Focusing on Key Applications of Advanced Packaging, JCET Growth Accelerated Quarter-on-Quarter in Q3 2023

Q3 2023 Financial Highlights：

Revenue was RMB 8.26 billion, an increase of 30.8% quarter-on-quarter
Net profit was RMB 0.48 billion, an increase of 24% quarter-on-quarter
Earnings per share was RMB 0.26

Q3 YTD 2023 Financial Highlights：

Revenue was RMB 20.43 billion
Net profit was RMB 0.97 billion
Earnings per share was RMB 0.54

SHANGHAI, Oct. 27, 2023 /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 third quarter of 2023. The financial report shows that in the third quarter, JCET achieved revenue of RMB 8.26 billion, an increase of 30.8% quarter-on-quarter, and net profit of RMB 0.48 billion, an increase of 24% quarter-on-quarter.

JCET has focused on key applications of advanced packaging this year, continuously enhancing its overall solution capabilities for application scenarios, optimizing production capacity layout, and further strengthening its leading position in the global IC packaging and test industry.

JCET has achieved innovative breakthroughs in markets such as automotive electronics, 5G communications, high-performance computing (HPC), and wide bandgap power devices. Seizing market opportunities driven by the acceleration of the electric vehicle market, JCET's automotive electronics business has maintained rapid growth. In the first three quarters of this year, the company's automotive electronics revenue increased by 88% year-on-year. In the 5G communications-related market, JCET provided global customers with services in R&D and HVM, further solidifying its leading position in areas including Antenna in Package (AiP) modules, RF power amplifiers (PA), and radio frequency front end (RFFE) modules.

Leveraging high-density heterogeneous SiP technologies and advantageous global production layouts, JCET intensifies its efforts with customers in AI and HPC domains for advanced packaging solutions development and product introductions, accelerating market expansion in high-computation systems, power management, high-performance storage, and smart terminals. In the power semiconductor market, the high-density integration solutions developed by JCET in collaboration with global customers on wide bandgap power devices are widely used in the automotive and industrial energy storage, with ongoing production capacity expansion.

JCET continues to enhance its technological innovation, with R&D investment of RMB 1.08 billion in the first three quarters of 2023, a year-on-year increase of 10.4%. The company continues to promote the construction of high-performance packaging production capacities and upgrade existing factories towards advanced packaging technologies. In addition, JCET improves lean production capabilities, strengthens inventory control and supply chain management, and ensures that the company's operations remain highly efficient.

Mr. Li Zheng, CEO of JCET, said, "In recent years, JCET, by focusing on high-performance advanced packaging technologies, has made breakthrough progress in collaboration with major customers on the high-end chip business and achieved significant quarter-on-quarter growth in performance for the third quarter of this year. The company will seize new opportunities arising from the restructuring of the global industrial chain and will continue to promote the healthy development of IC back-end manufacturing."

Click to view: JCET 2023 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, 2023	Dec 31, 2022
ASSETS
Current assets
Currency funds	4,678	2,459
Trading financial assets	3,611	4,316
Derivative financial assets	0	18
Accounts receivable	4,652	3,689
Receivables financing	96	59
Prepayments	130	110
Other receivables	73	61
Inventories	4,190	3,152
Other current assets	303	279
Total current assets	17,733	14,143
Non-current assets
Long-term receivables	19	40
Long-term equity investments	731	765
Other equity investments	449	440
Investment properties	87	89
Fixed assets	19,035	19,517
Construction in progress	1,076	807
Right-of-use assets	585	578
Intangible assets	640	483
Goodwill	2,278	2,210
Long-term prepaid expenses	20	28
Deferred tax assets	266	247
Other non-current assets	88	61
Total non-current assets	25,274	25,265
Total assets	43,007	39,408

LIABILITIES AND EQUITY	Sep 30, 2023	Dec 31, 2022
Current liabilities
Short-term borrowings	1,721	1,174
Derivative financial liabilities	2	0
Notes payable	162	339
Accounts payable	6,274	4,634
Contract liabilities	203	214
Employee benefits payable	727	984
Taxes and surcharges payable	189	210
Other payables	377	378
Current portion of long-term liabilities	2,468	3,096
Other current liabilities	4	4
Total current liabilities	12,127	11,033
Non-current liabilities
Long-term borrowings	4,027	2,721
Lease liabilities	537	562
Long-term employee benefits payable	12	14
Deferred income	375	340
Deferred tax liabilities	6	40
Other non-current liabilities	51	55
Total non-current liabilities	5,008	3,732
Total liabilities	17,135	14,765
Equity
Paid-in capital	1,789	1,780
Capital reserves	15,316	15,080
Accumulated other comprehensive income	679	400
Specialized reserves	2	0
Surplus reserves	229	229
Unappropriated profit	7,771	7,154
Total equity attributable to owners of the parent	25,786	24,643
Minority shareholders	86	0
Total equity	25,872	24,643
Total liabilities and equity	43,007	39,408

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

	Three months ended		Nine months ended
	Sep 30, 2023	Sep 30, 2022	Sep 30, 2023	Sep 30, 2022
Revenue	8,257	9,184	20,430	24,778
Less: Cost of sales	7,071	7,616	17,596	20,323
Taxes and surcharges	36	26	82	69
Selling expenses	55	45	155	142
Administrative expenses	190	312	536	805
Research and development expenses	413	343	1,082	980
Finance expenses	26	(26)	77	(11)
Including: Interest expenses	84	51	215	143
Interest income	35	5	70	21
Add: Other income	103	55	176	138
Investment income / (loss)	(12)	25	(34)	65
Including: Income / (loss) from investments in associates and joint ventures	(12)	1	(34)	(6)
Gain / (loss) on changes in fair value of financial assets/liabilities	17	(25)	62	(40)
Credit impairment (loss is expressed by "-")	(2)	22	(3)	17
Asset impairment (loss is expressed by "-")	(26)	(61)	(26)	(125)
Gain / (loss) on disposal of assets	5	18	21	41
Operating profit / (loss)	551	902	1,098	2,566
Add: Non-operating income	0	40	3	46
Less: Non-operating expenses	1	0	5	1
Profit / (loss) before income taxes	550	942	1,096	2,611
Less: Income tax expenses	72	33	122	159
Net profit / (loss)	478	909	974	2,452
Classified by continuity of operations
Profit / (loss) from continuing operations	478	909	974	2,452
Classified by ownership
Net profit / (loss) attributable to owners of the parent	478	909	974	2,452
Net profit / (loss) attributable to minority shareholders	0	0	0	0
Add: Unappropriated profit at beginning of period	7,293	5,522	7,154	4,335
Less: Cash dividends declared	0	0	357	356
Unappropriated profit at end of period (attributable to owners of the parent）	7,771	6,431	7,771	6,431
Other comprehensive income, net of tax	(70)	446	280	832
Comprehensive income attributable to owners of the parent	(70)	446	280	832
Comprehensive income not be reclassified to profit or loss	(7)	(14)	10	(14)
Remeasurement gains or losses of a defined benefit plan	0	0	1	0
Change in the fair value of other equity investments	(7)	(14)	9	(14)
Comprehensive income to be reclassified to profit or loss	(63)	460	270	846
Comprehensive income using the equity method that may be reclassified to profit or loss	0	7	0	0
Cash flow hedge reserve	0	(9)	0	(26)
Exchange differences of foreign currency financial statements	(63)	462	270	872
Total comprehensive income	408	1,355	1,254	3,284
Including:
Total comprehensive income attributable to owners of the parent	408	1,355	1,254	3,284
Total comprehensive income attributable to minority shareholders	0	0	0	0
Earnings per share
Basic earnings per share	0.26	0.51	0.54	1.38
Diluted earnings per share	0.26	0.51	0.54	1.38

CONSOLIDATED CASH FLOW STATEMENT (Unaudited)				RMB in millions

	Three months ended		Nine months ended
	Sep 30, 2023	Sep 30, 2022	Sep 30, 2023	Sep 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services	7,574	8,201	20,737	25,200
Receipts of taxes and surcharges refunds	52	126	267	273
Other cash receipts relating to operating activities	126	87	289	218
Total cash inflows from operating activities	7,752	8,414	21,293	25,691
Cash payments for goods and services	5,840	5,534	14,293	17,146
Cash payments to and on behalf of employees	899	948	2,972	3,257
Payments of all types of taxes and surcharges	180	193	646	694
Other cash payments relating to operating activities	221	43	349	214
Total cash outflows from operating activities	7,140	6,718	18,260	21,311
Net cash flows from operating activities	612	1,696	3,033	4,380
CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments	3,601	3,390	11,881	8,550
Cash receipts from investment income	15	17	68	55
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets	99	76	131	110
Net cash receipts from disposal of subsidiaries and other business units	0	3	0	30
Total cash inflows from investing activities	3,715	3,486	12,080	8,745
Cash payments to acquire fixed assets, intangible assets and other long-term assets	845	1,138	2,434	2,688
Cash payments for investments	5,181	4,101	11,161	10,061
Total cash outflows from investing activities	6,026	5,239	13,595	12,749
Net cash flows from investing activities	(2,311)	(1,753)	(1,515)	(4,004)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others	32	0	262	0
Including: Cash receipts from capital contributions from minority shareholders of subsidiaries	0	0	86	0
Cash receipts from borrowings	4,823	1,446	6,487	2,961
Total cash inflows from financing activities	4,855	1,446	6,749	2,961
Cash repayments for debts	3,723	796	5,464	2,530
Cash payments for distribution of dividends or profit and interest expenses	78	405	545	495
Other cash payments relating to financing activities	22	169	69	758
Total cash outflows from financing activities	3,823	1,370	6,078	3,783
Net cash flows from financing activities	1,032	76	671	(822)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(7)	37	30	95
NET INCREASE IN CASH AND CASH EQUIVALENTS	(674)	56	2,219	(351)
Add: Cash and cash equivalents at beginning of period	5,346	2,356	2,453	2,763
CASH AND CASH EQUIVALENTS AT END OF PERIOD	4,672	2,412	4,672	2,412

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