intangible assets |
26 |
26 |
|||||
Net cash receipts from disposal of subsidiaries and other business units |
0 |
28 |
|||||
Total cash inflows from investing activities |
3,970 |
1,060 |
|||||
Cash payments to acquire fixed assets, intangible assets and other long-term assets |
839 |
899 |
|||||
Cash payments for investments |
2,780 |
1,650 |
|||||
Total cash outflows from investing activities |
3,619 |
2,549 |
|||||
Net cash flows from investing activities |
351 |
(1,489) |
|||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|||||||
Cash receipts from borrowings |
347 |
531 |
|||||
Total cash inflows from financing activities |
347 |
531 |
|||||
Cash repayments for debts |
985 |
746 |
|||||
Cash payments for distribution of dividends or profit and interest expenses |
53 |
42 |
|||||
Including: Dividends or profit paid to non-controlling shareholders of subsidiaries |
0 |
0 |
|||||
Other cash payments relating to financing activities |
33 |
143 |
|||||
Total cash outflows from financing activities |
1,071 |
931 |
|||||
Net cash flows from financing activities |
(724) |
(400) |
|||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
(8) |
(2) |
|||||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
853 |
(251) |
|||||
Add: Cash and cash equivalents at beginning of period |
2,453 |
2,763 |
|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
3,306 |
2,512 |
|||||
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