JCET's Global Manufacturing Strategy Produces Records for Revenue and Profit in Q3

JCET's Global Manufacturing Strategy Produces Records for Revenue and Profit in Q3

PR Newswire

SHANGHAI, Oct. 30, 2020

Q3 2020 Financial Highlights:

Note: During the reporting period, we optimized the business model for the purchase and sale of certain packaged products, of which JCET Group no longer bears the general inventory risk on the main raw materials. In accordance with PRC GAAP, both revenue and costs of goods sold were recorded on the net basis and decreased by RMB 1.05 billion respectively. This change had no impact on the company's net profit. Assuming that revenue was still recognized by the gross method (should be recorded on the net basis according to PRC GAAP), it would be RMB 7.84 billion, an increase of 11.2% over the same period last year.

 

SHANGHAI, Oct. 30, 2020 /PRNewswire/ -- JCET Group Co., Ltd. (Shanghai Stock Exchange code: 600584), a world leading provider of semiconductor microsystem integration packaging and testing services announced financial results for the third quarter 2020, ended September 30, 2020. Revenue was RMB 6.79 billion and net profit was RMB 0.40 billion, showing steady revenue growth and continued improvement in profitability. JCET has achieved revenue of RMB 18.76 billion and net profit of RMB 0.76 billion through the first three quarters, both representing record highs for the company.

JCET has continued to grow its strategic partnerships with global industry leading semiconductor manufacturers by accelerating the growth of high volume production capacity of advanced assembly and test processes and engaging in robust market strategies. These initiatives have led to improvements in key financial metrics.

Mr. Li Zheng, Chief Executive Officer of JCET Group, said, "By expanding the integration of the resources in each of our worldwide operations, we have accelerated the growth of our production capacity for devices designed for key applications in the 5G, high-performance computing and high-end storage markets. Additionally, the technical services capabilities of each of our global factories have been enhanced significantly due to the continued improvements driven by our company's world-class management team."

Ms. Janet Chou, Chief Financial Officer of JCET Group, said, "With strong execution and operational discipline, JCET delivered record profit in the third quarter of 2020. We remain committed to driving profitable growth and cash generation. Given the improved liquidity position and healthier balance sheet, we will continue to invest in critical technologies to strengthen our core competencies."

About JCET Group: 

JCET Group is a leading global semiconductor system integration packaging and test 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














As of

ASSETS






Sep 30, 2020


Dec 31, 2019

Current assets









  Currency funds






2,248


2,569

  Derivative financial assets






3


4

  Accounts receivable






3,851


3,350

  Receivables financing






85


68

  Prepayments






201


188

  Other receivables






11


11

  Inventories






3,138


2,731

  Current portion of non-current assets






56


137

  Other current assets






194


501

Total current assets






9,787


9,559

Non-current assets









  Long-term receivables






30


40

  Long-term equity investments






941


972

  Other equity investments






491


517

  Investment properties






97


100

  Fixed assets






17,970


17,799

  Construction in progress






1,176


1,664

  Intangible assets






556


587

  Goodwill






2,159


2,214

  Long-term prepaid expenses






0


1

  Deferred tax assets






124


128

  Other non-current assets






1


1

Total non-current assets






23,545


24,023

Total assets






33,332


33,582


 

CONSOLIDATED BALANCE SHEET (CONTINUED) (Unaudited)


RMB in millions














As of

LIABILITIES AND EQUITY 






Sep 30, 2020


Dec 31, 2019

Current liabilities









  Short-term borrowings






5,797


9,098

  Derivative financial liabilities






42


161

  Notes payable






487


958

  Accounts payable






5,212


4,618

  Receipts in advance






0


113

  Contract liabilities






30


0

  Employee benefits payable






777


586

  Taxes and surcharges payable






116


53

  Other payables






217


235

  Current portion of long-term liabilities






2,510


1,827

Total current liabilities






15,188


17,649

Non-current liabilities









  Long-term borrowings






2,680


1,585

  Bonds payable






1,022


0

  Long-term payables






714


1,216

  Long-term employee benefits payable






2


1

  Deferred income






365


337

  Deferred tax liabilities






158


156

Total non-current liabilities






4,941


3,295

Total liabilities






20,129


20,944

Equity









  Paid-in capital






1,603


1,603

  Surplus reserves






10,242


10,242

  Accumulated other comprehensive income






232


429

  Specialized reserves






122


122

  Unappropriated profit






994


231

Total equity attributable to owners of the parent






13,193


12,627

Minority shareholders






10


11

Total equity






13,203


12,638

Total liabilities and equity






33,332


33,582

 


 

CONSOLIDATED INCOME STATEMENT (Unaudited)



RMB in millions, except share data








Three months ended


Nine months ended



Sep 30, 2020


Sep 30, 2019


Sep 30, 2020


Sep 30, 2019

Revenue


6,787


7,047


18,763


16,196

Less: Cost of sales


5,631


6,209


15,863


14,507

           Taxes and surcharges


11


9


28


26

           Selling expenses


59


71


175


199

           Administrative expenses


252


265


687


814

           Research and development expenses


277


227


768


576

           Finance expenses


179


223


482


657

            Including: Interest expenses


131


220


433


589

                            Interest income


12


7


31


20

Add: Other income


17


31


97


217

          Investment income / (loss)


(1)


5


(8)


1

            Including: Income / (loss) from investments in a
ssociates and joint ventures


(1)


5


(8)


2

          Gain / (loss) on the net position hedging


6


0


1


0

          Gain / (loss) on changes in fair value of financial assets


28


0


28


0

          Credit impairment (loss is expressed by "-")


(1)


2


(7)


(6)

          Asset impairment (loss is expressed by "-")


0


(1)


(25)


(15)

          Gain / (loss) on disposal of assets


33


7


42


14

Operating profit / (loss)


460


87


888


(372)

Add: Non-operating income


3


0


3


1

Less: Non-operating expenses


10


0


18


4

Profit / (loss) before income taxes


453


87


873


(375)

Less: Income tax expenses


55


10


108


(194)

Net profit / (loss)


398


77


765


(181)

Classified by continuity of operations









  Profit / (loss) from continuing operations


398


77


765


(181)

Classified by ownership









  Net profit / (loss) attributable to owners of the parent


398


77


764


(182)

  Net profit / (loss) attributable to minority shareholders


0


0


1


1

Add: Unappropriated profit at beginning of period


598


(116)


231


143

Less: Other reductions


2


0


2


0

Unappropriated profit at end of period (attributable to owners

of the parent)


994


(39)


994


(39)


 

 

CONSOLIDATED INCOME STATEMENT (CONTINUED) (Unaudited) 


RMB in millions, except share data








Three months ended


Nine months ended



Sep 30, 2020


Sep 30, 2019


Sep 30, 2020


Sep 30, 2019

Other comprehensive income, net of tax


(354)


241


(197)


199

Comprehensive income attributable to owners of the parent


(354)


241


(197)


199

Comprehensive income not be reclassified to profit or loss


(10)


0


(10)


0

  Change in the fair value of other equity investments


(10)


0


(10)


0

Comprehensive income to be reclassified to profit or loss


(344)


241


(187)


199

  Comprehensive income using the equity method


0


0


0


0

  Cash flow hedge reserve


(1)


(1)


1


4

  Exchange differences of foreign currency financial statements


(343)


242


(188)


195

Total comprehensive income


42


318


567


18

  Including:









     Total comprehensive income attributable to owners of the
parent


42


318


566


17

     Total comprehensive income attributable to minority
shareholders


0


0


1


1

Earnings per share









  Basic earnings per share


0.25


0.05


0.48


(0.11)

  Diluted earnings per share


0.25


0.05


0.48


(0.11)


 

 

CONSOLIDATED CASH FLOW STATEMENT (Unaudited)




RMB in millions








Three months ended


Nine months ended



Sep 30, 2020


Sep 30, 2019


Sep 30, 2020


Sep 30, 2019

CASH FLOWS FROM OPERATING ACTIVITIES









Cash receipts from the sale of goods and the rendering of services


6,468


6,695


19,360


16,651

Receipts of taxes and surcharges refunds


105


139


528


297

Other cash receipts relating to operating activities


244


69


767


277

Total cash inflows from operating activities


6,817


6,903


20,655


17,225

Cash payments for goods and services


4,241


5,200


13,584


12,376

Cash payments to and on behalf of employees


856


911


2,644


2,699

Payments of all types of taxes and surcharges


81


173


313


411

Other cash payments relating to operating activities


159


74


482


377

Total cash outflows from operating activities


5,337


6,358


17,023


15,863

Net cash flows from operating activities


1,480


545


3,632


1,362

CASH FLOWS FROM INVESTING ACTIVITIES









Cash receipts from returns of investments


6


37


6


103

Cash receipts from investment income


0


2


0


2

Net cash receipts from disposal of fixed assets, intangible assets
and other long-term assets


38


30


65


45

Other cash receipts relating to investing activities


0


0


0


20

Total cash inflows from investing activities


44


69


71


170

Cash payments to acquire fixed assets, intangible assets and other
long-term assets


726


627


2,062


2,157

Total cash outflows from investing activities


726


627


2,062


2,157

Net cash flows from investing activities


(682)


(558)


(1,991)


(1,987)


 

 

CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) (Unaudited)




RMB in millions








Three months ended


Nine months ended



Sep 30, 2020


Sep 30, 2019


Sep 30, 2020


Sep 30, 2019

CASH FLOWS FROM FINANCING ACTIVITIES









Cash receipts from borrowings


1,418


2,350


9,950


10,843

Other cash receipts relating to financing activities


0


1,103


0


1,880

Total cash inflows from financing activities


1,418


3,453


9,950


12,723

Cash repayments for debts


2,311


3,407


10,452


12,613

Cash payments for distribution of dividends or profit and interest
expenses


120


232


425


669

Other cash payments relating to financing activities


206


51


491


766

Total cash outflows from financing activities


2,637


3,690


11,368


14,048

Net cash flows from financing activities


(1,219)


(237)


(1,418)


(1,325)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS


(48)


37


(33)


43

NET INCREASE IN CASH AND CASH EQUIVALENTS


(469)


(213)


190


(1,907)

Add: Cash and cash equivalents at beginning of period


2,525


2,512


1,866


4,206

CASH AND CASH EQUIVALENTS AT END OF PERIOD


2,056


2,299


2,056


2,299

 

 

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